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As Path launches its new API, CEO and cofounder Dave Morin explains why the company is eschewing advertising in favor of virtual goods.

Path steps away from the "photo-sharing" category and firmly joins the emerging rank of apps--from Facebook to Erly--that are devising ways to create digital scrapbooks of our lives. When Path launched a little over a year ago, many people were puzzled: Why would an app that was about sharing photos let you only share with 50 people