WEBVTT Kind: captions Language: en 00:00:04.530 --> 00:00:07.789 align:start position:0% [Music] 00:00:07.789 --> 00:00:07.799 align:start position:0% [Music] 00:00:07.799 --> 00:00:09.629 align:start position:0% [Music] well<00:00:08.200> thanks<00:00:08.400> for<00:00:08.599> the<00:00:08.719> intro<00:00:09.200> sorry<00:00:09.440> for 00:00:09.629 --> 00:00:09.639 align:start position:0% well thanks for the intro sorry for 00:00:09.639 --> 00:00:12.709 align:start position:0% well thanks for the intro sorry for rugging<00:00:10.559> I've<00:00:10.880> changed<00:00:11.280> the<00:00:11.480> title<00:00:12.080> and<00:00:12.599> the 00:00:12.709 --> 00:00:12.719 align:start position:0% rugging I've changed the title and the 00:00:12.719 --> 00:00:14.390 align:start position:0% rugging I've changed the title and the content<00:00:13.080> isn't<00:00:13.360> that<00:00:13.559> different<00:00:13.960> but<00:00:14.200> this 00:00:14.390 --> 00:00:14.400 align:start position:0% content isn't that different but this 00:00:14.400 --> 00:00:18.230 align:start position:0% content isn't that different but this was<00:00:14.599> more<00:00:15.279> exciting<00:00:16.279> um<00:00:16.840> cool<00:00:17.160> so<00:00:17.840> um<00:00:18.080> I'm 00:00:18.230 --> 00:00:18.240 align:start position:0% was more exciting um cool so um I'm 00:00:18.240 --> 00:00:20.830 align:start position:0% was more exciting um cool so um I'm Mariam<00:00:18.760> I<00:00:18.880> work<00:00:19.119> with<00:00:19.359> ritual<00:00:20.359> uh<00:00:20.560> this<00:00:20.680> is 00:00:20.830 --> 00:00:20.840 align:start position:0% Mariam I work with ritual uh this is 00:00:20.840 --> 00:00:23.189 align:start position:0% Mariam I work with ritual uh this is based<00:00:21.039> on<00:00:21.160> joint<00:00:21.400> work<00:00:21.640> with<00:00:21.840> naven<00:00:22.840> uh<00:00:22.960> also 00:00:23.189 --> 00:00:23.199 align:start position:0% based on joint work with naven uh also 00:00:23.199 --> 00:00:24.429 align:start position:0% based on joint work with naven uh also at<00:00:23.320> ritual<00:00:23.640> and 00:00:24.429 --> 00:00:24.439 align:start position:0% at ritual and 00:00:24.439 --> 00:00:28.589 align:start position:0% at ritual and Columbia<00:00:25.439> so<00:00:25.640> let's<00:00:25.960> get<00:00:26.560> into<00:00:27.039> it<00:00:28.039> okay<00:00:28.199> so 00:00:28.589 --> 00:00:28.599 align:start position:0% Columbia so let's get into it okay so 00:00:28.599 --> 00:00:31.109 align:start position:0% Columbia so let's get into it okay so one<00:00:28.920> mental<00:00:29.359> model<00:00:29.679> for<00:00:30.039> for<00:00:30.840> uh<00:00:30.960> what 00:00:31.109 --> 00:00:31.119 align:start position:0% one mental model for for uh what 00:00:31.119 --> 00:00:33.790 align:start position:0% one mental model for for uh what blockchains<00:00:31.599> do<00:00:31.800> for<00:00:32.040> us<00:00:32.520> is<00:00:33.079> providing<00:00:33.600> this 00:00:33.790 --> 00:00:33.800 align:start position:0% blockchains do for us is providing this 00:00:33.800 --> 00:00:37.030 align:start position:0% blockchains do for us is providing this fundamentally<00:00:34.600> new<00:00:35.559> uh<00:00:35.719> primitive<00:00:36.640> uh<00:00:36.840> which 00:00:37.030 --> 00:00:37.040 align:start position:0% fundamentally new uh primitive uh which 00:00:37.040 --> 00:00:40.310 align:start position:0% fundamentally new uh primitive uh which is<00:00:37.600> permissionless<00:00:38.600> verifiable<00:00:39.480> computation 00:00:40.310 --> 00:00:40.320 align:start position:0% is permissionless verifiable computation 00:00:40.320 --> 00:00:43.069 align:start position:0% is permissionless verifiable computation on<00:00:40.480> a<00:00:40.600> shared<00:00:41.039> Global<00:00:41.440> State<00:00:42.440> and<00:00:42.719> this 00:00:43.069 --> 00:00:43.079 align:start position:0% on a shared Global State and this 00:00:43.079 --> 00:00:46.150 align:start position:0% on a shared Global State and this computation<00:00:44.079> is<00:00:44.280> sold<00:00:44.800> in<00:00:45.039> these<00:00:45.399> indivisible 00:00:46.150 --> 00:00:46.160 align:start position:0% computation is sold in these indivisible 00:00:46.160 --> 00:00:47.670 align:start position:0% computation is sold in these indivisible units<00:00:46.640> called 00:00:47.670 --> 00:00:47.680 align:start position:0% units called 00:00:47.680 --> 00:00:49.869 align:start position:0% units called blocks<00:00:48.680> so<00:00:48.800> you<00:00:48.920> can<00:00:49.039> think<00:00:49.199> of<00:00:49.360> that<00:00:49.520> as<00:00:49.640> a 00:00:49.869 --> 00:00:49.879 align:start position:0% blocks so you can think of that as a 00:00:49.879 --> 00:00:52.709 align:start position:0% blocks so you can think of that as a supply<00:00:50.360> side<00:00:50.680> of<00:00:50.920> this<00:00:51.520> exciting<00:00:51.920> New 00:00:52.709 --> 00:00:52.719 align:start position:0% supply side of this exciting New 00:00:52.719 --> 00:00:55.430 align:start position:0% supply side of this exciting New