Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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Other biometric technologies

Other biometric technologies not specified here include ear recognition, signature dynamics, key stroke dynamics, vein pattern recognition, retinal scan, body odour recognition, and DNA recognition. These are technologies which are either in early stages of development or used in highly specialised and limited contexts.

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The Big Five of Commercial Media

After a number of mergers and acquisitions five powerful media conglomerates lead the world's content production and distribution. They operate on an international basis with subsidiaries all around the globe and engage in every imaginable kind of media industry.

Table: The World's Leading Media Companies

Media Company

1998 Revenues

(in US$)

Property/Corporate Information

AOL Time Warner (US)

26,838.000.000*

http://www.timewarner.com/corp/about/timewarnerinc/corporate/index.html

Disney (US)

22,976.000.000

http://www.disney.com

Bertelsmann (GER)

16,389.000.000

http://www.bertelsmann.com/facts/report/report.cfm

News Corporation (AUS)

12,841.000.000

http://www.newscorp.com/public/cor/cor_m.htm

Viacom (US)

12,100.000.000

http://www.viacom.com/global.tin



(* Revenues of Time Warner only (merger with AOL took place in January 2000)

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Challenges for Copyright by ICT: Digital Content Providers

Providers of digital information might be confronted with copyright related problems when using some of the special features of hypertext media like frames and hyperlinks (which both use third party content available on the Internet to enhance a webpage or CD ROM), or operate a search engine or online directory on their website.

Framing

Frames are often used to help define, and navigate within, a content provider's website. Still, when they are used to present (copyrighted) third party material from other sites issues of passing off and misleading or deceptive conduct, as well as copyright infringement, immediately arise.

Hyperlinking

It is generally held that the mere creation of a hyperlink does not, of itself, infringe copyright as usually the words indicating a link or the displayed URL are unlikely to be considered a "work". Nevertheless if a link is clicked on the users browser will download a full copy of the material at the linked address creating a copy in the RAM of his computer courtesy of the address supplied by the party that published the link. Although it is widely agreed that the permission to download material over the link must be part of an implied license granted by the person who has made the material available on the web in the first place, the scope of this implied license is still the subject of debate. Another option that has been discussed is to consider linking fair use.

Furthermore hyperlinks, and other "information location tools", like online directories or search engines could cause their operators trouble if they refer or link users to a site that contains infringing material. In this case it is yet unclear whether providers can be held liable for infringement.

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Online data capturing

Hardly a firm today can afford not to engage in electronic commerce if it does not want to be swept out of business by competitors. "Information is everything" has become something like the Lord's prayer of the New Economy. But how do you get information about your customer online? Who are the people who visit a website, where do they come from, what are they looking for? How much money do they have, what might they want to buy? These are key questions for a company doing electronic business. Obviously not all of this information can be obtained by monitoring the online behaviour of web users, but there are always little gimmicks that, when combined with common tracking technologies, can help to get more detailed information about a potential customer. These are usually online registration forms, either required for entry to a site, or competitions, sometimes a combination of the two. Obviously, if you want to win that weekend trip to New York, you want to provide your contact details.

The most common way of obtaining information about a user online is a cookie. However, a cookie by itself is not sufficient to identify a user personally. It merely identifies the computer to the server by providing its IP number. Only combined with other data extraction techniques, such as online registration, can a user be identified personally ("Register now to get the full benefit of xy.com. It's free!")

But cookies record enough information to fine-tune advertising strategies according to a user's preferences and interests, e.g. by displaying certain commercial banners rather than others. For example, if a user is found to respond to a banner of a particular kind, he / she may find two of them at the next visit. Customizing the offers on a website to the particular user is part of one-to-one marketing, a type of direct marketing. But one-to-one marketing can go further than this. It can also offer different prices to different users. This was done by Amazon.com in September 2000, when fist-time visitors were offered cheaper prices than regular customers.

