Copyright 2005-06 1 ePublishing Business Models in the P2P Era Roger Clarke Xamax Consultancy Pty Ltd, Canberra Visiting Professor in eCommerce, Uni. of

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Copyright 2005-06 1 ePublishing Business Models in the P2P Era Roger Clarke Xamax Consultancy Pty Ltd, Canberra Visiting Professor in eCommerce, Uni. of Hong Kong Visiting Professor in Cyberspace Law & Policy, U.N.S.W. Visiting Professor, Dept of Computer Science, ANU http://www.anu.edu.au/people/Roger.Clarke/EC/... P2P-BM-Bergen {.html,.ppt} Norwegian School of Economics and Business Administration Bergen 22 May 2006 Slide 2 Copyright 2005-06 2 ePublishing Business Models in the P2P Era Themes What, and why, is P2P? (15) The Political Economy of P2P and Music (8) Can old Business Models survive? (4) Are new Business Models emerging? (14) Slide 3 Copyright 2005-06 3 Client-Server Architecture mid-1980s Onwards, esp. mid-1990s Onwards Internet-Mediated Slide 4 Copyright 2005-06 4 Key Developments Since the Mid- 1990s Workstation Capacity (now rivals Hosts) Workstation Diversity (vast, expanding) desktops, laptops, handhelds, smartcards,... phones, PDAs, cameras,... carburettors, fridges,... RFID tags,... Broadband Connectivity (now widespread) This enables dispersion and replication of devices capable of providing services Wireless Connectivity (rapidly increasing) This enables Mobility which means Devices change networks which means their IP-addresses change Slide 5 Copyright 2005-06 5 P2P The Motivation Take advantage of resources that are available at the edges of the Internet In order to do so, make each participating program both a Client and a Server and hence each workstation acts as a host as well, e.g. a music playstation can be a mixer too your PDA can host part of a music catalogue your PC can host part of a music repository Slide 6 Copyright 2005-06 6 P2P Architecture Cooperative Use of Resources at the Edge Slide 7 Copyright 2005-06 7 P2P Differentiated from Client-Server Slide 8 Copyright 2005-06 8 Functions of a P2P Server Manage Comms with other devices Manage Directories: of Objects (e.g. files) of Services (e.g. currency conversion, or credit-card payment processes) Manage Repositories of Objects Manage Services Slide 9 Copyright 2005-06 9 Important Characteristics of P2P Collaboration is inherent Clients can find Servers Enough Devices with Enough Resources act as Servers for discovery, and as Servers for services Single Points-of-Failure / Bottlenecks / Chokepoints are avoided by means of networking dynamics 'Free-Riding' / 'Over-Grazing' of the 'Commons' is restrained through software and psych. features Slide 10 Copyright 2005-06 10 Why P2P Is Attractive Much-Reduced Dependence on individual devices and sub-networks (no central servers) Robustness not Fragility (no single point-of-failure) Resilience / Quick Recovery (inbuilt redundancy) Resistance to Denial of Service (D)DOS Attacks (no central servers) Much-Improved Scalability (proportionality) Improved Servicing of Highly-Peaked Demand (more devices on the demand-side implies there are also more server-resources) Slide 11 Copyright 2005-06 11 Technical Concerns about P2P Address Volatility: old addresses may not work (hence trust based on repetitive dealings is difficult) Absence of Central Control (hence risk of anarchy) Inadequate Server Participation (over-grazing) Security Challenges: Malware, embedded or infiltrated Surreptitious Enlistment (at least potential) Vulnerability to Masquerade Vulnerability to Pollution Attacks (decoys) Slide 12 Copyright 2005-06 12 P2P Applications 1. Of Long Standing ARPANET services generally, from 1969 Message Transfer Agents, since 1972 (SMTP), which perform both server and client functions USENET since 1979, now Internet Netnews Fidonet file/message transfer system, since 1984 Domain Name System (DNS), since 1984, a collaborative scheme, each server also a client Slide 13 Copyright 2005-06 13 Recently-Emerged P2P Applications 2. Processing Services (cf. Grid Computing) Pattern-Searching of Data (e.g. SETI@home) Data-Space Searching, in particular as part of a collaborative key-discovery process (e.g. EFF's DES cracking project) Numerical Methods, large-scale / brute-force (e.g. fluid dynamics experiments, meteorology) Gaming, multi-player, networked Message Transfer: conferencing/chat/instant messaging cooperative publishing Slide 14 Copyright 2005-06 14 Recently-Emerged P2P Applications 3. Access to Digital Objects Software: Fixes/Patches Releases Virus Signatures Announcements, e.g. of technical info, business info, entertainment info, sports results, promotional messages, advertisements News Reports, by news organisations, and by members of the public Emergency Services Data Backup and Recovery Data Games Data, e.g. scenes and battle configurations Archived Messages, for conferencing/chat/IM, and cooperative publishing Learning Materials, in various formats Entertainment Materials, in various formats Slide 15 Copyright 2005-06 15 P2P Networks and Protocols