Web Payments Telecon Minutes for 2013-08-14

Thanks to Dave Longley for scribing today! The minutes for this week's
Web Payments telecon are now available here:

https://payswarm.com/minutes/2013-08-14/

Full text of the discussion follows for archival purposes at the W3C.
Audio of the meeting is available as well (link provided below).

--------------
Web Payments Community Group Telecon Minutes for 2013-08-14

Agenda:
   http://lists.w3.org/Archives/Public/public-webpayments/2013Aug/0032.html
Topics:
   1. Introductions to Adam B. Levine and Anders
   2. Update from Andrei on PaySwarm Marketplace Demo
   3. Project Watershed
   4. Crypto Key Storage in the Browser
Chair:
   Manu Sporny
Scribe:
   Dave Longley
Present:
   Dave Longley, Manu Sporny, Adam B. Levine, Anders Rundgren,
   Andrei Oprea, David I. Lehn
Audio:
   http://payswarm.com/minutes/2013-08-14/audio.ogg

Dave Longley is scribing.
Manu Sporny:  before we get started let's do some introductions

Topic: Introductions to Adam B. Levine and Anders

Adam B. Levine:  my name is Adam B Levine, my background is with
   bitcoin, i've been involved for ~2 years, i do a show let's talk
   bitcoin, i'm really interested in micropayments to figure out
   barrier to entry for purchases, txns, commerce of all kinds on
   the web, bitcoin accomplishes the goal of low overhead and it's
   very inclusive and it's been very difficult for me to monetize
   the shows i do and bitcoin has made that much easier
   (internationally), i'm working on project watershed right now and
   i'm trying to figure out if i'm putting it aside for a bit
   because there are some for-profit outfits trying to do the same
   thing now, so i'm trying to figure out how to devote my time
   because i don't have enough of it
Anders Rundgren:  i'm Anders Rundgren, i work on [security
   solutions] for about 10 years, RSA security,etc. and my interest
   is in payments from the authentication side, i think that
   payments technologies should be more close than they are today, i
   want to see some standards/open source used to accomplish this
   goal
Anders Rundgren:  i've also worked with a small PKI provider for
   passports and stuff like that
Manu Sporny:  ok, sounds good, content distribution, identity,
   and payments go hand in hand

Topic: Update from Andrei on PaySwarm Marketplace Demo

Manu Sporny:  Andrei is going to give us a quick update on his
   progress on the payswarm marketplace stuff he's been doing
Andrei Oprea:  i've successfully made in-app purchases, i've run
   into some issues, one would be that when making an in-app
   purchase i got an error saying that there was no receipt, but the
   purchase did go through, so i can see it as a successful purchase
Andrei Oprea:  i wanted to ask how to sell something that isn't
   music/book/etc something like that, if it's a service, what
   should the user receive
Andrei Oprea:

https://gist.github.com/piatra/6230793/raw/85143f38877552989bdc8ab912c74f93a1ccb5f4/error.js
David I. Lehn:  We'll need more debugging info on this. [scribe
   assist by Manu Sporny]
Dave Longley:  let's take this offline, it may take some
   debugging. callbcks are only through web interface. [scribe
   assist by Manu Sporny]
Manu Sporny:  as far as marking things up for sale for services,
   say, a dog walking service, the asset is just a block of time for
   services for an hour, etc.
Manu Sporny:  invoices will be modeled as assets as well
Manu Sporny:  when you want to sell something, the asset always
   encapsulates what you're selling, it's as broad as possible, if
   there's something that doesn't quite fit into the asset model we
   should discuss it, but we tried to make it cover as much as we
   could (be really generic)
Andrei Oprea:  if someone purchases a dog walking service what do
   i give them?
Manu Sporny:  typically an invoice would be produced that
   described what services were used (it would be an asset) and
   there would line items in the asset
Manu Sporny:  we could change things so that a service could be
   used instead of an asset
Dave Longley:  I don't think we'd necessarily want to do that -
   an additional type for an Asset can be a service. We're trying to
   find the correct vocabulary terms for what you're trying to
   model, to properly markup what you want. [scribe assist by Manu
   Sporny]
Dave Longley:  Finding the right vocabulary for what you want to
   sell is important. [scribe assist by Manu Sporny]
Dave Longley:  You may want to look online for some other
   vocabularies. You may add additional types to the asset that
   gives more information about what it is... you could have
   DogWalkingService in there if that's a part of a vocvabulary.
   [scribe assist by Manu Sporny]
Manu Sporny: You might take a look at the Product Ontology -
   http://www.productontology.org/ which has stuff like: pto:WebPage
   pto:Shovel pto:CinderBlock lots of things you could augment Asset
   with.
Manu Sporny:  ok, great progress andrei, we can discuss after the
   call getting stuff onto the VM, etc.

