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Instagram now lets you share Stories to a Close Friends list

No one wants to post silly, racy or vulnerable Stories if they’re worried their boss, parents and distant acquaintances are watching. So to get people sharing more, and more authentically, Instagram will let you share to fewer people. Today after 17 months of testing, Instagram is globally launching Close Friends on iOS and Android over the next two days. It lets you build a single private list of your best buddies on Instagram through suggestions or search, and then share Stories just to them. They’ll see a green circle around your profile pic in the existing Story tray to let them know this is Close Friends-only content, but no one gets notified if they’re added or removed from your list that only you can view.

“As you add more and more people [on any social network], you start not to know them. That’s obviously going to change the things that you’re sharing and it makes it even harder to form very deep connections with your closest friends because you’re basically curating for the largest possible distribution,” said Instagram director of product Robby Stein, who announced the news onstage at TechCrunch Disrupt Berlin. “To really be yourself and connect and be connected to your best friends, you need your own place.”

I spent the last few days demoing Close Friends and it’s remarkably smooth, intuitive and useful. Suddenly there was a place to post what I might otherwise consider too random or embarrassing to share. Teens already invented the idea of “Finstagrams,” or fake Instagram accounts, to share feed posts to just their favorite people without the pressure to look cool. Now Instagram is formalizing that idea into “Finstastories” through Close Friends.

The feature is a wise way to counteract the natural social graph creep that occurs as people accept social networking requests out of a sense of obligatory courtesy from people they aren’t close to, which then causes them to only share blander content. Helping people express their wild side as must-see content for their Close Friends could drive up time spent on the app. But there’s also the risk that the launch creates private echo sphere havens for offensive content beyond the eyes of those who’d rightfully report it.

“No one has ever mastered a close friends graph and made it easy for people to understand,” Stein notesThe path to variable sharing privacy winds through a cemetery. Facebook’s “Lists” product struggled to find traction for a decade before being half-shut down. Google+’s big selling point was “Circles” for sharing to different groups of people. But with both, users found it too boring and confusing to make a bunch of different lists they could share to or view feeds from. Snapchat launched its own Groups feature two months ago, but it’s easy to forget who’s in which list and they’re designed around group chat. Most users just end up trying their best to reject, unfollow or mute people they didn’t want to see or share with.

Now after almost 15 years of Facebook, 12 years of Twitter, eight years of Instagram and seven years of Snapchat, that strategy has failed for many, leading to noisy feeds and a fear of sharing to too many. “People get friend requests and they feel pressure to accept,” Stein explains. “The curve is actually that your sharing goes up and as you add more people initially, as more people can respond to you. But then there’s a point where it reduces sharing over time.”

So Instagram chose to build Close Friends as just a single list in hopes that you won’t lose track of who’s part of it. As the feature rolls out today, there’ll be an explainer Story from Instagram about it in your tray, you’ll get walked through when you hit the Close Friends button on the Story composer, and there’ll be a call out on your profile to configure Close Friends in the Settings menu. You’ll be able to search for your close friends or quickly add them from a list of suggestions based on who you interact with most. You can add or remove as many people as you want without them knowing, they just will or won’t see your green circled Close Friends story. “We’re protecting you and your right to share or not share to certain people. It gives you air cover,” Stein tells me.

From then on, you can use the Close Friends shortcut in the Stories composer to share it with just those people, who’ll see a green “Close Friends” label on the story to let them know they’re special. Instagram will use the signal of who you add to help rank and order your Stories tray, but it won’t automatically pop Close Friends Stories to the front. When asked if Facebook would use that data for personalization too, Stein told me, “We’re the same company,” but said using it to improve Facebook is “not something that we’re actively working on.”

Robby Stein (Instagram) debuts a new feature called Close Friends that allows users to share Stories with a small group of friends #TCDisrupt pic.twitter.com/ontdA7CQU0

— TechCrunch (@TechCrunch) November 30, 2018

There’s no screenshot alerts, similar to the rest of Instagram Stories, but you won’t be able to DM anyone someone else’s Close Friends Story. That’s it. “We haven’t invented any new design affordances or things you need to know,” Stein beams. For now it’s meant for user profiles, but publishers, social media celebrities and brands would probably love ways to build fan clubs through the feature. Perhaps Instagram would even allow creators to charge users to be admitted to Close Friends. If not, some savvy influencers will probably do it anyways as they try to make Instagram more like Patreon.

