web of trust

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pages: 302 words: 82,233

Beautiful security by Andy Oram, John Viega

Albert Einstein, Amazon Web Services, business intelligence, business process, call centre, cloud computing, corporate governance, credit crunch, crowdsourcing, defense in depth, Donald Davies, en.wikipedia.org, fault tolerance, Firefox, loose coupling, Marc Andreessen, market design, MITM: man-in-the-middle, Monroe Doctrine, new economy, Nicholas Carr, Nick Leeson, Norbert Wiener, optical character recognition, packet switching, peer-to-peer, performance metric, pirate software, Robert Bork, Search for Extraterrestrial Intelligence, security theater, SETI@home, Silicon Valley, Skype, software as a service, statistical model, Steven Levy, The Wisdom of Crowds, Upton Sinclair, web application, web of trust, zero day, Zimmermann PGP

Neal McBurnett (see “References” on page 129) analyzed the network structure of the Web of Trust digraph. He examined the digraph for path lengths, connectedness, degree of scale, and other features. 128 CHAPTER SEVEN Mark Reiter and Stuart Stubblebine created PATHSERVER (see “References” below), a way to evaluate multiple signature paths between keys. These analyses are inspired by the Web of Trust and derive from the Web of Trust, but we must note that they are orthogonal to the Web of Trust proper. It is an integral feature of the Web of Trust that it consists of viewpoints; it may be considered relativistic, in that no frame of reference in the Web of Trust is inherently more valuable or trusted than any other. The trust portion of the Web of Trust relies completely on the user-specific trust markings and the weights that the key holder places on keys.

. • Sal is signed by two dangling keys, which represent people unconnected to your Web of Trust. We can now distinguish those two easy-to-confuse concepts of validity and trust another way: using the figure. Validity is a quality of a node (circle), whereas trust is a quality of the edges going between nodes. It is through the trust paths that we determine validity. Rough Edges in the Original Web of Trust The basic Web of Trust in early versions of PGP works very well as a cumulative trust system. However, there are a number of architectural and semantic rough edges in it. We fixed these rough edges in later versions of PGP, but we will review them here first. Supervalidity In Figure 7-1, Fran is a special key, in that she has a score of four: two from being signed by you and two from being signed by Eli. The Web of Trust makes no allowance for supervalid keys, yet intuitively there should be something special about Fran.

This underlines the point made when we defined trust at the beginning of this chapter: Web of Trust trust is a specialized trust limited to the sphere of validating keys, not a real-world trust. Nonetheless, signing someone’s key can be a very personal decision. Many people feel very strongly about it. Part of the strength of the Web of Trust is that this personal touch is part of PGP’s zeitgeist. But it can also be a weakness that something so very simple—stating that you believe someone is who they claim to be—can become so emotionally charged. That’s why the xkcd comic strip in Figure 7-2† is funny. For many people, certifying a key is an intensely personal thing. FIGURE 7-2. Responsible behavior A related emergent property of the Web of Trust is that key signatures acquire a cachet. They become like autographs, and develop social value.

pages: 398 words: 120,801

Little Brother by Cory Doctorow

airport security, Bayesian statistics, Berlin Wall, citizen journalism, Firefox, game design, Golden Gate Park, Haight Ashbury, Internet Archive, Isaac Newton, Jane Jacobs, Jeff Bezos, mail merge, Mitch Kapor, MITM: man-in-the-middle, RFID, Sand Hill Road, Silicon Valley, slashdot, Steve Jobs, Steve Wozniak, Thomas Bayes, web of trust, zero day

> You sure they're looking for us? In response I sent him to the quiz. > OMG we're doomed > No it's not that bad but we need to figure out who we can trust > How? > That's what I wanted to ask you -- how many people can you totally vouch for like trust them to the ends of the earth? > Um 20 or 30 or so > I want to get a bunch of really trustworthy people together and do a key-exchange web of trust thing Web of trust is one of those cool crypto things that I'd read about but never tried. It was a nearly foolproof way to make sure that you could talk to the people you trusted, but that no one else could listen in. The problem is that it requires you to physically meet with the people in the web at least once, just to get started. > I get it sure. That's not bad. But how you going to get everyone together for the key-signing?

These are exactly what they sound like: a party where everyone gets together and signs everyone else's keys. Darryl and I, when we traded keys, that was kind of a mini-keysigning party, one with only two sad and geeky attendees. But with more people, you create the seed of the web of trust, and the web can expand from there. As everyone on your keyring goes out into the world and meets more people, they can add more and more names to the ring. You don't have to meet the new people, just trust that the signed key you get from the people in your web is valid. So that's why web of trust and parties go together like peanut butter and chocolate. # "Just tell them it's a super-private party, invitational only," I said. "Tell them not to bring anyone along or they won't be admitted." Jolu looked at me over his coffee. "You're joking, right?

If it's really easy for anyone to know what your real key is, man-in-the-middle gets harder and harder. But you know what? Making things well-known is just as hard as keeping them secret. Think about it -- how many billions of dollars are spent on shampoo ads and other crap, just to make sure that as many people know about something that some advertiser wants them to know? There's a cheaper way of fixing man-in-the-middle: the web of trust. Say that before you leave HQ, you and your bosses sit down over coffee and actually tell each other your keys. No more man-in-the-middle! You're absolutely certain whose keys you have, because they were put into your own hands. So far, so good. But there's a natural limit to this: how many people can you physically meet with and swap keys? How many hours in the day do you want to devote to the equivalent of writing your own phone book?

Smart Mobs: The Next Social Revolution by Howard Rheingold

A Pattern Language, augmented reality, barriers to entry, battle of ideas, Brewster Kahle, Burning Man, business climate, citizen journalism, computer vision, conceptual framework, creative destruction, Douglas Engelbart, Douglas Engelbart, experimental economics, experimental subject, Extropian, Hacker Ethic, Hedy Lamarr / George Antheil, Howard Rheingold, invention of the telephone, inventory management, John Markoff, John von Neumann, Joi Ito, Joseph Schumpeter, Kevin Kelly, Metcalfe's law, Metcalfe’s law, more computing power than Apollo, New Urbanism, Norbert Wiener, packet switching, Panopticon Jeremy Bentham, pattern recognition, peer-to-peer, peer-to-peer model, pez dispenser, planetary scale, pre–internet, prisoner's dilemma, RAND corporation, recommendation engine, Renaissance Technologies, RFID, Richard Stallman, Robert Metcalfe, Robert X Cringely, Ronald Coase, Search for Extraterrestrial Intelligence, SETI@home, sharing economy, Silicon Valley, skunkworks, slashdot, social intelligence, spectrum auction, Steven Levy, Stewart Brand, the scientific method, transaction costs, ultimatum game, urban planning, web of trust, Whole Earth Review, zero-sum game

A very few contributors even make a living at it, yet hundreds continue to provide evaluations of thousands of products and services. If you can use it and pay for it, you can find an Epinion about it. Members can rate each review as “Highly Recommended,” “Recommended,” “Somewhat Recommended, or “Not Recommended.” Members can click a button next to the name of an Epinionator and add him or her to a personal “web of trust.” People who trust each other inherit each other’s webs of trust. Although webs of trust are an official feature of Epinions, the first web of mistrust appeared spontaneously, created by a user. Epinions continuously publishes updated ratings for the community to see. This feature is mentioned by some habitual users who joke about their prolific contributions as a compulsion: “I am addicted to a drug called Epinions. I have to keep going back for more,” one of the top-rated Epinionators confessed on a message board.”14 Instant social approval can be intoxicating.

eBay, dominant survivor of the e-commerce bubble, uses a reputation system to facilitate billions of dollars worth of transactions for people who don’t know each other and who live in different parts of the world. Epinions pays contributors of the most popular online reviews of books, movies, appliances, restaurants, and thousands of other items. Epinions’s reputation system enables people to rate reviewers and to rate other raters through “webs of trust.” The most trusted reviewers are read by more people and therefore make more money. Slashdot and other self-organized online forums enable participants to rate the postings of other participants in discussions, causing the best writing to rise in prominence and most objectionable postings to sink. Amazon’s online recommendation system tells customers about books and records bought by people whose tastes are similar to their own.

