"money" entries

9.3 trillion reasons fintech could change the developing world

Modern fintech is going to create formal, standard records about economies where none existed before.

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Learn more about Next:Money, O’Reilly’s conference focused on the fundamental transformation taking place in the finance industry.

A relatively commonplace occurrence — credit card fraud — made me reconsider the long-term impact of financial technology outside the Western world. I’ll get to it, but first, we need to talk about developing economies.

I’m halfway through Hernand de Soto’s The Mystery of Capital on the advice of the WSJ’s Michael Casey. Its core argument is that capitalism succeeds in the Western world and fails everywhere else because in the West, property can be turned into capital (you can mortgage a house and use that money to do something). The book uses the analogy of a hydroelectric dam as a means of unlocking the hidden, potential value of the lake.

But in much of the world, it is unclear who owns what, and as a result, the value of assets can’t be put to work in markets. In the West, we take concepts like title and lien and identity for granted; yet, these systems are relatively new and don’t exist around the world. As de Soto noted in his book, in the Soviet Union, unofficial economic activity rose from 12% in 1989 to 37% in 1994. Read more…

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Here’s why finance is about to be disrupted

O'Reilly's Next:Money event helps business leaders understand the fundamental shifts reshaping finance.

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Learn more about Next:Money, O’Reilly’s conference focused on the fundamental transformation taking place in the finance industry.

Editor’s note: We’re approaching an inflection point in all things “money” — currency, transactions, markets, and capitalism itself. Fundamental changes in the financial industry, driven by technology but with implications for every business and government, are beginning to manifest, bringing both disruption and opportunity. We created O’Reilly’s new conference, Next:Money to help business leaders understand and act on this shift. Below, investor and entrepreneur Paul Kedrosky lays out the forces and patterns that are reshaping the financial industry.


Finance has the three main characteristics of an industry likely to be transformed by technology:

  1. It traffics in bits, not atoms.
  2. Its services are often delivered remotely.
  3. There is little need for human contact.

Unlike other sectors with these characteristics — e.g., media, advertising, and travel services — finance hasn’t been disrupted. Despite huge technological change and a series of financial crises, the league table of the largest financial firms today, both in the U.S. and around the world, remains much the same as it has always been.

Granted, the $1.2-trillion U.S. financial services industry isn’t homogenous. Its main components — banks, brokers, asset managers, markets, payment networks, insurers, and credit card companies — are very different, and have seen widely varying degrees of technology-induced change. In no sense, however, is this industry as transformed by new companies and new business models as one would expect, given its disruption-ready characteristics.

So, why haven’t entrepreneurs transformed finance? There are (at least) five reasons: Read more…

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Four short links: 6 March 2015

Four short links: 6 March 2015

Design Fiction, 3D License, Web Funding, and API Magic

  1. Matt Jones: Practical Design Fiction (Vimeo) — the log scale of experience! Fantastic hour-long recap of the BERG thinking that he’s continued at the Google Creative Lab in NYC. (via Matt Jones)
  2. 3dPL — public license for 3d objects. (via BoingBoing)
  3. Google Contributor — when the web’s biggest advertiser tries alternative ways to fund web content, I’m interested.
  4. Templaran HTTP proxy that provides advanced features to help you make better use of and tame HTTP APIs. Timeouts, caching, metrics, request collapsing, …
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Four short links: 30 January 2015

