S/MIME is, like, so last century

[Dave Birch] I was preparing a presentation that included a couple of remarks about generational issues when it comes to privacy: what Bill Dutton of the Oxford Internet Institute called more “nuanced and textured” views of privacy. This led me back to an article I’d read noting teenagers generally don’t think twice about including their first names and photos on their personal online profiles, but most refrain from using full names or making their profiles fully public, which I now understand more fully after hearing listening to Bill. This and similar news reports were linked to a survey from The Pew Internet and American Life Project which found that two-thirds of teenagers using social networking have restricted access to their profiles in some fashion, such as by requiring passwords or making them available only to friends on an approved list. Social networking sites, such as MySpace and Facebook (or, indeed Linkedin) have responded by offering users more controls over how much they make public and warning them about revealing too much. So perhaps the next generation are not ignoring privacy, but dealing with it in a new way. After all, only 1 in 50 puts their mobile phone number online. Although four-fifths put their photo online and more girls than boys do so. I’m no expert (as may be evident) but they presumably don’t see their image as a private part of their identity and, also presumably, want control over it by posting an image that they choose, that is under their control.

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Gold opportunity

[Dave Birch] I’ve written before about commodity currency and, while I don’t particularly see why gold should be the focus of such initiatives in the modern world, there’s no doubt that its allure is unwavering in some territories and cultures. A specific example that I’ve previously discussed in many different contexts, is the idea of creating an electronic gold currency to serve the Islamic e-finance world. This has certainly been kicking around for a while (the Gulf States have been discussing a single currency and it’s virtual equivalent, the e-Dinar, for some time) and it was only a matter of time before an implementation arrived. Well, a Malaysian start-up has done it and entered the fray with C-gold, a digital gold-back currency that has already started to gain acceptance. It works in a similar way to e-gold but is apparently going to develop a physical world presence as well, with stores (presumably to “top-up”) as well as mobile integration and so forth. The DGC blog’s comment is very positive

What I considered so unique to c-gold is their over-the-counter bailment’s and redemptions. This operation is handled at brick and mortar locations. Verified, account holders simply drop off a bar and pick up a bar when funding or redeeming their digital account. There is NO surcharge or extra fees for this operation. Bars are also shipped worldwide and the service is fast Nice!

Given that the minimum bailment is 1Kg, you won’t be popping in and out much but I assume that once people are confident that their C-gold can be redeemed on demand for real gold, then they won’t bother with the real stuff. I also noted the comments about transparency, which I think is essential to getting something like this into the mainstrea. For C-gold you can see their daily holdings right down to the bar mark and number from the web site.

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Man vs. Machine

[Dave Birch] An NIST report shows that machines can out-perform humans at face recognition under certain circumstances. The FRVT 2006, for the first time, integrated measuring human face recognition capability into an evaluation of face recognition technologies and the performance of humans and computers was compared on the same set of images. The experiment found that algorithms are capable of human performance levels, and that at false accept rates in the range of 0.05, machines can out-perform humans. Note also that one of the reports findings is that the performance iris, face and 3D face is comparable when all three biometrics are acquired under controlled illumination (my italics). Much to the joy of the Bouncer’s Union, however, it seems that machines are unlikely to replace nightclub doormen any time soon.

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Building the utility

[Dave Birch] In his presentation to EEMA, my colleague Neil McEvoy calls for the creation of an identity utility, to be used by government, business and individuals alike. Neil mentions that the NFC-equipped mobile phone could be the critical device to make this a reality, because the mobile phone can act as both the identity provider and the identity consumer. So will there be enough mobile phones, and will enough of them have NFC, to make this a realistic vision? Well, in many countries (eg, the U.K), mobile penetration is already over 100%. Nokia alone sold 348 million handsets last year. There are nearly half a billion mobile phone users in China. 49 million handsets were shipped in Japan last year. ABI Research forecasts that by 2012, some 292 million handsets (more than 20% of the global mobile handset market) will ship with built-in near-field-communications capabilities.