Instagram’s Robby Stein (left) tells TechCrunch’s Josh Constine about Close Friends at Disrupt Berlin

The one concern here is that Close Friends could create little bunkers in which people can share objectionable content without consequence. It’d be sad to see it harbor racism, sexism or other stuff that doesn’t belong anywhere on Instagram. Stein says that because you’re talking with friends instead of strangers on a Reddit, “it self regulates what it’s used for. We haven’t seen a lot of that usage in the testing that we’ve done. It’s still a broadcast channel and it doesn’t generate this group discussion. It doesn’t spiral.”

Overall, I think Close Friends will be a hit. When it started testing a prototype called Favorites in June 2017 it worked with feed posts too, but Instagram decided the off the cuff posts wouldn’t fit right next to your more widely broadcasted highlights. But confined to Stories, it feels like a natural and much-needed extension of what Instagram was always supposed to be but that’s gotten lost in our swelling social networks: giving the people you love a window into your life.


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Plex teams with TIDAL to bring a discounted streaming music subscription to its media app

Media center app Plex today announced a partnership with streaming music service TIDAL, offering discounted access to TIDAL’s 60 million tracks and 244,000+ music videos for Plex Pass subscribers. The Plex Pass is the media center app’s own subscription program, which adds support for watching and recording from live TV as well as other premium features and advanced controls.

Now, Plex Pass holders will be able to add TIDAL into the mix for $8.99 per month, instead of its usual $9.99 per month price. It’s not a steep discount, but one that could prove compelling for serious Plex users who have already centralized their access to entertainment within the Plex app.

Over the past year or so, Plex has doubled down on its mission to become a one-stop shop for all your media, having added support for podcasts, streaming TV (by way of a digital antenna) and a DVR, personalized news, and, most recently, web shows. This is in addition to the software’s ability to organize your home media collections of movies, TV shows, personal video, music and photos.

The company’s goal is to capitalize on its expansive entertainment library in order to offer better recommendations across media types. That is — it could suggest podcasts or web shows based on the TV or music you enjoy, for example.

Plex customers who add TIDAL will have access to the streamer’s entire music catalog, along with artist recommendations for those who aren’t already in your media library, as well as a feature that will display the missing albums from artists in your library. The service also offers artist radio, discovery radio for finding new tunes from those not in your library, new release recommendations, music videos and more.

Universal search and playlists features will combine results from Plex’s library and TIDAL, allowing you to locate tracks from your local library alongside TIDAL tracks, and add both to the same playlist.

“An incredible music and media experience is something that matters to both TIDAL and Plex users, and the addition of TIDAL’s music streaming service within Plex makes it the only solution that organizes and curates all major media types in one place,” said Keith Valory, CEO of Plex, in a statement. “It’s another step closer to making all the media that matters to you accessible from one app, on any device, anytime.”

TIDAL will also point its subscribers to Plex as a part of the deal, giving them access to Plex’s music features and mobile app, or, in the case of Tidal HiFi subscribers ($19.99/mo), they get a Plex Pass for free.

New customers to TIDAL can sign up for a combo TIDAL/Plex Pass subscription for $9.99/mo or $19.99/mo if they want TIDAL HiFi. (Normally a Plex Pass on its own is $3.33/mo if paid annually).

Once signed up for TIDAL, Plex users can quickly merge their subscription to Plex from here.

The TIDAL subscription is available on Plex mobile and web* to start, with expansion to other TV platforms expected to follow.

*Versions required: Plex Media Server 1.14.0.5470; iOS 5.7.2; Android 7.8.0; Web 3.77.2 

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Facebook exempts news outlets from political ads transparency labels

Facebook pissed off journalists earlier this year when it announced that ads run by news publishers to promote their articles involving elected officials, candidates and national issues would have to sport “paid for by…” labels and be included alongside political campaign ads in its ads transparency archive that launched in June, albeit in a separate section. The News Media Alliance — representing 2,000 newspapers, including The New York Times and NewsCorp, plus other new organizations — sent a letter to Mark Zuckerberg in June protesting their inclusion. They claimed it would blur the lines between propaganda and journalism, and asked Facebook to exempt news publishers.