Four short links: 30 January 2015

FAA Rules, Sports UAVs, Woodcut Data, and Concurrent Programming

  1. FAA to Regulate UAVs? (Forbes) — and the Executive Order will segment the privacy issues related to drones into two categories — public and private. For public drones (that is, drones purchased with federal dollars), the President’s order will establish a series of privacy and transparency guidelines. See also How ESPN is Shooting the X Games with Drones (Popular Mechanics)—it’s all fun and games until someone puts out their eye with a quadrocopter. The tough part will be keeping within the tight restrictions the FAA gave them. Because drones can’t be flown above a crowd, Calcinari says, “We basically had to build a 500-foot radius around them, where the public can’t go.” The drones will fly over sections of the course that are away from the crowds, where only ESPN production employees will be. That rule is part of why we haven’t seen drones at college football games.
  2. Milestones for SaaS Companies“Getting from $0-1m is impossible. Getting from $1-10m is unlikely. And getting from $10-100m is inevitable.” —Jason Lemkin, ex-CEO of Echosign. The article proposes some significant milestones, and they ring true. Making money is generally hard. The nature of the hard changes with the amount of money you have and the amount you’re trying to make, but if it were easy, then we’d structure our society on something else.
  3. Woodcut Data VisualisationRecently, I learned how to operate a laser cutter. It’s been a whole lot of fun, and I wanted to share my experiences creating woodcut data visualizations using just D3. I love it when data visualisations break out of the glass rectangle.
  4. Why is Concurrent Programming Hard?on the one hand there is not a single concurrency abstraction that fits all problems, and on the other hand the various different abstractions are rarely designed to be used in combination with each other. We are due for a revolution in programming, something to help us make sense of the modern systems made of more moving parts than our feeble grey matter can model and intuit about.
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Four short links: 29 January 2015

Four short links: 29 January 2015

Security Videos, Network Simulation, UX Book, and Profit in Perspective

  1. ShmooCon 2015 Videos — videos to security talks from ShmooCon 2015.
  2. Comcast (Github) — Comcast is a tool designed to simulate common network problems like latency, bandwidth restrictions, and dropped/reordered/corrupted packets. On BSD-derived systems such as OSX, we use tools like ipfw and pfctl to inject failure. On Linux, we use iptables and tc. Comcast is merely a thin wrapper around these controls.
  3. The UX ReaderThis ebook is a collection of the most popular articles from our [MailChimp] UX Newsletter, along with some exclusive content.
  4. Bad AssumptionsApple lost more money to currency fluctuations than Google makes in a quarter.
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Four short links: 23 January 2015

Four short links: 23 January 2015

Investment Themes, Python Web Mining, Code Review, and Sexist Brilliance

  1. 16 Andreessen-Horowitz Investment Areas — I’m struck by how they’re connected: there’s a cluster around cloud development, there are two maybe three on sensors …
  2. Patterna web mining module for the Python programming language. It has tools for data mining (Google, Twitter and Wikipedia API, a web crawler, a HTML DOM parser), natural language processing (part-of-speech taggers, n-gram search, sentiment analysis, WordNet), machine learning (vector space model, clustering, SVM), network analysis and <canvas> visualization.
  3. Code Review — FogCreek’s code review checklist.
  4. Expectations of Brilliance Underlie Gender Distributions Across Academic Disciplines (Science) — Surveys revealed that some fields are believed to require attributes such as brilliance and genius, whereas other fields are believed to require more empathy or hard work. In fields where people thought that raw talent was required, academic departments had lower percentages of women. (via WaPo)
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Four short links: 7 November 2014

Four short links: 7 November 2014

Twitter Emoji, Immersive Cinema, Bitcoin Regulation, and Internet Sovereignty

  1. Twitter Open Sources Their Emoji Library — Emoji are the sparklines of sentiment.
  2. Interactive 360-degree Films. From Google (Medium) — you move the camera through a movie shot in 360 degrees, and can choose what you’re looking at through the scene. I can’t wait to try this, it sounds brilliant.
  3. Bitcoin Crackdown — everyone who started exchanges and mutual funds thinking Bitcoin wouldn’t be regulated like a currency is getting an SEC headache.
  4. Connected Choices: How the Internet is Challenging Sovereign Decisions (PDF) — Ultimately, the Internet remains both a global commons and part of each nation’s sovereign infrastructure, and thus activities in cyberspace must continue to navigate two sets of demands: national interests and global interests. […] Political leaders are responsible for articulating a vision and establishing general principles and policies to achieve their goals and, accordingly, are constantly trying to advance their agendas using policy, law, market mechanisms, regulation, standards, and other initiatives. The evidence is clear; you just have to look for it.
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Four short links: 23 September 2014