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Rushing in

[Dave Birch] There’s an identity-related debate going on about data sharing by government. I don’t mean to take sides on it, except to note that I would prefer to see a more technologically-informed debate, especially around the sharing of biometric data. I was making some notes about this in a data protection context and thought I would mention that the EU’s Data Protection Supervisor (a Mr. Peter Hustinx) has been saying that EU governments risk violating the protection of their citizen’s personal data by acting hastily in approving the use of biometrics because it was “rushing in a new era” of using biometric identifiers for security checks while standards for data protection were still not clear. In particular, he warned against cross-linking national biometric databases and he said that Europe needs standardised procedures for collecting biometric data as well as common rules and safeguards for the use of the sensitive information.

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Once and future debit

[Dave Birch] I noticed there have been a few stories about debit cards in the press recently, primarily because it is the 20th anniversary of the introduction of the debit card in the U.K. (the Barclays’ Connect Visa-branded debit card in 1987). APACS put together a nice collection of debit facts, including:

  • There are 41 million debit card holders in the UK today (84 per cent of the adult population) compared with 27.8 million in 1996;
  • There are 68 million debit cards in circulation today, compared with just 19 million debit cards in 1990, three years after their launch;
  • Britons made 4.5 billion purchases in 2006 – the equivalent of 143 purchases every second – and spent £194.9 billion on their debit cards, five times the amount we spent in 1996;
  • In 2006, each of us with a debit card used it 166 times on average – making £4,799 worth of purchases and acquiring £3,848 in cash;
  • In 1987 only 38 per cent of UK adults had a plastic card – and this would have been a credit card. Today, 84 per cent (41 million) of UK adults have a debit card;
  • By 2011 personal spending on debit cards will have overtaken cash;
  • By 2016, spending on debit cards will have doubled to over £400 billion.

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Economics 1.01

[Dave Birch] Using a reasonable model, the global RMT (real money trade) market looks to be around $2 billion, which implies a virtual GDP of around $27 billion. Note that this is significantly greater than the GDP of many countries. In fact, according the World Bank, it puts the virtual realm somewhere between Lithuania and Sri Lanka. Not, let me repeat, in terms of GDP per head but in terms of absolute GDP in 2006. About twice the size of Iceland, in economic terms.

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Meanwhile, back in the real world

[Dave Birch] This story about bus ticket machines going down Down Under may seem of tangential relevance to identity cards, but look at the details. According to the story, bus ticket machines are breaking down an average of 12 times a day, giving passengers free rides and robbing taxpayers of thousands of dollars in revenue. The figures, revealed in Freedom of Information documents, also cast doubt on the replacement smart card system, which drivers claim breaks down more than the current ticket machines – even causing at least one accident. The real cost of loss in revenue is unknown as the Government relies on the ticket machines to provide patronage and fare data. The biggest cause of ticketing machines being out of order was faulty software, followed by printer malfunctions, and breakdowns in electrical and mechanical components.

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Don’t do as I do

[Dave Birch] After 140 years, the Dutch central bank has closed its last cash outlets. From now on, the money couriers in the Netherlands must all drive to either a bank money center or to Amsterdam (to deposit cash). But as is pointed out by the astute Linkdump, it’s odd that banks in, for example, Maastricht cannot deposit their euros in nearby Aachen or Brussels. This is apparently not allowed by the central banks. Meanwhile, electronic payments are governed by SEPA and have to work cross-border as they would domestically. So the central banks that are moaning about banks not making sufficient progress in harmonising European payments are unwilling to harmonise their own cash handling because of the potential job losses. It’s a funny old Europe.

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PET subject

[Dave Birch] The European Commission are in favour of PETs. Not the furry (or even scaly) ones, but our favourite kind: Privacy Enhancing Technologies. They are in favour of them because they (correctly) think that the deployment of PETs might do more protect privacy and implement real data protection. If implemented properly, as I have long maintained, they mean that mathematics rather than ombudsmen would ensure compliance! They make a superficially reasonable point about deployment, arguing that PETs should be implemented inside a regulatory framework — Article 13 of the Data Protection Directive and Article 15 of the ePrivacy Directive, apparently — that can deliver (negotiable) levels of privacy to individuals. I’m not so sure about that. I think it’s better to make the PETs widely available and easy to use and then let the market take over: I’m not sure what regulation adds in this case. The Commission says that it has been promoting the use of PETs by public authorities, and I’m sure we all agree that that’s a good thing.

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