Microformats and OpenID will kill Facebook’s business model

The business model of these walled gardens goes something like this: Offer our users privacy (and other services). Exploit network effects to get as many of our users’ friends as possible to join. Sell advertising to our massive captive audience. At the moment, this model works — just look at Facebook and MySpace. But notice that during the second step, the site isn’t getting users to sign up primarily because they like the service, but because their friends are already on the network.
Walled gardens exploit their users’ personal relationships to grow their proprietary systems — and on the internet, that’s never sustainable.

An article by Mr. Jonathan Kahn that you can read it here
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