Ringo launched in July 1994 and grew to more than 2,000 users by September. The MIT researchers started a company named Firefly to commercialize Ringo and sold it to Microsoft in 1998. Microsoft eventually implemented its own version of Firefly’s “digital passport” technology.2 Ringo turned out to be the progenitor of an evolutionary lineage. Finding new books, movies, or music is a popular pursuit, but it represents only one form of the myriad webs of trust that support markets, scientific enterprises, businesses, and communities. Consider the history of online knowledge-sharing economies. One of the most seductive aspects of social cyberspace is the way virtual communities share useful information. I remember how excited I became in the 1980s, when the never-ending “Experts on the Well” discussion inspired people in the Well, a virtual community of a few thousand, to compete for the honor of providing the fastest and most accurate answers online to questions posed by other members of the community.3 This custom is more sophisticated than automated word-of-mouth systems like Ringo because it requires each human recommender to keep in mind many other people’s intellectual preferences, gleaned solely from online conversations.

pages: 159 words: 42,401

Snowden's Box: Trust in the Age of Surveillance by Jessica Bruder, Dale Maharidge

anti-communist, Bay Area Rapid Transit, Berlin Wall, blockchain, Broken windows theory, Burning Man, cashless society, Chelsea Manning, citizen journalism, computer vision, crowdsourcing, Donald Trump, Edward Snowden, Elon Musk, Ferguson, Missouri, Filter Bubble, Firefox, Internet of things, Jeff Bezos, Julian Assange, license plate recognition, Mark Zuckerberg, mass incarceration, medical malpractice, Occupy movement, off grid, pattern recognition, Peter Thiel, Robert Bork, Shoshana Zuboff, Silicon Valley, Skype, social graph, Steven Levy, Tim Cook: Apple, web of trust, WikiLeaks

After all, it was clear from the Freedom of the Press website — where Micah had posted his fingerprint — that he and Laura were colleagues. On top of that, Micah seemed trustworthy. His public key had been vouched for by some of the most respected figures in the world of digital privacy. That made it a reliable node in the crowdsourced, decentralized verification system that encryption users call a “web of trust.” It’s easy to go down a rabbit hole when you’re talking about how to build trust in the digital world. That’s why so much writing about blockchain is inscrutable. But the basic principle behind using a web of trust to leverage credibility is simple. In an online article explaining why it’s so important, Henk Penning, a developer at Utrecht University, arrived at a conclusion that would please fans of The Matrix. He wrote: What can I trust, ultimately? The short answer is nothing. For the ultra-skeptics, there is no hope

p. 72 Snowden had seen The Program and read what Greenwald had written about her in Salon: Maass, “How Laura Poitras Helped Snowden Spill His Secrets.” pp. 72–3 “The surveillance you’ve experienced means you’ve been selected”: Poitras, Citizenfour, 4:22–5:06. p. 73 DARKDIAMOND for Laura and SILVERSHOT for Micah: Poitras, Astro Noise, 101. p. 73 COPPERCOMET for Greenwald: Edward Snowden to Laura Poitras in an encrypted email on April 21, 2013. pp. 73–4 Henk Penning on trust: “On the Apache.org Web of Trust,” WebCite, webcitation.org. p. 76 “Whatever they were doing was sensitive”: Lee, “Ed Snowden Taught Me to Smuggle Secrets.” pp. 76–7 “confirm that no one has ever had a copy of your private key”: Poitras, Citizenfour, 1:19–1:27. p. 80 Lindsay Mills: Paul Lewis, “Edward Snowden’s Girlfriend Lindsay Mills: At the Moment I Feel Alone,” Guardian, June 11, 2013. 4. American Amnesia p. 83 “Power concedes nothing without a demand”: Frederick Douglass, “West India Emancipation” speech at Canandaigua, New York, August 3, 1857.

Linux Security Cookbook by Daniel J. Barrett, Richard E. Silverman, Robert G. Byrnes

Debian, GnuPG, MITM: man-in-the-middle, web of trust

Before using a public key to encrypt sensitive data to send to someone, make sure that the key actually belongs to that person! GnuPG allows keys to be signed, indicating that the signer vouches for the key. It also lets you control how much you trust others to vouch for keys (called "trust management"). When you consider the interconnections between keys and signatures, as users vouch for keys of users who vouch for keys, this interconnected graph is called a web of trust . To participate in this web, try to collect signatures on your GnuPG key from widely trusted people within particular communities of interest, thereby enabling your key to be trusted automatically by others. Public-key methods are also the basis for digital signatures : extra information attached to a digital document as evidence that a particular person created it, or has seen and agreed to it, much as a pen-and-ink signature does with a paper document.

gpg: There is no indication that the signature belongs to the owner. A keyserver does absolutely nothing to assure the ownership of keys. Anyone can add a key to a keyserver, at any time, with any name whatsoever. A keyserver is only a convenient way to share keys and their associated certificates; all responsibility for checking keys against identities rests with you, the GnuPG user, employing the normal GnuPG web-of-trust techniques. To trust a given key K, either you must trust K directly, or you must trust another key which has signed K, and thus whose owner (recursively) trusts K. The ultimate way to verify a key is to check its fingerprint with the key owner directly. [Recipe 7.9] If you need to verify a key and do not have a chain of previously verified and trusted keys leading to it, then anything you do to verify it involving only computers has some degree of uncertainty; it's just a question of how paranoid you are and how sure you want to be.

But the more smartly selected checks you make, the more independent servers and systems an attacker would have to subvert in order to trick youand thus the less likely it is that such an attack has actually occurred. This process will also merge new signatures into an existing key on your key ring, if any are available from the keyserver. 7.21.4 See Also For more information on the web of trust, visit http://webber.dewinter.com/gnupg_howto/english/GPGMiniHowto-1.html. Recipe 7.22 Revoking a Key 7.22.1 Problem You want to inform a keyserver that a particular public key (of yours) is no longer valid. 7.22.2 Solution Create a revocation certificate: $ gpg --gen-revoke --output certificate.asc key_id Import the certificate: $ gpg --import certificate.asc Revoke the key at the keyserver: $ gpg --keyserver server_name --send-keys key_id Delete the key (optional) $ gpg --delete-secret-and-public-key key_id THINK CAREFULLY BEFORE DELETING A KEY.

The Orbital Perspective: Lessons in Seeing the Big Picture From a Journey of 71 Million Miles by Astronaut Ron Garan, Muhammad Yunus

Airbnb, barriers to entry, book scanning, Buckminster Fuller, clean water, corporate social responsibility, crowdsourcing, global village, Google Earth, Indoor air pollution, jimmy wales, low earth orbit, optical character recognition, ride hailing / ride sharing, shareholder value, Silicon Valley, Skype, smart transportation, Stephen Hawking, transaction costs, Turing test, Uber for X, web of trust

Moreover, if we tie all M a ss Coll a bo r at io n â•…  147 these developments in mass collaboration with better accountability, through pay-for-performance models and the improved data feedback made possible by the widespread use of inexpensive sensors, we can see vast improvements in the effectiveness of development work worldwide. In the next and final chapter, we will look at what significance and opportunities these collaborative capabilities present for the trajectory of our global community. This page intentionally left blank Conclusion A Web of Trust Like the U.S.–╉Russian space program that led up to it, the planning and construction of the International Space Station required the partners involved to overcome some unique challenges. The collaboration brought together fifteen nations with different bureaucratic and political processes and differing national objectives and interests, geographically separated on three continents. Many key personnel didn’t share a common language or culture, and there were complexities related to intellectual property issues.

Trust-based communities may be best suited for some challenges, whereas passive collaborative platforms may appropriately address others. Whether or not you believe that it is possible to develop real trust-filled relationships online, I think it’s reasonable to consider Willow Brugh’s view: “I think we are able to open the door to build trust more quickly and to be more aware and accepting through online interaction. I think we’re also able—╉and this is the key point—╉to expand the web of trust, where I might not trust you directly but I have met someone that you know and trust them explicitly, and therefore I’ll trust you as well.” I am really fascinated by this possibility, and we have only begun to scratch the surface of what’s possible when we connect seven billion problem solvers—╉and then connect those problem solvers with needed data and tools. Unity Node The long voyage to the creation of the International Space Station that began with the U.S.

