TIME Innovation

Five Best Ideas of the Day: February 24

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. For some returning from war, a ‘G.I. bill for farming’ eases the transition home.

By Abby Wendle at Harvest Public Media

2. In Egypt, a class project to fight sexual harassment has grown into a campus-wide movement encouraging women to “Speak Up.”

By Ahmed Fouad in Al-Monitor

3. Your kid’s school is missing the tech revolution, and it’s all your fault.

By Jason Tanz in Wired

4. Community courts focus on rehabilitation and compassion for non-violent offenders.

By Henry Gass in the Christian Science Monitor

5. A new ‘Uber for packages’ service is partnering with Waffle House to build a network of delivery points around the south.

By Amar Toor in the Verge

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME Innovation

Five Best Ideas of the Day: February 23

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. The propaganda war against ISIS doesn’t tell us anything about the real fight.

By Paul Waldman in the Week

2. Programs supporting women-owned small businesses will boost the economy.

By Claudia Viek at the American Sustainable Business Council

3. System-wide disruption — including a new medical school admissions test — is remaking medical education.

By Melinda Beck in Wall Street Journal

4. Prison reform could unleash resourcefulness and hustle currently behind bars. The tech sector should get on board.

By Baratunde Thurston in Fast Company

5. The first power plant powered by ocean waves is officially online.

By Kaleigh Rogers in Motherboard from Vice

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME Innovation

Five Best Ideas of the Day: February 17

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. Is the Taliban’s fracturing a sign of its demise or a possible turn to a more lethal strategy?

By Sundarsan Raghavan in the Washington Post

2. To fight cybercrime, President Obama needs Silicon Valley.

By Katie Benner in Bloomberg View

3. The FDA needs updated systems to review drugs — made from our own cells — that target cancer and more.

By Peter W. Huber in City Journal

4. Our high incarceration rate no longer reduces crime.

By Lauren-Brooke Eisen in USA Today

5. Better than an action movie: Catch a college lecture on your next commercial flight.

By Kim Clark in Money

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME Cybercrime

Obama Acknowledges U.S. ‘Plays Offense’ on Foreign Hacking

He compared it to basketball, because Obama

President Obama acknowledged that the United States “plays offense” against other countries online, arguing that the lines between defensive and aggressive actions are blurred in the world of cybersecurity.

In an interview with the tech news website Re/Code during a visit to Silicon Valley, Obama compared online security to basketball, describing a fluid situation where America routinely switches between offensive and defensive actions.

“This is more like basketball than football in the sense that there’s no clear line between offense and defense,” he said. “Things are going back and forth all the time.”

MORE: Obama Calls on Silicon Valley to Help Thwart Cyberattacks

He also argued that the technology goes both ways “because when you develop sufficient defenses, the same sophistication you have for defense means that potentially you can engage in offense.”

The remarks come after cyberattacks last year aimed at Sony over the planned release of the comedy The Interview, for which U.S. officials blame North Korea, and more recent attacks on the Anthem insurance company, in which China is suspected of playing a role.

Obama called for a set of international protocols that would set “clear limits and guidelines” on cyberwarfare.

MORE: Here’s How Obama Wants to Protect Against Hackers

“It’s not as if North Korea is particularly good at this,” he said. “But look how much damage they were able to do.”

He also argued that Iran is “good” at hacking, while China and Russia are “very good.”

The president was also asked about what technologies he uses personally.

“I don’t have a Fitbit yet, but I work out hard,” he said. “Word is these Apple Watches might be a good companion for my workouts. So I’m gonna see, I’m gonna test it out.”

TIME eBay

The Rise and Fall (and Rise and Fall) of eBay

Ebay Reports Quarterly Earnings
Justin Sullivan—Getty Images

The online auctions site is being carved up to keep investors happy. What will be left won't be pretty

Remember when people seriously talked about their eBay addictions? You might not, because you’d have to go back a dozen years or more. And anyway, it was really more of a compulsion, the way mobile games or chat apps have more recently become. Still, if you look you can still find multiple confessions of self-described eBay addicts.