Now Facebook has granted that exception. Next year once Facebook has figured out more ways to verify legitimate news organizations that publish with bylines and dates, cite sources and don’t have a history of having stories flagged as false by third-party fact checkers, they’ll no longer have their U.S. ads appear in the Ads Archive. They also won’t have to carry a “Paid for by…” label when they appear in the News Feed or Instagram. News organizations will still have to verify their identity, but not through the political ads process. This exemption will roll out today in the U.K.

The change will also allow news outlets to run “dark post” ads that target specific users but don’t appear on their Pages. This will allow them to secretly test different ad variants without being exposed to potential criticism or competitors looking to copy their ad strategies.

Facebook’s political ads archive of campaign ads will no longer include publications promoting articles about politics or issues

Facebook will be using its recently built news publisher index to which outlets can apply to decide which ad buyers are exempt. That index is up and running in the U.S. and will expand to other countries, but Facebook still wants to build more safeguards against fake news outlets before starting the exemption in the U.S. For now, Facebook is using a third-party list of legitimate U.K. news outlets that’ll be exempted starting today. Jason Kint of publishers association Digital Content Next tells TechCrunch, “We are pleased that Facebook understands and values the important role of news organizations. We have worked cooperatively with Twitter who understood this from the beginning. We look forward to working in a similar fashion with Facebook.”

Facebook’s “Paid for by…” labels will no longer appear on news publishers’ ads on Facebook or Instagram

The change comes as Facebook rolls out enforcement of its political ads transparency rules in the U.K. today. “Now political advertisers must confirm their identity and location, as well as say who paid for the ad, before they can be approved to run political ads on Facebook and/or Instagram,” Facebook tells TechCrunch. These ads will also feature the “Paid for by…” label. Facebook hoped that by self-regulating ads transparency, it might avoid more heavy-handed government regulation, such as through the U.S.’s proposed Honest Ads Act that would bring internet political advertising to parity with transparency rules for television commercials.

The hope is that by determining who is paying for these ads, properly labeling them and exempting journalists, Facebook will be able to better track foreign misinformation campaigns and election interference. Meanwhile, users will have a better understanding of who’s funding the political and issue ads they see on Facebook.

[Update: This story has been updated to reflect that the news publisher exemption won’t roll out for U.S. outlets until next year.]

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Revolut is ready to launch in Singapore and Japan

Fintech startup Revolut has been teasing Asian market expansions for more than a year, but it sounds like it might finally happen. The company has secured licenses to operate in Singapore and Japan. It now expects to launch its service in Q1 2019.

In Singapore, the company was granted a Remittance License by the Monetary Authority and a Stored Value Facility approval — these two things combined let Revolut users hold money as well as send and spend money. In Japan, the company has been authorized to operate by Japan’s Finance Service Agency.

According to Revolut, those approvals are enough to launch the service in those countries. But not all features will make their way to Singapore and Japan. Regulation varies from one country to another, so the company might not be able to provide the same limits and feature set everywhere.

At launch, Revolut will focus on the electronic wallet and the payment card. You won’t be able to buy cryptocurrencies, create business accounts and more. Limits should be more or less the same in local currency equivalent.

In Japan, Revolut says it has already signed deals with Rakuten, Sompo Japan Insurance (SJNK) and Toppan. It sounds like there will be new insurance products, special card designs and more.

Revolut plans to open its APAC office in Singapore. Let’s see if Revolut ends up convincing expats to sign up or if they can have a real impact outside of Europe.

And if you’re a potential user in the U.S. or Canada, you’ll have to wait a bit more. Revolut says there will be more news in the coming weeks.

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Facebook staff discussed selling API access to apps in 2012-2014

Following a flopped IPO in 2012, Facebook desperately brainstormed new ways to earn money. An employee of unknown rank sent an internal email suggesting Facebook charge developers $250,000 per year for access to its platform APIs for making apps that can ask users for access to their data. Employees also discussed offering Tinder extended access to users’ friends’ data that was being removed from the platform in exchange for Tinder’s trademark on “Moments,” which Facebook wanted to use for a photo-sharing app it later launched. Facebook decided against selling access to the API, and did not strike a deal with Tinder or other companies, including Amazon and Royal Bank of Canada mentioned in employee emails.

The discussions were reported by The Wall Street Journal as being part of a sealed court document its reporters had reviewed from a lawsuit by bikini-photo-finding app developer Six4Three against Facebook alleging anti-competitive practices in how it changed the platform in 2014 to restrict access to friends’ data through the platform.

