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ing to be a financial services company. What PayPal does is judge the risk of a transaction and then occasionally actually take the risk on. You don t really know the money s good; you just sort of assess the riskiness of both parties, and you say, I ll be the intermediary with the understanding that, on occasion, PayPal will be on the hook for at least part of the loss if the loss occurs. Which is very tricky; it s a hard position to be in. So the company s core expertise, by definition, has to be in this ability to judge risk to be able to say, Is this the kind of transaction I really want to take on or is this something I should steer away from because you people look like thieves I think that s the security part. I mean, security not in any sort of a sense of anti-hacking defensive, but just security in a broader sense: risk assessment, figuring out what s the sane thing to do, what s unsafe, what s safe. Everything else that PayPal has built is sort of a commodity. The reason we had so many competitors in 2000 was because it looks really simple on the outside: you sign up, give us some credit card numbers, let s trade some money, done.

Livingston: What did you do that your competitors couldn t Levchin: The really complicated part is figuring out the risk. The financial

You can do this relatively easily. In the Process method, first add a line that indicates the file containing the extra asset you need. In this case, it s the image holding the grass texture. Next, specify which processor you want to use to process the asset. Because it s simply a 2D image, you specify the default texture processor: ExternalReference<TextureContent> grassAsset = new ExternalReference<TextureContent>("Grass.dds"); TextureContent grass = context.BuildAndLoadAsset<TextureContent, TextureContent>(grassAsset, "TextureProcessor"); As a result, you now have a TextureContent object, which can be serialized and deserialized into a Texture2D object, ready to be used by your Terrain!

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industry people understood the risk, but they weren t willing to do the sort of stuff we did, where they would basically say, Bad guys over here. Let s get all the bad guys out.

But mostly, it can be anywhere from hobbyists, again wannabe designers, people who actually want to do this full time I have a manufacturing plant in Thailand that purchased it They may not use all the features of the program, but there s something in it specifically that they like that they use And I have artists who I see their work in In Style magazine and Nordstrom s and Neiman s It s really across the board Smolin: What was the initial target market Who did you think you were going to sell it to at first.

They applied the same technique to SharePoint. They had to do some research. They looked at Vignette, Broadvision, the ArsDigita Community System, a few other things, and they said, These are some features that we think we should have. The product managers spec SharePoint, they send it out after about a year or two of development, and customers don t like it. It s too hard to program; it s too hard to understand. So they interview people, find out what they don t like, refine it. It takes them years and years. If you don t have any way of seeing how your customers are using the software except by shipping them the CD and then standing in the back of their living room while they type, maybe this is a reasonable way to develop software. But if you have the capacity to just install it on the server and essentially look over their shoulders by looking at the web server log and seeing what kind of complaints they email to the help desk or the website, then why not do that You can shortcut the whole 2-year development cycle down to maybe 2 months. We would have releases every 2 or 3 months. So we worried about competitors, but it was an unreasonable fear. As a friend once pointed out, most gunshot wounds are self-inflicted.

Livingston: ArsDigita was different because it was much faster Greenspun: Yeah. If you look at a book on how to develop software, it will

always have this long cycle with all these people involved. It s very slow because it s predicated on the fact that you can t just watch people as they use your running system which you can do on the Web.

Carlton: Probably more people like me, people that do craft shows, home parties Or again anybody that wants to talk to a Nordstrom s or a Neiman s or a retail outlet, or even wholesale Smolin: As the market segments began to expand, did you have to modify the program significantly or enhance it in order to satisfy those customers Carlton: Yeah, yeah, in fact I started with one version I called it the standard version, and then people that bought it would write to me and give me lots of feedback as far as what to add, what they needed; you know, This is good, this is bad, can you make it do this, can you make it do that, we want this report, we want that report And I would add it.

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