For those of you who don't know Johannes he developed Light-Weight Identity (LID) a URL based ID system at the same time Brad Fitzpatrick did at Live Journal and then participated in merging it all together into YADIS discovery which became woven together with OpenIDv1, XRI/i-names  and sxip to become OpenIDv2. He also was the first drawer of the identity triangle (OpenID, SAML, InfoCards) which evolved into the Venn of Identity.

Many people have ideas for value-added services that could be sold once sufficiently many users used internet identities at enough sites. The trouble is that the transaction volume for OpenID (or any other identity technology on the internet) is still far too low to make this viable.

The mot important sentence is this one - Let’s not confuse being majorly annoyed how long this is all taking (speaking about myself here) with something being fundamentally wrong (because there isn’t).

I take heart with what he has to say especially because he addresses it to a big part of what I do - organize (un)conferences to continue momentum for the field.

From his post:

Value-added services:
Many people have ideas for value-added services that could be sold once sufficiently many users used internet identities at enough sites. The trouble is that the transaction volume for OpenID (or any other identity technology on the internet) is still far too low to make this viable.

So the verdict here is: perhaps in the future.   

So what’s an analyst, or conference organizer, or entrepreneur, or venture capitalist to do?

My take: Hang in there, keep the burn rate low, make no major moves, would be my advice. (Believe it or not, sometimes I’m being asked about my advice on this.) All the signs are pointing in the right direction, the latest being Google’s major OpenID push. Let’s not confuse being majorly annoyed how long this is all taking (speaking about myself here) with something being fundamentally wrong (because there isn’t).

Sooner or later, at least the value-added services opportunity will emerge. Perhaps others. But so far it has not yet.

I have been working "virtually" for three years using social software tools - basically via e-mail, wiki's, conference calls, in person meetings and showing up at events/conferences. Both on behalf of Planetwork and as Identity Woman working for the ecology of folks using eXtensible Resource Identifiers [XRI] (i-names) and and XRI Data Interchange [XDI] to really build the Augmented Social Network.

The ASN paper has a focus on civil society uses of the internet. The principles of user controlled identity are at its core and have implications for business and how trusted deep relationships between buyers and sellers, costumers and companies can open up new opportunities. Here are some critical excerpts

Four main elements of ASNPersistent Identity
Enabling individuals online to maintain a persistent identity as they move between different Internet communities, and to have personal control over that identity. This identity should be multifarious and ambiguous (as identity is in life itself), capable of reflecting an endless variety of interests, needs, desires, and relationships. It should not be reduced to a recitation of our purchase preferences, since who we are can not be reduced to what we buy.

Interoperability Between Online Communities
People should be able to cross easily between online communities under narrowly defined circumstances, just as in life we can move from one social network to another. Protocols and standards need to be developed and adopted to enable this interoperability. This interoperability should include the ability to identify and contact others with shared affinities or complementary capabilities, and to share digital media with them, enabling valuable information to pass from one online community to the next in an efficient manner. To support ASN-type activity, modularized enhancements to the technical infrastructures of separate online communities will need to be developed and adopted.

Brokered Relationships
Using databased information, online brokers (both automated and "live") should be able to facilitate the introduction between people who share affinities and/or complementary capabilities and are seeking to make connections. In this manner, the proverbial "six degrees of separation" can be collapsed to one, two or three degrees — in a way that is both effective and that respects privacy. Such a system of brokered relationships should also enable people to find information or media that is of interest to them, through the recommendations of trusted third parties.

Public Interest Matching Technologies
The Semantic Web is perhaps the best known effort to create a global "dictionary" of shared terms to facilitate finding information online that is of interest to you. Within the ASN, a public interest initiative around matching technologies, including ontologies and taxonomies, will enable you to find other people with whom you share affinities — no matter which online communities they belong to. These matching technologies need to be broad and robust enough to include the full range of political discussion about issues of public interest. They should not be confined to commercial or narrowly academic topics; NGOs and other public interest entities need to be represented in the process that determines these matching technologies.

__________________

Building your online identity
Underlying this report is the assumption that every individual ought to have the right to control his or her own online identity. You should be able to decide what information about yourself is collected as part of your digital profile, and of that information, who has access to different aspects of it. Certainly, you should be able to read the complete contents of your own digital profile at any time. An online identity should be maintained as a capability that gives the user many forms of control. Without flexible access and control, trust in the system of federated network identity will be minimal.

To date, online identity is treated the same way as an individual’s credit history — as information that exists as a result of commercial transactions, and so is the proprietary data of the company that captures it. These companies then have the legal right to do with this data as they see fit, including making it available to massive databases that centralize this information for resale. At the same time, your rights as a citizen to access and effect this same information are limited — as anyone who has ever had to sort out errors in his official credit history can attest.

A digital profile is not treated as the formal extension of the person it represents. But if this crucial data about you is not owned by you, what right do you have to manage its use? At the moment, it seems, this right would have to be granted by the corporations that have captured your data for their own purposes. They may perhaps choose to give you a measure of control over what they do with it. But as long it is their choice to grant you control, rather than your right as a citizen to assert control, the potential for abuse is of grave concern. Just as overly burdensome intellectual property laws threaten to dampen innovation on the Internet, as Lawrence Lessig has described, legacy twentieth century laws regarding proprietary information about "customers" could undermine efforts to create a civil society-oriented persistent identity. This could, in turn, strictly limit the forms of trusted relationships that might take place online.