The biggest question remaining is how high in rank the employees who discussed these ideas were. If the ideas were seriously considered by high-ranking executives, especially CEO Mark Zuckerberg, the revelation could contradict the company’s long-running philosophy on not selling data access. Zuckerberg told congress in April that “I can’t be clearer on this topic: We don’t sell data.” If the discussion was between low-level employees, it may have been little more than an off-hand suggestion as Facebook was throwing ideas against the wall, and may have been rejected or ignored by higher-ups. But either way, now that the discussion has leaked, it could validate the public’s biggest fears about Facebook and whether it’s a worthy steward of our personal data.

An employee emailed others about the possibility of removing platform API access “in one-go to all apps that don’t spend… at least $250k a year to maintain access to the data,” the document shows. Facebook clarified to TechCrunch that these discussions were regarding API access, and not selling data directly to businesses. The fact that the discussions were specifically about API access, which Facebook continues to give away for free to developers, had not been previously reported.

Facebook provided this full statement to TechCrunch:

As we’ve said many times, the documents Six4Three gathered for this baseless case are only part of the story and are presented in a way that is very misleading without additional context. Evidence has been sealed by a California court so we are not able to disprove every false accusation. That said, we stand by the platform changes we made in 2015 to stop a person from sharing their friends’ data with developers. Any short-term extensions granted during this platform transition were to prevent the changes from breaking user experience. To be clear, Facebook has never sold anyone’s data. Our APIs have always been free of charge and we have never required developers to pay for using them, either directly or by buying advertising.

A half decade-later, with the world’s will turned against Facebook, the discussions of selling data access couldn’t come at a worse time for the company. Even if quickly aborted, the idea could now stoke concerns that Facebook has too much power and too much of our personal information. While the company eventually found other money-makers and became highly profitable, the discussions illuminate how Facebook could potentially exploit people’s data more aggressively if it deemed it necessary.

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Facebook must police Today In, its local news digest launching in 400 cities

Facebook has a new area of its app it will have to police for fake news and biased sensationalism. Facebook is launching “Today In”, its local news aggregator it began testing in January, in 400 small to medium-sized US cities. It’s also now testing it in its first overseas spot in Australia. iOS and Android users can open the Today In bookmark or opt in to getting digests of its local news in their feed. The feature includes previews that link out to news sites about top headlines, current discussions, school announcements and more.

“We have a number of misinformation filters in place to ensure that fake news and clickbait does not surface on Today In. We also provide people the ability to report suspicious content on Facebook and within Today In specifically” a Facebook spokesperson tells me. “The misinformation filters are the same across Facebook that we’ve previously talked about – downranking clickbait, ratings from third-party fact checkers” they said. However, “the content in the surface is pulled by algorithm”, so there’s always a chance that problematic content slips through. For now, there will be no ads in Today In.

 

 

Facebook is also now testing Local Alerts with 100 local government and first responder Pages that can be issued to inform citizens about urgent issues or emergencies, such as where to take shelter from a hurricane. The Local Alerts are delivered via News Feed, Today In, and Pages can also target users with notifications about them. Again, while Facebook may be vetting which Pages get access to the Local Alerts feature, it must closely monitor to make sure they’re using it to provide vital info to their communities rather than just grab traffic at sensitive moments.

Facebook is hoping to fill a void after surveys found 50 percent of users wanted more local news through Facebook. It previously tested Today In with New Orleans, La.; Little Rock, Ark.; Billings, Mont.; Peoria, Ill.; Olympia, Wash.; and Binghamton, N.Y. The feature could give local outlets a referral traffic boost that could help offset the fact that Facebook has drained ad dollars from journalism into its own News Feed ads. And to make sure “news deserts” without enough local outlets still have robust Today In sections, Facebook will collect headlines from surrounding areas.

But the launch also opens up a new vector for policy issues, and it’s curious that Facebook would push forward on this given all its policy troubles as of late. It will have to ensure that Today In only aggregates content from reliable and fact-focused local outlets and doesn’t end up peddling fake news. But that in turn could open it to criticism suggesting it’s biased against fringe political outlets that believe their clickbait is the real story.

Users who want to check if they have access to Today In can visit this interactive map. The list includes Facebook’s hometown of Menlo Park and nearby Oakland, but not San Francisco. It’s also skipping big cities like New York and Washington, D.C. in favor of places like Mobile, Alabama; and Provo, Utah.