Topic: Project Watershed

Manu Sporny:

https://docs.google.com/document/d/18blKvUX5t-lBNCsbgnsJQsFCZi-76-I-cWcwO1_atUg/edit?usp=sharing
Manu Sporny:  so Adam sent an email to the web payments mailing
   list about project watershed and gave a talk at the bitcoin conf
   about it, so give us an overview
Adam B. Levine:  the basics ... the point of what i'm trying to
   do is to build an open source and free platform that is agnostic
   in the way a wordpress install would be, but i would build on top
   of crypto stuff for frictionless payments, where lots of other
   currencies (non-bitcoins) require you to go through a lot of
   hoops to buy things, bitcoin doesn't require that
Adam B. Levine:  with bitcoin you can just generate new addresses
   for every purpose you want
Adam B. Levine:  we're looking at tech for a hierarchical key
   management to fix some of the technical problems here
Adam B. Levine:  instead of having a banner on a
   webpage/billboard on side of the road, the process in order to
   buy something by clicking on something like this ... if you're on
   a webpage to consume content you are much less likely to use one
   of the advertisers there simply because it's asking you to click
   somewhere and leave, it's a disruptive act, so sites where you
   were already planning to leave get more success from this method,
   but if you didn't want to leave you're less likely to use this.
Adam B. Levine:  you can do purchases/subscriptions using this
   new tech by clicking on ads without disruption so the ads
   function more like vending machines
Adam B. Levine:  my focus with this project is to find better
   ways to monetize content and work with communities, once you get
   critical mass everything's ok, but before that it's difficult,
   it's an enormous cost to deal with the same issues prior to
   critical mass (issues are same between small and big sites, but
   only big sites can fix them)
Adam B. Levine:  bitcoin has a problem right now, 6 cents USD for
   txns, but compared to the size of donations, it's not as good as
   it could be, the solution that bitcoin community is coming from
   is off-chain txns, so you keep track of small off-chain txns and
   then at some point if someone wants to cash in you make the
   conversion at that point so the txn cost makes more since for $3
   (in aggregate) vs. 25 cents
Adam B. Levine:  so with this system you can incentivize content
   creation
Manu Sporny:  we're 100% on board with what you want to do here,
   specifically, DB, the people that created payswarm, our
   background was in monetizing content, we had ~1 million
   independent songs we were selling, we had a p2p network where
   fans could make money off of selling content (in addition to
   artists) as distributions on the p2p network
Manu Sporny:  we absolutely believe that what you're doing is a
   problem with solving
Manu Sporny:  as far as the tech used to solve the problem,
   you're coming from bitcoin blockchain side, we're coming from a
   web perspective, the talk i gave recently was about a huge
   community on the web 2.5 billion people, our goal is to slightly
   tweak the web so that payments are integrated into the core of
   the web
Manu Sporny:  bitcoin has a lot of advantages over the current
   financial system, and we also want to use feature sof the web to
   enhance current financial system
Manu Sporny:  payswarm has the ability to give an address for
   every single thing for sale on the web, we use a URL
Manu Sporny:  we use URLs to identify assets, things for sale,
   people that are selling it
Manu Sporny:  just like bitcoin has one address per use per user,
   instead of doing that, we use a URL for that txn and each txn
   gets its own URL and it creates a nice decentralized system that
   already has a fairly large community (the web) using it
Manu Sporny:  the other part of that is that bitcoin has a number
   of adv. and disadv. txns cost around $0.06 which can make things
   difficult, on meritora the txn fee is 2% which can go down over
   time and that applies over time the minimum fee we charge for
   doing that is like 0.0002
Manu Sporny:  with payswarm only USD is supported right now but
   one of the next things on the roadmap is building bitcoin into it
Manu Sporny:  you know how you kept track of bitcoin txns offline
   and then cash out, that's essentially what we're implementing in
   payswarm
Manu Sporny:  and once that's there you can send a couple of
   shitoshi's to someone and not have it all eaten up in txn fees
Manu Sporny:  the other thing is txns are immediate, etc. and you
   dont' have to wait for the block chain to settle
Manu Sporny:  that's where we are, so i think the goals here are
   completely aligned
Manu Sporny:  we definitely want to help people create content on
   the web, we are content agnostic and currency agnostic, the