Market<00:00:53.719> and<00:00:54.000> on<00:00:54.120> the<00:00:54.239> demand<00:00:54.640> side<00:00:54.960> we<00:00:55.120> have 00:00:55.430 --> 00:00:55.440 align:start position:0% Market and on the demand side we have 00:00:55.440 --> 00:00:58.189 align:start position:0% Market and on the demand side we have users<00:00:56.079> who<00:00:56.399> want<00:00:56.559> to<00:00:56.719> use<00:00:56.960> this<00:00:57.199> comp 00:00:58.189 --> 00:00:58.199 align:start position:0% users who want to use this comp 00:00:58.199 --> 00:01:00.790 align:start position:0% users who want to use this comp computation<00:00:59.199> um<00:00:59.320> so<00:00:59.480> this<00:00:59.559> is<00:00:59.680> all<00:01:00.039> the<00:01:00.199> apps 00:01:00.790 --> 00:01:00.800 align:start position:0% computation um so this is all the apps 00:01:00.800 --> 00:01:02.470 align:start position:0% computation um so this is all the apps all<00:01:01.000> the<00:01:01.120> people<00:01:01.399> whose<00:01:01.800> uh<00:01:01.920> happiness<00:01:02.320> and 00:01:02.470 --> 00:01:02.480 align:start position:0% all the people whose uh happiness and 00:01:02.480 --> 00:01:04.310 align:start position:0% all the people whose uh happiness and Welfare<00:01:02.920> we<00:01:03.039> care<00:01:03.199> about<00:01:03.440> and<00:01:03.519> we<00:01:03.600> want<00:01:03.719> to 00:01:04.310 --> 00:01:04.320 align:start position:0% Welfare we care about and we want to 00:01:04.320 --> 00:01:07.230 align:start position:0% Welfare we care about and we want to onboard<00:01:05.320> and<00:01:05.479> naturally<00:01:06.040> we<00:01:06.200> need<00:01:06.520> a<00:01:06.760> fair<00:01:07.000> fee 00:01:07.230 --> 00:01:07.240 align:start position:0% onboard and naturally we need a fair fee 00:01:07.240 --> 00:01:10.429 align:start position:0% onboard and naturally we need a fair fee Market<00:01:07.759> to<00:01:08.159> sit<00:01:08.520> between<00:01:09.000> these<00:01:09.840> two<00:01:10.119> sides 00:01:10.429 --> 00:01:10.439 align:start position:0% Market to sit between these two sides 00:01:10.439 --> 00:01:13.710 align:start position:0% Market to sit between these two sides supply<00:01:10.759> and<00:01:10.960> demand<00:01:11.880> and<00:01:12.240> ideally<00:01:13.240> uh<00:01:13.439> figure 00:01:13.710 --> 00:01:13.720 align:start position:0% supply and demand and ideally uh figure 00:01:13.720 --> 00:01:15.710 align:start position:0% supply and demand and ideally uh figure out<00:01:13.960> how<00:01:14.119> to<00:01:14.439> allocate<00:01:14.840> Supply<00:01:15.200> to<00:01:15.320> demand<00:01:15.600> and 00:01:15.710 --> 00:01:15.720 align:start position:0% out how to allocate Supply to demand and 00:01:15.720 --> 00:01:19.310 align:start position:0% out how to allocate Supply to demand and how<00:01:15.840> to<00:01:16.040> price<00:01:16.360> things<00:01:16.680> in<00:01:16.799> an<00:01:17.000> efficient 00:01:19.310 --> 00:01:19.320 align:start position:0% how to price things in an efficient 00:01:19.320 --> 00:01:23.350 align:start position:0% how to price things in an efficient way<00:01:20.320> and<00:01:21.240> everything<00:01:21.560> would<00:01:21.720> be<00:01:21.920> great<00:01:22.880> uh<00:01:23.200> if 00:01:23.350 --> 00:01:23.360 align:start position:0% way and everything would be great uh if 00:01:23.360 --> 00:01:25.789 align:start position:0% way and everything would be great uh if the<00:01:23.520> picture<00:01:23.799> was<00:01:24.040> just<00:01:24.240> these<00:01:24.400> two<00:01:24.640> sides<00:01:25.159> but 00:01:25.789 --> 00:01:25.799 align:start position:0% the picture was just these two sides but 00:01:25.799 --> 00:01:27.630 align:start position:0% the picture was just these two sides but there's<00:01:26.040> a<00:01:26.240> third<00:01:26.560> set<00:01:26.759> of<00:01:26.960> participants<00:01:27.520> in 00:01:27.630 --> 00:01:27.640 align:start position:0% there's a third set of participants in 00:01:27.640 --> 00:01:30.550 align:start position:0% there's a third set of participants in the<00:01:27.840> system<00:01:28.439> called<00:01:29.079> agents<00:01:29.640> or<00:01:30.040> what<00:01:30.159> I<00:01:30.360> will 00:01:30.550 --> 00:01:30.560 align:start position:0% the system called agents or what I will 00:01:30.560 --> 00:01:33.830 align:start position:0% the system called agents or what I will call<00:01:30.840> agents<00:01:31.840> and<00:01:32.119> these<00:01:32.240> are<00:01:32.479> not<00:01:32.799> users<00:01:33.479> or 00:01:33.830 --> 00:01:33.840 align:start position:0% call agents and these are not users or 00:01:33.840 --> 00:01:37.270 align:start position:0% call agents and these are not users or the<00:01:34.159> computation<00:01:34.880> providers<00:01:35.799> uh<00:01:36.000> they<00:01:36.280> are 00:01:37.270 --> 00:01:37.280 align:start position:0% the computation providers uh they are 00:01:37.280 --> 00:01:39.670 align:start position:0% the computation providers uh they are facilitators<00:01:38.280> of<00:01:38.439> the<00:01:38.600> market<00:01:39.119> but<00:01:39.280> the<00:01:39.399> role 00:01:39.670 --> 00:01:39.680 align:start position:0% facilitators