To find the mobile-only feature in Facebook (there’s no desktop version), users will hit the three-line “More” hamburger button and scroll down looking for “Today In [their city]”. Otherwise, they may stumble across one of its digests showing the headlines, thumbnail images, and publications for three of the biggest local news stories.

After tapping through or opening the Today In bookmark, they’ll be able to horizontally swipe through different sections like In The News that features recent stories and can be toggled to display sports. As per usual, Facebook isn’t above promoting its own content, like user and Page News Feed posts discussing local topics, Groups you could join, or Events you could RSVP to. Once you hit the end of a daily edition, you’ll see a “You’re all caught up” notice, similar to Instagram’s feature designed to keep you from over-scrolling.

Facebook infamously turned away from news in favor of content from friends at the start of 2018, precipitating a significant decline in News Feed reach and referral traffic for links to articles. That left a lot of outlets feeling burned, as many had staffed up thanks to the that flow of traffic and the ad dollars it generated. Now some are having to lay off journalists, especially those making video content that Facebook also dialed down.

By resurfacing local news, Facebook could help strengthen ties in local communities as part of its new mission statement to “bring the world closer together”. But if that news contains heavy partisan bias or hypes up nothingburgers, it could lead to more polarization. Facebook already has trouble finding enough third-party fact checkers to verify viral news stories. Now it may expose itself to even more liability to be the arbiter of truth now that it’s fragmented the news space into hundreds of distinct digests.

This conundrum will play out again and again. Facebook wants to keep pushing forward with product launches it thinks can help society, but it in turn takes on even greater responsibility to protect us that it hasn’t proven it deserves.

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Social music app Playlist lets you listen to music with others in real time

A new app called Playlist aims to make music a more social experience than what’s offered today by the major music platforms like Apple Music, Pandora or Spotify, for example. In Playlist, you can find others who share your musical tastes and join group chats where you listen to playlists together in real time. You can collaborate on playlists, too.

The app, backed by investment from Stanford’s StartX fund, was founded by Karen Katz and Steve Petersen, both Stanford engineers and serial entrepreneurs. Katz previously co-founded AdSpace Networks and another social music platform, Jam Music. She also was a founding executive team member at Photobucket, and founded a company called Project Playlist, which was like a Google search for music back in the Myspace era.

Peterson, meanwhile, has 35 patents and more than a decade of experience in digital music. In the early 2000s he created the software architecture and ran the team at PortalPlayer Inc., which powered the iPod’s music player and was later sold to Nvidia for $357 million. Afterwards, he was CTO at Concert Technology, a technology incubator and intellectual property company with a focus on mobile, social and digital music services.

“The world has gone social, but music has been largely left behind. That’s a real gap,” explains Katz, as to why the founders wanted to build Playlist in the first place.

“Ever since we started listening to music from our mobile phones, it’s become an isolated experience. And music is the number one thing we do on our phones,” she says.

The idea they came up with was to unite music and messaging by synchronizing streams, so people could listen to songs together at the same time and chat while they do so.

During last year’s beta testing period, Playlist (which was listed under a different name on the App Store), saw a huge number of engagements as a result of its real-time nature.

“Out of the gate, we saw 10 times the engagement of Pandora. People have, on average, 60 interactions per hour — like chats, likes, follows, joins, adds and creates,” Katz says. 

Under the hood, the app uses a lot of technology beyond just its synchronized streaming. It also leverages machine learning for its social recommendations, as well as collaborative playlists, large-scale group chat, and behavior-based music programming, and has “Music Match” algorithms to help you find people who listen to the same sort of things you do.

The social aspects of the app involves a following/follower model, and presents playlists from the people you follow in your home feed, much like a music-focused version of Instagram. A separate Discover section lets you find more people to follow or join in other popular listening and chat sessions.

At launch, the app has a catalog of more than 45 million songs and has a music license for the U.S. It plans to monetize through advertising.

The core idea here — real-time music listening and chat — is interesting. It’s like a Turntable.fm for the Instagram age. But the app sometimes overcomplicates things, it seems. For example, importing a playlist from another music app involves switching over to that app, finding the playlist and copying its sharing URL, then switching back to Playlist to paste it in a pop-up box. It then offers a way for you to add your own custom photo to the playlist, which feels a little unnecessary as the default is album art.

