The Rise of Metadata...
(by Dave Shin, good friend and dash supporter)
https://www.linkedin.com/pulse/rise-metadata-david-shin
The Rise of Metadata...
Experienced in Asian Start-ups, Entrepreneur and Investor, day time Banker and Tech Geek at heart.
I finally finished watching Citizenfour the Edward Snowden movie. Loved it, I recommend everyone watch it at some stage. Snowden in my mind is a hero for emancipating us from a form of information slavery. I believe the courage he had to take the risks involved in divulging such information is unparalleled even in light of Julian Assange and Wikileaks. In short, because the intent of Wikileaks vs. Snowden is quite different. Snowden's motivations were based on his belief of privacy as a right. Assange and Wikileaks on the other hand had different motivations...
In Citizenfour, Snowden talks about how the NSA started to value metadata more than source or core data. He used autopay cards and bank account numbers as examples. An autopay card or bank account links a person to that card or account. However, what became more important to the NSA and data processing from a big data analytics sense was each use case in which that source or core data was used. For example, the train station or Starbucks that an autopay card was used at became more important than the card itself. Moreover, the location of ATMs and Bank Branches became more important than the bank account. "Circumstantial data" as I would call it becomes more and more relevant as a network grows. The key is that circumstantial data helps to model patterns to then derive predictive behaviours in a network.
The idea of predictive behaviour in a network is interesting as it applies to a growing digital economy. In the current instance, we have the bitcoin blockchain on day 1 where simple transactions take place - payments, trades, etc... As this network grows with more complexity and intricate interactions, one can argue that metadata as it relates to the blockchain will ultimately have a higher value in the overall ecosystem. As an example, today there are side chains and other additional forms of metadata that makes its way into the blockchain either directly or indirectly. The OP_RETURN field was a way for people to get transactions processed outside of the blockchain into the blockchain. For a long time there were a lot of discussions to try to limit the size of this field which rang foul with a lot of people in the altcoin community.
Ok, back to my thesis... Assuming the blockchain or any online ledger for that matter grows in size and complexity, one can argue that meta data and analysing metadata will be key to predicting behaviour and ultimately fuelling further enhancements in optimising the network and creating more value threads. Looking at electronic trading of equities is a good comparison. There are algorithms built to simply listen in on networks to amplify anomalies or identify opportunities. This then creates actionable ideas for traders to trade on or sales to sell to their clients. The reality in most markets is that actors look for forms of alpha. Probability and predictability become very important variables when seeking alpha. Having the tools to collect, recognise, dissect and suggest can be very powerful when looking at markets or networks where there is a high degree of data traffic.
What would be considered metadata as it relates to the blockchain or any online ledger system? Broadly speaking, any data that sits outside of the network that has a direct or indirect influence over transactions that sit within the network. This could be world news, intermediaries like payment processors, upcoming releases to the source code, rumours, regulation changes, integration points like sidechains or altcoins, etc... Observing data above the network and identifying correlation is important and powerful, again this is more pertinent as the network, blockchain or online ledger hits critical mass. In statistics, its simply the idea of looking at the standard deviations (metadata) and running a proper R-Squared through it to find a pattern or make conclusions from the data set. Really in the simplest view, as data grows in the network, the use of metadata to determine the real value of core or source data will grow.
One more example that I'd like to leave you with... Late last year, Carl Icahn a major investor in the US announced on Twitter that he bought Apple shares right after he processed the order with his broker. Within in minutes, the price of Apple went up nearly 10%. This is a classic example of meta data influencing the value of core data. Metadata that sat above the network having a profound effect on data sitting else where. The impact of Icahn's profile, his view on Apple as a company and his buy order into the market over a Twitter feed was tremendous as it relates to other actors who picked up on that feed to then go buy Apple's stock.
Digital assets within a private, public or consensus ledger and the core data associated with it will not be the most important data points to consider within a digital ecosystem. The metadata that surrounds those assets which influence a transaction will be paramount in secondary value as the usage, size and number of actors grow...
Be back with more... Stay tuned...