   system is designed that way, we're interested in achieving the
   same goals
Adam B. Levine:  yeah, i listened to your calls and i agree, i
   think it's great, and that's the ultimate solution, especially
   that payswarm is currency-agnostic
Manu Sporny:  we also think the number of the currencies in use
   will explode over time
Manu Sporny:  even with bitcoin there are all kinds of tiny
   tweaks you can do, like forking it and introducing inflation,
   that's a new currency, any of these things changes the dynamic of
   how the block chain is operated, etc.
Manu Sporny:  we've talked about creating a fiat currency on a
   block chain
Manu Sporny:  clearly there are people that don't like that ide,a
   but if we can move fiat currency over to a block chain like
   mechanism that could address some fraud related issues we have
   today
Manu Sporny:  there is a lot of room for currencies to grow here
   and chain, etc.
Manu Sporny:  no reason to focus on one particular currency
Adam B. Levine:  i totally agree, the other point of watershed is
   to break the media model we have right now, that's my other
   passion
Adam B. Levine:  i don't really enjoy doing the out in public and
   journalism stuff, i probably should, and i feel like very few
   people are doing this enough, not that i'm great at it, part of
   this is how we fund media, microtransactions lower the barrier
   for the audience to be in charge of media
Adam B. Levine:  i want a platform where the advertisers and
   creators of media are more separate, one side is audience+content
   creators who care about the content, the platform advertisers are
   looking at it from a 1000 ft level at money, etc.
Adam B. Levine:  right now the payments don't flow directly, the
   advertiser gets paid, who pays the platform, who pays the
   creator, etc.
Manu Sporny: Web Payments use cases:
   https://payswarm.com/specs/source/use-cases/
Adam B. Levine:  i think it should be the audience that is
   consuming the content should be giving direct feedback by judging
   the quality of the content, etc.
Manu Sporny:  yes, a number of the things you're talking about
   are in the use cases in the payswarm spec
Manu Sporny:  again, our background is in media, talking about
   artists/scientists/content creators, whomever, we want them to
   have access to capital from their fans, we want kickstarter to
   exist without the high fees, etc.
Adam B. Levine:  yes, so we're very aligned
Manu Sporny:  so, the question is where do we go from here, so
   we're very involved in the technical side of things, free and
   open standard, etc. and we're talking with browser manufacturers,
   these are our strengths, we can build the tech and commercialize
   it and we have contacts for getting things into web browsers, and
   we haev some contacts in the finance community to lean on, so
   where do you see collaboration opportunities here
Adam B. Levine:  my plan from here has been finishing development
   on laying out the vision and then handing it off to a developer
   to implement, his estimate was $15k for 2-3 months of develop, i
   don't think it's terribly difficult/expensive to implement, i
   just want this to exist, i don't care who pays for it or
   whatever, i just want it to happen
Adam B. Levine:  if this is something you want to throw time at,
   it doesn't have to be project watershed, i just want these tools
   to exist
Manu Sporny:  have you seen the payswarm wordpress demo?
Manu Sporny: PaySwarm Sandbox: https://dev.payswarm.com/
Adam B. Levine:  no, there's bitcredit.io and bitwall.io, two
   recent start ups without a product yet but maybe in 2 weeks, i'm
   trying out business model with one and with another, i'd be happy
   to try things out
Manu Sporny:  so right now we have a wordpress plugin and you
   click buy on an article and you pay a very small fraction of what
   you'd pay now and get access to an article, etc.
Manu Sporny:  we can also add crowd funding,etc. to that plugin
Manu Sporny:  this has been done and out there for multiple
   months now, we're looking to see if people want to adopt it, and
   we want to add bitcoin support
Manu Sporny:  i think the place to start would be if you could
   look at it and tell us what's missing from the vision you want
   and we could reprioritize based on your feedback
Manu Sporny:  eventually you'll have a technical implementation
   based on payswarm creating what you want
Manu Sporny:  so you can look at that and we can go from there
Adam B. Levine:  ok, that sounds good, yeah, i'll look at that
   and we can talk about moving forward on that
Adam B. Levine:  this works with USD?
Manu Sporny:  the demo site uses fake money, but there is a real
   version too
Manu Sporny: http://blog.meritora.com/launch/
Adam B. Levine:  can you do multiple currnecies?
Manu Sporny:  now no, in the future, yes, you could say "we
   access USD and bitcoins" for instance.

