Archive for April, 2007

Wall Street 2.0?

Tuesday, April 24th, 2007

 

Glocer in front of Media Futures

Tom Glocer,  CEO of Reuters, stands in front of  Media Futures at the Open Data Conference in NY

And so, what does exhibitionism have to do with Wall Street?

How does the voyueristic behavior of 20-somethings relate to the commission decisions of hedge fund masters of the universe?

Traditionally, very little.

Or at least we weren’t aware of these connections.  Now, however, the advent of personal surveillance technologies has begun to popularize processes that up until now have been unavailable to individuals.

This resonates with a comment that Reuters CEO Tom Glocer made at the Open Data Conference.  It was the night before the conference, over dinner, that Glocer gave his perspective on the evolution of "open data" in the context of financial services. 

He told a story about the transformation of individual data points into market data.  Surprisingly, he didn’t start with a traditional financial services firm, like Reuters, but rather with an individual Schwab customer.

This retail trader, by virtue of her decision as to what to buy or sell and at what price, is the most granular actor in the price discovery machine.  As Glocer told the story, the online retail investor was the proverbial butterfly flapping its wings in Hawaii causing hurricanes in China.  Her only action was to trade a stock in her 401K account online; but unbeknownst to her, Schwab took this trading data, along with that of all of the other individual retail investors, and established a higher level trend.  This process reverberated up through larger institutional brokers like Goldman Sachs and ultimately exchanges like the NYSE.   At each step up in aggregation and abstraction, significant economic value was extracted.  Although this individual’s behavior is too volatile in and of itself to offer much in the way of trend analysis, this does not mean that her behavior is worthless.

This is the foundation of Wall Street 2.0:  the individual data producer is beginning to wake up to the economic value she is creating.

This economic value had in the past been appropriated by those aggregating up the data from above.   Our electronic behavior, whether it be querying a search engine, clicking on an ad, checking out a stock, or trading a share, is generating value for other people that are in a position to aggregate and sell this information to institutions, who in turn transform it into some other form that ends up getting sold back to individuals.   Alchemy… to… Arbitrage.  This is nothing new.  What is new, however, is the extent to which our behavioral trails are no longer hidden, but are instead now available to us via various modes of personal Attention services, also known as myware.   This is the window that Open Data flows through:

Open data is to media what open source is to technology. Open data is an approach to content creation that explicitly recognizes the value of implicit user data. The internet is the first medium to give a voice to the attention that people pay to it. Successful open data companies listen for and amplify the rich data that their audiences produce.

Web Alchemy, Josh Harris & Justin.TV

Monday, April 16th, 2007

Seth Encaustic Alchemy

Web Alchemy

Exactly two years ago, in April 2005, I wrote the first chapter on Alchemy in the Media Futures series.  Over the course of history, Alchemy always promised more than it could deliver.  But it was this promise that captured the imagination of people and drew their Attention to the very impossibility of turning “base metal into gold.”

Painting of Leo Brunin the Alchemist

As it relates to the contemporary Web landscape, Alchemy represents the promise of automatic personalized media creation.  It is the nuclear fission of intersecting Web 2.0 services.  "Maybe, just maybe, if I go to Web 2.0 Expo I will find that one service that that connects me most fully?"  This is the process of extreme triangulation that we- maybe without even knowing- are trying to achieve every moment that we use the Internet to express ourselves.

The process is not new.  But its reception is.

When Josh Harris broadcast his life in real-time on weliveinpublic.org in 2000, it was received as strange exhibitionism in SoHo.  He and his girlfriend Tanya Corin went online in a Warhol art-house kind of way.  It wasn’t clear what exactly Josh was trying to prove, but like many I was fascinated by the embedded cameras he installed in the Turkish-style bath.

On Day 93, long after Tanya walked out and Josh had left it to brokers to sell the 4000 sf+ loft on lower Broadway, a recently arrived journalist who needed a place to crash ended up minding after the apt while it was being shown to potential buyers.  All the surveillance gear was very much in place and there was a working live control room where all the cameras flowed into, as well as the external chatter from those across the community grabbing these streams.  This writer describes what it was like to be there during these last days:

I am doing laundry all the next day, sitting alone, and I learn how to take advantage of the chatters. After all, I am a visitor in the house of a man I do not know. But they, they’ve lived here for a while… I ask them if Harris allows people to smoke in the loft. I ask if they know where an iron is. In one particularly surreal moment, I realize I have lost my keys. I enter the chat room and ask if anybody happens to see where I might have left them. One guy tells me to check my pockets. And there they were.
From The Cyber House Rules

Eight years ago when he wrote this, we had a different attitude towards pervasive surveillance than we have today.   Now, as American Idol, YouTube, Twitter and countless other social media phenomena would attest, the quickest road to celebrity is via one’s willingness to become-  physically or behaviorally- naked.

