Thanks to Stu Phillips of Soaring on Ridgelift for pointing out Fred Vogelstein’s article The Facebook revolution in the LA Times on Sunday.

Fred is a great journalist and always thinks outside the box – the premise of his article is that another way to look at Facebook is as a huge database of interactions between friends, neighbors and colleagues – a digital version of word-of-mouth information distribution.

Facebook could find some interesting ways of monetizing that database – not only does it have a detailed set of relationship data, it also has a rich transaction stream – every time you add a friend, change your profile, interact with an application… Facebook generates a transaction. Mining both the database and the log of transactions could provide very valuable data.

And startup opportunities.

Tim BerryTim Berry

Tim Berry is the founder and chairman of Palo Alto Software and Follow him on Twitter @Timberry.