The digital profiles that Internet stores like Amazon have developed of their customers follow a common pattern. Have you ever seen the information about your sales history that Amazon bases its personal recommendations on? Not to suggest that Amazon is a nefarious organization, or that it uses what it learns about customers in an improper way. But you cannot gain access to your Amazon profile, even if you wanted to. Nor do you even have the right to ask for it. Today, for most people, this does not pose a problem. Most of us are glad to get Amazon’s recommendations (sometimes they are even useful). But a decade hence, as the tools for creating online profiles become far more sophisticated, and stores like Amazon cross-reference their proprietary customer information with that of thousands of other companies, we will be in a very different territory.

Let’s take a moment to consider the ways that data about you can be gathered and entered into a digital profile. There are basically three:

First, as with the Amazon example, your online decisions can be traced, entered into a database, and interpreted according to a pre-determined algorithm. This form of automated information gathering, by compiling a database of significant actions, is the most unobtrusive way to build a profile. At the same time, you — the profile subject — may be unaware that your actions are being followed and interpreted in this way. It is important that ethical standards are established so that you know when your behavior is being tracked, and when it isn’t. Moreover, you should be aware who is tracking your behavior, and what they will do with that information. Most importantly, you should always be given the option to not have your behavior tracked — this option should be a fundamental right in a free society. By tracked we mean the recording and retention of activity that is retained beyond a certain time limit, transferred to others, and/or retained for future use.

Secondly, you can deliberately enter information about yourself into a digital profile. For example, some online communities have complex registration forms that each new member must fill out in order to participate. Once a member makes clear that she prefers Bob Dylan and Tom Waits to N’Synch and Britiney Spears, she is then led into an online discussion area with others who expressed similar interests. The advantage to profiles compiled like this is that you know exactly what you have chosen to express about yourself, and what you have not. The downside, however, is that filling out forms is cumbersome; most of us prefer to avoid doing it.

The third method is perhaps the most traditional form of information gathering, and least preferred: Having others report on your actions without your knowledge. Depending on who controls your digital profile, and how it is used, this method might play a minimal role in federated network identity, or it might be central to it. The more control each individual has over his or her own profile, however, the less likely it is that undesirable or unnecessary reports by others will be a key element. A user should have some ability to determine under what circumstances other people’s opinions about his actions might precede him when he enters new situations.

Again, ethical standards need to be agreed to that protect citizens against abuses of this kind, which the technology could easily facilitate.

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Opening:

Over the years, I have had an uneasy relationship with you. I've not cared one bit for being your prospect. And, as it seems that being your customer is just an extension of a permanent, unrelenting and ever-more-intrusive marketing campaign, I'm not nuts about being your customer, either.

He quotes David Glen Mick from a paper Searching for Byzantium: A Personal Journey into Spiritual Questions that Marketing Researchers Rarely Ask

Another set of spiritual questions we seldom ask ourselves concerns the effects of marketing and consumption on human character. By character I do not mean human values, but rather our psychological temperament as we go about our daily activities. What kind of person does marketing and consumption encourage or discourage?

Mick's answers include examples of qualities of temperament that are, in his opinion, encouraged by marketing and consumption: impatience, incivility, judgmentalism and distrust.

He continues to articulate the problems with marketing and gets to the heart of the matter by offering a new model.

What I'm recommending is the creation of (what I will call) a "custnomer": a data alias or new "name" for that me that gets profiled by your computer systems.

At a minimum, this will mean that my customer records and data won't have my real name appended to them. There are too many thieves and scammers out there who are seeking to use my good name and the records attached to it. Grab your nearest CIO and Chief Privacy Officer (and maybe the Chief Security Officer, though that person is probably on Zoloft at present) by their lapels and strongly encourage them to begin in-depth research into the promising work on Extensible Resource Identifiers (XRI) and XRI Data Interchange (XDI).

The Daddy of XRI, Drummond Reed, is someone I consider a friend ...is, without question, the darned nicest and most patient technology visionary that you will ever come across. There isn't an ounce of ego in his dealings with us woefully common folk.

Warning: XRI/XDI is not some obscure, trivial "tech thing" that will only be meaningful to those who mumble to themselves and spend half their lifetimes slaughtering innocents and evil-doers... virtually, that is. XRI/XDI has encoded within it is a simple, powerful idea that will come true over time and will change your business: "My private data is mine."

He goes on to highlight data anonymity and the work of Latanya Sweeney, Assistant Professor, Institute for Software Research International at Carnegie-Mellon University.

Here's how Sweeney describes what she does:

Perhaps the biggest clash between technology and society involves privacy. The task of maintaining privacy and confidentiality in a globally networked, technically empowered society is quite difficult, tricky and fun.

Data privacy (or more precisely, data anonymity) is emerging as a new study within computer science that is the study of computational solutions for releasing information about entities (such as people, companies, governments) such that certain properties (such as identity) are controlled while the data remain practically useful. While these problems have been studied, in part, by statisticians and earlier computer scientists, their solutions have been rendered insufficient in today's technically empowered society. So, in data anonymity, we develop new approaches and tools for today's computational environment.

My colleagues and I (in the Laboratory for International Data Privacy, for which, I am the director) take a two-prong approach to data anonymity. On the one hand, we work as data detectives and on the other hand, we also work as data protectors."

The best part is he finished up with the new business model.

I'm thinking that there's probably some trustworthy business entity—although, I'm hard-pressed to figure out which it might be—that could serve as my proxy. (Now, banks and/or credit card companies, before you leap to any conclusions, take a long look at your information assurance practices and see the part of this article about the Trusted Computing Group.)

I would willingly provide just enough information, credentials and data that authenticate who I am and which, say, establish my credit-worthiness to a "trusted relationship proxy": some government-certified, insured, audited, secure entity that would establish and manage the data version of "me" and would become the "gateway" to all (or many) of my most important business relationships. Think of this proxy as an agent who serves as a buffer between me and you.