Justin TV

And so, how then to describe the performance of Justin.TV?  His omnipresent camera cylinder to the left of his perspective is like the pen-above-the-ear of a great investigative journalist- Dustin Hoffman as Carl Bernstein in All the Presidents Men.

Hoffman as Bernstein

Despite his camera, Justin doesn’t care about coming off as a disinterested reporter.  There is no longer even a pretense that the subject drives the interview.  Maybe it’s wrong to think of it as an interview at all.  The  recording instruments are so integrated and obvious that everybody Justin comes into contact with gets their own live studio audience.  This shifts the lens of narcissism from Justin to his audience, making him seem almost, well, selfless.

Michael Goldhaber recently defined a "star" as:

(When an attent typically has many audients, thus taking in more net attention than paying out, that person is of course a STAR.  )

On the Internet, this is based in large part on one’s ability to express oneself openly, across multiple networks.  For example, in addition to the live video feed and community chat, Justin makes it easy for us to connect to him via shared social networks:

Justin.TV Media Modes

Justin wants people to pay close Attention to his stream and comment on his blog. This is exactly how stars enrapture their fans:  engaging them in production of the very stardom they wish to worship.  There is a significant difference between celebrity in the first Internet cycle and now.  It is not the tools that matter, since many of them have not changed dramatically, but a growing responsibility that more and more of us feel to express our unique, authentic selves online.

Justin.TV, like Tia Tequila of MySpace, Reid Hoffman of LinkedIn, Mark Zukerberg of Facebook and Fred Wilson of Typepad, inspire us to be all that we can be online- to open up our API and let the data flow.   

This is the Summer of Love, 40 years later transposed onto the Web.

 

Media Futures 2007: 4/5, Alchemy: History

Sunday, April 8th, 2007

The History of Alchemy

Practiced in civilizations across the world from ancient times up through the 19th century, the early proto-scientific and philosophical discipline of alchemy is most widely understood as the quest to achieve the transmutation of base metals into the precious metals of gold or silver, as well as the creation of a panacea, which promised to cure all disease, rendering immortality a fate not only reserved for the gods. Taking the commonality of properties of the known metals (gold, silver, iron, copper, tin, lead and mercury) as evidence of a commonality of composition, alchemists operated on the assumption that they might somehow correct the composition of the base metal, rendering it pure gold. To do so, they needed the philosopher’s stone, or the elixir, which would speed up that process of transmutation which, occurring naturally underground, would require the passage of thousands of years.

Breughel Alchemist

We might imagine the history of alchemy as a curious double-helix, its Eastern and Western strands decidedly separate but linked by certain commonalities. The Eastern strand of the history of alchemy finds its root in China, where alchemy was closely linked with the pursuit of health through traditional Taoist forms of medicine (specifically Acupuncture and Moxibustion, a therapy that uses mugwort herb to stimulate the circulation of blood through warm regions of the body and key acupuncture points). In that it was not so much concerned with the transmutation of base metals to previous metals, Chinese alchemy stood apart from its Western cousin, but it had its own version of the Philosopher’s Stone, which they called the Grand Elixir of Immortality.

Chinese Alchemy

But it is Egypt that promises to remain immortal when it comes to the discussion of the history of alchemy, its position of privilege perhaps embedded in the word alchemy itself. The etymology of the word is contested, traced to the Arabic al-kīmiya or al-khīmiya, meaning “cast together”, “pour together” or “weld”, as well as to the Persian Kimia, meaning “gold.” Others, though, read al- kīmiya as “the Egyptian [science]”, having been borrowed from the Copic word for “Egypt”, or kēme, which is itself derived from a chain that leads back to the ancient Egyptian term for the color black and the country of Egypt itself, kmt.

Egypt Alchemy

It is the god Thoth (also referred to as Hermes-Thoth) to whom mythology attributes the honor of being the founder of Egyptian mythology. It his forty-two Books of Knowledge, Thoth wrote in part on alchemy, but it is his Emerald Tablet, preserved Greek and Arabic translations, that is said to form a critical foundation in the alchemy of the West. Like Thoth’s Emerald Tablet, the only works of Egyptian alchemy available today have survived through such Greek and Arabic translations. As the Macedonians conquered Egypt in the 4th century, so came Greek language and culture in tow – and any Egyptian writings on alchemical philosophy and practice were likely burned as a part of Diocletian’s attempts to suppress a 292 revolt in Alexandria, that center of knowledge which figured so prominently in our histories of Automata and Algorithm.