Topic: Crypto Key Storage in the Browser

Manu Sporny:  ok, we're very aligned and let's collaborate more
   in the future.
Manu Sporny:
   http://lists.w3.org/Archives/Public/public-webpayments/2013Aug/0001.html
Manu Sporny:  so you had posted things about crypto key storage
   in the browser
Manu Sporny:  i had a chance to look through all three of the
   documents you had sent out and could you go over it a bit more?
Anders Rundgren:  you were talking about a number of things that
   were quite interesting, like plugins and extensions to the
   browser and this is all related
Anders Rundgren:  on the first document, i wrote about why i
   started this project back in 2006, i was concerned with 2 factor
   auth not working properly, they do their own clients and not use
   a browser client, for many reasons, still happens today with
   android, banks use their own solution, they don't use the built
   in android solution, anyway, the inspiration is this
Anders Rundgren:  i started looking at protocols for key
   provisions to try and solve this problem.
Anders Rundgren:  i found that i needed to match the keystore and
   a protocol to go with that for each keystore type, etc.
Anders Rundgren:  i'm a lurker with web crypto API, not a member,
   and it's great tech, but it has no connection to system keystores
Anders Rundgren:  i started playing with extensions to tie
   together new keystores and old ones
Anders Rundgren:  and i have a document that talks about payments
   with respect to this which is how i got here
Manu Sporny: "Executive Level" description of the SKS/KeyGen2
   concept: http://webpki.org/papers/SKS-KeyGen2-Project.pdf
Manu Sporny: The WebCrypto/SKS combination:
   http://webpki.org/papers/PKI/pki-webcrypto.pdf
Manu Sporny: SKS API architecture:

