Archive for the 'Microfinance' Category

Kiva.org Matures Into The First True Social Giving Platform

Yesterday, Kiva.org (which we profiled here) announced that it was creating a developer community and releasing a set of APIs.  With this bold stroke, Kiva transforms itself from microfinacing product to microfinancing platform.  This is very exiting, and I’m going to do my best to tell you why without losing you over too many technical details.

You may have heard Taylor or me mention the term “API” in the past, but I don’t think we’ve done a very good job of explaining what it means.  An API (which stands for Application Programming Interface) is essentially a set of computer commands and protocols that allows one piece of software to request information from another.  In short, the API is the language of software: the requesting software calls for information, and the source software delivers it.  Each program has its own “dialect” that the requesting software must employ in order to get the information it needs; when a company “releases” an API, then, it is essentially publishing the dictionary and grammar guide for that program’s language.

For example, if you are using a Windows PC, every program running on your computer right now — from AIM to Chrome to iTunes to MSWord — is making use of the Windows API to access resources from Windows XP or Vista.  Web applications often release APIs as well: Google and Facebook have APIs that allow developers to call for information from their services — whether it be search results, map tiles, or your social graph — and employ it in their own web applications (see my post on mashups).  By releasing numerous and robust APIs, companies essentially turn what were once simple products into foundations that can be built upon by those willing to learn and use the language.  The product evolves into what is called a “platform.”

Transitioning from web product to web platform is a sign of not only a product’s success and confidence, but also its maturity.  The release of an API shows that the service itself is structured and strong enough to handle not only its own traffic, but also an unknowable number of outside requests.  It carries a guarantee of a certain level of reliability of the service, as well — that it will suffer minimal downtime and will return clean data for every request.  But perhaps most importantly, the movement from product to platform signals an realization by the company that its mission can not be achieved in its own walled garden.  Whether your goal is to connect the world together like Facebook, or to organize the world’s information like Google: if your ambitions are lofty, then you have to open up yours doors so that others can leverage your resources for unique and innovative applications.

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Attention Invesment

Your Attention, Pretty Please?

In March 2007, Alex Iskold wrote about the emergence of the “attention economy”, a marketplace “where consumers agree to receive services in exchange for their attention.” The always-on nature of digital media has increased the scarcity of human attention, and in turn has increased its value. To put it concretely: the more time a company can get you to spend on their website, the more ad revenue they can potentially earn or the higher the likelihood that you’ll purchase one of their products.

I mention the attention economy not to wax theoretic about it, but to share my personal struggle with choosing how to invest my attention. I’ve been thinking a lot recently about the purpose of all this technology reading and writing that I do. I enjoy thinking about the topics that I regularly cover. The evolution of web 2.0 and social network is fascinating to me, and it plays well to my geek tendencies. But my brain has been flirting recently with what bloggers have started to call “social media fatigue,” an exhaustion resulting from the overexposure to and overanalysis of those topics.

There’s Hope

However, my passion for social media was reinvigorated last week when I was directed to a web page where a friend was raising money to support her marathon run in honor of her college roommate’s struggle with cancer. I put the link up in my Gmail status and sent an email to some of my fellow classmates to let them know about it. Though I certainly can’t and wouldn’t claim to have made a huge impact, I think a few of the donors that day decided to act because of that simple message and link from a friend. By the end of the day, my friend had raised several hundred dollars, and as of today she has raised over $1,000 from over 25 donors.

Though the story is not unique or especially exciting, it brought home for me how much potential there is for social media. So much good can be done! And people create applications on Facebook that allow you to… throw sheep? Give each other cupcakes? Come on! Luckily, some people have caught on.

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Philanthropy Online: Kiva

kiva1.jpgIn this, the first in a series of posts on philanthropic efforts utilizing the social web, I look to the microcredit site Kiva.org.*

Let me preface my comments by saying that I think the Kiva is a net positive contribution to the web (and microcredit), and that the good it is doing outweighs any of the secondary negatives I describe below. Right now. But my concerns about Kiva are less relevant to the still young and still expanding site as they are to what Kiva could become.

Kiva links willing donors in the developed world with opportunities to capitalize small loans for local entrepreneurs in developing countries. From Kiva’s site:

Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you’ve sponsored. As loans are repaid, you get your loan money back.

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