Chapter 9: Mass Collaboration 1.╇ Discussions took place at an “unconference” to help coordinate disaster and crisis response, called Crisis Camp. Panelists included Phil Dixon and Jeff Martin from Google, Jeremy Johnstone from Yahoo, and Patrick Svenburg from Microsoft, with Greg Elin from the Sunlight Foundation moderating. 2.╇ Luis von Ahn, “Massive-Scale Online Collaboration.” Filmed April 2011. TED video, 16:39. http://www.ted.com/talks/luis_von_ahn_massive _scale_online_collaboration?language=en. Conclusion: A Web of Trust 1.╇ Carl Sagan, Pale Blue Dot: A Vision of the Human Future in Space (New York: Random House, 1994), 7. 2.╇ Founding members of Impact CoLab are Ron Garan, Elyse David, Krishan Arora, Ness Knight, Daria Musk, Dan Cook, and Ali Llewellyn. 3.╇ Star Harbor Space Training Academy is a project conducted through Space Development Ventures. The founding CEO is Maraia Hoffman and founding members include Shubham Garg, Tim Bailey, Alan Ladwig, Robert Ward, Jacob Hockett, Luis Marquez, and retired astronauts Leland Melvin and Ron Garan.

pages: 398 words: 107,788

Coding Freedom: The Ethics and Aesthetics of Hacking by E. Gabriella Coleman

activist lawyer, Benjamin Mako Hill, commoditize, crowdsourcing, Debian, Donald Knuth, dumpster diving, en.wikipedia.org, financial independence, ghettoisation, GnuPG, Hacker Ethic, informal economy, Jacob Appelbaum, Jaron Lanier, Jason Scott: textfiles.com, Jean Tirole, knowledge economy, laissez-faire capitalism, Larry Wall, Louis Pasteur, means of production, Paul Graham, peer-to-peer, pirate software, popular electronics, RFC: Request For Comment, Richard Stallman, rolodex, Ronald Reagan, Silicon Valley, Silicon Valley startup, slashdot, software patent, software studies, Steve Ballmer, Steven Levy, Ted Nelson, The Hackers Conference, the scientific method, The Structural Transformation of the Public Sphere, web application, web of trust

A remarkable accomplishment for someone who’s been with the project this long, but not so surprising for someone whom no other developer has, as far as I can tell, ever claimed to have met in person.21 When it became clear that Miller, who occupied a crucial technical position in the project at that time, was outside the web of trust, there was such alarm that within three days, two developers drove to meet the individual in question and succeeded in bringing him into the cryptographic network. The developers’ strong reactions demonstrated the essential nature of these infrequent face-to-face interactions and significance of verifying the identity of one of their technical guardians. Integration into Debian’s web of trust is thus a vital first step in new maintainers’ integration into the Debian project. This process connects and leads into the second and often most rigorous part of the NMP: philosophy and procedures.

Having traded and verified this information, developers later place their unique cryptographic signature on each other’s keys to confirm to others that they have connected the key being signed with the individual in possession of those identity documents. This is a process of identity verification that can then be used over the Internet to confirm, with certainty, that an individual is who they say they are. By requiring new developers to obtain the signature of an existing Debian developer, the NMP integrates them into what they call a cryptographic “web of trust.” Because nearly every hacker within Debian has a key signed by at least one existing developer, and because many developers have keys signed by numerous others (the stronger the connected set of signatures is, the more trustworthy it is considered), nearly all maintainers are connected. Debian can use cryptographic algorithms to prove that most every developer met at least one other developer, who in turn met at least one other developer, and so forth, until every developer is linked.

The past is weaved into the present, and the voicing of commitment in the application becomes the path toward a future within the project. It is a step that brings a developer closer to a new social localization within a larger ethical and technical project of developers who have also undergone the same reflective exercise. Through this reconfiguration of temporality, developers after the NMP can be said to share at least three connections: they are technologically linked through the web of trust that requires them to meet at least one other developer; they share the experience of a common ritual of entry; and finally, they have started to learn a Debian-specific vocabulary with which to situate themselves within this world, formulate the broader implications of freedom, and continue the conversation on freedom, licensing, and their craft, with a wider body of developers. Although the philosophy aspect of the NMP often results in voluminous expository output, it is by no means the bulk of the process; in fact, it is only half of step three of a five-step process.

pages: 348 words: 97,277

The Truth Machine: The Blockchain and the Future of Everything by Paul Vigna, Michael J. Casey

3D printing, additive manufacturing, Airbnb, altcoin, Amazon Web Services, barriers to entry, basic income, Berlin Wall, Bernie Madoff, bitcoin, blockchain, blood diamonds, Blythe Masters, business process, buy and hold, carbon footprint, cashless society, cloud computing, computer age, computerized trading, conceptual framework, Credit Default Swap, crowdsourcing, cryptocurrency, cyber-physical system, dematerialisation, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Ethereum, ethereum blockchain, failed state, fault tolerance, fiat currency, financial innovation, financial intermediation, global supply chain, Hernando de Soto, hive mind, informal economy, intangible asset, Internet of things, Joi Ito, Kickstarter, linked data, litecoin, longitudinal study, Lyft, M-Pesa, Marc Andreessen, market clearing, mobile money, money: store of value / unit of account / medium of exchange, Network effects, off grid, pets.com, prediction markets, pre–internet, price mechanism, profit maximization, profit motive, ransomware, rent-seeking, RFID, ride hailing / ride sharing, Ross Ulbricht, Satoshi Nakamoto, self-driving car, sharing economy, Silicon Valley, smart contracts, smart meter, Snapchat, social web, software is eating the world, supply-chain management, Ted Nelson, the market place, too big to fail, trade route, transaction costs, Travis Kalanick, Turing complete, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, universal basic income, web of trust, zero-sum game

Unlike the KYC solution, which seeks smarter ways for people to prove who they are, this one lowers the barrier to entry by finding efficiencies in the system itself so that it’s less important to “know your customer.” Whether WeTrust’s model works or not, it may help us learn a lot about how these new systems of algorithmic, distributed trust can interface with those old, deeply embedded social webs of trust. We think it’s important that solutions to the challenges faced by the poor aren’t just imposed in some cookie-cutter manner by Silicon Valley venture capitalists who insist they know best. Solutions must be informed by and tailored to the underlying cultural structures of the communities in question. And while we should be seeking solutions like WeTrust’s, which focuses on reducing the identification burden to achieve financial inclusion, the reality is that every culture has an identity system at its core.

Those latter two categories have become more fluid, especially in the age of social media and as our cultures become more open to new ways of defining what it means to be human, whether that breaks down along sexual orientation, gender, or religious, racial, or ethnic grounds. What’s powerful, though, is that the technologies driving those changes now also make it possible to turn these more dynamic aspects of who we are into a means of proof—primarily in the realm of our social identity. Our circle of friends and interactions constitutes a web of trust that has its own powerful, informational value. If that circle incorporates a large number of essentially trustworthy people—no one among them is on the no-fly list, for example—it’s possible to deduce with decent probabilities that you are also trustworthy—or at least that you should be given a positive score, to be confirmed or challenged by other measures of your trustworthiness. To get us to the self-sovereign identity construct, however, we need to give individuals, not governments—nor, for that matter, companies like Facebook or Google—control over that valuable identifying data.

There are serious social implications in resorting to algorithmic interpretations of our behavior. Done poorly, we are almost guaranteed to create biased benchmarks of “worthiness” that discriminate against those who, for whatever cultural, circumstantial, or personal reason, don’t meet the algorithm’s standard. Do I have better or worse credit if I view a lot of Republican political Web sites? This is dangerous territory. As pseudonymous cryptocurrency journalist Juan Galt put it, a web of trust can become an Orwellian web of shame. Influential cryptocurrency thinker Andreas Antonopoulos argues that the problem lies in trying to solve identity in the first place, which he says is in breach of what Bitcoin’s open, permissionless architecture represents. Blockchain developers building these identity/reputation tools are promoting a “relic of traditional financial systems,” he argues.