of the market but the role 00:01:39.680 --> 00:01:42.870 align:start position:0% facilitators of the market but the role is<00:01:39.960> pretty<00:01:40.600> complicated<00:01:41.600> they<00:01:41.759> can<00:01:41.920> be<00:01:42.200> useful 00:01:42.870 --> 00:01:42.880 align:start position:0% is pretty complicated they can be useful 00:01:42.880 --> 00:01:45.550 align:start position:0% is pretty complicated they can be useful they<00:01:43.000> can<00:01:43.159> be<00:01:43.600> adversarial<00:01:44.600> and<00:01:45.119> I<00:01:45.240> argue 00:01:45.550 --> 00:01:45.560 align:start position:0% they can be adversarial and I argue 00:01:45.560 --> 00:01:47.590 align:start position:0% they can be adversarial and I argue they're<00:01:45.880> necessary<00:01:46.840> and<00:01:46.960> the<00:01:47.040> reason<00:01:47.320> they're 00:01:47.590 --> 00:01:47.600 align:start position:0% they're necessary and the reason they're 00:01:47.600 --> 00:01:50.630 align:start position:0% they're necessary and the reason they're necessary<00:01:48.479> is<00:01:48.759> that<00:01:49.240> to<00:01:49.520> get<00:01:49.759> the 00:01:50.630 --> 00:01:50.640 align:start position:0% necessary is that to get the 00:01:50.640 --> 00:01:52.990 align:start position:0% necessary is that to get the permissionless<00:01:51.640> verifiable<00:01:52.520> all<00:01:52.680> these<00:01:52.840> like 00:01:52.990 --> 00:01:53.000 align:start position:0% permissionless verifiable all these like 00:01:53.000 --> 00:01:55.149 align:start position:0% permissionless verifiable all these like new<00:01:53.240> properties<00:01:53.640> of<00:01:53.880> blockchains<00:01:54.439> we<00:01:54.560> need 00:01:55.149 --> 00:01:55.159 align:start position:0% new properties of blockchains we need 00:01:55.159 --> 00:01:56.910 align:start position:0% new properties of blockchains we need decentralization<00:01:56.159> and<00:01:56.280> that<00:01:56.399> means<00:01:56.680> we<00:01:56.799> need 00:01:56.910 --> 00:01:56.920 align:start position:0% decentralization and that means we need 00:01:56.920 --> 00:01:58.749 align:start position:0% decentralization and that means we need to<00:01:57.079> distribute<00:01:57.680> power<00:01:58.079> to<00:01:58.560> like 00:01:58.749 --> 00:01:58.759 align:start position:0% to distribute power to like 00:01:58.759 --> 00:02:02.350 align:start position:0% to distribute power to like geographically<00:01:59.640> and<00:02:00.039> across<00:02:00.799> nodes<00:02:01.600> and<00:02:02.240> that 00:02:02.350 --> 00:02:02.360 align:start position:0% geographically and across nodes and that 00:02:02.360 --> 00:02:04.350 align:start position:0% geographically and across nodes and that means<00:02:02.880> every<00:02:03.159> part<00:02:03.399> of<00:02:03.560> the<00:02:03.680> blockchain 00:02:04.350 --> 00:02:04.360 align:start position:0% means every part of the blockchain 00:02:04.360 --> 00:02:07.310 align:start position:0% means every part of the blockchain including<00:02:04.880> its<00:02:05.039> fee<00:02:05.399> Market<00:02:06.159> might<00:02:06.360> be<00:02:06.520> run<00:02:07.000> by 00:02:07.310 --> 00:02:07.320 align:start position:0% including its fee Market might be run by 00:02:07.320 --> 00:02:10.469 align:start position:0% including its fee Market might be run by a<00:02:07.479> selfish<00:02:08.239> party<00:02:08.840> with<00:02:09.000> its<00:02:09.160> own<00:02:09.479> objectives 00:02:10.469 --> 00:02:10.479 align:start position:0% a selfish party with its own objectives 00:02:10.479 --> 00:02:13.390 align:start position:0% a selfish party with its own objectives so<00:02:10.679> we<00:02:10.800> need<00:02:10.959> to<00:02:11.120> design<00:02:11.440> markets<00:02:12.239> with<00:02:13.160> um 00:02:13.390 --> 00:02:13.400 align:start position:0% so we need to design markets with um 00:02:13.400 --> 00:02:14.869 align:start position:0% so we need to design markets with um these<00:02:13.599> agents<00:02:14.000> in 00:02:14.869 --> 00:02:14.879 align:start position:0% these agents in 00:02:14.879 --> 00:02:17.110 align:start position:0% these agents in mind<00:02:15.879> this<00:02:15.959> this<00:02:16.000> is<00:02:16.080> a<00:02:16.239> nice<00:02:16.440> diagram<00:02:16.920> by 00:02:17.110 --> 00:02:17.120 align:start position:0% mind this this is a nice diagram by 00:02:17.120 --> 00:02:20.229 align:start position:0% mind this this is a nice diagram by Frontier<00:02:18.120> it<00:02:18.640> shows<00:02:19.160> just<00:02:19.360> how<00:02:19.640> complex<00:02:20.080> the 00:02:20.229 --> 00:02:20.239 align:start position:0% Frontier it shows just how complex the 00:02:20.239 --> 00:02:22.990 align:start position:0% Frontier it shows just how complex the ecosystem<00:02:21.120> of<00:02:21.360> Agents<00:02:21.879> involved<00:02:22.319> in<00:02:22.680> Block 00:02:22.990 --> 00:02:23.000 align:start position:0% ecosystem of Agents involved in Block 00:02:23.000 --> 00:02:25.790 align:start position:0% ecosystem of Agents involved in Block building<00:02:23.519> is<00:02:24.400> they<00:02:24.560> have<00:02:24.840> specialized<00:02:25.599> they 