One-to-one marketing can create very different realities that undermine traditional concepts of demand and supply. The ideal is a "frictionless market", where the differential between demand and supply is progressively eliminated. If a market is considered a structure within which demand / supply differentials are negotiated, this amounts to the abolition of the established notion of the nature of a market. Demand and supply converge, desire and it fulfilment coincide. In the end, there is profit without labour. However, such a structure is a hermetic structure of unfreedom.

It can only function when payment is substituted by credit, and the exploitation of work power by the exploitation of data. In fact, in modern economies there is great pressure to increase spending on credit. Using credit cards and taking up loans generates a lot of data around a person's economic behaviour, while at the same restricting the scope of social activity and increasing dependence. On the global level, the consequences of credit spirals can be observed in many of the developing countries that have had to abandon most of their political autonomy. As the data body economy advances, this is also the fate of people in western societies when they are structurally driven into credit spending. It shows that data bodies are not politically neutral.

The interrelation between data, profit and unfreedom is frequently overlooked by citizens and customers. Any company in a modern economy will apply data collecting strategies for profit, with dependence and unfreedom as a "secondary effect". The hunger for data has made IT companies eager to profit from e-business rather resourceful. "Getting to know the customer" - this is a catchphrase that is heard frequently, and which suggests that there are no limits to what a company may want to about a customer. In large online shops, such as amazon.com, where customer's identity is accurately established by the practice of paying with credit cards, an all business happens online, making it easy for the company to accurately profile the customers.

But there are more advanced and effective ways of identification. The German company Sevenval has developed a new way of customer tracking which works with "virtual domains". Every visitor of a website is assigned an 33-digit identification number which the browser understands as part of the www address, which will then read something like http://XCF49BEB7E97C00A328BF562BAAC75FB2.sevenval.com. Therefore, this tracking method, which is advertised by Sevenval as a revolutionary method capable of tracking the exact and complete path of a user on a website, can not be simple switched off. In addition, the method makes it possible for the identity of a user can travel with him when he / she visits one of the other companies linked to the site in question. As in the case of cookies, this tracking method by itself is not sufficient to identify a user personally. Such an identification only occurs once a customer pays with a credit card, or decides to participate in a draw, or voluntarily completes a registration form.

Bu there are much less friendly ways of extracting data from a user and feeding the data body. Less friendly means: these methods monitor users in situations where the latter are likely not to want to be monitored. Monitoring therefore takes place in a concealed manner. One of these monitoring methods are so-called web bugs. These are tiny graphics, not more than 1 x 1 pixel in size, and therefore invisible on a screen, capable of monitoring an unsuspecting user's e-mails or movements on a website. Leading corporations such as Barnes and Noble, eToys, Cooking.com, and Microsoft have all used web bugs in advertising campaigns. Richard Smith has compiled a web bugs FAQ site that contains detailed information and examples of web bugs in use.

Bugs monitoring users have also been packaged in seemingly harmless toys made available on the Internet. For example, Comet Systems offers cursor images which have been shown to collect user data and send them back to the company's server. These little images replace the customary white arrow of a mouse with a little image of a baseball, a cat, an UFO, etc. large enough to carry a bug collecting user information. The technology is offered as a marketing tool to companies looking for a "fun, new way to interact with their audience".

The cursor image technology relies on what is called a GUID (global unique identifier). This is an identification number which is assigned to a customer at the time of registration, or when downloading a product. Many among the online community were alarmed when in 1999 it was discovered that Microsoft assigned GUIDS without their customer's knowledge. Following protests, the company was forced to change the registration procedure, assuring that under no circumstances would these identification numbers be used for tracking or marketing.

However, in the meantime, another possible infringement on user anonymity by Microsoft was discovered, when it as found out that MS Office documents, such as Word, Excel or Powerpoint, contain a bug that is capable of tracking the documents as they are sent through the net. The bug sends information about the user who opens the document back to the originating server. A document that contains the bug can be tracked across the globe, through thousands of stopovers. In detailed description of the bug and how it works can be found at the Privacy Foundation's website. Also, there is an example of such a bug at the Privacy Center of the University of Denver.

