Cloud Clarity vs. Shadow Banking

CAN THE BURGEONING INTEGRATED FABRICS OF WEB 3.0 HELP GENERATE A BROAD, SUPER-RESILIENT TRANSPARENCY THAT SAVES INT’L BANKING SYSTEMS?

The United States is facing what some experts are calling an “economic perfect storm“, with historical economists worrying about symptoms and reactions “not seen since the Great Depression”. Resources (natural and financial) are increasingly scarce, strained by tight credit markets and by competition from major emerging economies (China and India), and food prices are soaring.

One of the most serious aspects of the current crisis is tied to the widening deficit in the credibility of major financial institutions. The New York Times, for instance, is reporting:

The Federal Reserve not only [has taken] action unprecedented since the Great Depression — by lending money directly to major investment banks — but also has put taxpayers on the hook for billions of dollars in questionable trades these same bankers made when the good times were rolling.

“Bear Stearns has made it obvious that things have gone too far,” says Mr. Gross, who plans to use some of his cash to bargain-shop. “The investment community has morphed into something beyond banks and something beyond regulation. We call it the shadow banking system.”

The lesson may be that we have a problem of endemic manipulations, permitted by current regulatory and technological standards. What if it were possible to build into international banking institutions —including but not limited to the manner and volume of transactions engaged in by investment banks— a transparency-insuring mechanism based on the dispersed computing power of an integrated web-based “cloud” matrix?

While a primary function of Web 3.0 must be the innovative enhancement of privacy safeguards, it should become increasingly possible to create broad-spectrum data-screening aggregator applications that allow for the creation of a banking process safeguard fabric. Multiple unique and even competing software analysis platforms could work on the same expansive datasets to help prevent dangerous overdependence on excessively volatile market trends.

Web 3.0 Must Make Information More Free, the Individual More Autonomous

We are on the verge of a major communications and global economic revolution, in which major media, technological advances, cloud computing and dispersed optimization, adapt to and take over new models for living and producing in human society. The New Scientist magazine reports in its March 15-21, 2008 edition that “web 3.0 will be about making information less free”.

We must, as end-users, content creators, innovators and even pioneers in media and technology, consider that for very serious and transcendent reasons, this cannot be permitted to become true. Web 3.0 must be liberating, and it must expand, not shrink the freedom of information that stems from the First Amendment to the US Constitution, free and open society in general, a free press specifically, and the Internet’s empowerment of the individual.

If we are to be a global society, or a “globalized” society, if we are to have a planetary consciousness, or benefit from the “village” dynamic inherent in global trade and telecommunications, then we must ensure that individual freedoms are not limited by global media powers or by governments who think there is something expedient about limiting media freedoms. When freedom of information is restricted, human beings suffer, in real terms, and economic vitality is slowed and economic resilience damaged.

Technology is the great economic immune system for industrial and post-industrial societies. It breeds competition, innovation, the expansion of learning and individual potential, opportunity and social mobility, and it spurs the exploration of new directions in thought and production. Information technology is helping to create a global fabric of human ideas, individuals and broader societies, interwoven in a complex web of shared and competing interests and shared and competing freedoms.

The mass convergence of new media, established media, commercial activity, personal communications, event planning and vital services (such as medical, financial, travel and utility), poses an obvious threat to the freedom of individuals to remain unmonitored or unexposed to new risks and new controls. But information serves us best when it is free, when it is untainted by powerful interests, when it moves where it needs to move, finding its level like water.

People move toward information and information moves toward people, in ways that cannot be calculated from a media conglomerate’s boardroom, and which, for better or for worse, do not parallel anyone’s particular bottom-line. Yet major telecoms are planning to stratify web-speeds for paying media giants, and advertisers are looking to recruit bloggers to create specialized information which actually functions like a covert advertisement.

Segmenting the web further by charging for the permission to let end-users access your servers via the highest bandwidth is a direct assault on media freedoms and access to information. It is also an attempt to ensure that most web traffic ensures at least 3 separate payments to the telecom for a single event. This attack on Net Neutrality —tied to the basic freedom of the press— runs contrary to the real promise of Web 3.0 and media hyper-convergence.

Deceptive or manipulative advertising formats are not inherently an attack on web freedoms, but they do pose a threat to the equality of access individuals may have to quality information as such. This means consumers may actually opt to create or to frequent services that shy away from those practices, which may in many cases be closed services or “gated communities” that provide their audience with a self-image of privilege, though their main function would be to limit the flow of information.