“Hard to believe it’s only been six months since I met my great love,” began one addict’s confession in the heady days of 1999. “I refer, of course, to eBay.” Of course. The site’s manic youthfulness was captured back then in a TV ad where a pudgy Bezos-ish man danced and sang how “I did it eBay!”. Quirky, yes, but eBayers got it. eBay was the “it” company, the rare dot-com that saw its stock surge after the tech bust, fueled in large part by the compulsions of its buyers.

No fad lasts, though, and eBay had to weather a rough transition as our online addictions moved to MySpace, then to Facebook, then to Angry Birds and beyond. Its stock peaked at $59.21 a share in late 2004 before entering into a tailspin after it became clear the broad enthusiasm for online auctions was fading. Within five years, the share price had fallen below $10 a share.

In the rare turnaround for an Internet company, eBay came back–reaching as high as $59.70 a year ago–because of two key factors. The first was PayPal, which eBay bought for $1.5 billion in 2002. The second was CEO John Donahoe, who realigned the company at great effort to not only keep PayPal ascendant but also to revive eBay’s original marketplace.

Today, the stock is still performing well, trading around $55 a share. But don’t read too much optimism into that. Shareholders aren’t bailing because the company has worked so hard to please them. Stock buybacks trimmed eBay’s share count by 5% in 2014–enough, its CFO reckons, to add 8 cents a share to the bottom line this year. And eBay is ready with another $3 billion to spend on repurchasing more shares if necessary. Meanwhile, 2,400 workers are being laid off this week.

Beneath such investor-pleasing maneuvers, there remains a renewed and growing conviction that the decline of eBay’s core operations is starting all over again. It’s not at all uncommon for Internet companies to see a meteoric rise and fall (it’s practically become the rule), but eBay seems to be charting a different narrative: The rise and fall. And rise. And fall.

eBay’s decline this time is happening differently. The company is literally splintering apart in the form of corporate spinoffs. Last September, under pressure from boardroom bully Carl Icahn, eBay unveiled a plan to break off PayPal into a separate company later this year. Last week, after the company reported earnings, eBay announced another surprise spinoff: its Enterprise business, which will either launch an IPO or be partially sold to another company.

eBay Enterprise is a modestly growing division that is less visible to consumers using PayPal and the e-commerce site. As part of Donahoe’s turnaround, eBay began helping traditional retailers manage their online sites. Chains like Toys’R’Us, Ace Hardware and Dick’s Sporting Goods have signed up, bringing eBay $1.2 billion in revenue last year. Last quarter Enterprise revenue rose 9%, against a 1% decline in the year-ago quarter.

PayPal is also thriving, growing steadily at around 19% for the past couple of years. And so the weak part of the post-spinoff trio will clearly be eBay itself, the lean marketplace rump that will be left once the choicer meat is sliced away. Its revenue grew by 6% in all of 2014 and only 1% in the fourth quarter–the big quarter for retailers because it includes the holiday shopping season.

Excluding volatile foreign exchange rates, eBay’s marketplace rose 5% last quarter, but even that is disappointing considering the performance of other online retailers. ChannelAdvisor, which has long tracked sales on e-commerce sites, estimated that eBay’s sales during the holiday season–basically, November and December–rose 7.3%, well below the mean growth of 16% for all sites it tracks. Amazon’s grew 27% in the period. But what ChannelAdvisor calls “third party” retailers, everything from BestBuy to NewEgg to Tesco to Rakuten, rose 34%.

Parsing e-commerce sales is still a matter of guessing at a fragmented market, but here’s the bottom line for eBay: It’s not just that auctions aren’t popular now, it’s more that eBay’s transition to regular e-commerce has hit a wall. Its Web site redesign is already dated. It’s struggling to stay high in Google searches. Many of its most trusted sellers can also be found on other sites, like Amazon. eBay is just one of many shingles they hang out these days.