Engineering Security by Peter Gutmann

active measures, algorithmic trading, Amazon Web Services, Asperger Syndrome, bank run, barriers to entry, bitcoin, Brian Krebs, business process, call centre, card file, cloud computing, cognitive bias, cognitive dissonance, combinatorial explosion, Credit Default Swap, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Debian, domain-specific language, Donald Davies, Donald Knuth, double helix, en.wikipedia.org, endowment effect, fault tolerance, Firefox, fundamental attribution error, George Akerlof, glass ceiling, GnuPG, Google Chrome, iterative process, Jacob Appelbaum, Jane Jacobs, Jeff Bezos, John Conway, John Markoff, John von Neumann, Kickstarter, lake wobegon effect, Laplace demon, linear programming, litecoin, load shedding, MITM: man-in-the-middle, Network effects, Parkinson's law, pattern recognition, peer-to-peer, Pierre-Simon Laplace, place-making, post-materialism, QR code, race to the bottom, random walk, recommendation engine, RFID, risk tolerance, Robert Metcalfe, Ruby on Rails, Sapir-Whorf hypothesis, Satoshi Nakamoto, security theater, semantic web, Skype, slashdot, smart meter, social intelligence, speech recognition, statistical model, Steve Jobs, Steven Pinker, Stuxnet, telemarketer, text mining, the built environment, The Death and Life of Great American Cities, The Market for Lemons, the payments system, Therac-25, too big to fail, Turing complete, Turing machine, Turing test, web application, web of trust, x509 certificate, Y2K, zero day, Zimmermann PGP

Because of this it’s been suggested that these revocation-proof CAs be marked as such in their certificates so that applications can avoid the overhead of having to check for a revocation that will never happen [149]. B A Bob Alice C D Figure 184: The web of trust PGP’s version of X.509’s hierarchical trust model is the web of trust [150], shown in Figure 184. The theory behind the web of trust is that although Alice doesn’t directly know Bob, she does know A and C, who in turn know B and D, who know Bob, and 676 PKI so Alice can build a trust link to Bob (or at least Bob’s public key) through these indirect paths. In practice though it’s doubtful that the web of trust can really deliver [151][152]149. For example when fake keys for Tor developers started appearing [153] it proved impossible to verify the developers’ genuine keys through the web of trust [154]. This doesn’t mean that the concept can’t be usefully applied in practice though. Outside the computer security field it’s used extensively by organised-crime groups like the mafia, who employ complicated chains of introducers to prevent an outsider (typically an undercover agent) from posing as a legitimate Mafioso [155].

[146] Nelson Bolyard, posting to discussion thread for “Most common trusted root certificates”, 15 June 2010, http://netsekure.org/2010/04/most-commontrusted-root-certificates/#comment-435. [147] “E-Gesundheitskarte: Datenverlust mit Folgen“, Detlef Borchers, 10 July 2009, http://www.heise.de/security/news/meldung/141864. 744 PKI [148] “Loss of data has serious consequences for German electronic health card”, Detlef Borchers, 11 July 2009, http://www.h-online.com/security/news/113740. [149] “Re: [TLS] New version of Multiple OCSP mode of Certificate Status extension”, Peter Gutmann, posting to the tls@ietf.org mailing list, messageID E1OgKhk-0006UP-Fe@wintermute02.cs.auckland.ac.nz, 4 August 2010. [150] “The Evolution of PGP’s Web of Trust”, Phil Zimmermann and Jon Callas, in “Beautiful Security”, O’Reilly, 2009, p.107. [151] “Reflecting on PGP, keyservers, and the Web of Trust”, Greg Rose, posting to the cryptography@c2.net mailing list, message-ID, 1 September 2000. [152] “Investigating the OpenPGP Web of Trust”, Alexander Ulrich, Ralph Holz, Peter Hauck and Georg Carle, Proceedings of the 16th European Symposium on Research in Computer Security (ESORICS’11), Springer-Verlag LNCS No.6879, September 2011, p.488. [153] “Another fake key for my email address”, Erinn Clark, posting to the tortalk@lists.torproject.org mailing list, 9 March 2014, message-ID 20140309192556.gc5591@berimbolo.double-helix.org. [154] “Re: Another fake key for my email address”, Guido Witmond, posting to the tor-talk@lists.torproject.org mailing list, 10 March 2014, message-ID 531DABE1.5020006@witmond.nl. [155] “Codes of the Underworld”, Diego Gambetta, Princeton University Press, 2009. [156] “Why Johnny Can’t Encrypt: A Usability Evaluation of PGP 5.0”, Alma Whitten and J.

Outside the computer security field it’s used extensively by organised-crime groups like the mafia, who employ complicated chains of introducers to prevent an outsider (typically an undercover agent) from posing as a legitimate Mafioso [155]. As an example of the kind of problems that a web-of-trust-based security system can run into, in one (informal) experiment into the effectiveness of PGP’s key distribution mechanism a professor asked his students to securely exchange PGP keys and then follow this up with an exchange of encrypted email (which in previous experiments had already proven very problematic), but with an extra twist: They were given bonus marks for spoofing keys and otherwise attacking the security of the key management process. Although the process hadn’t even worked properly in a totally benign environment [156], once it was used in a more realistic hostile environment a summary of the outcome of the experiment reported that “chaos was the result” [157].

Crypto: How the Code Rebels Beat the Government Saving Privacy in the Digital Age by Steven Levy

Albert Einstein, Claude Shannon: information theory, cognitive dissonance, computer age, Donald Knuth, Eratosthenes, Extropian, invention of the telegraph, John Markoff, Kevin Kelly, knapsack problem, Marc Andreessen, Mitch Kapor, MITM: man-in-the-middle, Network effects, new economy, NP-complete, Ronald Reagan, Saturday Night Live, Silicon Valley, Simon Singh, Stephen Hawking, Steven Levy, Watson beat the top human players on Jeopardy!, web of trust, Whole Earth Catalog, zero-sum game, Zimmermann PGP, éminence grise

Since Carol knows Bob—and has earlier received a verified copy of Bob’s public key—she can establish the veracity of his signature. If it checks out, that means that Bob has really met the person who holds this new key and is implicitly telling Carol, “Hey, it’s really Alice.” So Carol can be sure that Alice is who she says she is. At least to the degree she trusts Bob. This system—known as a “web of trust”—requires some judgment on the user’s part. After all, Carol can’t be sure of Alice’s identity unless she personally knows someone who has physically met her and signed her key. What if she doesn’t know anyone who’s physically signed it? Is it worth trusting a second-level verification? Maybe her friend Bob hasn’t signed Alice’s key, but he has signed a key of someone named Ted. And Ted has signed Alice’s key.

As more and more people used PGP, some were bound to develop a reputation for being scrupulous in verifying the keys they sign. Seeing one of those trusted introducers on a key ring would be a strong assurance of authenticity. In any case, PGP allowed users to set what cryptographer Bruce Schneier refers to as “paranoia levels”: how many levels of separation you’re willing to accept, depending on the degree to which you trust various signers. With this web of trust, a stronger encryption algorithm, a better interface, and a number of other improvements, PGP 2.0 was—unlike Zimmermann’s favorite weekend comedy show—ready for prime time. The informal team of programmers had even prepared translations of the interface in several languages, so people worldwide could use it from the day of release. In September 1992, two of Zimmermann’s helpers posted PGP 2.0 on the Net from their respective homes in Amsterdam and Auckland.

