The next Internet will be built on identity

[Dave Birch] I’ve been think about a recent Guardian Unlimited article that began by posing the big question: how do you cut online crime, tackle child pornography, halt crippling viruses and get rid of spam? The article then goes on to talk about a couple of research projects: researchers in the US want at least $350m (£175m) to build the Global Environment for Network Innovations (Geni) and in Europe, similar projects are under way as part of the EU’s Future and Internet Research (Fire) programme, which is expected to cost at least £27m. While this will undoubtedly be money well spent, I think that Jonathan Zittrain, professor of internet governance and regulation at the Oxford Internet Institute, cuts to the core of the issues with his comment:

There’s a real need to have better identity management, to declare your age and to know that when you’re talking to, say, Barclays bank, that you’re really doing so.

The backers of Geni are hoping that it can find answers to problems like this. It is supported by America’s National Science Foundation and has a timescale of 10-15 years. Hhhmmm. Dipankar Raychaudhuri, a professor at Rutgers University in New York, says

Once you’ve built something as large and complex as the internet it is difficult to start over again.

Quite, but do we really need to?

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Money 3.0

[Dave Birch] Well I suppose I should get with on with some work, but I’ve been distracted by thinking about something else and could use some feedback. I’m preparing a presentation on the history of the technology of money, and I’ve come up with a caegorisation which seems to work, but because I made it up I’m not sure if it has any resonance. Essentially, I need to divide the history of the technology of money in three (because things always get divided into three for this sort of thing) and make some points about the dynamics with each “segment”. So here goes.

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These are the personal opinions of Consult Hyperion and its guests and should not be misunderstood as representing the opinion of its clients or suppliers. To discuss how any of the technologies discussed in this post can benefit your business, please contact Consult Hyperion.

The 800ln gorilla in the digital identity room

[Dave Birch] If you are in the U.K. and interested in identity, it’s difficult to stay away from the subject of the national identity card, especially now that procurement is about to begin. Today I was thinking about audit. The head of the Identity and Passport Service (IPS) recently said in an online webchat on the Downing Street website that most uses of the ID card will probably not involve accessing the NIR and would therefore not create an audit trail. He means “an audit trail in a central government database” because, of course, your identity card is perfectly capable of recording who has asked it for what. If you want to go home and put your ID card into your Sky box and see on the TV who interrogated your card, then you should be able to. This is quite distinct from the issue of the central audit trail, which cannot possibly work in a transparent manner. If you log on to the IPS website to see who’s been looking at your personal details, and it tells you that the police or MI5 have, then you might take that as a sign to leave the country. Perhaps as a practical experiment the government should let non-celebrity status people see who has been accessing their children’s personal details on the ContactPoint identity register for the under-16s and see how it goes.

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International e-finance

[Dave Birch] I’m going to be chairing the E-Finance & Payments Law & Policy two day E-Finance Intensive on 5th and 6th November 2007 at the Grange City Hotel, 8-14 Coopers Row, London, EC3N 2BD (some of you may remember this as the fine hotel we used for the Digital Money Forum earlier this year). The event will look at the key regulatory, policy and legal challenges facing today’s payment professionals and will focus on all sorts of areas of interest ranging from prepaid and money transfer to SEPA and the PSD. Speakers include Lady Olga Maitland from IAMTN, Robert Caplehorn from PayPal, William Long from Sidley Austin LLP (editor of the fine E-Finance & Payments Law & Policy newsletter), Chris Reddish from Mastercard, Michael Salmony from EQUENS and many more. I’m very much looking forward to it, both because I think it’s useful for technologists and business persons to get a better picture of the regulatory landscape (especially because of SEPA) but also because I want to help the lawyers and regulators to get a better picture of the technological realities in the payments world. See you there.

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These are the personal opinions of Consult Hyperion and its guests and should not be misunderstood as representing the opinion of its clients or suppliers. To discuss how any of the technologies discussed in this post can benefit your business, please contact Consult Hyperion.

Another lesson on the real identity risks

[Dave Birch] Identity theft is a pretty sensitive issue, especially when the identity of children is the issue. So when a hospital laptop containing information on about 11,000 young children is stolen you expect a bit of a fuss. Similarly, when a
bank customer adviser was jailed for four years for helping identity thieves steal £2.3 million from accounts, the newspapers were bound to report it. In this latter case, apparently, the BBC’s former world affairs correspondent Rageh Omar had a narrow escape when a telephone caller posing as him, and armed with confidential information, tried to access his Barclays account. The caller was thwarted by a suspicious branch manager (not, you might note, by a neural network or strong authentication. When your personal data is stolen and passed to thieves by government employees who are supposed to be working for you, you’re bound to be upset. Of course, if you put your own personal information up on MySpace, Bebo and Facebook then you’ve only got yourself to blame.