There in Alexandria, the Greeks brought their philosophies of Pythagoreanism, Ionianism and Gnosticism together with the Egyptian hermetic philosophy, the principle tenet of which is called the macrocosm-microcosm belief: “in truth certainly and without doubt, whatever is below is like that which is above, and whatever is above is like that which is below, to accomplish the miracles of one thing.” That central belief, that the exterior world, or the macrocosm, affects the human body, or the microcosm, interacted with the belief that numbers rule the universe, that the universe could be explained by examining natural phenomena and that the world was created in a flawed manner, thereby rendering it imperfect (Pythagoreanism, Ionianism and Gnosticism, respectively, and grossly oversimplified) to create a tradition that left us with the idea that everything in the universe was formed from the elements earth, air, water and fire.

Diagram Alchemy

As the Greeks adopted Egyptian alchemical knowledge and traditions, so adopted the Romans the knowledge and traditions of the Greeks. But Christianity then swept through the empire, bringing Christian philosophies, and particularly those of Augustine, into contention with Hermetic ideals. Augustine believed experimental philosophy to be evil and ungodly, maintaining people could understand God through reason and faith. Augustine’s philosophies were in turn used to argue that alchemy was evil and ungodly. But alchemy already had its niche in the Christian tradition, grandfathered in by Greek and Roman culture. As medieval Europe saw Christian philosophers challenge Augustinian doctrine, its alchemists worked from the contributions from the Islamic world, which became the premier stage for scientific and alchemical development after the fall of Rome.

Islamic alchemists were responsible for the technique of distillation; they discovered sulfuric, hydrochloric and nitric acids – and, perhaps most importantly, that the latter two could be mixed together and used to dissolve gold, the noblest of metals. The philosopher Jabir Ibn Hayyan, referred to in English as Geber, remains one of the most influential writers in the history of alchemy, for it was he who sought after the artificial creation of life in the laboratory. He described the elements in terms of their hotness, coldness, dryness and moistness – qualities which could be altered in the laboratory and rearranged, thus resulting in a new metal. He thus introduced the search for the philosopher’s stone, a central thrust of the Western alchemical tradition.

Arab Alchemy

Though many philosophized about alchemy in the early stages of the millennium, some historians argue that the first alchemical experimentation in medieval Europe did not occur until the 13th century, when Roger Bacon is said to have brought on the search for the elixir of life. Bacon’s contributions to science were widespread: in addition to his work in alchemy, he analyzed convex glasses and lenses, invented spectacles, theorized about the telescope and, lest we forget, created the talking head automaton.

Bacon’s European contemporaries were to a great extent members of the clergy, those who had access to and the education to read the world’s assembled alchemical oeuvre. As the 13th century drew to a close, there was an established architecture of alchemical belief, including the aforementioned macrocosm-microcosm theories, the four elements and the four qualities. But most importantly, these Christian alchemists believed that their art could reunite man and God – for if man’s soul had been divided with Adam’s fall, so could the separate parts be purified and brought together again. These philosophies would be struck down in the next century, with the edict of Pope John XXII against alchemy removing clergymen from its practice.

The alchemy of the next three hundred years was thus one of a much different character. Alchemists returned their efforts to the search for the philosopher’s stone and the elixir of youth, and influential figures like Nicolas Flamel and Heinrich Cornelius Agrippa contributed to a major shift in the classification of the art – namely, alchemy went from being characterized as a mystical philosophy to that of an occultist magic. This shift set alchemy up to be struck down by the thinkers of the Age of Reason, who favored rigorous experimentation over such seeds of ancient wisdom. The prescient Paracelsus, perhaps the most important alchemist during the Renaissance, had perceived the occultist label a threat to the alchemical arts as a whole, and as such, he pushed back, casting some occultist threads and Gnostic philosophies out of his alchemical fabric, choosing to focus his efforts on using chemicals and minerals in medicine to achieve a healthy balance in human bodies. But the work of Paracelsus could still not overcome all that occultist image carried with it, all the fallout created by the charlatans and cons who promised transmutation but produced trash.

Paracelsus Alchemy

We might read the intentions of the earliest alchemists as the same as those of the Internet alchemists of today: above all else, the these alchemists concern themselves with the study of changes in the material world and how they might be able to harness the power of these changes for their own purpose and benefit. These solitary materials scientists, mixing various elements together to render their combinations far more valuable than the sums of their parts, set the stage for the Internet alchemists of today, who, in harnessing the power of the changes of Internet media and create entities which are far more valuable.

This alchemy takes place in large part in the act of naming – a company, an index, a domain, a category, a database class – for in that move to name, the Internet alchemist creates something far more than simply a representation of some external object or idea.

Mylius Alchemy



Thanks to Maggie Dillon for helping with this research