., ref-1, ref-2 substitution boxes (S-boxes), ref-1, ref-2, ref-3, ref-4, ref-5, ref-6, ref-7 SWIFT, ref-1 T Attack (differential cryptanalysis), ref-1, ref-2, ref-3 telephones: cellular, ref-1 security devices for, ref-1, ref-2, ref-3, ref-4, ref-5, ref-6, ref-7, ref-8, ref-9, ref-10 Tempest technology, ref-1 Tenet, George, ref-1 Tessera, ref-1 threshold scheme, ref-1 Time, ref-1 time-sharing, ref-1, ref-2 toll payments, ref-1 trapdoors, ref-1, ref-2, ref-3, ref-4, ref-5, ref-6, ref-7, ref-8, ref-9 knapsacks, ref-1, ref-2, ref-3, ref-4, ref-5, ref-6 one-way function, ref-1, ref-2, ref-3, ref-4 Senate bill and, ref-1, ref-2, ref-3 Tritter, Alan, ref-1, ref-2, ref-3, ref-4 Tuchman, Walter, ref-1, ref-2, ref-3, ref-4, ref-5, ref-6, ref-7, ref-8, ref-9, ref-10 univectors, ref-1, ref-2 Usenet, ref-1, ref-2 vector space, ref-1 VeriSign, ref-1 Very Large Scale Integration (VLSI), ref-1 ViaCrypt, ref-1 virtual private networks, ref-1 Wagner, Dave, ref-1 Walker, Steve, ref-1 Wall Street Journal, ref-1, ref-2 Warren, Jim, ref-1, ref-2 Washington Post, ref-1 web of trust, ref-1 Weingarten, Fred, ref-1 Weldon, Curt, ref-1 Williamson, Malcolm, ref-1, ref-2, ref-3, ref-4, ref-5, ref-6 Windows, ref-1 wiretapping, ref-1, ref-2, ref-3, ref-4, ref-5, ref-6, ref-7 Wise, William, ref-1 World Wide Web, ref-1, ref-2 browsers for, ref-1, ref-2, ref-3 Wormser, Dave, ref-1 Wylie, Shawn, ref-1 Xerox Corporation, ref-1, ref-2 xor operations, ref-1 Zero Knowledge, ref-1 zero-knowledge proofs of identity, ref-1 Zimmermann, Kacie, ref-1 Zimmermann, Phil, ref-1, ref-2, ref-3, ref-4, ref-5, ref-6, ref-7, ref-8, ref-9, ref-10, ref-11 contents acknowledgments preface the loner the standard public key prime time selling crypto patents and keys crypto anarchy the clipper chip slouching toward crypto epilogue: the open secret notes bibliography glossary index VIKING Published by the Penguin Group Penguin Putnam Inc., 375 Hudson Street, New York, New York 10014, U.S.A.

pages: 294 words: 89,406

Lying for Money: How Fraud Makes the World Go Round by Daniel Davies

bank run, banking crisis, Bernie Madoff, bitcoin, Black Swan, Bretton Woods, business cycle, business process, collapse of Lehman Brothers, compound rate of return, cryptocurrency, financial deregulation, fixed income, Frederick Winslow Taylor, Gordon Gekko, high net worth, illegal immigration, index arbitrage, Nick Leeson, offshore financial centre, Peter Thiel, Ponzi scheme, price mechanism, principal–agent problem, railway mania, Ronald Coase, Ronald Reagan, short selling, social web, South Sea Bubble, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, time value of money, web of trust

It is even possible to create a distributed control fraud, in which the mechanism of fake profits, high risk and value extraction arises without the necessary involvement of a single legally culpable actor, by assembling a set of perverse, ‘criminogenic’ incentives which make the distortions happen independently. Finally, we reach the highest level of abstraction. These frauds exploit the general web of trust which makes up a modern economy, rather than a single relationship. There are plenty of actions which are not even really crimes at all in the traditional sense – they are not obviously or intrinsically dishonest activities. Nevertheless, experience has shown us that a market economy works better if people are able to assume that they won’t be done. Cartels, for example, or insider dealing rings, might be examples of market crimes, where the victim is the market itself rather than a particular person who has lost an identifiable sum of money.

Land is physical and tangible and hard to steal, but an inheritance right is something different; you can’t always tell whether it’s been stolen from you and promised to someone else. As soon as the concept of a property right was invented, as soon as ownership got more complicated than simply the ability to control things by fighting anyone else who wanted them, there is a need for a social web of trust that the rights will be respected and not misused. And where there’s trust, there’s the opportunity for fraud. Inheritances also have another important property when we look at them as potential locuses of fraud; they were one of the few ways in which abstract property rights over large and valuable things could come to be owned by women. We’ve noted at various points during this book that the overwhelming majority of commercial fraudsters are men,* and this was even more the case when we look back into the past.

pages: 190 words: 56,531

Where We Are: The State of Britain Now by Roger Scruton

bitcoin, blockchain, business cycle, Corn Laws, Donald Trump, Downton Abbey, Fellow of the Royal Society, fixed income, garden city movement, George Akerlof, housing crisis, invention of the printing press, invisible hand, Khartoum Gordon, mass immigration, Naomi Klein, New Journalism, old-boy network, open borders, payday loans, Peace of Westphalia, sceptred isle, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, web of trust

The suspicion of identity cards reflects a deep characteristic of British society, which is the connection between freedom and trust. Precisely because we are free to associate as we will, to build networks and institutions and little platoons without official permission or official knowledge, there is a premium, in our society, on honesty. British society has emerged over the centuries as a self-policing web of trust between strangers. It is because each member is free to bestow trust and to earn it as he wishes that this kind of trust emerges and becomes a secure collective asset of the people who are linked by it. Mass immigration of communities who do not build trust in that way – who depend on family networks like the Sicilians or religious obedience like the Pakistanis – has jeopardized the old legacy of communal action, and reminded the British people of the downside of freedom.

pages: 254 words: 69,276

The Metric Society: On the Quantification of the Social by Steffen Mau

Airbnb, cognitive bias, collaborative consumption, connected car, crowdsourcing, double entry bookkeeping, future of work, income inequality, informal economy, invisible hand, knowledge economy, labour market flexibility, lifelogging, Mark Zuckerberg, mittelstand, moral hazard, personalized medicine, positional goods, principal–agent problem, profit motive, QR code, reserve currency, school choice, selection bias, sharing economy, smart cities, the scientific method, Uber for X, web of trust, Wolfgang Streeck

Landsberger, Henry A. (1958) Hawthorne Revisited: Management and the Worker, its Critics, and Developments in Human Relations in Industry, Ithaca: Cornell University Press. Lanier, Jaron (2014) ‘Für einen neuen Humanismus. Wie wir der digitalen Entrechtung entkommen’, Blätter für deutsche und internationale Politik 59/11 (pp. 43-59). Latour, Bruno, and Steve Woolgar (1986) Laboratory Life: The Construction of Scientific Facts, Princeton University Press. Lauterbach, Debra, Hung Truong, Tanuj Shah and Lada Adamic (2009) ‘Surfing a web of trust: reputation and reciprocity on couchsurfing.com’, Proceedings of the 2009 International Conference on Computational Science and Engineering 4 (pp. 346-53). Leberecht, Tim (2015) The Business Romantic: Give Everything, Quantify Nothing, and Create Something Greater Than Yourself, New York: HarperCollins. Le Grand, Julian (1991) ‘Quasi-markets and social policy’, Economic Journal 101 (pp. 1256-67).

pages: 296 words: 78,631

Hello World: Being Human in the Age of Algorithms by Hannah Fry

23andMe, 3D printing, Air France Flight 447, Airbnb, airport security, augmented reality, autonomous vehicles, Brixton riot, chief data officer, computer vision, crowdsourcing, DARPA: Urban Challenge, Douglas Hofstadter, Elon Musk, Firefox, Google Chrome, Gödel, Escher, Bach, Ignaz Semmelweis: hand washing, John Markoff, Mark Zuckerberg, meta analysis, meta-analysis, pattern recognition, Peter Thiel, RAND corporation, ransomware, recommendation engine, ride hailing / ride sharing, selection bias, self-driving car, Shai Danziger, Silicon Valley, Silicon Valley startup, Snapchat, speech recognition, Stanislav Petrov, statistical model, Stephen Hawking, Steven Levy, Tesla Model S, The Wisdom of Crowds, Thomas Bayes, Watson beat the top human players on Jeopardy!, web of trust, William Langewiesche

They also have the power to rob someone of their freedom. * Adverts aren’t the only reason for cookies. They’re also used by websites to see if you’re logged in or not (to know if it’s safe to send through any sensitive information) and to see if you’re a returning visitor to a page (to trigger a price hike on an airline website, for instance, or email you a discount code on an online clothing store). † That plugin, ironically called ‘The Web of Trust’, set out all this information clearly in black and white as part of the terms and conditions. ‡ That particular combination seems to imply that I’d post more stuff if I didn’t get so worried about how it’d go down. Justice IT’S NOT UNUSUAL TO FIND good-natured revellers drinking on a summer Sunday evening in the streets of Brixton, where our next story begins. Brixton, in south London, has a reputation as a good place to go for a night out; on this particular evening, a music festival had just finished and the area was filled with people merrily making their way home, or carrying on the party.