Of course there are many other ways of collecting users' data and creating appropriating data bodies which can then be used for economic purposes. Indeed, as Bill Gates commented, "information is the lifeblood of business". The electronic information networks are becoming the new frontier of capitalism.

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Timeline Cryptography - Introduction

Besides oral conversations and written language many other ways of information-transport are known: like the bush telegraph, drums, smoke signals etc. Those methods are not cryptography, still they need en- and decoding, which means that the history of language, the history of communication and the history of cryptography are closely connected to each other
The timeline gives an insight into the endless fight between enciphering and deciphering. The reasons for them can be found in public and private issues at the same time, though mostly connected to military maneuvers and/or political tasks.

One of the most important researchers on Cryptography through the centuries is David Kahn; many parts of the following timeline are originating from his work.

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Feeding the data body

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Global hubs of the data body industry

While most data bunkers are restricted to particular areas or contexts, there are others which act as global data nodes. Companies such as EDS (Electronic Data Systems), Experian, First Data Corporation and Equifax operate globally and run giant databases containing personal information. They are the global hubs of the data body economy.

Company

Sales in USD billions

Size of client database in million datasets





Equifax





1,7





360





Experian





1,5





779





Fist Data Corporation





5,5





260





EDS





18,5









(not disclosed)

(Sales and database sizes, 1998)

The size of these data repositories is constantly growing, so it is only a matter of time when everybody living in the technologically saturated part of the world will be registered in one of these data bunkers.

Among these companies, EDS, founded by the former US presidential candidate Ross Perot, known for his right-wing views and direct language, is of particular importance. Not only is it the world's largest data body company, it is also secretive about the size of its client database - a figure disclosed by the other companies either in company publications or upon enquiry. After all, the size of such a data base makes a company more attractive for potential customers.

For many years, EDS has been surrounded by rumours concerning sinister involvement with intelligence agencies. Beyond the rumours, though, there are also facts. EDS has a special division for government services. EDS does business with all military agencies of the US, as well as law enforcement agencies, justice agencies, and many others. The company also maintains a separate division for military equipment In 1984, the company became a subsidiary of General Motors, itself a leading manufacturer of military and intelligence systems. EDS is listed by the Federation of American Scientist's intelligence resource program as contractor to US intelligence agencies, and prides itself, amongst other things, to respond to the "rise of the citizen as a consumer".

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Virtual cartels; mergers

In parallel to the deregulation of markets, there has been a trend towards large-scale mergers which ridicules dreams of increased competition.

Recent mega-mergers and acquisitions include

SBC Communications - Ameritech, $ 72,3 bn

Bell Atlantic - GTE, $ 71,3

AT&T - Media One, $ 63,1

AOL - Time Warner, $ 165 bn

MCI Worldcom - Spring, $ 129 bn

The total value of all major mergers since the beginnings of the 1990s has been 20 trillion Dollars, 2,5 times the size of the USA's GIP.

The AOL- Time Warner reflects a trend which can be observed everywhere: the convergence of the ICT and the content industries. This represents the ultimate advance in complete market domination, and a alarming threat to independent content.

"Is TIME going to write something negative about AOL? Will AOL be able to offer anything other than CNN sources? Is the Net becoming as silly and unbearable as television?"

(Detlev Borchers, journalist)

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Enforcement: Copyright Management and Control Technologies

With the increased ease of the reproduction and transmission of unauthorized copies of digital works over electronic networks concerns among the copyright holder community have arisen. They fear a further growth of copyright piracy and demand adequate protection of their works. A development, which started in the mid 1990s and considers the copyright owner's apprehensions, is the creation of copyright management systems. Technological protection for their works, the copyright industry argues, is necessary to prevent widespread infringement, thus giving them the incentive to make their works available online. In their view the ideal technology should be "capable of detecting, preventing, and counting a wide range of operations, including open, print, export, copying, modifying, excerpting, and so on." Additionally such systems could be used to maintain "records indicating which permissions have actually been granted and to whom".