Another odd choice is that it’s difficult to figure out how to leave a group chat once you’ve joined. You can mute the playlist that’s streaming or you can minimize the player, but the option to “leave” is tucked away under another menu, making it harder to find.

The player interface also offers a heart, a plus (+), a share button, a mute button and a skip button all on the bottom row. It’s… well… it’s a lot.

But Katz says that the design choices they’ve made here are based on extensive user testing and feedback. Plus, the app’s younger users — often high schoolers, and not much older than 21 — are the ones demanding all the buttons and options.

It’s hard to argue with the results. The beta app acquired more than 500,000 users during last year’s test period, and those users are being switched over to the now publicly available Playlist app, which has some 80K installs as of last week, according to Sensor Tower data.

The company also plans to leverage the assets it acquired from the old Project Playlist, which includes some 30 million emails, 21 million Facebook IDs and 14 million Twitter IDs. A “Throwback Thursday” marketing campaign will reach out to those users to offer them a way to listen to their old playlists.

The startup has raised $5 million in funding (convertible notes) from Stanford StartX Fund, Garage Technology Ventures, Miramar Ventures, IT-Farm, Dixon Doll (DCM founder), Stanford Farmers & Angels, Zapis Capital and Amino Capital.

The Palo Alto-based company is a team of six full-time.

Playlist is a free download for iOS. An Android version is in the works.

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Meet ‘Bitski’, the single sign-on wallet crypto desperately needs

The mainstream will never adopt blockchain-powered decentralized apps (dApps) if it’s a struggle to log in. They’re either forced to manage complex security keys themselves, or rely on a clunky wallet-equipped browser like MetaMask. What users need is for signing in to blockchain apps to be as easy as Login with Facebook. So that’s what Bitski built. The startup emerges from stealth today with an exclusive on TechCrunch about the release of the developer beta of its single sign-on cryptocurrency wallet platform.

Ten projects, including 7 game developers, are lined up to pay a fee to integrate Bitski’s SDK. Then, whenever they need a user’s identity or to transact a payment, their app pops open a Bitski authorization screen, where users can grant permissions to access their ID, send money or receive items. Users sign up just once with Bitski, and then there’s no more punching in long private keys or other friction. Using blockchain apps becomes simple enough for novices. Given the recent price plunge, the mainstream has been spooked about speculating on cryptocurrencies. But Bitski could unlock the utility of dApps that blockchain developers have been promising but haven’t delivered.

“One of the great challenges for protocol teams and product companies in crypto today is the poor UX in dApps, specifically onboarding, transactions, and sign-in/password recovery,” says co-founder and CEO Donnie Dinch. “We interviewed a ton of dApp developers. The minute they used a wallet, there was a huge drop-off of folks. Bitski’s vision is to solve user onboarding and wallet usability for developers, so that they can in-turn focus on creating unique and useful dapps.”

The scrappy Bitski team raised $1.5 million in pre-seed capital from Steve Jang’s Kindred Ventures, Signia, Founders Fund, Village Global and Social Capital. They were betting on Dinch, a designer-as-CEO who’d built concert discovery app WillCall that he sold to Ticketfly, which was eventually bought by Pandora. After 18 months of rebranding Ticketfly and overhauling its consumer experience, Dinch left and eventually recruited engineer Julian Tescher to come with him to found Bitski.

Bitski co-founder and CEO Donnie Dinch

After Riff failed to hit scale, the team hung up its social ambitions in late 2017 and “started kicking around ideas for dApps. We mocked up a Venmo one, a remittance app…but found the hurdle to get someone to use one of these products is enormous,” Dinch recalls. “Onboarding was a dealbreaker for anyone building dApps. Even if we made the best crypto Venmo, to get normal people on it would be extremely difficult. It’s already hard enough to get people to install apps from the App Store.” They came up with Bitski to let any developer ski jump over that hurdle.

Looking across the crypto industry, the companies like Coinbase and Binance with their own hosted wallets that permitted smooth UX were the ones winning. Bitski would bring that same experience to any app. “Our hosted wallet SDK lets developers drop the Bitski wallet into their apps and onboard users with standards web 2.0 users have grown to know and love,” Dinch explains.