When Free Markets Fail: Saving the Market When It Can't Save Itself (Wiley Corporate F&A) by Scott McCleskey

Asian financial crisis, asset-backed security, bank run, barriers to entry, Bernie Madoff, break the buck, call centre, collateralized debt obligation, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, financial innovation, fixed income, information asymmetry, invisible hand, Isaac Newton, iterative process, Long Term Capital Management, margin call, money market fund, moral hazard, mortgage debt, place-making, Ponzi scheme, prediction markets, risk tolerance, shareholder value, statistical model, The Wealth of Nations by Adam Smith, time value of money, too big to fail, web of trust

A few steps down the line is the RMBS holder or the firm that wrote default insurance to cover its potential default; the information asymmetry worked its way right through the system to the last person in line. CONFLICTS OF INTEREST Lurking beneath most of the issues that plague the market is one fundamental issue that will never go away: conflicts of interest. The market is all about interactions between parties and that leads to a complicated web of trust and dependency. A customer trusts her broker or investment adviser to provide good advice and best execution regardless of how the outcome affects the broker’s paycheck. Brokers trust each other to carry through on the deals they make in the market and to do so fairly. Research analysts are supposed to be objective in their analysis, rating agencies are supposed to be indifferent to the fact that the issuer is paying for the rating, regulators are supposed to focus on their current job and not what goes on their resume, lawmakers are supposed to do what is good for the market and not what is likely to get the electorate all in a lather before the next election.

pages: 411 words: 80,925

What's Mine Is Yours: How Collaborative Consumption Is Changing the Way We Live by Rachel Botsman, Roo Rogers

Airbnb, barriers to entry, Bernie Madoff, bike sharing scheme, Buckminster Fuller, buy and hold, carbon footprint, Cass Sunstein, collaborative consumption, collaborative economy, commoditize, Community Supported Agriculture, credit crunch, crowdsourcing, dematerialisation, disintermediation, en.wikipedia.org, experimental economics, George Akerlof, global village, hedonic treadmill, Hugh Fearnley-Whittingstall, information retrieval, iterative process, Kevin Kelly, Kickstarter, late fees, Mark Zuckerberg, market design, Menlo Park, Network effects, new economy, new new economy, out of africa, Parkinson's law, peer-to-peer, peer-to-peer lending, peer-to-peer rental, Ponzi scheme, pre–internet, recommendation engine, RFID, Richard Stallman, ride hailing / ride sharing, Robert Shiller, Robert Shiller, Ronald Coase, Search for Extraterrestrial Intelligence, SETI@home, Simon Kuznets, Skype, slashdot, smart grid, South of Market, San Francisco, Stewart Brand, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thorstein Veblen, Torches of Freedom, transaction costs, traveling salesman, ultimatum game, Victor Gruen, web of trust, women in the workforce, Zipcar

Statistics retrieved February 2010 from www.CouchSurfing.org/index.html. 32. Jeff Miranda, “Take the Couch,” Boston Globe (August 22, 2007), www.boston.com/yourlife/articles/2007/08/22/take_the_couch/. 33. Mark Granovetter, “The Strength of Weak Ties,” American Journal of Sociology 78, no. 6 (May 1973): 1360–1380. 34. Debra Lauterbach, Hung Truong, Tanuj Shah, and Lada Adamic, “Surfing a Web of Trust: Reputation and Reciprocity on CouchSurfing.com,” IEEE International Conference 4 (2009): 348. 35. Traveler CouchSurfing story from Lisa Lubin, “You Meet the Darndest People While CouchSuring,” Chicago Tribune (August 9, 2009), www.chicagotribune.com/travel/chi-0809-couch-surfingaug09,0,208222.story. 36. Paul J. Zak, “CouchSurfing 101,” Psychology Today, The Moral Molecule blog (October 2008), www.psychologytoday.com/blog/the-moral-molecule/200810/CouchSurfing-101. 37.

pages: 310 words: 85,995

The Future of Capitalism: Facing the New Anxieties by Paul Collier

"Robert Solow", accounting loophole / creative accounting, Airbnb, assortative mating, bank run, Berlin Wall, Bernie Sanders, bitcoin, Bob Geldof, bonus culture, business cycle, call centre, central bank independence, centre right, Commodity Super-Cycle, computerized trading, corporate governance, creative destruction, cuban missile crisis, David Brooks, delayed gratification, deskilling, Donald Trump, eurozone crisis, financial deregulation, full employment, George Akerlof, Goldman Sachs: Vampire Squid, greed is good, income inequality, industrial cluster, information asymmetry, intangible asset, Jean Tirole, job satisfaction, Joseph Schumpeter, knowledge economy, late capitalism, loss aversion, Mark Zuckerberg, minimum wage unemployment, moral hazard, negative equity, New Urbanism, Northern Rock, offshore financial centre, out of africa, Peace of Westphalia, principal–agent problem, race to the bottom, rent control, rent-seeking, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley ideology, sovereign wealth fund, The Wealth of Nations by Adam Smith, theory of mind, too big to fail, trade liberalization, urban planning, web of trust, zero-sum game

As to Rawlsian and Utilitarian dreams, discrediting family obligations in favour of equal obligations to all children, or national obligations in favour of obligations to global ‘victims’, would not build Eden. It would bequeath to the next generation a society sliding into the pit of entitled individualism. In retrospect, the period of Utilitarian and Rawlsian dominance of the centre-left will come to be recognized for what it was: arrogant, over-confident and destructive. The centre-left will recover as it returns to its communitarian roots, and to the task of reconstructing the web of trust-based reciprocal obligations that address the anxieties of working families.* Similarly, the period of domination of the centre-right by assertive individualism will come to be recognized as the seduction of a great tradition by economic man. As it recovers its ethical bearings, it will return to ‘one nation’ politics. The new anxieties are too serious to be abandoned to the far left. Belonging to place is a force too potent, and potentially too constructive, to be abandoned to the far right.

pages: 299 words: 91,839

What Would Google Do? by Jeff Jarvis

23andMe, Amazon Mechanical Turk, Amazon Web Services, Anne Wojcicki, barriers to entry, Berlin Wall, business process, call centre, cashless society, citizen journalism, clean water, commoditize, connected car, credit crunch, crowdsourcing, death of newspapers, different worldview, disintermediation, diversified portfolio, don't be evil, fear of failure, Firefox, future of journalism, G4S, Google Earth, Googley, Howard Rheingold, informal economy, inventory management, Jeff Bezos, jimmy wales, Kevin Kelly, Mark Zuckerberg, moral hazard, Network effects, new economy, Nicholas Carr, old-boy network, PageRank, peer-to-peer lending, post scarcity, prediction markets, pre–internet, Ronald Coase, search inside the book, Silicon Valley, Skype, social graph, social software, social web, spectrum auction, speech recognition, Steve Jobs, the medium is the message, The Nature of the Firm, the payments system, The Wisdom of Crowds, transaction costs, web of trust, WikiLeaks, Y Combinator, Zipcar

