In 2001, the global stock market peaked. At left, the technology-heavy NASDAQ composite shows what happens when a mind-bogglingly huge amount of speculative investment cash chases companies that don't have any hope of turning a profit.

A new analysis by Shane Greenstein, an economist at Northwestern University who has studied adoption of broadband Internet, sheds some light on why - aside from investor wariness - the rapid global adoption of the internet since 2001 hasn't succeeded in re-inflating the economy.Greenstein asserts in an essay originally published in IEEE Spectrum that, despite the speculative bubble, the first wave of internet companies did in fact create a great deal of never-before-seen value. Greenstein notes that, for every Pets.com, there was also an Amazon or eBay--tech giants that have fundamentally re-shaped commerce into the present day.The biggest increase in electronic retailers occurred during the first wave. [Read the full article]

OPX Biotechnologies uses genetic engineering to speed the development of organisms that make chemicals and fuel.A startup that has successfully engineered bacteria to make common industrial chemicals is now using its technology to engineer organisms to make renewable fuel.OPX Biotechnologies, based in Boulder, Colorado, says its strains of E. coli can be used to convert sugar to acrylic acid--a key component of paints, diapers, and adhesives--at lower costs than making it from petroleum. The bacteria-based process produces 75 percent fewer carbon-dioxide emissions than making the same amount from oil, and a single commercial plant using the process could reduce petroleum consumption by over 500,000 barrels per year.The technology has been demonstrated in a pilot plant with a 200-liter fermentation tank, and the company plans to build a 20,000 liter system starting next year. Then it plans to build a commercial plant in 2014 that can produce 100 million pounds of acrylic. [Read the full article]

The Physics arXiv Blog produces daily coverage of the best new ideas from an online forum called the Physics arXiv on which scientists post early versions of their latest ideas. Contact me atKentuckyFC @ arxivblog.comOne of the great puzzles of cell biology is how information is stored, processed and passed from generation to generation at the biochemical level.By far the most famous mechanism is the sequence of nucleotides in DNA. However, in recent years a number other data storage mechanisms have emerged, so-called epigenetic processes, and their role is under fierce debate. For example, the pattern of methyl groups attached to DNA seems to be an important data storage system as do modifications to the proteins that control how DNA is packaged.Today, Georg Fritz at the University of Cologne and a few buddies put forward a new idea. [Read the full article]

Diaspora operates as a decentralized network. This means that users' data--photos, friend lists, statuses, etc.--are hosted on their own computers, or on servers they have access to, which are called "seeds". Diaspora lets users connect directly to other "seeds," and choose what data they want to share, and with whom, to build their social network. Data transferred over Diaspora will be encrypted (except for photos, for now).The project was launched in April by four NYU students who obtained around $200,000 in funding in June via the fundraising program Kickstarter.Diaspora may just be a welcome alternative to Facebook for many people. This year Facebook made a succession of a backlash from users.But first Diaspora will need to address some of the security flaws hackers have found in the system. The alpha release is slated for October, and is expected to include Facebook integration, allowing unhappy users to easily jump ship. [Read the full article]