Fair Peers Efficient Profit Sharing in Fair Peer-to-Peer

Fair. Peers: Efficient Profit Sharing in Fair Peer-to-Peer Market Places Giancarlo Ruffo, Schifanella Rossano Dipartimento di Informatica Università degli Studi di Torino

Key Question ¢ Is P 2 P mature enough for a fair, profitable, and dependable market place infrastructure? Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 2

Motivations and Target ¢ DRM vs DRM-free debate is turning to a negotiation between big actors; What about the “long tail”? ¢ Centralized markets are efficient and dependable. But are they scalable and economically affordable for all? We, the long tail, claim that: P 2 P can significantly reduce costs, improve scalability, and distribute the profits. Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 3

P 2 P Distribution Model Production 010101 Industry-side Contract between content producer and distributors Object digitalization P 2 P digital distribution cycle ion User-side y uy g in 01010 1000 10101 Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) g liv er rin B De ho ut A Ins ert Distribution n. 4

P 2 P Roles and Interactions oth be b l as a R can l Peer er as we A vid a Pro Legal Owner of the Object ver ecei Providing Interaction Partner ring t sha onten ital c ptional) Dig e (o ervic s owns the rights of provides Object of Interactio n facilitates the interaction Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) Mediating Service e the an b party er c Own r a third The er o rovid p receives Dig Receiving Interaction Partner tent on ital C n. 5

A General Revenue Framework ¢ You can release an open platform, own the community, acquire licences, digitalize content and insert items in the network. But it is not finished yet: l l l 1° issue: No clear economic value for owners 2° issue: No clear economic value for providers and/or mediator 3° issue: No trivial technical solutions Are these issues solvable in a realistic way? Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 6

Features of a Fair P 2 P Market-Place ¢ Security l ¢ Mechanisms against profitable frauds and attacks by malicious peers l l High volume of transactions Huge population of users Protecting Copyright l l Legality of items traded Other forms of licenses can be considered as well (e. g. , GPL, CC) Profit Sharing l Efficiency and scalability l ¢ ¢ l ¢ All the participants are part of the revenue model (i. e. , peers contribute with disk space, cpu cycles or bandwidth) The cost of an object f has an authoring component Ca(f) and a distribution component Cd(f) Incentives to cooperate P 2 P distribution: l Roles of owners (i. e. , author), distributors (i. e. , merchant), and receivers (i. e. , buyer) are interchangeable G. Ruffo, R. Schifanella Fair. Peers: Efficient Profit Sharing in Fair Peer-to-Peer Market Places Journal of Network and Systems Management (JNMS), September 2007 (to appear). Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 7

Fair. Peers: actors and roles ¢ ¢ ¢ A copy protected digital Object f The Owner of object f. This relationship is given by: l a Copyright Certificate, that binds f and its owner The Distributor of object f, who has been delegated by the owner by means of: l a Distribution License, that authorizes the distribution of the content The Receiver of f, that buys and downloads the object from the owner or via a (set of) licensed distributor(s) l The receiver may become a distributor later on Some Mediators provide basic functionalities: l Copyright Grantor (CG): stores the authorship’s information of all the items l Certification Authority (CA): certifies for users’ identities (a PKI is assumed - each peer X holds a key pair ) l A Broker: when a token-based accounting system with central bank is assumed Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 8

Fair. Peers: Publishing of an Inedited Content Owner Copyright Grantor f, {idf, id. A, f, v, DL}SKA CERTIFICATION REQUEST {idf, id. A, f, LS, v, DL}SKCG COPYRIGHT CERTIFICATE idf, id. A: f: v: DL: LS: Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) content and owner identifiers medatata value Delegates list lifespan n. 9

Fair. Peers: Purchasing an Item from an Owner X Owner {I want idf}SKX {Cert(f)}SKA {credits A for Ca(f)}SKX {License(f, X)}SKA {credits A for Cd(f)}SKX f Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 10

Fair. Peers: Purchasing an Item from a Distributor X Y Owner {I want idf}SKX {License(f, Y)}SKY {credits A for Ca(f)}SKX {License(f, X)}SKA {credits Y for Cd(f)}SKX f Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 11

Fair. Peers: Purchasing an Item from Many Distributors ¢ ¢ Modern peer-to-peer systems allow multisource downloads Trivial solution: all the sources must be payed. l l ¢ Performance deterioration (presence of a bunch of money transfers) Infeasible to manage pico-payments Lottery mechanism [Rivest, 1997]: instead of paying a fraction of distribution cost to all the distributors, only the lottery winner will gain all the value. Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 12

Y distributors set X Y 1 Yω Yn Owner {I want idf}SKX {License(f, Yi)}SKYi {credits A for Ca(f)}SKX {License(f, X)}SKA {Y, winner indicator}SKX fi {The winner is Yω}SKX {credits Yω for Cd(f)}SKX Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) {License(f, X)}SKA

Conclusions ¢ ¢ ¢ Yes, P 2 P can significantly reduce costs, improve scalability, and distribute the profits This is technically feasible. Is there political and/or economic interest? The end of the DRM vs DRM-free debate may give new gasoline to P 2 P. Be ready to run! Social Networking and Viral Phenomena can be of great help for providing services and/or modeling the domain Please, address any further question to: ruffo@di. unito. it or schifan@di. unito. it Giancarlo Ruffo, Schifanella Rossano, Università di Torino (Italy) n. 14