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Timeline 1600 - 1900 AD

17th century Cardinal Richelieu invents an encryption-tool called grille, a card with holes for writing messages on paper into the holes of those cards. Afterwards he removes the cards and fills in the blanks, so the message looks like an ordinary letter. The recipient needs to own the same card

- Bishop John Wilkins invents a cryptologic system looking like music notes. In a book he describes several forms of steganographic systems like secrets inks, but also the string cipher. He mentions the so-called Pig Latin, a spoken way of encryption that was already used by the ancient Indians

- the English scientist, magician and astrologer John Dee works on the ancient Enochian alphabet; he also possesses an encrypted writing that could not been broken until today

1605/1623 Sir Francis Bacon (= Francis Tudor = William Shakespeare?) writes several works containing ideas about cryptography. One of his most important advises is to use ciphers in such a way that no-one gets suspicious that the text could be enciphered. For this the steganogram was the best method, very often used in poems. The attempt to decipher Shakespeare's sonnets (in the 20th century) lead to the idea that his works had been written by Francis Bacon originally.

1671 Leibniz invents a calculating machine that uses the binary scale which we still use today, more advanced of course, called the ASCII code

18th century this is the time of the Black Chambers of espionage in Europe, Vienna having one of the most effective ones, called the "Geheime Kabinettskanzlei", headed by Baron Ignaz von Koch. Its task is to read through international diplomatic mail, copy letters and return them to the post-office the same morning. Supposedly about 100 letters are dealt with each day.

1790's Thomas Jefferson and Robert Patterson invent a wheel cipher

1799 the Rosetta Stone is found and makes it possible to decipher the Egyptian Hieroglyphs

1832 or 1838 Sam Morse develops the Morse Code, which actually is no code but an enciphered alphabet of short and long sounds. The first Morse code-message is sent by telegraph in 1844.

1834 the Braille Code for blind people is developed in today's form by Louis Braille

1844 the invention of the telegraph changes cryptography very much, as codes are absolutely necessary by then

1854 the Playfair cipher is invented by Sir Charles Wheatstone

1859 for the first time a tomographic cipher gets described

1861 Friedrich W. Kasiski does a cryptoanalysis of the Vigenère ciphers, which had been supposed to be uncrackable for ages

1891 Major Etienne Bazeries creates a new version of the wheel cipher, which is rejected by the French Army

1895 the invention of the radio changes cryptography-tasks again and makes them even more important

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Who owns the Internet and who is in charge?

The Internet/Matrix still depends heavily on public infrastructure and there is no dedicated owner of the whole Internet/Matrix, but the networks it consists of are run and owned by corporations and institutions. Access to the Internet is usually provided by Internet Service Providers (ISPs) for a monthly fee. Each network is owned by someone and has a network operation center from where it is centrally controlled, but the Internet/Matrix is not owned by any single authority and has no network operation center of its own. No legal authority determines how and where networks can be connected together, this is something the managers of networks have to agree about. So there is no way to ever gain ultimate control of the Matrix/Internet.
The in some respects decentralized Matrix/Internet architecture and administration do not imply that there are no authorities for oversight and common standards for sustaining basic operations, for administration: There are authorities for IP number and domain name registrations, e.g.
Ever since the organizational structures for Internet administration have changed according to the needs to be addressed. Up to now, administration of the Internet is a collaborative undertaking of several loose cooperative bodies with no strict hierarchy of authority. These bodies make decisions on common guidelines, as communication protocols, e.g., cooperatively, so that compatibility of software is guaranteed. But they have no binding legal authority, nor can they enforce the standards they have agreed upon, nor are they wholly representative for the community of Internet users. The Internet has no official governing body or organization; most parts are still administered by volunteers.
Amazingly, there seems to be an unspoken and uncodified consent of what is allowed and what is forbidden on the Internet that is widely accepted. Codifications, as the so-called Netiquette, are due to individual efforts and mostly just expressively stating the prevailing consent. Violations of accepted standards are fiercely rejected, as reactions to misbehavior in mailing lists and newsgroups prove daily.
Sometimes violations not already subject to law become part of governmental regulations, as it was the case with spamming, the unsolicited sending of advertising mail messages. But engineers proved to be quicker and developed software against spamming. So, in some respects, the Internet is self-regulating, indeed.
For a detailed report on Internet governance, click here.