(by Dave Shin, good friend and dash supporter)
https://www.linkedin.com/pulse/rise-metadata-david-shin
The Rise of Metadata...
- Published on September 1, 2015
Experienced in Asian Start-ups, Entrepreneur and Investor, day time Banker and Tech Geek at heart.
I finally finished watching Citizenfour the Edward Snowden movie. Loved it, I recommend everyone watch it at some stage. Snowden in my mind is a hero for emancipating us from a form of information slavery. I believe the courage he had to take the risks involved in divulging such information is unparalleled even in light of Julian Assange and Wikileaks. In short, because the intent of Wikileaks vs. Snowden is quite different. Snowden's motivations were based on his belief of privacy as a right. Assange and Wikileaks on the other hand had different motivations...
In Citizenfour, Snowden talks about how the NSA started to value metadata more than source or core data. He used autopay cards and bank account numbers as examples. An autopay card or bank account links a person to that card or account. However, what became more important to the NSA and data processing from a big data analytics sense was each use case in which that source or core data was used. For example, the train station or Starbucks that an autopay card was used at became more important than the card itself. Moreover, the location of ATMs and Bank Branches became more important than the bank account. "Circumstantial data" as I would call it becomes more and more relevant as a network grows. The key is that circumstantial data helps to model patterns to then derive predictive behaviours in a network.
The idea of predictive behaviour in a network is interesting as it applies to a growing digital economy. In the current instance, we have the bitcoin blockchain on day 1 where simple transactions take place - payments, trades, etc... As this network grows with more complexity and intricate interactions, one can argue that metadata as it relates to the blockchain will ultimately have a higher value in the overall ecosystem. As an example, today there are side chains and other additional forms of metadata that makes its way into the blockchain either directly or indirectly. The OP_RETURN field was a way for people to get transactions processed outside of the blockchain into the blockchain. For a long time there were a lot of discussions to try to limit the size of this field which rang foul with a lot of people in the altcoin community.
Ok, back to my thesis... Assuming the blockchain or any online ledger for that matter grows in size and complexity, one can argue that meta data and analysing metadata will be key to predicting behaviour and ultimately fuelling further enhancements in optimising the network and creating more value threads. Looking at electronic trading of equities is a good comparison. There are algorithms built to simply listen in on networks to amplify anomalies or identify opportunities. This then creates actionable ideas for traders to trade on or sales to sell to their clients. The reality in most markets is that actors look for forms of alpha. Probability and predictability become very important variables when seeking alpha. Having the tools to collect, recognise, dissect and suggest can be very powerful when looking at markets or networks where there is a high degree of data traffic.
What would be considered metadata as it relates to the blockchain or any online ledger system? Broadly speaking, any data that sits outside of the network that has a direct or indirect influence over transactions that sit within the network. This could be world news, intermediaries like payment processors, upcoming releases to the source code, rumours, regulation changes, integration points like sidechains or altcoins, etc... Observing data above the network and identifying correlation is important and powerful, again this is more pertinent as the network, blockchain or online ledger hits critical mass. In statistics, its simply the idea of looking at the standard deviations (metadata) and running a proper R-Squared through it to find a pattern or make conclusions from the data set. Really in the simplest view, as data grows in the network, the use of metadata to determine the real value of core or source data will grow.
One more example that I'd like to leave you with... Late last year, Carl Icahn a major investor in the US announced on Twitter that he bought Apple shares right after he processed the order with his broker. Within in minutes, the price of Apple went up nearly 10%. This is a classic example of meta data influencing the value of core data. Metadata that sat above the network having a profound effect on data sitting else where. The impact of Icahn's profile, his view on Apple as a company and his buy order into the market over a Twitter feed was tremendous as it relates to other actors who picked up on that feed to then go buy Apple's stock.
Digital assets within a private, public or consensus ledger and the core data associated with it will not be the most important data points to consider within a digital ecosystem. The metadata that surrounds those assets which influence a transaction will be paramount in secondary value as the usage, size and number of actors grow...
Be back with more... Stay tuned...