00:02:25.790 --> 00:02:25.800 align:start position:0% building is they have specialized they 00:02:25.800 --> 00:02:28.670 align:start position:0% building is they have specialized they have<00:02:26.400> uh<00:02:26.560> into<00:02:26.920> like<00:02:27.080> little<00:02:27.440> parts<00:02:27.720> of<00:02:27.840> the 00:02:28.670 --> 00:02:28.680 align:start position:0% have uh into like little parts of the 00:02:28.680 --> 00:02:34.589 align:start position:0% have uh into like little parts of the market<00:02:29.680> and<00:02:30.120> and<00:02:31.120> um<00:02:31.760> yeah<00:02:32.040> like<00:02:32.360> have<00:02:32.599> a<00:02:33.599> mixed 00:02:34.589 --> 00:02:34.599 align:start position:0% market and and um yeah like have a mixed 00:02:34.599 --> 00:02:37.670 align:start position:0% market and and um yeah like have a mixed influence<00:02:35.120> I<00:02:35.200> would<00:02:35.400> say<00:02:35.680> on<00:02:35.920> the<00:02:36.160> quality<00:02:36.720> of 00:02:37.670 --> 00:02:37.680 align:start position:0% influence I would say on the quality of 00:02:37.680 --> 00:02:40.589 align:start position:0% influence I would say on the quality of um<00:02:38.040> user 00:02:40.589 --> 00:02:40.599 align:start position:0% 00:02:40.599 --> 00:02:42.990 align:start position:0% experience<00:02:41.599> and<00:02:41.720> I<00:02:41.840> guess<00:02:42.000> this<00:02:42.120> is<00:02:42.720> kind<00:02:42.879> of 00:02:42.990 --> 00:02:43.000 align:start position:0% experience and I guess this is kind of 00:02:43.000 --> 00:02:45.589 align:start position:0% experience and I guess this is kind of at<00:02:43.120> the<00:02:43.239> core<00:02:43.480> of<00:02:43.680> what<00:02:43.800> me<00:02:44.319> is<00:02:44.920> um<00:02:45.400> these 00:02:45.589 --> 00:02:45.599 align:start position:0% at the core of what me is um these 00:02:45.599 --> 00:02:47.110 align:start position:0% at the core of what me is um these agents<00:02:46.080> have<00:02:46.200> a<00:02:46.400> different<00:02:46.760> set<00:02:46.920> of 00:02:47.110 --> 00:02:47.120 align:start position:0% agents have a different set of 00:02:47.120 --> 00:02:50.350 align:start position:0% agents have a different set of objectives<00:02:47.800> than<00:02:48.360> the<00:02:48.519> network<00:02:48.959> or 00:02:50.350 --> 00:02:50.360 align:start position:0% objectives than the network or 00:02:50.360 --> 00:02:54.149 align:start position:0% objectives than the network or users<00:02:51.360> all<00:02:51.519> right<00:02:52.360> cool<00:02:52.760> so<00:02:53.720> here's<00:02:53.959> a 00:02:54.149 --> 00:02:54.159 align:start position:0% users all right cool so here's a 00:02:54.159 --> 00:02:55.750 align:start position:0% users all right cool so here's a narrative<00:02:54.640> that<00:02:54.760> I<00:02:54.879> think<00:02:55.080> is<00:02:55.319> pretty 00:02:55.750 --> 00:02:55.760 align:start position:0% narrative that I think is pretty 00:02:55.760 --> 00:02:58.030 align:start position:0% narrative that I think is pretty prevalent<00:02:56.760> and<00:02:56.920> it's<00:02:57.159> that<00:02:57.319> agents<00:02:57.680> are<00:02:57.879> bad 00:02:58.030 --> 00:02:58.040 align:start position:0% prevalent and it's that agents are bad 00:02:58.040 --> 00:03:00.390 align:start position:0% prevalent and it's that agents are bad and<00:02:58.200> M<00:02:58.599> is<00:02:58.800> toxic<00:02:59.400> so<00:02:59.560> I<00:02:59.640> will<00:02:59.920> just<00:03:00.040> outline 00:03:00.390 --> 00:03:00.400 align:start position:0% and M is toxic so I will just outline 00:03:00.400 --> 00:03:02.509 align:start position:0% and M is toxic so I will just outline the<00:03:00.519> narrative<00:03:01.280> um<00:03:01.800> I<00:03:01.879> think<00:03:02.040> it<00:03:02.159> will<00:03:02.319> be 00:03:02.509 --> 00:03:02.519 align:start position:0% the narrative um I think it will be 00:03:02.519 --> 00:03:05.869 align:start position:0% the narrative um I think it will be familiar<00:03:03.519> um<00:03:03.760> so<00:03:04.680> these<00:03:04.879> agents<00:03:05.360> have<00:03:05.680> their 00:03:05.869 --> 00:03:05.879 align:start position:0% familiar um so these agents have their 00:03:05.879 --> 00:03:08.750 align:start position:0% familiar um so these agents have their own<00:03:06.480> objectives<00:03:07.200> they<00:03:07.360> have<00:03:07.599> outsize<00:03:08.200> control 00:03:08.750 --> 00:03:08.760 align:start position:0% own objectives they have outsize control 00:03:08.760 --> 00:03:09.869 align:start position:0% own objectives they have outsize control over<00:03:09.000> block 00:03:09.869 --> 00:03:09.879 align:start position:0% over block 00:03:09.879 --> 00:03:12.949 align:start position:0% over block production<00:03:10.879> and<00:03:11.560> as<00:03:11.640> a<00:03:11.840> result<00:03:12.319> I<00:03:12.440> guess<00:03:12.680> first 00:03:12.949 --> 00:03:12.959 align:start position:0% production and as a result I guess first 00:03:12.959 --> 00:03:15.229 align:start position:0% production and as a result I guess first