As we quizzed him, Jake told the executive that he never goes directly to a brand like this man’s newspaper or even to blogs he likes. He rarely types in one of those addresses and wonders what they have to tell him today. Mind you, he reads a lot of news—far more than I did at his age. But he goes to that news only via the links from Digg, friends’ blogs, and Twitter. He travels all around an internet that is edited by his peers because he trusts them and knows they share his interests. The web of trust is built at eye-level, peer-to-peer. Before I go on, let me acknowledge that, of course, things can go wrong. In 2005, the Los Angeles Times decided to be cyber-hip by inventing the “wikitorial,” an editorial from the paper that the public was invited to rewrite. In no time, the quality of discourse around the first wikitorial descended to the level of that on a prison yard during a riot because the Times had made a fundamental error: A wiki is a tool used for collaboration, but there was no collaborating to be done on the topic of the Times’ wikitorial—the Iraq war.

pages: 358 words: 104,664

Capital Without Borders by Brooke Harrington

banking crisis, Big bang: deregulation of the City of London, British Empire, capital controls, Capital in the Twenty-First Century by Thomas Piketty, complexity theory, corporate governance, corporate social responsibility, diversified portfolio, estate planning, eurozone crisis, family office, financial innovation, ghettoisation, haute couture, high net worth, income inequality, information asymmetry, Joan Didion, job satisfaction, joint-stock company, Joseph Schumpeter, liberal capitalism, mega-rich, mobile money, offshore financial centre, race to the bottom, regulatory arbitrage, Robert Shiller, Robert Shiller, South Sea Bubble, the market place, Thorstein Veblen, transaction costs, upwardly mobile, wealth creators, web of trust, Westphalian system, Wolfgang Streeck, zero-sum game

But there remains an irreducible element of agency in these developments that has not been explored: we still lack a coherent account of the key actors involved, as well as their methods and motives. In the rare instances when these issues have been considered at all, wealthy people themselves have been identified as the key actors. This is despite recent evidence that undermine that narrative, such as media coverage of the 2012 presidential campaign of Mitt Romney, which revealed that his $250 million personal fortune was held in a complex global web of trust funds managed by a private banker at Goldman Sachs: “His Goldman investments are handled by Jim Donovan, who … gave Mr. Romney’s trusts access to the bank’s own exclusive investment funds and helped him execute an aggressive and complex tax-deferral strategy known as an ‘exchange fund’ in 2002. (Since 2003, most of Mr. Romney’s money has been held in blind trusts, meaning that he no longer makes many of his own investment decisions.)

pages: 406 words: 105,602

The Startup Way: Making Entrepreneurship a Fundamental Discipline of Every Enterprise by Eric Ries

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Airbnb, autonomous vehicles, barriers to entry, basic income, Ben Horowitz, Black-Scholes formula, call centre, centralized clearinghouse, Clayton Christensen, cognitive dissonance, connected car, corporate governance, DevOps, Elon Musk, en.wikipedia.org, fault tolerance, Frederick Winslow Taylor, global supply chain, index card, Jeff Bezos, Kickstarter, Lean Startup, loss aversion, Marc Andreessen, Mark Zuckerberg, means of production, minimum viable product, moral hazard, move fast and break things, move fast and break things, obamacare, peer-to-peer, place-making, rent-seeking, Richard Florida, Sam Altman, Sand Hill Road, secular stagnation, shareholder value, Silicon Valley, Silicon Valley startup, six sigma, skunkworks, Steve Jobs, the scientific method, time value of money, Toyota Production System, Uber for X, universal basic income, web of trust, Y Combinator

Entrepreneurship is not a linear career path. I’ve worked for people who have, subsequently, worked for me. I’ve hired former founders into key executive roles and personally encouraged former employees of mine to become founders themselves. And, of course, most successful people in Silicon Valley become angel investors, even if on a small scale. So the roles get deeply intertwined. It’s a reciprocal web of trust, expertise, and reputation that is an important part of why startup hubs drive so much entrepreneurial success. This career path has only recently become something widely available in contemporary economies. But I think this is just the tip of the iceberg in terms of how this professional identity will evolve in the coming years and decades. Genius is widely distributed, but as of yet, opportunity is not.

pages: 523 words: 111,615

The Economics of Enough: How to Run the Economy as if the Future Matters by Diane Coyle

"Robert Solow", accounting loophole / creative accounting, affirmative action, bank run, banking crisis, Berlin Wall, bonus culture, Branko Milanovic, BRICs, business cycle, call centre, Cass Sunstein, central bank independence, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation does not imply causation, Credit Default Swap, deindustrialization, demographic transition, Diane Coyle, different worldview, disintermediation, Edward Glaeser, endogenous growth, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Financial Instability Hypothesis, Francis Fukuyama: the end of history, George Akerlof, Gini coefficient, global supply chain, Gordon Gekko, greed is good, happiness index / gross national happiness, hedonic treadmill, Hyman Minsky, If something cannot go on forever, it will stop - Herbert Stein's Law, illegal immigration, income inequality, income per capita, industrial cluster, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jane Jacobs, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, light touch regulation, low skilled workers, market bubble, market design, market fundamentalism, megacity, Network effects, new economy, night-watchman state, Northern Rock, oil shock, Pareto efficiency, principal–agent problem, profit motive, purchasing power parity, railway mania, rising living standards, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, South Sea Bubble, Steven Pinker, The Design of Experiments, The Fortune at the Bottom of the Pyramid, The Market for Lemons, The Myth of the Rational Market, The Spirit Level, transaction costs, transfer pricing, tulip mania, ultimatum game, University of East Anglia, web application, web of trust, winner-take-all economy, World Values Survey, zero-sum game

Other than the simplest face-to-face barter deal in the economy, when items can be simultaneously exchanged, every economic transaction requires one party to trust the other. And as so few transactions involve simultaneous exchange, that trust is embodied in money or financial instruments, which count and store the value, and allow it to be exchanged. Figure 10. Without trust, all economic transactions are like Checkpoint Charlie. It is extraordinary, when you stop to think about it, how extensive and also how delicate the web of trust represented by money has become in the modern global economy. All but a few countries are engaged in international trade and vast amounts of financial transactions cross national borders. Much of it now takes the form of electronic records on computer systems, not even paper money or bonds or shares, which are themselves abstractions. The economy is a pattern of zeroes and ones. Paul Seabright describes this web in the introduction to his wonderful book The Company of Strangers: Most human beings now obtain a large share of the provision for their daily lives from others to whom they are not related by blood or marriage.

pages: 675 words: 141,667

Open Standards and the Digital Age: History, Ideology, and Networks (Cambridge Studies in the Emergence of Global Enterprise) by Andrew L. Russell

American ideology, animal electricity, barriers to entry, borderless world, Chelsea Manning, computer age, creative destruction, disruptive innovation, Donald Davies, Edward Snowden, Frederick Winslow Taylor, Hacker Ethic, Howard Rheingold, Hush-A-Phone, interchangeable parts, invisible hand, John Markoff, Joseph Schumpeter, Leonard Kleinrock, means of production, Menlo Park, Network effects, new economy, Norbert Wiener, open economy, packet switching, pre–internet, RAND corporation, RFC: Request For Comment, Richard Stallman, Ronald Coase, Ronald Reagan, Silicon Valley, Steve Crocker, Steven Levy, Stewart Brand, technoutopianism, Ted Nelson, The Nature of the Firm, Thomas L Friedman, Thorstein Veblen, transaction costs, web of trust

Grove, Only the Paranoid Survive (New York: Doubleday, 1996). 22 William Lehr, “Compatibility Standards and Interoperability: Lessons from the Internet,” in Kahin and Abbate, eds., Standards Policy for Information Infrastructure; Tim Berners-Lee, Weaving the Web: The Original Design and Ultimate Destiny of the World Wide Web by its Inventor (New York: HarperOne, 1999), 98; and Calliess and Zumbansen, Rough Consensus and Running Code. 23 Andrew L. Russell, “Dot-Org Entrepreneurship: Weaving a Web of Trust,” Enterprise et Histoire 51 (2008): 44–56; Andrew L. Russell, “Constructing Legitimacy: The W3C’s Patent Policy,” in Laura DeNardis, ed., Opening Standards: The Global Politics of Interoperability (Cambridge, MA: The MIT Press, 2011); Raghu Garud, Sanjay Jain, and Arun Kumaraswamy, “Institutional Entrepreneurship in the Sponsoring of Common Technological Standards: The Case of Sun Microsystems and Java,” Academy of Management Journal 45 (2002): 196–214. 24 H.