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Timeline 1900-1970 AD

1913 the wheel cipher gets re-invented as a strip

1917 William Frederick Friedman starts working as a cryptoanalyst at Riverbank Laboratories, which also works for the U.S. Government. Later he creates a school for military cryptoanalysis

- an AT&T-employee, Gilbert S. Vernam, invents a polyalphabetic cipher machine that works with random-keys

1918 the Germans start using the ADFGVX-system, that later gets later by the French Georges Painvin

- Arthur Scherbius patents a ciphering machine and tries to sell it to the German Military, but is rejected

1919 Hugo Alexander Koch invents a rotor cipher machine

1921 the Hebern Electric Code, a company producing electro-mechanical cipher machines, is founded

1923 Arthur Scherbius founds an enterprise to construct and finally sell his Enigma machine for the German Military

late 1920's/30's more and more it is criminals who use cryptology for their purposes (e.g. for smuggling). Elizabeth Smith Friedman deciphers the codes of rum-smugglers during prohibition regularly

1929 Lester S. Hill publishes his book Cryptography in an Algebraic Alphabet, which contains enciphered parts

1933-1945 the Germans make the Enigma machine its cryptographic main-tool, which is broken by the Poles Marian Rejewski, Gordon Welchman and Alan Turing's team at Bletchley Park in England in 1939

1937 the Japanese invent their so called Purple machine with the help of Herbert O. Yardley. The machine works with telephone stepping relays. It is broken by a team of William Frederick Friedman. As the Japanese were unable to break the US codes, they imagined their own codes to be unbreakable as well - and were not careful enough.

1930's the Sigaba machine is invented in the USA, either by W.F. Friedman or his colleague Frank Rowlett

- at the same time the British develop the Typex machine, similar to the German Enigma machine

1943 Colossus, a code breaking computer is put into action at Bletchley Park

1943-1980 the cryptographic Venona Project, done by the NSA, is taking place for a longer period than any other program of that type

1948 Shannon, one of the first modern cryptographers bringing mathematics into cryptography, publishes his book A Communications Theory of Secrecy Systems

1960's the Communications-Electronics Security Group (= CESG) is founded as a section of Government Communications Headquarters (= GCHQ)

late 1960's the IBM Watson Research Lab develops the Lucifer cipher

1969 James Ellis develops a system of separate public-keys and private-keys

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Viacom

One of the largest and foremost communications and media conglomerates in the
world. Founded in 1971, the present form of the corporation dates from 1994 when Viacom Inc., which owned radio and television stations and cable television programming services and systems, acquired the entertainment and publishing giant Paramount Communications Inc. and then merged with the video and music retailer Blockbuster Entertainment Corp. Headquarters are in New York City.

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Assembly line

An assembly line is an industrial arrangement of machines, equipment, and workers for continuous flow of workpieces in mass production operations. An assembly line is designed by determining the sequences of operations for manufacture of each product component as well as the final product. Each movement of material is made as simple and short as possible with no cross flow or backtracking. Work assignments, numbers of machines, and production rates are programmed so that all operations performed along the line are compatible.

INDEXCARD, 2/10
 
Slobodan Milosevic

Slobodan Milosevic (* 1941) is a Serbian political leader.
As a young man S. Milosevic joined the Communist Party, in 1984 the banker became head of the local Communist Party of Belgrade, in 1987 head of the Serb CP. Since 1989 he has been president of Serbia (since 1997 president of the new Federal Republic of Yugoslavia). During his reign the Yugoslav Republic broke up, bringing about the independence of Slovenia and Croatia and the war in Bosnia. In 1998 the Kosovo Crisis started.

