Re: microcurrency: Netscape vs. Microsoft

From: "Vladimir Z. Nuri" <vznuri@netcom.com>
> I predict that microcurrency will not catch on in a big way
> until it is integrated with browsers, and when it is, it
> will be adopted in an insanely large rush like the way
> the web itself caught on with the GUI (and was mostly comatose
> before it).  
> [...]
> notice how much crypto really caught on when Netscape 
> incorporated it, and how this action alone did more for
> the proliferation of crypto in cyberspace, almost, than
> all prior efforts combined. I think that microcurrency
> will be unleashed in a very similar way.

I assume you are referring to secure web connections via SSL in talking
about crypto.  In that case there was a very strong pent up demand for
the service.  Customers were afraid to send credit card numbers and
other personal information across the web.  Sellers were pressuring the
net server companies to do something to quell these concerns so on-line
selling could succeed.  Netscape did it, and in the grand tradition of
the net, implementation beat design and SSL defeated SHTTP.  In its early
versions SSL had a lot of problems but it was a good enough solution for
what it needed to be.

The question is whether there is similar market demand for pay per view
web pages.  Do web service operators think they can offer value added
services which will motivate customers to click through the for-pay link?
Maybe porn would be a good initial market.  There are so many sites
where you've got to sign up ahead of time for $20 or so for a month's
membership.  This is a considerable barrier.  But if you could just take
a peek for $.50 there would be a lot of people interested.  Porn is what
started the VCR market before it later "went respectable", so maybe the
same thing could happen here.  I know that a lot of the initial vendors
with First Virtual were selling racy pictures, although I think the
company has taken steps to reduce their association with that market.

This is not exactly the microcurrency that Vladimir is talking about
but it would be a good model for integrating some payment system with
a browser and it could serve as the foundation for other for-pay pages
with lower fees.

There is also the issue of sellers learning to use the various payment
systems which are out there.  Here again if Netscape and Microsoft would
just pick one then everyone could standardize on it, which would
increase acceptance a great deal.

Ecash as it is implemented now has the problem that the customer has to
open a special bank account.  What you need is a payment system where
you can use your existing VISA card and withdraw cash against it into
your electronic wallet.  This is pretty close to the FV model but their
payment system is somewhat clumsy.

I haven't followed the electronic payment market closely for the last
couple of years.  Are there any payment systems which look like good
candidates for integration with browsers?

Hal

>> notice how much crypto really caught on when Netscape 
>> incorporated it, and how this action alone did more for
>> the proliferation of crypto in cyberspace, almost, than
>> all prior efforts combined. I think that microcurrency
>> will be unleashed in a very similar way.
>
>I assume you are referring to secure web connections via SSL in talking
>about crypto.  In that case there was a very strong pent up demand for
>the service.  Customers were afraid to send credit card numbers and
>other personal information across the web.  Sellers were pressuring the
>net server companies to do something to quell these concerns so on-line
>selling could succeed.  Netscape did it, and in the grand tradition of
>the net, implementation beat design and SSL defeated SHTTP.

neither has "beat" the other at this point. but this does show something
I have always believed: companies should just invent ad-hoc, quick-and-dirty
standards if full standards are not immediately available. it makes no
sense to me to delay the introduction of some new feature because there
isn't industry standardization. the case is often that the initial 
ad-hoc standards will tend to converge into a better standard down
the road. I don't see standards as "forever". standards should be
viewed as stepping stones to better standards. 

hence I think netscape and/or MS should invent a "plug and play" 
(i.e. trivial to use) micropayment standard immediately, regardless
of what industry standardization does not or will exist. it wouldn't
be pretty at first but standardization to better interfaces could
ensue later. the main thing is to get it on the table, and get
people using it, to create the demand. services are rarely developed
unless there is a demand. hence I suggest that a *rudimentary* form
of the service be first devised and implemented asap to increase
demand for one with much more finesse.

  In its early
>versions SSL had a lot of problems but it was a good enough solution for
>what it needed to be.

exactly.

>The question is whether there is similar market demand for pay per view
>web pages.

don't think this is a valid question. the whole point of microcurrency
is just decreasing the cost until people hit the page and don't
care about the cost. hence I think there is a guaranteed market, because
with microcurrency you can always shave off your price to virtually
infinitesmal values (say pennies a hit) that will guarantee you will
have at least some audience.

  Do web service operators think they can offer value added
>services which will motivate customers to click through the for-pay link?

I'm imagining just putting a teeny little transaction charge on top
of every single hit that now exists. if it is small enough, consumers
won't care very much.

>There is also the issue of sellers learning to use the various payment
>systems which are out there.  Here again if Netscape and Microsoft would
>just pick one then everyone could standardize on it, which would
>increase acceptance a great deal.

well, pick one payment scheme and then competing companies could
adopt the same standard (but offer competing systems and features)

>Ecash as it is implemented now has the problem that the customer has to
>open a special bank account.  What you need is a payment system where
>you can use your existing VISA card and withdraw cash against it into
>your electronic wallet.  This is pretty close to the FV model but their
>payment system is somewhat clumsy.

exactly. someone who reengineered the whole thing from top to
bottom and made it absolutely trivial to use-- I suspect the future
of the browser wars will belong to the company that does this.
again, I note it might be doable in a plug in, but as I said, I 
think browser manufacturers are eventually going to put it into 
their own code because of its sheer importance.