Imagine an iOS game wants to reward users with a digital sword or token. Users would have to set up a whole new wallet, struggle with their credentials or use another clumsy solution. They’d have to own Ethereum already to pay the Ethereum “gas” price to power the transaction, and the developer would have to manually approve sending the gift. With Bitski, users can approve receiving tokens from a developer from then on, and developers can pay the gas on users’ behalf while triggering transactions programmatically.

Magik is an AR content platform that’s one of Bitski’s first developers. Magik’s founders tell me, “We’re building towards reaching millions of mainstream consumers, and Bitski is the only wallet solution that understands what we need to reach users at that scale. They provide a dead-simple, secure and familiar interface that addresses every pain point along the user-onboarding journey.”

Bitski will offer a free tier, priced tiers based on transaction volume or a monthly fee and an enterprise version. In the future, the company is considering doubling-down on premium developer services to help them build more on top of the blockchain. “We will never, ever monetize user data. We’ve never had any intent at looking at it,” Dinch vows. The startup hopes developers will seize on the network effects of a cross-app wallet, as once someone sets up Bitski to use one product, all future sign-ins just require a few clicks.

In August, Coinbase acquired a startup called Distributed Systems that was building a similar crypto identity platform called the Clear Protocol. A “login with Coinbase” feature could be popular if launched, but the company’s focus is to spread a ton of blockchain projects. “If [login with Coinbase] launched tomorrow, they wouldn’t be able to support games or anything with a unique token. We’re a lockbox, they’re a bank,” Dinch claims.

The spectre of single sign-on’s biggest player, Facebook, looms, as well. In May it announced the formation of a blockchain team we suspect might be working on a crypto login platform or other ways to make the decentralized world more accessible for mom and pop. Dinch suspects that fears about how Facebook uses data would dissuade developers and users from adopting such a product. Still, Bitski’s haste in getting its developer platform into beta just a year after forming shows it’s eager to beat them to market.

Building a centralized wallet in a decentralized ecosystem comes with its own security risks. But Dinch assures me Bitski is using all its own hardware with air-gapped computers that have been stripped of their Wi-Fi cards, and it’s taking other secret precautions to prevent anyone from snatching its wallets. He believes cross-app wallets will also deliver a future where users actually own their virtual goods instead of just relying on the good will of developers not to pull them away or shut them down.” The idea of we’ve never been able to provably own unique digital assets is crazy to me,” Dinch notes. “Whether it’s a skin in Fortnite or a movie on iTunes that you purchase, you don’t have liquidity to resell those things. We think we’ll look back in 5 to 10 years and think it’s nuts that no one owned their digital items.”

While the crypto prices might be cratering and dApps like Cryptokitties have cooled off, Dinch is convinced the blockchain startups won’t fade away. “There is a thriving developer ecosystem hellbent on bringing the decentralized web to reality; regardless of token price. It’s a safe assumption that prices will dip a bit more, but will eventually rise whenever we see real use cases for a lot of these tokens. Most will die. The ones that succeed will be outcome-oriented, building useful products that people want.” Bitski’s a big step in that direction.

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Google faces GDPR complaint over ‘deceptive’ location tracking

A group of European consumer watchdogs has filed a privacy complaint against Google — arguing the company uses manipulative tactics in order to keep tracking web users’ locations for ad-targeting purposes.

The consumer organizations are making the complaint under the EU’s new data protection framework, GDPR, which regulators can use to levy major fines for compliance breaches — of up to 4 percent of a company’s global annual turnover.

Under GDPR, a consent-based legal basis for processing personal data (e.g. person’s location) must be specific, informed and freely given.

In their complaint, the groups, which include Norway’s Consumer Council, argue that Google does not have proper legal basis to track users through “Location History” and “Web & App Activity” — settings which are integrated into all Google accounts, and which, for users of Android -based smartphones, they assert are particularly difficult to avoid.

The Google mobile OS remains the dominant smartphone platform globally, as well as across Europe.

“Google is processing incredibly detailed and extensive personal data without proper legal grounds, and the data has been acquired through manipulation techniques,” said Gro Mette Moen, acting head of the Norwegian Consumer Council’s digital services unit in a statement.

“When we carry our phones, Google is recording where we go, down to which floor we are on and how we are moving. This can be combined with other information about us, such as what we search for, and what websites we visit. Such information can in turn be used for things such as targeted advertising meant to affect us when we are receptive or vulnerable.”

