Hard to believe Google which is now the world’s largest single online marketplace came on the scene only a little more than 8 years ago, back in the days when Amazon and Ebay reigned supreme. So how did Google become the world’s single largest marketplace?
Well, the short answer is “the Semantic Web” (whatever that is – more in a moment). While Amazon and Ebay continue to have average quarterly profits of $1 billion and $1.8 billion, respectively, and are successes by any measure, the $17 billion per annum Google Marketplace is clearly the most impressive success story of what used to be called, pre-crash, “The New Economy.”
Amazon and Ebay both worked as virtual marketplaces: they outsourced as much inventory as possible (in Ebay’s case, of course, that was all the inventory, but Amazon also kept as little stock on hand as it could). Then, through a variety of methods, each brought together buyers and sellers, taking a cut of every transaction.
For Amazon, that meant selling new items, or allowing thousands of users to sell them used. For Ebay, it meant bringing together auctioneers and auction buyers. Once you got everything started, this approach was extremely profitable. It was fast. It was managed by phone calls, emails, and database applications. It worked.
Enter Google. By 2002, it was the search engine, and its ad sales were picking up. At the same time, the concept of the “Semantic Web,” which had been around since 1998 or so, was gaining a little traction, and the attention of an increasing circle of people.
So what’s the Semantic Web? At its heart, it’s just a way to describe things in a way that a computer can “understand.” Of course, what’s going on is not understanding, but logic, like you learn in high school:
If A is a friend of B, then B is a friend of A.
Jim has a friend named Paul.
Therefore, Paul has a friend named Jim.
Jim has a friend named Paul.
Therefore, Paul has a friend named Jim.
Using a markup language called RDF (an acronym that’s here to stay, so you might as well learn it – it stands for Resource Description Framework), you could put logical statements like these on the Internet, “spiders” could collect them, and the statements could be searched, analyzed, and processed. What makes this different than regular search is that the statements can be combined. So if I find a statement on Jim’s web site that says “Jim is a friend of Paul” and someone does a search for Paul’s friends, even if Paul’s web site doesn’t have a mention of Jim on it, we know Jim’s considers himself a friend of Paul.
Other things we might know for sure? That Car Seller A is selling Miatas for 10% less than Car Seller B. That Jan Hammer played keyboards on the Mahavishnu Orchestra’s albums in the 1970s. That dogs have paws. That your specific model of computer requires a new motherboard and a faster bus before it can be upgraded to a Pentium 18. The Semantic Web isn’t about pages and links, it’s about relationships between things – whether one thing is a part of another, or how much a thing costs, or when it happened.
The Semweb was originally supposed to give the web the “smarts” it lacked – and much of the early work on it was in things like calendaring and scheduling, and in expressing relationships between people. By late 2003, when Google began to seriously experiment with the Semweb (after two years of experiments at their research labs), it was still a slow-growing technology that almost no one understood and very few people used, except for academics with backgrounds in logic, computer science, or artificial intelligence. The learning curve was as steep as a cliff, and there wasn’t a great incentive for new coders to climb it and survey the world from their new vantage.
The Semweb, it was promised, would make it much easier to schedule dentist’s appointment, update your computer, check the train schedule, and coordinate shipments of car parts. It would make searching for things easier. All great stuff, stuff to make millions of dollars from, perhaps. But not exactly sexy to the people who write the checks, especially after they’d been burnt 95 times over by the dot-com bust. All they saw was the web – the same web that had lined a few pockets and emptied a few million – with the word “semantic” in front of it.
Semantics vs. Syntax, Fight at 9
The semantics of something is the meaning of it. Nebulous stuff, but in the world of AI, the goal has long been getting semantics out of syntax. See, the trillion dollar question is, when you have a whole lot of stuff arranged syntactically, in a given structure that the computer can chew up, how do you then get meaning out of it? How does syntax become semantics? Human brains are really good at this, but computers, are dreadful. They’re whizzes at syntax. You can tell them anything, if you tell it in a structured way, but they can’t make sense of it, they keep deciding that “The flesh is willing but the spirit is weak” in English translates to “The meat is full of stars but the vodka is made of pinking shears” or suchlike in Russian.
So the guess has always been that you need a whole lot of syntactically stable statements in order to come up with anything interesting. In fact, you need a whole brain’s worth – millions. Now, no one has proved this approach works at all, and the #1 advocate for this approach was a man named Doug Lenat of the CYC corporation, who somehow ended up on President Ashcroft’s post-coup blacklist as a dangerous intellectual and hasn’t been seen since. But the basic, overarching idea with the Semweb was – and still is, really – to throw together so much syntax from so many people that there’s a chance to generate meaning out of it all.
As you know, computers still aren’t listening to us as well as we’d like, but in the meantime the Semweb technology matured, and all of a sudden centralized databases – and Amazon and Ebay were prime examples of centralized databases with millions of items each – could suddenly be spread out through the entire web. Everyone could own their little piece of the database, their own part of the puzzle. It was easy to publish the stuff. But the problem was that there was no good way to bring it all together. And it was hard to create RDF files, even for some programmers – so we’re back to that steep learning curve.
That all changed – suprisingly slowly – in late 2004, when with little fanfare, Google introduced three services, Google Marketplace Search, Google Personal Agent, and Google Verification Manager, and a software product, Google Marketplace Manager.