Which is too bad for online shoppers because often the prices and shipping charges on eBay make for cheaper than Amazon and elsewhere. But shoppers are often too harried to compare prices these days. Sites like Etsy and Alibaba seem to have more momentum, while Pinterest and Zulilly are where many go to impulse buy online. Meanwhile, Best Buy and others are doing better at reaching out to their customers online.

The result is that there’s little momentum left for eBay, once the champion of e-commerce momentum. No one dances around and sings “I did it eBay!” anymore. Even Donahoe & Co. are throwing in the towel to a certain extent. The site remains a very nice place to buy—rather useful if you bother to figure it out—but at the end of the day just one of many online marketplaces. The addiction that made eBay a star has left eBay behind.

So, it seems, have PayPal as well as the Enterprise business that Donahoe built. That’s okay with shareholders because they now have a chance to invest in PayPal and the non-consumer ecommerce business, while selling their shares in the good old eBay that once ruled our online shopping impulses. The legendary auction site will soon become the auctioned goods, only with fewer and fewer bids as the clock ticks away.

TIME Companies

This Brilliant 29-Year-Old Has the Hardest Job in Silicon Valley

Box, Inc. Chairman, CEO & co-founder Aaron Levie, second from right, gets a high-five during opening bell ceremonies to mark the company's IPO at the New York Stock Exchange on Jan. 23, 2015.
Richard Drew—AP Box, Inc. Chairman, CEO & co-founder Aaron Levie, second from right, gets a high-five during opening bell ceremonies to mark the company's IPO at the New York Stock Exchange on Jan. 23, 2015.

Well, one of the hardest. The CEO of recently IPO'ed Box faces tough competitors and a quickly changing market

Well, so much for that first-day pop. After pricing at $14 a share on Jan. 22, Box saw it stock rise as much as 77% on its first day of trading. In the six trading days since then, it’s lost more than a quarter of its peak value, closing just above $18 a share on Monday.

The first-day pop is both an honored Wall Street tradition and a sucker’s bet that individual investors keep falling for. Most tech IPOs that start out the gate overvalued yet with momentum behind them are as a rule trading significantly below those initial highs several months later. It only took Box a matter of days, not months.

The success of Box’s IPO isn’t important just for the company’s shareholders, buy for other tech companies – especially those in the enterprise market – planning on going public in coming months. The thing is, the outlook for Box is devilishly hard to predict because it’s a grab bag of challenges and opportunities, of promise and peril alike.

Box is a company growing revenue by 80% a year but it’s lost in aggregate nearly half a billion dollars, mostly on sales and marketing costs to win customers. It has one of the most respected young CEOs in Silicon Valley, influential partners and blue-chip customers but it’s toiling in a market that’s fragmented, changing quickly and growing more competitive by the week.

The bear case on Box is easier to articulate and so it may be gaining the upper hand among investors right now. First there are the losses, shrinking but still substantial. Net loss totaled $129 million in the nine months through October, down from $125 million in the year-ago period.

The hope is that as Box grows, losses will keep declining and eventually disappear as the company pushes into the black. But that may not happen as quickly as some expect. In the most recent quarter, net loss grew by 21% from the previous quarter, nearly double the 10% growth in revenue for the same period.

Then, there’s the valuation. Without profits, defenders point to the price-to-sales ratio but even here Box’s valuation is high. Box’s market value of $2.2 billion is equal to 11 times its revenue over the past 12 months. Even at its $14 a share offering price, Box was priced at 9 times its revenue.

Finally, in a stock market where the most coveted private tech companies are delaying IPOs, Box’s approach to the public market had more than its share of glitches. The company disclosed its IPO plans last March then delayed the offering until this year. Box initially planned to raise $250 million in the offering, then lowered the take to $175 million.

And yet there is reason to think that, if enough goes right for Box in the next year or so, Box could still have a bright future ahead of it. That’s because – unlike IBM, Oracle and other enterprise software giants – Box is well positioned to benefit from the inevitable shift from bloated, aging old business productivity software to an era where content is not just stored securely in the cloud but is created and collaborated there.

