I have … called this model of computing feudal. Users pledge allegiance to more powerful companies who, in turn, promise to protect them from both sysadmin duties and security threats. It’s a metaphor that’s rich in history and in fiction, and a model that’s increasingly permeating computing today. Feudal security consolidates power in the hands of the few. These companies act in their own self-interest. They use their relationship with us to increase their profits, sometimes at our expense. They act arbitrarily. They make mistakes. They’re deliberately changing social norms. Medieval feudalism gave the lords vast powers over the landless peasants; we’re seeing the same thing on the Internet.

We exceptionally republish a full article, from Bruce Schneier, in two parts. Today we focus on why centralized institutions have won the war on the internet:

1. What went wrong with the democratic promise of the internet

“In its early days, there was a lot of talk about the “natural laws of the Internet” and how it would empower the masses, upend traditional power blocks, and spread freedom throughout the world. The international nature of the Internet made a mockery of national laws. Anonymity was easy. Censorship was impossible. Police were clueless about cybercrime. And bigger changes were inevitable. Digital cash would undermine national sovereignty. Citizen journalism would undermine the media, corporate PR, and political parties. Easy copying would destroy the traditional movie and music industries. Web marketing would allow even the smallest companies to compete against corporate giants. It really would be a new world order.

Some of this did come to pass. The entertainment industries have been transformed and are now more open to outsiders. Broadcast media has changed, and some of the most influential people in the media have come from the blogging world. There are new ways to run elections and organize politically. Facebook and Twitter really did help topple governments. But that was just one side of the Internet’s disruptive character. Today, the traditional corporate and government power is ascendant, and more powerful than ever.

2.Power in the feudal mode of computing

On the corporate side, power is consolidating around both vendor-managed user devices and large personal-data aggregators. It’s a result of two current trends in computing. First, the rise of cloud computing means that we no longer have control of our data. Our e-mail, photos, calendar, address book, messages, and documents are on servers belonging to Google, Apple, Microsoft, Facebook, and so on. And second, the rise of vendor-managed platforms means that we no longer have control of our computing devices. We’re increasingly accessing our data using iPhones, iPads, Android phones, Kindles, ChromeBooks, and so on. Even Windows 8 and Apple’s Mountain Lion are heading in the direction of less user control.

On the corporate side, power is consolidating around both vendor-managed user devices and large personal-data aggregators. It’s a result of two current trends in computing. First, the rise of cloud computing means that we no longer have control of our data. Our e-mail, photos, calendar, address book, messages, and documents are on servers belonging to Google, Apple, Microsoft, Facebook, and so on. And second, the rise of vendor-managed platforms means that we no longer have control of our computing devices. We’re increasingly accessing our data using iPhones, iPads, Android phones, Kindles, ChromeBooks, and so on. Even Windows 8 and Apple’s Mountain Lion are heading in the direction of less user control.

I have previously called this model of computing feudal. Users pledge allegiance to more powerful companies who, in turn, promise to protect them from both sysadmin duties and security threats. It’s a metaphor that’s rich in history and in fiction, and a model that’s increasingly permeating computing today.

Feudal security consolidates power in the hands of the few. These companies act in their own self-interest. They use their relationship with us to increase their profits, sometimes at our expense. They act arbitrarily. They make mistakes. They’re deliberately changing social norms. Medieval feudalism gave the lords vast powers over the landless peasants; we’re seeing the same thing on the Internet.

It’s not all bad, of course. Medieval feudalism was a response to a dangerous world, and depended on hierarchical relationships with obligations in both directions. We – especially those of us who are not technical – like the convenience, redundancy, portability, automation, and shareability of vendor-managed devices. We like cloud backup. We like automatic updates. We like it that Facebook just works – from any device, anywhere.

Government power is also increasing on the Internet. Long gone are the days of an Internet without borders, and governments are better able to use the four technologies of social control: surveillance, censorship, propaganda, and use control. There’s a growing “cyber sovereignty” movement that totalitarian governments are embracing to give them more control – a change the US opposes, because it has substantial control under the current system. And the cyberwar arms race is in full swing, further consolidating government power.
In many cases, the interests of corporate and government power are aligning. Both corporations and governments want ubiquitous surveillance, and the NSA is using Google, Facebook, Verizon, and others to get access to data it couldn’t otherwise. The entertainment industry is looking to governments to enforce their antiquated business models. Commercial security equipment from companies like BlueCoat and Sophos is being used by oppressive governments to surveil and censor their citizens. The same facial recognition technology that Disney uses in its theme parks also identifies protesters in China and Occupy Wall Street activists in New York.

What happened? How, in those early Internet years, did we get the future so wrong?

The truth is that technology magnifies power in general, but the rates of adoption are different. The unorganized, the distributed, the marginal, the dissidents, the powerless, the criminal: they can make use of new technologies faster. And when those groups discovered the Internet, suddenly they had power. But when the already powerful big institutions finally figured out how to harness the Internet for their needs, they had more power to magnify. That’s the difference: the distributed were more nimble and were quicker to make use of their new power, while the institutional were slower but were able to use their power more effectively. So while the Syrian dissidents used Facebook to organize, the Syrian government used Facebook to identify dissidents.