let<00:03:13.080> me<00:03:13.200> show<00:03:13.440> you<00:03:13.640> the<00:03:13.760> outsize<00:03:14.239> control<00:03:15.080> this 00:03:15.229 --> 00:03:15.239 align:start position:0% let me show you the outsize control this 00:03:15.239 --> 00:03:17.750 align:start position:0% let me show you the outsize control this is<00:03:15.440> I<00:03:15.560> took<00:03:15.840> this<00:03:15.959> maybe<00:03:16.200> an<00:03:16.319> hour<00:03:16.599> ago<00:03:17.280> um<00:03:17.599> the 00:03:17.750 --> 00:03:17.760 align:start position:0% is I took this maybe an hour ago um the 00:03:17.760 --> 00:03:20.030 align:start position:0% is I took this maybe an hour ago um the most<00:03:18.000> recent<00:03:18.280> ethereum<00:03:18.680> blocks<00:03:18.920> are<00:03:19.120> built<00:03:19.480> by 00:03:20.030 --> 00:03:20.040 align:start position:0% most recent ethereum blocks are built by 00:03:20.040 --> 00:03:25.190 align:start position:0% most recent ethereum blocks are built by two<00:03:20.280> Builders<00:03:21.599> um<00:03:22.599> that's<00:03:22.959> not<00:03:23.319> fully 00:03:25.190 --> 00:03:25.200 align:start position:0% two Builders um that's not fully 00:03:25.200 --> 00:03:27.869 align:start position:0% two Builders um that's not fully decentralized<00:03:26.200> and<00:03:26.879> because<00:03:27.159> of<00:03:27.400> this 00:03:27.869 --> 00:03:27.879 align:start position:0% decentralized and because of this 00:03:27.879 --> 00:03:30.149 align:start position:0% decentralized and because of this potential<00:03:28.360> incentive<00:03:28.840> misalignment<00:03:29.799> between 00:03:30.149 --> 00:03:30.159 align:start position:0% potential incentive misalignment between 00:03:30.159 --> 00:03:33.350 align:start position:0% potential incentive misalignment between agents<00:03:30.680> and<00:03:30.879> users<00:03:31.799> user<00:03:32.159> welfare<00:03:32.599> can<00:03:32.760> suffer 00:03:33.350 --> 00:03:33.360 align:start position:0% agents and users user welfare can suffer 00:03:33.360 --> 00:03:35.470 align:start position:0% agents and users user welfare can suffer and<00:03:33.560> this<00:03:33.680> is<00:03:33.920> a<00:03:34.400> an<00:03:34.519> old<00:03:34.760> tale<00:03:35.040> that<00:03:35.159> has<00:03:35.319> been 00:03:35.470 --> 00:03:35.480 align:start position:0% and this is a an old tale that has been 00:03:35.480 --> 00:03:37.869 align:start position:0% and this is a an old tale that has been told<00:03:35.799> many<00:03:36.080> times<00:03:36.840> I<00:03:36.920> will<00:03:37.159> mention<00:03:37.560> this 00:03:37.869 --> 00:03:37.879 align:start position:0% told many times I will mention this 00:03:37.879 --> 00:03:42.949 align:start position:0% told many times I will mention this paper<00:03:38.360> that<00:03:39.200> um<00:03:39.720> we<00:03:40.720> kind<00:03:40.840> of<00:03:41.000> formalized<00:03:41.959> this 00:03:42.949 --> 00:03:42.959 align:start position:0% paper that um we kind of formalized this 00:03:42.959 --> 00:03:45.270 align:start position:0% paper that um we kind of formalized this the<00:03:43.519> the<00:03:43.640> challenges<00:03:44.319> imposed<00:03:44.959> by<00:03:45.120> this 00:03:45.270 --> 00:03:45.280 align:start position:0% the the challenges imposed by this 00:03:45.280 --> 00:03:46.910 align:start position:0% the the challenges imposed by this incentive<00:03:45.680> misalignments<00:03:46.319> where<00:03:46.439> we<00:03:46.560> show<00:03:46.760> an 00:03:46.910 --> 00:03:46.920 align:start position:0% incentive misalignments where we show an 00:03:46.920 --> 00:03:49.550 align:start position:0% incentive misalignments where we show an impossibility<00:03:47.879> of<00:03:48.439> Designing<00:03:49.000> any<00:03:49.280> like<00:03:49.439> no 00:03:49.550 --> 00:03:49.560 align:start position:0% impossibility of Designing any like no 00:03:49.560 --> 00:03:51.990 align:start position:0% impossibility of Designing any like no matter<00:03:49.799> how<00:03:49.959> clever<00:03:50.319> you<00:03:50.439> are<00:03:51.000> you<00:03:51.239> can't 00:03:51.990 --> 00:03:52.000 align:start position:0% matter how clever you are you can't 00:03:52.000 --> 00:03:54.309 align:start position:0% matter how clever you are you can't design<00:03:52.319> a<00:03:52.760> good<00:03:53.000> market<00:03:53.599> so<00:03:53.959> that<00:03:54.159> this 00:03:54.309 --> 00:03:54.319 align:start position:0% design a good market so that this 00:03:54.319 --> 00:03:56.589 align:start position:0% design a good market so that this incentive<00:03:54.799> misalignment<00:03:55.799> doesn't<00:03:56.239> cause 00:03:56.589 --> 00:03:56.599 align:start position:0% incentive misalignment doesn't cause 00:03:56.599 --> 00:03:58.509 align:start position:0% incentive misalignment doesn't cause issues<00:03:57.120> the<00:03:57.319> user<00:03:57.640> welfare<00:03:58.040> will<00:03:58.200> always 00:03:58.509 --> 00:03:58.519 align:start position:0% issues the user welfare will always 00:03:58.519 --> 00:04:00.630 align:start position:0% issues the user welfare will always suffer 00:04:00.630 --> 00:04:00.640 align:start position:0% suffer 00:04:00.640 --> 00:04:04.030 align:start position:0% suffer okay<00:04:00.840> so<00:04:01.239> in<00:04:01.519> response<00:04:02.079> to<00:04:02.480> the<00:04:03.079> evil<00:04:03.640> agents 00:04:04.030 --> 00:04:04.040 align:start position:0% okay so in response to the evil agents 00:04:04.040 --> 00:04:07.710 align:start position:0% okay so in response to the evil agents and<00:04:04.239> bad<00:04:04.560> me<00:04:05.560> people<00:04:05.959> have<00:04:06.519> um<00:04:06.879> taken<00:04:07.159> some 00:04:07.710 --> 00:04:07.720 align:start position:0% and bad me people have um taken some 00:04:07.720 --> 00:04:12.309 align:start position:0% and bad me people have um taken some approaches<00:04:08.760> to<00:04:09.760> um<00:04:10.120> reduce<00:04:10.720> or<00:04:11.400> mitigate<00:04:12.079> or 00:04:12.309 --> 00:04:12.319 align:start position:0% approaches to um reduce or mitigate or 00:04:12.319 --> 00:04:15.470 align:start position:0% approaches to um reduce or mitigate or democratize<00:04:12.959> me<00:04:13.640> where<00:04:14.400> reduction<00:04:14.879> is<00:04:15.159> at<00:04:15.360> the 00:04:15.470 --> 00:04:15.480 align:start position:0% democratize me where reduction is at the 00:04:15.480 --> 00:04:17.830 align:start position:0% democratize me where reduction is at the app<00:04:15.760> player<00:04:16.120> let's<00:04:16.359> make<00:04:16.919> new<00:04:17.199> applications 00:04:17.830 --> 00:04:17.840 align:start position:0% app player let's make new applications 00:04:17.840 --> 00:04:20.949 align:start position:0% app player let's make new applications let's<00:04:18.040> use<00:04:18.280> batch<00:04:18.600> auctions<00:04:19.600> um<00:04:20.160> instead<00:04:20.519> of 00:04:20.949 --> 00:04:20.959 align:start position:0% let's use batch auctions um instead of 00:04:20.959 --> 00:04:24.070 align:start position:0% let's use batch auctions um instead of like<00:04:21.320> the<00:04:21.600> amm<00:04:22.040> we<00:04:22.160> use<00:04:22.400> now<00:04:23.160> just<00:04:23.360> to<00:04:23.840> have 00:04:24.070 --> 00:04:24.080 align:start position:0% like the amm we use now just to have 00:04:24.080 --> 00:04:26.909 align:start position:0% like the amm we use now just to have less<00:04:24.280> me<00:04:24.840> less<00:04:25.080> value<00:04:25.479> available<00:04:26.040> on<00:04:26.280> chain 00:04:26.909 --> 00:04:26.919 align:start position:0% less me less value available on chain 00:04:26.919 --> 00:04:29.990 align:start position:0% less me less value available on chain for<00:04:27.160> these<00:04:27.320> block<00:04:27.639> producers<00:04:28.080> to<00:04:28.600> extract<00:04:29.600> um 00:04:29.990 --> 00:04:30.000 align:start position:0% for these block producers to extract um 00:04:30.000 --> 00:04:33.110 align:start position:0% for these block producers to extract um mitigation<00:04:31.000> is<00:04:31.840> things<00:04:32.120> like<00:04:32.320> encrypted<00:04:32.759> men 00:04:33.110 --> 00:04:33.120 align:start position:0% mitigation is things like encrypted men 00:04:33.120 --> 00:04:36.790 align:start position:0% mitigation is things like encrypted men pools<00:04:34.440> sve<00:04:35.440> this<00:04:35.560> is<00:04:35.800> where<00:04:36.000> you<00:04:36.320> tie<00:04:36.639> the 00:04:36.790 --> 00:04:36.800 align:start position:0% pools sve this is where you tie the 00:04:36.800 --> 00:04:39.390 align:start position:0% pools sve this is where you tie the hands<00:04:37.039> of<00:04:37.240> the<00:04:37.360> agents<00:04:37.919> limit<00:04:38.320> their<00:04:38.600> power<00:04:39.120> so 00:04:39.390 --> 00:04:39.400 align:start position:0% hands of the agents limit their power so 00:04:39.400 --> 00:04:41.550 align:start position:0% hands of the agents limit their power so that<00:04:39.680> they<00:04:40.199> don't<00:04:40.440> have<00:04:40.639> that<00:04:40.759> much<00:04:40.919> leeway<00:04:41.400> to 00:04:41.550 --> 00:04:41.560 align:start position:0% that they don't have that much leeway to 00:04:41.560 --> 00:04:44.629 align:start position:0% that they don't have that much leeway to extract<00:04:42.039> value<00:04:43.039> and<00:04:43.400> democratization<00:04:44.400> is 00:04:44.629 --> 00:04:44.639 align:start position:0% extract value and democratization is 00:04:44.639 --> 00:04:46.029 align:start position:0% extract value and democratization is kind<00:04:44.759> of<00:04:44.919> throwing<00:04:45.199> your<00:04:45.320> hands<00:04:45.560> in<00:04:45.720> the<00:04:45.840> air 00:04:46.029 --> 00:04:46.039 align:start position:0% kind of throwing your hands in the air 00:04:46.039 --> 00:04:48.990 align:start position:0% kind of throwing your hands in the air and<00:04:46.160> saying<00:04:46.600> this<00:04:47.080> evil<00:04:47.520> is<00:04:47.840> inevitable<00:04:48.840> it 00:04:48.990 --> 00:04:49.000 align:start position:0% and saying this evil is inevitable it 00:04:49.000 --> 00:04:50.510 align:start position:0% and saying this evil is inevitable it will<00:04:49.240> be<00:04:49.520> there<00:04:49.840> because<00:04:50.080> there's<00:04:50.320> this 00:04:50.510 --> 