Four short links: 23 September 2014

Alibubble, Reactive Manifesto, Lovely Logs, and Learning Design

  1. Thoughts on the Alibaba BubbleAlibaba is an offering that encourages the kind of negative Wall Street behavior none of us really want to see happen again. (via Tim O’Reilly)
  2. Reactive ManifestoWe believe that a coherent approach to systems architecture is needed, and we believe that all necessary aspects are already recognised individually: we want systems that are Responsive, Resilient, Elastic and Message Driven. We call these Reactive Systems.
  3. The Log: What Every Software Engineer Should Know About Real-time Data’s Unifying Abstraction (LinkedIn) — You can reduce the problem of making multiple machines all do the same thing to the problem of implementing a distributed consistent log to feed these processes input. The purpose of the log here is to squeeze all the non-determinism out of the input stream to ensure that each replica processing this input stays in sync.
  4. Method of Actiona collection of tools, games and articles to help you learn design.
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Four short links: 10 September 2014

Four short links: 10 September 2014

Dandelion Dispersal, Future Weights, Networked Docker, and How Apple Pay Works

  1. BERG Closing — may open source their Little Printer server and IoT middleware. A shame, as Warren Ellis says, because they pulled bits of the future into the present. They were optimistic, not dystopic. I have a feeling BERG grads are going to be like BBC grads, where a certain crop from ~2003 or so went on to be influential at many different places. Dispersing dandelions of delight.
  2. Here Today, Gone Tomorrow — beating our minds’ misweighting of future events. This: When being invited to do things months in advance, the diary usually looks pretty clear and it’s tempting to say “yes”. But whenever a new invitation arrives, ask yourself not, “should I accept the invitation in March?” but, “would I accept the invitation if it was for this week?” (via BoingBoing)
  3. Weave — build a network of Docker containers running on different hosts. Weave can traverse firewalls and operate in partially connected networks. Traffic can be encrypted, allowing hosts to be connected across an untrusted network. With weave you can easily construct applications consisting of multiple containers, running anywhere.
  4. How Apple Pay Works And Why It Matters — for some reason this was the right level of explanation for me. Hope it helps. The end result is a token that can be used across merchants and both online (In-App) and offline (NFC, In-Person). Disaggregate and micropay for ALL THE THINGS.
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Four short links: 3 June 2014

Four short links: 3 June 2014

Machine Learning Mistakes, Recommendation Bandits, Droplet Robots, and Plain English

  1. Machine Learning Done Wrong[M]ost practitioners pick the modeling algorithm they are most familiar with rather than pick the one which best suits the data. In this post, I would like to share some common mistakes (the don’t-s).
  2. Bandits for RecommendationsA common problem for internet-based companies is: which piece of content should we display? Google has this problem (which ad to show), Facebook has this problem (which friend’s post to show), and RichRelevance has this problem (which product recommendation to show). Many of the promising solutions come from the study of the multi-armed bandit problem.
  3. Dropletsthe Droplet is almost spherical, can self-right after being poured out of a bucket, and has the hardware capabilities to organize into complex shapes with its neighbors due to accurate range and bearing. Droplets are available open-source and use cheap vibration motors and a 3D printed shell. (via Robohub)
  4. Apple’s App Store Approval Guidelines — some of the plainest English I’ve seen, especially the Introduction. I can only aspire to that clarity. If your App looks like it was cobbled together in a few days, or you’re trying to get your first practice App into the store to impress your friends, please brace yourself for rejection. We have lots of serious developers who don’t want their quality Apps to be surrounded by amateur hour.
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