http://en.wikipedia.org/wiki/Peer-to- peer#Networks.2C_protocols_and_applications BitTorrent network: ABC, Azureus, BitAnarch, BitComet, BitSpirit, BitTornado, BitTorrent, BitTorrent++, BitTorrent.Net, G3 Torrent, mlMac, MLDonkey, QTorrent, SimpleBT, Shareaza, TomatoTorrent (Mac OS X) [2], TorrentStorm eDonkey network: aMule (Linux, Mac OS X, others), eDonkey2000, eMule, LMule, MindGem, MLDonkey, mlMac, Shareaza, xMule, iMesh Light, ed2k (eDonkey 2000 protocol) FastTrack protocol: giFT, Grokster, iMesh (and its variants stripped of adware including iMesh Light), Kazaa by Sharman Networks (and its variants stripped of adware including: Kazaa Lite, K++, Diet Kaza and CleanKazaa), KCeasy, Mammoth, MLDonkey, mlMac, Poisoned Freenet network: Entropy (on its own network), Freenet, Frost Gnutella network: Acquisitionx (Mac OS X), BearShare, BetBug, Cabos, CocoGnut (RISC OS) [3], Gnucleus Grokster, iMesh, gtk- gnutella (Unix), LimeWire (Java), MLDonkey, mlMac, Morpheus, Phex Poisoned, Swapper, Shareaza, XoloX Gnutella2 network: Adagio, Caribou, Gnucleus, iMesh, MLDonkey, mlMac, Morpheus, Shareaza, TrustyFiles Joltid PeerEnabler: Altnet, Bullguard, Joltid, Kazaa, Kazaa Lite Napster network: Napigator, OpenNap, WinMX Applejuice network: Applejuice Client, Avalanche, CAKE network: BirthdayCAKE the reference implementation of CAKE, Direct Connect network: BCDC++, CZDC++, DC++, NeoModus Direct Connect, JavaDC, DCGUI-QT, HyperCast [4], Kad Network (using Kademila protocol): eMule, MindGem, MLDonkey, LUSerNet (using LUSerNet protocol): LUSerNet, MANOLITO/MP2P network: Blubster, Piolet, RockItNet, TVP2P type networks: CoolStreaming, Cybersky-TV, WPNP network: WinMX Other networks: Akamai, Alpine, ANts P2P, Ares Galaxy, Audiogalaxy network, Carracho, Chord, The Circle, Coral[5], Dexter, Diet- Agents, EarthStation 5 network, Evernet, FileTopia, GNUnet, Grapevine, Groove, Hotwire, iFolder[6], konspire2b, Madster/Aimster, MUTE, Napshare, OpenFT (Poisoned), P-Grid[7], IRC @find and XDCC, used by IRC clients including: mIRC and Trillian, JXTA, Peersites [8], MojoNation, Mnet, Overnet network, Peercasting type networks: PeerCast, IceShare - P2P implementation of IceCast, Freecast, Scour, Scribe, Skype, Solipsis a massively multi-participant virtual world, SongSpy network, Soulseek, SPIN, SpinXpress, SquidCam [9], Swarmcast, WASTE, Warez P2P, Winny, AsagumoWeb, OpenExt, Tesla, soribada, fileswapping, XSC Slide 16 Copyright 2005-06 16 P2P Multi-Protocol Applications http://en.wikipedia.org/wiki/Peer-to- peer#Networks.2C_protocols_and_applications eMule (Edonkey Network, Kad Network) (Microsoft Windows, Linux) aMule (eDonkey network) (Linux, Mac OS X, FreeBSD, NetBSD, OpenBSD, Windows and Solaris Op Environmt) Epicea (Epicea, BitTorrent, Edonkey Network, Overnet, FastTrack, Gnutella) (Microsoft Windows) GiFT (own OpenFT protocol, and with plugins - FastTrack, eDonkey and Gnutella) and xfactor (uses GiFT) (Mac OS X) Gnucleus (Gnutella, Gnutella2) (Microsoft Windows) Hydranode (eDonkey2000) (Microsoft Windows, Linux, Mac OS X) iMesh (Fasttrack, Edonkey Network, Gnutella, Gnutella2) (Microsoft Windows) Kazaa (FastTrack, Joltid PeerEnabler) (Microsoft Windows) Kazaa Lite (FastTrack, Joltid PeerEnabler) (Microsoft Windows) KCeasy (Gnutella, Ares, giFT) MindGem (Edonkey Network, Kademlia) MLDonkey (BitTorrent, eDonkey, FastTrack, Gnutella, Gnutella2, Kademlia) (MS Windows, Linux, Mac OS X, Palm OS, Java) mlMac (BitTorrent, eDonkey, FastTrack, Gnutella, Gnutella2) Morpheus (Gnutella, Gnutella2) (Microsoft Windows) Poisoned (FastTrack, Gnutella) Shareaza (BitTorrent, eDonkey, Gnutella, Gnutella2) (Microsoft Windows) WinMX (Napster, WPNP) (Microsoft Windows) XNap (OpenNAP, GiFT, Limewire, Overnet, ICQ, IRC) (Java) Zultrax (Gnutella, ZEPP) Slide 17 Copyright 2005-06 17 The Predominant Use 1998-2005 Consumer Sharing of Entertainment Materials: recorded music, in MP3 and other formats video, as bandwidths increase Copyright-owning corporations assert that a large proportion of those file-transfers is being performed in breach of copyright law There is evidence to support the assertion Slide 18 Copyright 2005-06 18 2. The Political Economy of P2P and Music Slide 19 Copyright 2005-06 19 Copyright-Owner Perspective 1998- 2005 esp. RIAA, increasingly MPAA Serious Risk of Loss of Control over Objects (appropriation / theft / piracy) Serious Risk of Cannibalism i.e. killing existing high-margin revenue (CDs) by substituting low-margin revenue (digital) Lack of Clarity about ePublishing Business Models Exploitability of Market Concentration and Power Slide 20 Copyright 2005-06 20 Use of Legal Action to Destroy Napster 1999-2002 Napster was P2P-with-a-chokepoint It relied on a central directory of file-names and host-identities Court action by RIAA resulted in closure of the directory, and hence the collapse of the service Many P2P applications have some central facility that can be attacked in such a manner, incl. AOL Instant Messenger, ICQ, DNS (Replication does not remove central control) Slide 21 Copyright 2005-06 21 But...

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