00:04:50.520 align:start position:0% will be there because there's this 00:04:50.520 --> 00:04:53.830 align:start position:0% will be there because there's this degree<00:04:50.800> of<00:04:50.919> Freedom<00:04:51.360> these<00:04:51.560> agents<00:04:52.120> have<00:04:52.919> so 00:04:53.830 --> 00:04:53.840 align:start position:0% degree of Freedom these agents have so 00:04:53.840 --> 00:04:55.390 align:start position:0% degree of Freedom these agents have so at<00:04:53.960> least<00:04:54.240> let's<00:04:54.479> try<00:04:54.720> to<00:04:54.880> reduce<00:04:55.199> this 00:04:55.390 --> 00:04:55.400 align:start position:0% at least let's try to reduce this 00:04:55.400 --> 00:04:58.270 align:start position:0% at least let's try to reduce this negative<00:04:55.800> side<00:04:56.120> effects<00:04:57.120> let's<00:04:57.400> make<00:04:57.600> sure<00:04:58.000> we 00:04:58.270 --> 00:04:58.280 align:start position:0% negative side effects let's make sure we 00:04:58.280 --> 00:05:00.390 align:start position:0% negative side effects let's make sure we don't<00:04:58.560> get<00:04:58.800> censorship 00:05:00.390 --> 00:05:00.400 align:start position:0% don't get censorship 00:05:00.400 --> 00:05:02.710 align:start position:0% don't get censorship uh<00:05:00.639> let's<00:05:01.639> make<00:05:01.800> sure<00:05:02.080> that<00:05:02.240> at<00:05:02.360> least<00:05:02.520> the 00:05:02.710 --> 00:05:02.720 align:start position:0% uh let's make sure that at least the 00:05:02.720 --> 00:05:04.830 align:start position:0% uh let's make sure that at least the validators<00:05:03.560> validators<00:05:04.120> are 00:05:04.830 --> 00:05:04.840 align:start position:0% validators validators are 00:05:04.840 --> 00:05:07.469 align:start position:0% validators validators are decentralized<00:05:05.840> so<00:05:06.000> I<00:05:06.120> think<00:05:06.280> this<00:05:06.400> is<00:05:06.600> kind<00:05:06.720> of 00:05:07.469 --> 00:05:07.479 align:start position:0% decentralized so I think this is kind of 00:05:07.479 --> 00:05:11.310 align:start position:0% decentralized so I think this is kind of um<00:05:07.960> the<00:05:08.120> lay<00:05:08.360> of<00:05:08.479> the<00:05:08.919> land<00:05:09.919> and<00:05:10.680> what<00:05:10.840> I<00:05:11.039> hope 00:05:11.310 --> 00:05:11.320 align:start position:0% um the lay of the land and what I hope 00:05:11.320 --> 00:05:14.990 align:start position:0% um the lay of the land and what I hope to<00:05:11.520> do<00:05:12.479> here<00:05:13.000> is<00:05:13.320> give<00:05:13.880> some<00:05:14.080> form<00:05:14.360> of<00:05:14.479> a 00:05:14.990 --> 00:05:15.000 align:start position:0% to do here is give some form of a 00:05:15.000 --> 00:05:17.310 align:start position:0% to do here is give some form of a counterbalancing<00:05:16.000> argument<00:05:16.919> I'm<00:05:17.039> not<00:05:17.199> going 00:05:17.310 --> 00:05:17.320 align:start position:0% counterbalancing argument I'm not going 00:05:17.320 --> 00:05:19.430 align:start position:0% counterbalancing argument I'm not going to<00:05:17.440> say<00:05:17.639> agents<00:05:17.960> are<00:05:18.199> amazing<00:05:19.000> and<00:05:19.199> there<00:05:19.319> is 00:05:19.430 --> 00:05:19.440 align:start position:0% to say agents are amazing and there is 00:05:19.440 --> 00:05:23.469 align:start position:0% to say agents are amazing and there is no<00:05:19.639> Meb<00:05:20.360> issue<00:05:21.360> but<00:05:22.280> I'm<00:05:22.560> hoping<00:05:22.960> to<00:05:23.160> argue 00:05:23.469 --> 00:05:23.479 align:start position:0% no Meb issue but I'm hoping to argue 00:05:23.479 --> 00:05:26.510 align:start position:0% no Meb issue but I'm hoping to argue that<00:05:23.680> agents<00:05:24.080> can<00:05:24.280> be<00:05:24.440> useful<00:05:25.400> and<00:05:25.840> sometimes 00:05:26.510 --> 00:05:26.520 align:start position:0% that agents can be useful and sometimes 00:05:26.520 --> 00:05:30.469 align:start position:0% that agents can be useful and sometimes crucial<00:05:27.440> to<00:05:27.639> use<00:05:28.440> and<00:05:28.720> M<00:05:29.160> is<00:05:29.280> more<00:05:29.720> Nuance<00:05:30.199> than 00:05:30.469 --> 00:05:30.479 align:start position:0% crucial to use and M is more Nuance than 00:05:30.479 --> 00:05:32.309 align:start position:0% crucial to use and M is more Nuance than just<00:05:31.000> toxic<00:05:31.400> and 00:05:32.309 --> 00:05:32.319 align:start position:0% just toxic and 00:05:32.319 --> 00:05:35.749 align:start position:0% just toxic and evil<00:05:33.319> and<00:05:33.560> I<00:05:33.680> guess<00:05:33.840> more<00:05:34.199> concretely<00:05:35.199> I<00:05:35.280> will 00:05:35.749 --> 00:05:35.759 align:start position:0% evil and I guess more concretely I will 00:05:35.759 --> 00:05:37.990 align:start position:0% evil and I guess more concretely I will give<00:05:35.880> a<00:05:36.160> framework<00:05:37.160> I<00:05:37.240> will<00:05:37.440> Define<00:05:37.800> this 00:05:37.990 --> 00:05:38.000 align:start position:0% give a framework I will Define this 00:05:38.000 --> 00:05:41.550 align:start position:0% give a