Cloudscape Computing: the Dispersed Matrix as ‘Infinite’ Computing Platform

As the web moves into a more mature stage of its adolescence, the beginnings of an all-media platform, computing has begun to move to the “cloud” format. Cloudscape computing means that software, files, private accounts and processing power are dispersed over an extensive array of machines across the world.

“The Cloud” is the world wide web, and the nature of cloudscape computing can provide significant, if surprising, returns in security and accessibility. Dispersing, via dedicated encryption, the bits that compose a given file over an array of servers, with some redundancy, can make it more difficult to hack into any actual file or file storage device.

And, where cloudscape storage and computing come into play, there is a genuine motivation for large organizations, or for the pressures of the vast consumer and advertising marketplace, to push for ever more accessibility (wirelessly, in mobile telephony) to online material, which could have a positive effect both in fomenting further innovation, broadening the array of services available and bringing prices down.

Cloudscape computing does have its shortcomings, or its risk areas, but all in all, it is one of the commercial practices most likely to push into new terrain in mobile and wireless web access. With that, however, comes the serious means of market control it may lend to web-based software giants like Google. As always, the freedom of content access, generation and distribution is a paramount concern.

The real change of dynamic in computing connection time and browsing tendencies, comes with the types of services that can be made available by way of dispersed or distributed document and database hosting. More dynamic websites, more graphic-intense visual content, higher processing speeds, software applications that require zero installation and zero hard-disk space, accessible-from-anywhere desktop publishing suites and content-management technologies, are just a few.

Cloudscape computing requires a level of impeccability in encryption and programming that goes beyond what has been required in consumer computing to date. But this demand is also a challenge that will help promote new exploration of the potential benefits of more complex, more flexible, more resilient encryption paradigms.

We will only begin to see real benefits of distributed computing capacity, for the average end-user, when instant document-transfer encryption stands have advanced far beyond what we now enjoy, layered and impromptu in ways that will require one or two orders of magnitude more processing speed (and bandwidth) than is now commonly available.

Hyper-convergence: the Coming State of Media Arts & Services

HOW TV, INTERNET, TELECOMMUNICATIONS, RFID & COMMERCIAL SERVICES WILL CONVERGE TO CREATE NEW SOCIAL SPHERE, SECURITY RISKS

For some time, we have heard speculation that the user-centered logic of the Internet medium will persuade old-guard media powers to embrace the model, and we will see a convergence of online, print, radio and televisual media, in one integrated system. Media integration will likely go far beyond that, so security has to be the watchword as technology invades personal space and our attempts at a ‘pursuit of happiness’.

At present, the movement favoring net neutrality —or equal access to online content— may be the segment of media markets and public consciousness most aware of the issue and its implications for the nature and quality of information and information access. Net neutrality is the premise that connection providers should not be permitted to take any actions that influence users’ access to online information or content providers’ access to the public.

Cable companies and ISPs are seeking the power to charge for a stratified web-traffic format, where those who pay a special fee will be granted higher degrees of bandwidth not available to any other content providers or customers, even though they already charge for connection and connection speed at both ends of the service. This is what convergence should not be, if it is to benefit consumers and favor the free press.

Hyper-convergence is a term that seeks to explain the integration of a broad array of services and personal information management tools into the multimedia web. It refers to the blurring of the barriers between online activity and real-world effects, which will present major security concerns.

New technologies can make hyper-convergence into a landmark moment for consumers and can increase access for many to events, information and resources that might otherwise be more difficult to access. But they can also increase in dramatic ways the risk to which we subject sensitive personal data.

RFID —Radio Frequency IDentification— is one of the most controversial and well-debated new technologies whose implementation could both expand the scope of hyper-convergence in powerful ways and also subject the individual to unnecessary and ill-advised long-term risk of identity-theft or fraud.

RFID-enabled smart chips can help integrate products, services, personal information and personal space, into a fluid information environment, but plans to implement global networks of “broadcasting” or “active” RFID chips means that one may all-too-quickly let slip sensitive personal information, without technological standards catching up to the severe exigencies of this new security risk.

Biometric data is another, related problem area. Touted as a security enhancement measure, the implementation of even narrowly-construed, isolated biometric readings, poses a major, lifelong personal security risk for the individual.