https://openkeystore.googlecode.com/svn/resources/trunk/docs/sks-api-arch.pdf
Anders Rundgren:  The mozpay has predefined trusted UI, which is
   fine, there's a problem with that because payment systems can be
   very different, what i'd like to have is a trusted UI that is
   adaptable that is programmable, it's very hard to combine a
   programmable system that is also trusted
Anders Rundgren:  so i have talked about a trust model based on a
   key that signs code, each payment provider has their own protocol
   and ui that may or may not be standardized but the trusted part
   is only valid for certain pieces of software, instead of
   something that is universal i think that's another way to solve
   the problem that's what i've come up with recently
Anders Rundgren:  it is very complicated to have a dialog because
   of things that must be cleared before discussion, etc.
Manu Sporny:  we operate must more transparently than that, so
   i've got some comments on that
Manu Sporny:  on crypto in the browser, we're definitely focused
   here, as are you, the idea here is to create crypto keys and keep
   them in the browser and specify exactly what the keys can or
   can't be used for, keeping permissions for them,e tc.
Manu Sporny:  the idea here is not to do it through an extension
   to the browser but to use existing tech (browser native)
Manu Sporny:  so there's no installation
Manu Sporny:  so your idea is to sign code and transmit
   signatures via postMessage(), that's how persona works, that's
   how they do their digital signatures
Manu Sporny:  but persona is server-side, but your solution would
   use keys stored on the client
Manu Sporny:  so we're really interested in this approach for the
   web payments tuff
Manu Sporny:  currently w/payswarm, you delegate all the digital
   signature stuff to your payment processor, because of browser
   client-side limitations
Manu Sporny:  eventually we want the customer to be in charge of
   all the signatures on the receipts, etc. in order to do that you
   have to have keys in the browser/device, so you need a secure way
   of doing this via the browser, so this approach using
   domain-locked keys and the web crypto API for the signature and
   using postMessage() to send the signature is great
Manu Sporny:  i want to have a high level discussion with you and
   figure out how to utilize this tech, outside of persona i haven't
   seen too many people working on this, and it's the approach we
   like
Manu Sporny:  if you look at the solution you're proposing in
   your documents it may not just be stop-gap it may be the way to
   do things
Anders Rundgren:  Yes, anonymizing stuff is important.
Manu Sporny:  we use a URL to identify customers to the merchants
   right now (not necessarily personal info there at all)
Manu Sporny:  in bitcoin only you are in control of your private
   keys, etc.
Manu Sporny:  with payswarm your payment processor has some
   control over that
Manu Sporny:  we want to empower the customer more
Anders Rundgren:  what about the browser vendor support for what
   you're doing?
Anders Rundgren:  does this require an extension in the browser?
Manu Sporny:  we don't want to depend on the browser vendors to
   innovate
Manu Sporny:  the approach we're taking right now doesn't need a
   browser extension, the downside is that we can't do
   customer-based digital signatures
Anders Rundgren:  i don't know exactly what the role will be, i'm
   thinking of working with device vendors, because they have a
   large market that is super advanced rather than going through the
Anders Rundgren:  it takes a very long time to get anything done
   there
Manu Sporny:  i think you could get a certain implementation of
   the system you have right now, these payswarm payment processors
   could be interested in implementing that stuff so long as it's
   kept on the payment processors, they are more ok with doing
   crypto hacks to get a more secure system
Manu Sporny:  it's not a priority for the browser vendors to
   implement this sort of stuff, they have other things on their
   plate.
Manu Sporny:  we want to stay in touch and work with you as well,
   the best approach would be, perhaps, to build a JS library that
   you can put on the server to show people how to use this system
   and then once it's out there it could probably be integrated
   pretty easily
Manu Sporny:  i'll try and send something out there to the
   mailing list to see if we can get some of the tech you described
   into the web payments work
Manu Sporny:  i'll talk to the persona team as well
Manu Sporny:  and their marketplace team
Manu Sporny:  if you can respond to that once i get that message
   out there to keep the discussion going
Adam B. Levine:  is there a reason not to use a browser extension
   here?
Adam B. Levine:  what [Joe] has implemented here is a browser
   extension that allows a meta login via your bitcoin address
Adam B. Levine:  why is a browser extension not good?
Manu Sporny:  Joe's system is really good, that's not the issue,
   the browser extension is, you can't scale to 2 b/million people
   by making them install extensions
Manu Sporny:  the only really successful extension like that is
   flash which as we know is being killed off
Manu Sporny:  you don't know what browser extenisons are doing,
   there's a security issue, etc. but you also want the tech to be
   accessible to anyone... the # of people using the web vs. using
   extensions is much greater
Manu Sporny:  we can't build the blockchain into the browser
   (having gb of data lying around)
Manu Sporny:  until you get 1 billion people using bitcoin they
   aren't going to be interested in building that tech into the
   browser
Manu Sporny:  the other idea is to push the identity in the block
   chain solution off to a third party that people trust to hold
   onto their bitcoin wallets but as soon as you do that you lose
   control over your identity
Manu Sporny:  if the NSA/prism comes in and wants coinbase to
   digitally sign things on your behalf +gag order, it happens and
   you don't know about it
Manu Sporny:  this is why the approach that anders is talking
   about is an interesting approach
Manu Sporny:  so you get the best of both worlds while you get to
Dave Longley:  I'm pretty sure that the approach that Anders is
   talking about allows the service to sign stuff as well. [scribe
   assist by Manu Sporny]
Dave Longley:  What we're talking about w/ Anders system is the
   ability to integrate w/ existing keystores and sign code and have
   it run in other places. It doesn't remove the ability for the
   provisioner to use the keys for something else. [scribe assist by
   Manu Sporny]
Dave Longley:  With Anders solution, you get access to keystores
   that are more native on the device. [scribe assist by Manu
   Sporny]
Anders Rundgren:  yes, you've understood it completely
Anders Rundgren:  you can combine more traditional models with
   web crypto API
Dave Longley:  Not every browser extension operates the same way,
   so it costs a lot more to write the code vs. something that
   natively ran in the browser. [scribe assist by Manu Sporny]
Anders Rundgren:  it's very complicated to do browser extensions
Adam B. Levine:  i'm looking at this as, how do we solve this
   problem with crypto currencies
Adam B. Levine:  doing the decentralized thing without trusted
   stake holders is difficult
Manu Sporny:  the ideal case here is for everyone to be in
   control of your own finances
Manu Sporny:  with bitcoin you can do that, but then you don't
   have some of the other commerce stuff
Manu Sporny:  now the US has said bitcoin is a currency so there
   may be regulation coming
Manu Sporny:  we've got people coming from the fiat side and
   people from the crypto currency (bitcoin) side
Dave Longley:  What this comes down to is that when you use
   crypto currencies, you end up gaining advantages and losing some
   advantages. [scribe assist by Manu Sporny]
Dave Longley:  You want to make sure that people can control
   their own finances between the two. [scribe assist by Manu
   Sporny]
Adam B. Levine:  right, one size fits all doesn't work
Adam B. Levine:  the payswarm approach makes a lot of sense.
Manu Sporny:  ok, let's figure out more ways to collaborate in
   the future, we're all very aligned
Adam B. Levine:  manu, your talk is going up on episode 32 of
   let's talk bitcoin - https://soundcloud.com/mindtomatter/ltbep032

-- manu

-- 
Manu Sporny (skype: msporny, twitter: manusporny, G+: +Manu Sporny)
Founder/CEO - Digital Bazaar, Inc.
blog: Meritora - Web payments commercial launch
http://blog.meritora.com/launch/

Received on Wednesday, 14 August 2013 18:25:20 UTC