The Investor's Shelf — one book
Life After Google

Life After Google

George Gilder
2018
T3 OL20580958Wgoodreads

The case that blockchain architectures displace the centralised web

Summary

Gilder argues that Google's model, in which services are given away free and paid for by advertising and data collection, is reaching its limit, and that a new architecture based on cryptographic verification and distributed ledgers will replace it. He calls the current arrangement the Google system of the world and predicts its collapse.

His technical argument rests on security and on information theory. He contends that the internet was built without a native security or identity layer, that centralised data aggregation is the consequence, and that blockchain-based systems supply the missing layer by making verification a property of the network rather than of a trusted party. He also argues from Shannon and from his own long-standing position that information is surprise, and that centralised machine learning systems trained on past data cannot produce genuine novelty. He extends this into a critique of artificial intelligence claims, invoking Godel and Turing to argue that machines cannot exceed the systems that program them.

The book profiles a set of companies and founders working on distributed alternatives, most of which have not achieved the position he anticipated.

The predictions have not been borne out in the seven years since. Google's advertising model has grown, machine learning has advanced faster than his argument allows, and the blockchain applications he described have not displaced centralised platforms. His philosophical arguments about computation and creativity are stated forcefully and are not defended against the standard objections. Read it as a statement of a position rather than as analysis, and note that Gilder has made confident technology forecasts before with mixed results.

Key takeaways 7

  1. The internet was built without a native security and identity layer, and centralised data aggregation by platforms is the consequence of that gap.
  2. Free services paid for by advertising create a relationship in which the user is not the customer, which distorts what gets built.
  3. Cryptographic verification distributed across a network can substitute for trust in a central party, which would remove the need for aggregating platforms.
  4. Information is surprise in the technical sense, so a system trained entirely on past data cannot generate genuine novelty.
  5. Machine learning systems cannot exceed the formal systems that specify them, which Gilder argues from Godel and Turing.
  6. Centralised platforms accumulate security liabilities in proportion to the data they hold, which makes concentration itself the vulnerability.
  7. Advertising-funded models face a limit because attention is finite while the supply of content competing for it is not.

Who should read it

Readers who want a forcefully argued case against the advertising-funded platform model, understood as a forecast that has not been confirmed.

Where it sits in the reference 3

Companies
Assets
Philosophy

Who recommended it 1

Peter Thielreported
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