“The great ideas have come from people who weren’t paid to have great ideas”

It is only afterward that a new idea seems reasonable. To begin with, it usually seems unreasonable. It seems the height of unreason to suppose the earth was round instead of flat, or that it moved instead of the sun, or that objects required a force to stop them when in motion, instead of a force to keep them moving, and so on.

A person willing to fly in the face of reason, authority, and common sense must be a person of considerable self-assurance. Since he occurs only rarely, he must seem eccentric (in at least that respect) to the rest of us. A person eccentric in one respect is often eccentric in others.

The presence of others can only inhibit [the creative] process, since creation is embarrassing. For every new good idea you have, there are a hundred, ten thousand foolish ones, which you naturally do not care to display.

Probably more inhibiting than anything else is a feeling of responsibility. The great ideas of the ages have come from people who weren’t paid to have great ideas, but were paid to be teachers or patent clerks or petty officials, or were not paid at all.

From Isaac Asimov’s “How do people get new ideas?”


“You actually have to remind yourself not to believe”

[Virtual Reality] is the last medium. We’re at the very beginning of it, but version 147 is The Matrix or Total Recall. Our brain is no longer translating an approximation of the story. You read a book; your brain reads letters printed in ink on paper and transforms that into a world. You watch a movie; you’re seeing imagery inside of a rectangle while you’re sitting inside a room, and your brain translates that into a world. And you connect to this even though you know it’s not real, but because you’re in the habit of suspending disbelief.

With virtual reality, you’re essentially hacking the visual-audio system of your brain and feeding it a set of stimuli that’s close enough to the stimuli it expects that it sees it as truth. Instead of suspending your disbelief, you actually have to remind yourself not to believe.

-Chris Milk, from The Last Medium (the whole article is excellent)

“Natural languages are adequate, but that doesn’t mean they’re optimal”

Languages are something of a mess. They evolve over centuries through an unplanned, democratic process that leaves them teeming with irregularities, quirks, and words like “knight.” No one who set out to design a form of communication would ever end up with anything like English, Mandarin, or any of the more than six thousand languages spoken today.

“Natural languages are adequate, but that doesn’t mean they’re optimal,” John Quijada, a fifty-three-year-old former employee of the California State Department of Motor Vehicles, told me. In 2004, he published a monograph on the Internet that was titled “Ithkuil: A Philosophical Design for a Hypothetical Language.” Written like a linguistics textbook, the fourteen-page Web site ran to almost a hundred and sixty thousand words. It documented the grammar, syntax, and lexicon of a language that Quijada had spent three decades inventing in his spare time. Ithkuil had never been spoken by anyone other than Quijada, and he assumed that it never would be.

From Utopian for Beginners, an excellent 2012 New Yorker article about constructed human languages.

The Internet is for snacking

Web products have followed a steady evolutionary path from the compound to the atomic. Today’s popular social sites are spin outs of behaviors that emerged from blogs and forums, the primordial soup of the early social web. Before there was Twitter, people were doing something similar to tweeting on so-called link blogs or micro blogs. Tumblr was a direct descendent of a particular strain of blogs known as tumble blogs.

The successful products took big meals and converted them to snacks. The Internet likes snacks – simple, focused products that capture an atomic behavior and become compound only by linking in and out to other services. This has become even more so with the shift to mobile. People check their phones frequently, in short bursts, looking for nuggets of information.

A notable exception to this pattern are online products that users pay for. The dominant payment systems (mainly, credit card systems) were designed to be offline systems and only much later awkwardly grafted onto the Internet. They are inefficient and prone to fraud. As a result, paying online means making a commitment of time and trust. That’s why one of the most valuable assets an online business can have is “credit cards on file”. It is also one of the reasons there is a rich-get-richer dynamic for paid products. Big companies like Amazon and Apple are the beneficiaries.

The perverse result of this system is that products that are naturally suited to be “paid snacks” have to contort themselves to make money. News and music are good examples. Only a few news sites are popular enough to entice users to commit to paying, and even those have had only limited success with paywalls. Other news sites depend on intrusive ads to support themselves. Music is mainly purchased through aggregators like iTunes and Spotify who charge a hefty tariff. You need a comprehensive catalog to convince users to commit to a payment relationship.

In-app payments on iOS and Android are the one place where paid snacks exist at scale. They have been wildly successful, quickly becoming the dominant business model for games, replacing up-front payments and banner ads. (There are individual games that generate over one billion dollars per year from in-app payments.) Outside of games, entrepreneurs have started building interesting new products that wouldn’t have been viable without in-app payments.

This is one of the main reasons people are excited about new payment systems like Bitcoin. A broadly adopted form of “programmable money” has the potential to bring paid snacking to the rest of the Internet, and in doing so enable the save level of innovation in paid products that we’ve seen in the free and ad-supported products.

Michael Lewis’ Boomerang

Michael Lewis’ Boomerang is the best book you can read to understand the global credit crisis. Here’s an excerpt from the chapter on Iceland that involves fishing, smelting, banking, and elves. Yes, elves.

Alcoa, the biggest aluminum company in the country, encountered two problems peculiar to Iceland when, in 2004, it set about erecting its giant smelting plant. The first was the so-called hidden people—or, to put it more plainly, elves—in whom some large number of Icelanders, steeped long and thoroughly in their rich folkloric culture, sincerely believe. Before Alcoa could build its smelter it had to defer to a government expert to scour the enclosed plant site and certify that no elves were on or under it. It was a delicate corporate situation, an Alcoa spokesman told me, because they had to pay hard cash to declare the site elf-free, but, as he put it, “we couldn’t as a company be in a position of acknowledging the existence of hidden people.” The other, more serious problem was the Icelandic male: he took more safety risks than aluminum workers in other nations did. “In manufacturing,” says the Alcoa spokesman, “you want people who follow the rules and fall in line. You don’t want them to be heroes. You don’t want them to try to fix something it’s not their job to fix, because they might blow up the place.” The Icelandic male had a propensity to try to fix something it wasn’t his job to fix.

Back away from the Icelandic economy and you can’t help but notice something really strange about it: the people have cultivated themselves to the point where they are unsuited for the work available to them. All these exquisitely schooled, sophisticated people, each and every one of whom feels special, are presented with two mainly horrible ways to earn a living: trawler fishing and aluminum smelting. There are, of course, a few jobs in Iceland that any refined, educated person might like to do. Certifying the nonexistence of elves, for instance. (“This will take at least six months—it can be very tricky.”) But not nearly so many as the place needs, given its talent for turning cod into PhDs. At the dawn of the twenty-first century, Icelanders were still waiting for some task more suited to their filigreed minds to turn up inside their economy so they might do it.

Enter investment banking.

It’s a short book – just 5 chapters covering Iceland, Ireland, Germany, Greece, and California. What’s particular fascinating is how each place had a wildly different reaction to the credit glut.