One unusual twist about Box’s long journey to its IPO is that, even while people disparaged the company’s worrisome financials, few if any had bad things to say about its CEO. Aaron Levie has a knack for seeing market shifts in advance. He founded Box in 2005 after seeing that online storage was finally ready to take off.

As Box competed with popular startups like Dropbox and, increasingly, with giants like Microsoft, Levie pushed Box away from simple online storage to areas of the enterprise cloud that will grow. Lower costs and stronger security are enticing companies in most industries to conduct more internal communications on the cloud as opposed to local networks that have been vulnerable to outside hackers.

Of course, Dropbox, Microsoft and others are also gunning toward this online-collaboration market. So rather than a generalized service like Office 365, Box is pushing to tailer its offerings to individual industries. In October, it bought MedXT, a startup working to allow sharing of radiology and medical imaging with doctors and patients. Box is also working on other industry-specific software for retail, advertising and entertainment.

To move quickly and reach out to customers in these industries, Box has had to spend more on sales and marketing than it was bringing in in revenue. That meant burning through about $23 million a quarter, which meant tapping public and private markets quickly to finance the sales push.

So Box, as ugly as the financials look now, is also an bet that the company is sitting on the edge of a big shift in the way companies communicate internally and externally -from desktops to mobile, from LANs to the cloud – and can provide a platform that helps them do it privately and securely. That bet is expensive and risky, but the payoff is possible.

That first-day pop was meaningless, as they so often are. Box will need time to prove its mettle, but it may well do so. For now, the uncertainty surrounding its prospects is likely to bring its stock price lower over the coming months. But for investors who are inclined to believe Box can execute on its vision, a cheaper stock may make taking the risk more worthwhile.

Read next: Amazon’s Plan to Buy Old RadioShacks Is a Brilliant Master Stroke—If It Happens

Listen to the most important stories of the day.

TIME technology

The World’s Most Profitable Company Ever Was Launched in My Grandma’s House

Nowadays, the famous garage is mostly filled with my grandma’s laundry, cat litter, and her Ford sedan

My grandma’s house is your typical white, one-story house in the suburbs of the Silicon Valley—it has rustic red brick accents, baby blue trim, and a perfectly manicured front lawn. It’s also happens to have signs out front that read “No Trespassing. Security Cameras Are Filming. All Pictures Must Be Taken From Street.” To me, my grandma’s house is a second home, but to the rest of the world, it’s the place where Apple, Inc., was created.

Steve Jobs grew up in this Los Altos house throughout his childhood. In 1976, according to oft-repeated legend, he hatched the beginnings of Apple here, and put together the first 50 computers in the garage with Apple’s co-founder Steve Wozniak. (Wozniak recently said that that they didn’t do any manufacturing in the garage – they just finalized the computers in there. But the garage did represent them better than anywhere else.) In 1989, my paternal grandmother (Marilyn Jobs) married her second husband (Paul Jobs, Steve’s adoptive father). Soon after, my grandma moved into the house with the (not-yet-quite-so) famous garage.

As a kid, I always looked forward to going to my grandma’s house. It was a 25-minute drive across the South Bay from where my family lived in San Jose. I always knew we were within five minutes of my grandma’s house when we exited the 280 Freeway onto Foothill Expressway. As we turned onto my grandma’s street, we passed a strip mall with a Chevron Gas Station, a Trader Joe’s, and a Peet’s Coffee. When our car pulled into the driveway, my grandma would open the front door, smiling and waving at us from the porch. I always jumped out of the car and greeted her with one of my biggest hugs.

My grandma’s house is where I met my newborn brother for the first time because I was staying with her while my parents were in the hospital. It’s the place I went to after preschool to wait for my parents to pick me up and eat spoonfuls of smooth Skippy peanut butter while curled up in a reclining chair. It’s the place I went when I was sick, snuggling in bed to watch “Tom and Jerry.” It’s the place where, to this day, my family still goes to celebrate birthdays and eat my grandma’s delicious cake.

