Links were and are the currency of the collaborative web, that started with blogs and since then has spread to everything from Twitter to Facebook to Tumblr. Links are the essence of the new remix culture. It is how you show that you respect someone’s work and efforts. It is also indicative that you are part of a community, something bigger than yourself.
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Re “It is how you show that you respect someone’s work”… also the new currency of the web. You can’t fake people talking about you. 😉