pages: 505 words: 133,661

Who Owns England?: How We Lost Our Green and Pleasant Land, and How to Take It Back by Guy Shrubsole

back-to-the-land, Beeching cuts, Boris Johnson, Capital in the Twenty-First Century by Thomas Piketty, centre right, congestion charging, deindustrialization, digital map, do-ocracy, Downton Abbey, financial deregulation, fixed income, Goldman Sachs: Vampire Squid, Google Earth, housing crisis, James Dyson, Kickstarter, land reform, land tenure, land value tax, linked data, loadsamoney, mega-rich, mutually assured destruction, new economy, Occupy movement, offshore financial centre, oil shale / tar sands, openstreetmap, place-making, plutocrats, Plutocrats, profit motive, rent-seeking, Right to Buy, Ronald Reagan, sceptred isle, Stewart Brand, the built environment, the map is not the territory, The Wealth of Nations by Adam Smith, trickle-down economics, urban sprawl, web of trust, Yom Kippur War, zero-sum game

The 3rd Baron Vestey is a close friend of the Queen, and in 1999 he became Royal Master of the Horse; an appointment that caused mild embarrassment when the Vestey Food Group was implicated in the Findus horsemeat scandal a few years back. Yet at the same time as inveigling themselves into the establishment, the Vesteys had been pioneering new ways of avoiding the tax authorities. Unbeknown to polite opinion at the time, they created a complex web of trusts and overseas companies that allowed them to become, in Nicholas Shaxson’s words, ‘among the biggest individual tax avoiders in history’. The brothers domiciled themselves in Argentina for a while and set up a secret trust fund in Paris. It all began perfectly legally, but when the British exchequer finally got word of where they were squirrelling away their millions, they began to investigate.

Version Control With Git: Powerful Tools and Techniques for Collaborative Software Development by Jon Loeliger, Matthew McCullough

continuous integration, Debian, distributed revision control, GnuPG, Larry Wall, peer-to-peer, peer-to-peer model, pull request, revision control, web application, web of trust

How the repositories of a large project are organized, or how they coalesce and combine, is again largely immaterial to the workings of Git; Git supports any number of organizational models. Remember that the repository structure is not absolute. Moreover, the connection between any two repositories is not prescribed. Git repositories are peers. So how is a repository structure maintained over time if no technical measures enforce the structure? In effect, the structure is a web of trust for the acceptance of changes. Repository organization and dataflow between repositories is guided by social or political agreements. The question is, “Will the maintainer of a target repository allow your changes to be accepted?” Conversely, do you have enough trust in the source repository’s data to fetch it into your own repository? Repository Structure Examples The Linux Kernel project is the canonical example of a highly distributed repository and development process.

pages: 489 words: 148,885

Accelerando by Stross, Charles

business cycle, call centre, carbon-based life, cellular automata, cognitive dissonance, commoditize, Conway's Game of Life, dark matter, dumpster diving, Extropian, finite state, Flynn Effect, glass ceiling, gravity well, John von Neumann, Kickstarter, knapsack problem, Kuiper Belt, Magellanic Cloud, mandelbrot fractal, market bubble, means of production, MITM: man-in-the-middle, orbital mechanics / astrodynamics, packet switching, performance metric, phenotype, planetary scale, Pluto: dwarf planet, reversible computing, Richard Stallman, SETI@home, Silicon Valley, Singularitarianism, slashdot, South China Sea, stem cell, technological singularity, telepresence, The Chicago School, theory of mind, Turing complete, Turing machine, Turing test, upwardly mobile, Vernor Vinge, Von Neumann architecture, web of trust, Y2K, zero-sum game

"None of them tried treating it as a map of a connectionist system based on the only terrestrial components anyone had ever beamed out into deep space. Except me. But then, your mother had a hand in my wetware, too." "Treating it as a map –" Amber stops. "You were meant to penetrate Dad's corporate network?" "That's right," says the cat. "I was supposed to fork repeatedly and gang-rape his web of trust. But I didn't." Aineko yawns. "Pam pissed me off, too. I don't like people who try to use me." "I don't care. Taking that thing on board was still a really stupid risk you took," Amber accuses. "So?" The cat looks at her insolently. "I kept it in my sandbox. And I got it working, on the seven hundred and forty-first attempt. It'd have worked for Pamela's bounty-hunter friends, too, if I'd tried it.

pages: 562 words: 153,825

Dark Mirror: Edward Snowden and the Surveillance State by Barton Gellman

4chan, A Declaration of the Independence of Cyberspace, active measures, Anton Chekhov, bitcoin, Cass Sunstein, cloud computing, corporate governance, crowdsourcing, data acquisition, Debian, desegregation, Donald Trump, Edward Snowden, financial independence, Firefox, GnuPG, Google Hangouts, informal economy, Jacob Appelbaum, job automation, Julian Assange, MITM: man-in-the-middle, national security letter, planetary scale, private military company, ransomware, Robert Gordon, Robert Hanssen: Double agent, rolodex, Ronald Reagan, Saturday Night Live, Silicon Valley, Skype, social graph, standardized shipping container, Steven Levy, telepresence, undersea cable, web of trust, WikiLeaks, zero day, Zimmermann PGP

She kept a copy of Pandora. She gave me the original, and I took it home. This was the Hollywood version of a “leak”: an unknown source emerging from nowhere, bearing a stupendous scoop. In the real life of a newsroom, this happened so seldom that it was tantamount to myth. Typically, I got my best stories in small pieces from people I had cultivated for years or discovered through a common web of trust, each contributing part of a whole that none would tell me directly. I could not get past the size of the archive. How many documents did it hold? The number did not matter much, but looking for it became a calming distraction. The job was unexpectedly difficult. I found no point-and-click method to count the combined contents of all those hundreds of folders. Eventually, I resorted to the command line.

pages: 1,020 words: 339,564

The confusion by Neal Stephenson

correlation does not imply causation, dark matter, Fellow of the Royal Society, Filipino sailors, invisible hand, Isaac Newton, out of africa, Socratic dialogue, South China Sea, spice trade, urban planning, web of trust

“For yesterday at dinner at the home of Monsieur Castan, I was treated to a description of that same system—a description so flattering that I asked him why it was not used everywhere else.” They found this amusing. “What was Monsieur Castan’s reaction to that?” asked Jacob Gold. “Oh, that other places were cold, distrustful, that the people there did not know one another so well as they did in Lyon, had not built up the same web of trust and old relationships. That they were afflicted by a petty, literal-minded obsession with specie, and could not believe that real business was being transacted unless they saw coins being physically moved from place to place.” The others looked relieved; for they knew, now, that they would not have to break this news to Eliza. “So you are aware that when accounts are settled in Lyon, it is all done on the books.

Applied Cryptography: Protocols, Algorithms, and Source Code in C by Bruce Schneier

active measures, cellular automata, Claude Shannon: information theory, complexity theory, dark matter, Donald Davies, Donald Knuth, dumpster diving, Exxon Valdez, fault tolerance, finite state, invisible hand, John von Neumann, knapsack problem, MITM: man-in-the-middle, NP-complete, P = NP, packet switching, RAND corporation, RFC: Request For Comment, software patent, telemarketer, traveling salesman, Turing machine, web of trust, Zimmermann PGP

Only after the recipient decrypts the message does he learn who signed the message, if it is signed. Contrast this approach with PEM, which leaves quite a bit of information about the sender, recipient, and message in the unencrypted header. The most interesting aspect of PGP is its distributed approach to key management (see Section 8.12). There are no key certification authorities; PGP instead supports a “web of trust.” Every user generates and distributes his own public key. Users sign each other’s public keys, creating an interconnected community of PGP users. For example, Alice might physically give her public key to Bob. Bob knows Alice, so he signs her public key. He then gives the signed key back to her and keeps a copy for himself. When Alice wants to communicate with Carol, Alice sends Carol a copy of the key Bob signed.