Throughout my childhood, my parents always mentioned that grandma’s house was a special place and to me it was, but in a completely different way. So when I was 10 and my parents told me about the wider significance of my grandma’s house, I shrugged it off with a laugh. How could this quaint place have been Ground Zero for such a world-famous company that steered the course of today’s technology?

Despite its celebrity status, this three-bedroom, three-bathroom house built in the early 1950s is a humble place. In the living room, porcelain Lladros figurines, Hummel collectibles, and blue and white China fill a curio cabinet by the fireplace. A Japanese bobtail cat named Daisy is always lounging in the small kitchen. A box of Betty Crocker white cake mix and a generic tub of chocolate frosting can always be found in the cupboard, waiting for grandma’s touch of love to make them special.

In 1976, the two-car garage was filled with computer boards, components, wires—and the promise of a great company. In fact, the garage was so packed with Steve Job’s equipment that Paul was forced to build a second garage in the backyard to store the cars. Nowadays, the garage is mostly filled with my grandma’s laundry, cat litter, and her Ford sedan. The only remnants of the garage’s famous past are a few of the original wooden shelves and wood-paneling wall, as well as the same cold concrete floors. It’s funny to think of people traveling hundreds of miles to catch a glimpse of this “treasure trove”!

Paul Jobs passed away in 1993, but my grandma still lives there. I’m in college now, 379 miles away in Southern California, but always visit when I come home on breaks. It’s pretty awesome to imagine that some of the first ideas for a world-renowned company were thought of in a place where I spent so much of my childhood. As a graphic design student, I truly appreciate the innovation that came out of the garage at my grandma’s house. Like so many people, I have an iPhone. When I gaze at it, I’m reminded that technology revolutions have to start somewhere—even if that somewhere is in the garage of a humble home.

Megan Chovanec is a freshman at Chapman University. She wrote this for Thinking L.A., a partnership of UCLA and Zócalo Public Square.

TIME Innovation

Five Best Ideas of the Day: December 8

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. A new crowdfunded software tool for reporting sexual assault can reduce stigma and protect survivors.

By Shafaq Hasan in Nonprofit Quarterly

2. Millions of discarded laptop batteries could light homes in the developing world.

By David Talbot in the MIT Technology Review

3. A long overdue transparency plan for clinical trials will finally open results to the medical community and the public.

By Julia Belluz in Vox

4. Without role models or a road map through the upper ranks, women are leaving the tech industry at the mid-career point in droves.

By Sue Gardner in the Los Angeles Times

5. A new plan to drop strips of prairie into cropland helps preserve soil and battle climate change.

By Dylan Roth in Iowa State Daily

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME Business

Dismantling Tech’s Sexist Culture Isn’t Easy, But Deleting Uber Sure Is

Uber Technologies Inc. Senior Vice President Of Business Emil Michael Interview
Bloomberg—Bloomberg via Getty Images Emil Michael, senior vice president of business for Uber Technologies Inc., speaks during a Bloomberg Television interview in San Francisco, California, U.S., on Tuesday, July 29, 2014.

Nilofer Merchant is an author and speaker based in Silicon Valley, California.

As history has shown, if we wait for those in power in Silicon Valley to do something, we might wait forever

News Monday of car-service company Uber wanting to launch a smear campaign (to the tune of $1 million) against a female journalist should worry you for obvious reasons. In response, actor and Uber investor Ashton Kutcher tweeted “what is so wrong about digging up dirt against a shady journalist?”

Oh, boy. Or, should I say, boys.

We should all be concerned with what’s going on with Uber—not just for what it says about tech, but for what it means for business and culture as a whole. One truism I’ve learned in the last 20 years of being up-close in the tech industry is that as Silicon Valley Companies Do, so Does the Rest of the Industry. From key ideas to key leaders, what happens here in Silicon Valley spreads fast.

Some people have called this latest news just another “clueless” move by inexperienced and young company executives. But that defies evidence of a pattern at play in tech, business and society overall: that women are threatened and oppressed for having an opinion. And perhaps more to the point, that men and their inaction allow this attitude to propagate. “Boys will be boys.”

