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.

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Tim BerryTim Berry

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