Unlike a Social Security number, a signature, an account number or a credit card, an iris pattern, a fingerprint, one’s genome, blood-type and facial structure —all of which various biometric security scanning systems propose to read or sample for ID purposes—, cannot be changed. And if they could be, it would present a major security risk for the system attempting to enhance its security by such means, because of the presumption that the use of such information is inherently safer.

Permitting one’s private biological data to propagate across an online network, or into state-run databanks, or databanks run by multinational firms, is to surrender a part of one’s identity, for all time, to the idiosyncracies and shortcomings of the system, at which one must take into serious consideration the supposed value of a potential commercial or procedural convenience.

But services and media are combining, and that makes sense. The logic of synthesis shows that connecting ideas, fields of study, geographical locations, cultural oddities, people and access to information, increases understanding and breeds a more fluid social reality. TV, Internet, mail, messaging, voice communication and purchasing processes, will increasingly combine to blur the line between virtual and lived-in physical space.

The challenge will be building systems that allow the individual to maintain all existing freedoms and natural barriers against fraud and identity theft, while facilitating access to that ever broader range of media and services.

Hyper-convergence of Media & Services Necessitates New Paradigm for Securing Personal Data

Crisis Policy Forum :: The potential for broad-scope “electronic agents” —preprogrammed service aggregators and self-organizing databases with proactive marketing capability—, aiding in everyday information-related activities, will require a new security standard to prevent identity theft, which could become one of the gravest threats to economic performance and individual liberty.

Digital IDs will have to be maintained through unbreakable private information management systems, entirely parallel to and separate from the information actually sent, which will behave as a single identifying set of characteristics for a given internet user, when ID is called for.

Individuals will be able to use a complex array of mental-reference data, unique to personal knowledge, to block hackers’ access to the actual management system itself, which will allow users to take instant corrective-protective action in case of hacked or apparently compromised online IDs.

The main purpose of this service would be to achieve security of personal data by securely matching real personal data with an official, singular digital ID, containing none of the real ID data. Thus, there would exist an impenetrable barrier (semantic separation) between sensitive personal ID data and the malicious intent of those who may seek to misuse it.

RFID Technology, Privacy & Individual Liberties

The field of Radio-Frequency IDentification is rapidly expanding, with new applications being proposed for security, commercial distribution, and tracking of goods, information and individuals, on a constant basis. The US government has proposed requiring that all new passports carry RFID chips, either for efficiency, ease of use or for security, though none of these is clearly enhanced without a massive technological upgrade, across the world.

Standard RFID chips are “passive” at present, meaning they do not carry a power supply and “emit” information only when contacted and activated by a chip-reading device, at which point they emit a low-intensity radio signal readable at only a few feet or a few meters at most. The obvious security risk is that contact with the document itself (in the case of passports or ID cards) would not, in theory, be necessary, leaving hackers with a golden opportunity to get at information that would normally be readable only by direct contact, human eyesight or ink-pattern scanning technology (such as bar-codes).

So there is a serious question about whether RFID might actually increase the security risk inherent in personal identity documents, or put specific groups in jeopardy, if it can be discerned that their common RFID technology is detectable, no matter how secure. For instance, there are x number of Americans in that establishment, or people who have paid for such and such a special security pass. This is a serious concern and obviously must be resolved before the technology can be safely implemented for use by the general public.

But there are other privacy-related concerns as well: for instance, the same businesses that use RFID to track their inventory could adjust or enhance the technology to be able to interact with other objects in your home. For some people, this may be seen as beneficial, but the potential for aggregating mass amounts of intimate information about an individuals habits, possessions, and spending, poses new problems for how to secure that data and ensure against any potential misuse.

If RFID has any sort of viable (read: secure and with no negative impact on individual liberty or privacy) application, then it is likely that whole new sorts of information securing and management systems will need to be developed that give consumers enhanced control of all data related to themselves and their personal activities, that might filter its way out onto the world wide web, in one way or another, and the laws requiring protection of personal data are likely to become far more demanding and severe.

• Sentido.tv: “RFID TECHNOLOGY WILL BRING PERSONAL SPACE, TASTES UNDER CONSTANT SCRUTINY BY ANONYMOUS WATCHERS”
• Wired: “Microchips Everywhere: a Future Vision”
• Sentido.tv: “DATA SHADOWS & IMPROBABLE CONSENT”