Both Uber CEO Travis Kalanick and the executive involved in the latest scandal, Emil Michael, have been publicly shamed into saying “I’m sorry.” But an apology is not the only thing this situation merits. Michael, as of now, still works for Uber. And the company’s recruitment of top political talent implies that it’s more interested in spinning the news, not changing its ways.

This is not an isolated incident in tech. It’s part of a pattern. Take, for example, Gamergate, a controversy that began earlier this fall of online harassment of women in video gaming culture. Social media attacks, particularly those from website forums 4chan and Reddit, were widely condemned for their sexism and misogyny. Just last month, media critic and feminist Anita Sarkeesian became the subject of terrorist threats against her planned lecture at Utah State University, which made international headlines.

And let’s not forget that Microsoft CEO Satya Nadella said a few weeks ago that it was “good karma” for women to wait for a pay raise, rather than ask, and then suggested some elusive “industry” fix this problem.

Point being, the dynamics in tech are not new, or even unknown. The ‘bro’ culture has just been left unchecked.

Let’s remember, the people “in charge” today could have already made much needed changes. But Uber’s investors and board have chosen to remain silent on the safety of women issue, despite the company’s well-known and widely reported frat-bro culture, as summarized by Elizabeth Plank in Mic:

It’s hard to count all of the ways Uber has degraded, diminished and generally harmed women since its founding in 2009. Whether it’s the CEO openly referring to the company as “Boober,” the company’s chauvinistic ad campaigns, the alleged slut-shaming of female passengers who accused drivers of assault, or the reports that drivers “choked” and even attempted to abduct female passengers, the company has built a reputation for an increasingly problematic and misogynistic management style and culture. And that’s saying something in Silicon Valley.

And, so that begs the question, is this changeable?

Sarah Lacy, the journalist targeted for the smear campaign, wrote, “unless forces more powerful than me in the Valley see this latest horror as a wakeup call and decide this is enough, nothing will change.”

She’s right in one way. But I’m not convinced they need to be more powerful than her. People who share in a common purpose need to join forces with her. Because if we wait for “those in power” in Silicon Valley today to do something, we might wait forever.

Rather than waiting for “those in power” to act, we should start with each of us acting. So, today, you should delete your Uber account and put a dent in their estimated annualized billion-dollar revenue stream. In the social era, connected individuals can now do what once only large centralized organizations could. Yes, you can be as or more powerful as any top tier venture capitalist by banding together with others in this protest.

Mind you, I’m not limiting this action to women. This is not just a gender issue, but one of human values. It’s about the kind of world you want to live in. Uber counts on your desire for convenience to subsidize its untouchable ‘bro’ culture. That’s a big cost for convenience.

It’s going to take using the power available to each of us to act as one. And if Uber does change its ways because of our collective action, we can always return to them.

Nilofer Merchant’s high-tech business experience spans shipping 100 products, resulting in $18B in revenues. An author of two books on collaborative work, her next one is on how to make your ideas powerful enough to dent the world (Viking, 2016).

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME Innovation

Five Best Ideas of the Day: November 13

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. As separatists and Russian troops chip away at its sovereignty, Ukraine struggles with corruption while hunting heat for the coming winter.

By Leonid Bershidsky in Bloomberg View

2. Leading by example: One Silicon Valley superstar has put tech’s pernicious racism in his crosshairs.

By J.J. McCorvey in Fast Company

3. The most important element of the U.S.-China climate deal might be that China has stepped away from its go-it-alone approach on climate.

By Michael Levi at the Council on Foreign Relations

4. Is the next frontier of mesh networks — like the one that linked protestors in Hong Kong — serving news?

By Susan E. McGregor at NiemanLab

5. Lessons from the Bulungula Incubator: Zeroing in on poverty at the most basic level can catalyze community change — and transforms lives.

By Réjane Woodroffe in the Aspen Idea

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

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