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These are the personal opinions of Consult Hyperion and its guests and should not be misunderstood as representing the opinion of its clients or suppliers. To discuss how any of the technologies discussed in this post can benefit your business, please contact Consult Hyperion.

Cash on the net

[Dave Birch] Back in March 2006, BT Click and Buy became ClickandBuy. ClickandBuy Europe is wholly owned by FirstGate Holding which is why some people still call it FirstGate, the name of the original German payment service, rather than ClickandBuy but anyway. You’ll remember that ClickandBuy was a sort of virtual chargecard, letting consumers choose whether to pay using their bank account, credit card or a BT phone bill. ClickandBuy was awarded an FSA e-money licence in November 2006. They then added an e-money service around the end of last year so that consumers could load their wallets with stored value, funding it from other cards. As of today, customers can now load their e-money wallet using cash. Next year they plan to introduce stored value person-to-person. Why bother with capturing cash? Well, ClickandBuy quote some pretty recent research showing that almost half of UK consumers (15+) don’t have a credit card and a third don’t have a debit card, which means that there are plenty of people out there unable to take advantage of the convenience and lower prices of buying online. You can load your ClickandBuy wallet with cash by going to any retailer that has payzone, the wholly-owned Alphyra retail payment network, which has nearly 30,000 locations in the U.K. I’ll give it a try and report back.

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These are the personal opinions of Consult Hyperion and its guests and should not be misunderstood as representing the opinion of its clients or suppliers. To discuss how any of the technologies discussed in this post can benefit your business, please contact Consult Hyperion.

Anchoring the reputation economy

[Dave Birch] A very pleasant evening out at Mobile Monday in London talking about digital identity in the mobile world was made even more pleasant because Ajit was on the expert panel with me. He made a couple of points about reputation that deserved further discussion but there wasn’t time. He reminded me that Colin at Bankwatch had pointed me to this quote: “Somebody who has carved violins all his life should have more editing power than me on Wikipedia’s Stradivarius page”. A couple of months ago (but I can’t remember exactly when), I heard one of the founders of Wikipedia, Jimmy Wales, being interviewed on the BBC and he was talking about the viability (from my perspective, the desirability) of an economy founded on pseudonyms and reputation. He made complete sense, as did Ajit. I’m coming round to the view that this should be one of the expert panel topics for the forthcoming Digital Identity Forum in London on November 20th/21st.

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Online payments

[Dave Birch] I was involved in a discussion yesterday about young persons’ use of financial services. Thinking about payments, I remembered that our good friends at Payments News ran a Facebook poll on online payment choices amongst young persons. It basically came down to around a third credit card, a third debit card and a third Paypal (within the bounds of statistical error). They point out that it’s no surprise that the debit card is most favored among this age group, but also remark on how PayPal’s showing is also especially strong. New entrant Google Checkout barely moves the needle in this particular survey and almost no one likes to pay by providing their checking account details (also known as eCheck).

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These are the personal opinions of Consult Hyperion and its guests and should not be misunderstood as representing the opinion of its clients or suppliers. To discuss how any of the technologies discussed in this post can benefit your business, please contact Consult Hyperion.

Some central issues

[Dave Birch] A number of people are pointing at an article (published by IDATE, Institut de l’Audiovisuel et des Télécommunications en Europe) by Forum friend and leading European payments scholar Leo van Hove. In essence, the article states that central banks should place greater emphasis on improving the efficiency of retail payments and less on protecting their own self interest. I’ve been fortunate enough to have had sometime over the weekend to read Leo’s article. I focused on the first section about the social cost of cash and some associated issues. If you’re the sort of person who reads blogs on digital money (!) you really should read it all.

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These are the personal opinions of Consult Hyperion and its guests and should not be misunderstood as representing the opinion of its clients or suppliers. To discuss how any of the technologies discussed in this post can benefit your business, please contact Consult Hyperion.

Peter Brown, Pensive

[Dave Birch] This week’s podcast features Peter Brown. Peter, based in Vienna, is co-chairman of the e-government standards group set up by the European standardisation body CEN. Here he talks about the public sector approach to interoperability, crucial to the use of digital identity on a large scale, and uses the “Austrian model” to highlight some ideas in that field.

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These are the personal opinions of Consult Hyperion and its guests and should not be misunderstood as representing the opinion of its clients or suppliers. To discuss how any of the technologies discussed in this post can benefit your business, please contact Consult Hyperion.