INDEXCARD, 3/10
 
Fuzzy logic

A superset of Boolean logic (George Boole) introduced by Lotfi Zadeh in the 1960s as a means to model the uncertainty of natural language. Fuzzy logic is a type of logic that recognizes more than simple true and false values. It represents a departure from classical two-valued sets and logic, that use "soft" linguistic (e.g. large, small, hot, cold, warm) system variables and a continuous range of truth values in the interval [0,1], rather than strict binary (true or false) decisions and assignments.

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Internet Engineering Steering Group

On behalf of the Internet Society, the Internet Engineering Steering Group is responsible for the technical management of the evolution of the architecture, the standards and the protocols of the Net.

http://www.ietf.org/iesg.html

http://www.ietf.org/iesg.html
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Neural network

A bottom-up artificial intelligence approach, a neural network is a network of many very simple processors ("units" or "neurons"), each possibly having a (small amount of) local memory. The units are connected by unidirectional communication channels ("connections"), which carry numeric data. The units operate only on their local data and on the inputs they receive via the connections. A neural network is a processing device, either an algorithm, or actual hardware, whose design was inspired by the design and functioning of animal brains and components thereof. Most neural networks have some sort of "training" rule whereby the weights of connections are adjusted on the basis of presented patterns. In other words, neural networks "learn" from examples and exhibit some structural capability for generalization.

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News Corporation

The News Corporation Ltd., a global media holding company, which governed News Limited (Australia), News International (U.K.), and News America Holdings Inc. (U.S.) was founded by the Australian-born newspaper publisher and media entrepreneur, Rupert Murdoch. Murdoch's corporate interests center on newspaper, magazine, book, and electronic publishing; television broadcasting; and film and video production, principally in the United States, the United Kingdom, and Australia.

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Artificial intelligence approaches

Looking for ways to create intelligent machines, the field of artificial intelligence (AI) has split into several different approaches based on the opinions about the most promising methods and theories. The two basic AI approaches are: bottom-up and top-down. The bottom-up theory suggests that the best way to achieve artificial intelligence is to build electronic replicas of the human brain's complex network of neurons (through neural networks and parallel computing) while the top-down approach attempts to mimic the brain's behavior with computer programs (for example expert systems).

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Alan Turing

b. June 23, 1912, London, England
d. June 7, 1954, Wilmslow, Cheshire

English mathematician and logician who pioneered in the field of computer theory and who contributed important logical analyses of computer processes. Many mathematicians in the first decades of the 20th century had attempted to eliminate all possible error from mathematics by establishing a formal, or purely algorithmic, procedure for establishing truth. The mathematician Kurt Gödel threw up an obstacle to this effort with his incompleteness theorem. Turing was motivated by Gödel's work to seek an algorithmic method of determining whether any given propositions were undecidable, with the ultimate goal of eliminating them from mathematics. Instead, he proved in his seminal paper "On Computable Numbers, with an Application to the Entscheidungsproblem [Decision Problem]" (1936) that there cannot exist any such universal method of determination and, hence, that mathematics will always contain undecidable propositions. During World War II he served with the Government Code and Cypher School, at Bletchley, Buckinghamshire, where he played a significant role in breaking the codes of the German "Enigma Machine". He also championed the theory that computers eventually could be constructed that would be capable of human thought, and he proposed the Turing test, to assess this capability. Turing's papers on the subject are widely acknowledged as the foundation of research in artificial intelligence. In 1952 Alan M. Turing committed suicide, probably because of the depressing medical treatment that he had been forced to undergo (in lieu of prison) to "cure" him of homosexuality.

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Augustus

Gaius Julius Caesar Octavian Augustus (63 BC - 14 AD) was adopted by Julius Caesar and became the first Roman Emperor. While he was very successful in military affairs abroad, he tried to bring back law and order to the Roman population. He was most interested in arts and philosophy.

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