Responding to the complaint, a Google spokesperson sent TechCrunch the following statement:

Location History is turned off by default, and you can edit, delete, or pause it at any time. If it’s on, it helps improve services like predicted traffic on your commute. If you pause it, we make clear that — depending on your individual phone and app settings — we might still collect and use location data to improve your Google experience. We enable you to control location data in other ways too, including in a different Google setting called Web & App Activity, and on your device. We’re constantly working to improve our controls, and we’ll be reading this report closely to see if there are things we can take on board.

Earlier this year the Norwegian watchdog produced a damning report calling out dark pattern design tricks being deployed by Google and Facebook meant to manipulate users by nudging them toward “privacy intrusive options.” It also examined Microsoft’s consent flows, but judged the company to be leaning less heavily on such unfair tactics.

Among the underhand techniques that the Google-targeted GDPR complaint, which draws on the earlier report, calls out are allegations of deceptive click-flow, with the groups noting that a “location history” setting can be enabled during Android set-up without a user being aware of it; key settings being both buried in menus (hidden) and enabled by default; users being presented at the decision point with insufficient and misleading information; repeat nudges to enable location tracking even after a user has previously turned it off; and the bundling of “invasive location tracking” with other unrelated Google services, such as photo sorting by location.

GDPR remains in the early implementation phrase — just six months since the regulation came into force across Europe. But a large chunk of the first wave of complaints have been focused on consent, according to Europe’s data protection supervisor, who also told us in October that more than 42,000 complaints had been lodged in total since the regulation came into force.

Where Google is concerned, the location complaint is by no means the only GDPR — or GDPR consent-related — complaint it’s facing.

Another complaint, filed back in May also by a consumer-focused organization, took aim at what it dubbed the use of “forced consent” by Google and Facebook — pointing out that the companies were offering users no choice but to have their personal data processed to make use of certain services, yet the GDPR requires consent to be freely given.

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Facebook launches Watch Party for all, tests Live PiP commentating

Facebook Watch has failed to capture viewers with its content, so it’s hoping to differentiate through the company’s core strength: social. Today Facebook fully launches Watch Party, its co-viewing feature where users can see and comment on the same video at the same time, to all profiles and Pages around the world.

Watch Party had previously launched in Groups and been in testing with other types of accounts. But now any profile or business can post a Watch party invite to sync up with other users and simultaneously view videos they’ve discovered on Facebook.

Watch’s content lineup is still lackluster compared to YouTube, Netflix, or even Snapchat Discover. CNBC reports Facebook is giving up on younger teens that are already ditching its app, and pivoting the video hub toward an older audience. Facebook is hoping a shared experience with users commenting together on clips could make Watch more appealing, but it’s a genuinely new behavior that may prove difficult to instill.

Facebook is also testing a few other tricks to breathe life into Watch. Pages and Groups will be able to schedule a Watch Party to draw more viewers, maybe by setting up a nightly gathering. Watch Parties with lots of activity will have their comments threaded so it’s easier to follow discussions.

And most interestingly, Facebook will try allowing Watch Party hosts to go Live picture-in-picture so they can commentate in real time. This could be a hit with celebrities, as it will make users feel like they’re sitting beside them watching TV together. Basketball star Shaq will test out the Live Commentating feature through his Page tomorrow.

Watch Party’s statistics sound impressive, with 12 million started from Groups so far, 7X more daily Watch Parties in Groups per day since its launch in July and 8X more commenting than on non-Live/synced videos. Pages are using it to let fans binge-watch playlists of their old videos, replay their TV content for users in different time zones and let fans ask each other and the hosts questions about recipes as they cook.

But given Facebook’s 2.2 billion total monthly users, billion-plus Groups users and the fact that measuring growth in multiples is easy when you start with a low number, the feature clearly hasn’t reached the zeitgeist yet.

Perhaps the best hope for Watch and Watch Party is a feature TechCrunch broke the news on last week: Facebook is now internally testing a Watch Party-like co-viewing feature inside Messenger. Baking the option into chat might be a lot more natural, especially in group texts. 

Facebook has been desperately trying to shift video consumption behavior from passive zombie viewing to interactive and social engagement with fellow viewers. But that only works if the content is compelling.

Beyond a reboot of MTV’s The Real World, nothing on Watch truly stands out. Facebook may need to open up its wallet and pay big for more tent pole shows to pull in users and hope they get lost commenting on clips with friends and like-minds.

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