framework I will Define this concept<00:05:38.319> of<00:05:38.520> agentic<00:05:39.199> ism<00:05:40.199> and<00:05:40.840> we<00:05:40.960> can<00:05:41.319> give<00:05:41.440> a 00:05:41.550 --> 00:05:41.560 align:start position:0% concept of agentic ism and we can give a 00:05:41.560 --> 00:05:43.189 align:start position:0% concept of agentic ism and we can give a framework<00:05:41.960> for<00:05:42.160> how<00:05:42.319> to<00:05:42.520> talk<00:05:42.800> about<00:05:43.039> the 00:05:43.189 --> 00:05:43.199 align:start position:0% framework for how to talk about the 00:05:43.199 --> 00:05:45.350 align:start position:0% framework for how to talk about the degree<00:05:43.520> of<00:05:43.680> agentic<00:05:44.160> ism<00:05:44.479> in<00:05:44.639> different<00:05:44.960> block 00:05:45.350 --> 00:05:45.360 align:start position:0% degree of agentic ism in different block 00:05:45.360 --> 00:05:48.909 align:start position:0% degree of agentic ism in different block production<00:05:46.280> paradigms<00:05:47.280> and<00:05:47.520> then<00:05:48.400> follow<00:05:48.759> up 00:05:48.909 --> 00:05:48.919 align:start position:0% production paradigms and then follow up 00:05:48.919 --> 00:05:51.990 align:start position:0% production paradigms and then follow up with<00:05:49.080> a<00:05:49.759> way<00:05:49.919> of<00:05:50.120> reasoning<00:05:50.840> about<00:05:51.520> for<00:05:51.759> a 00:05:51.990 --> 00:05:52.000 align:start position:0% with a way of reasoning about for a 00:05:52.000 --> 00:05:54.629 align:start position:0% with a way of reasoning about for a specific<00:05:52.440> application<00:05:52.960> or<00:05:53.160> chain<00:05:53.680> how<00:05:53.919> do<00:05:54.080> you 00:05:54.629 --> 00:05:54.639 align:start position:0% specific application or chain how do you 00:05:54.639 --> 00:05:57.309 align:start position:0% specific application or chain how do you choose<00:05:55.600> which<00:05:56.120> block<00:05:56.479> production<00:05:56.880> Paradigm 00:05:57.309 --> 00:05:57.319 align:start position:0% choose which block production Paradigm 00:05:57.319 --> 00:06:00.189 align:start position:0% choose which block production Paradigm to<00:05:57.479> use<00:05:57.759> more<00:05:57.960> agentic<00:05:58.720> or<00:05:59.160> less<00:05:59.360> a 00:06:00.189 --> 00:06:00.199 align:start position:0% to use more agentic or less a 00:06:00.199 --> 00:06:03.469 align:start position:0% to use more agentic or less a gentic<00:06:01.199> cool<00:06:01.520> let's<00:06:01.759> get<00:06:01.960> into<00:06:02.479> definitions 00:06:03.469 --> 00:06:03.479 align:start position:0% gentic cool let's get into definitions 00:06:03.479 --> 00:06:06.309 align:start position:0% gentic cool let's get into definitions um<00:06:04.319> so<00:06:04.919> automated<00:06:05.520> is<00:06:05.680> something<00:06:05.919> I<00:06:06.000> haven't 00:06:06.309 --> 00:06:06.319 align:start position:0% um so automated is something I haven't 00:06:06.319 --> 00:06:08.510 align:start position:0% um so automated is something I haven't mentioned<00:06:06.960> I'm<00:06:07.120> using<00:06:07.479> that<00:06:07.720> as<00:06:07.919> the<00:06:08.160> opposite 00:06:08.510 --> 00:06:08.520 align:start position:0% mentioned I'm using that as the opposite 00:06:08.520 --> 00:06:10.909 align:start position:0% mentioned I'm using that as the opposite of<00:06:08.960> agentic<00:06:09.960> so<00:06:10.120> let<00:06:10.199> me<00:06:10.400> Define<00:06:10.720> what<00:06:10.800> it 00:06:10.909 --> 00:06:10.919 align:start position:0% of agentic so let me Define what it 00:06:10.919 --> 00:06:13.110 align:start position:0% of agentic so let me Define what it means<00:06:11.199> to<00:06:11.360> be<00:06:12.000> uh<00:06:12.160> an<00:06:12.319> automated<00:06:12.840> block 00:06:13.110 --> 00:06:13.120 align:start position:0% means to be uh an automated block 00:06:13.120 --> 00:06:16.390 align:start position:0% means to be uh an automated block building<00:06:14.000> um<00:06:14.720> function<00:06:15.039> or<00:06:15.280> Paradigm<00:06:16.199> you 00:06:16.390 --> 00:06:16.400 align:start position:0% building um function or Paradigm you 00:06:16.400 --> 00:06:19.390 align:start position:0% building um function or Paradigm you have<00:06:16.680> users<00:06:17.400> they<00:06:18.080> insert<00:06:18.520> transactions<00:06:19.199> into 00:06:19.390 --> 00:06:19.400 align:start position:0% have users they insert transactions into 00:06:19.400 --> 00:06:22.870 align:start position:0% have users they insert transactions into a<00:06:19.560> me<00:06:19.840> poool<00:06:20.680> called<00:06:21.080> M<00:06:21.479> this<00:06:21.639> M<00:06:21.960> Pool<00:06:22.720> then 00:06:22.870 --> 00:06:22.880 align:start position:0% a me poool called M this M Pool then 00:06:22.880 --> 00:06:25.629 align:start position:0% a me poool called M this M Pool then there<00:06:23.000> is<00:06:23.199> some<00:06:23.840> function<00:06:24.720> that<00:06:25.199> looks<00:06:25.440> at<00:06:25.560> the 00:06:25.629 --> 00:06:25.639 align:start position:0% there is some function that looks at the 00:06:25.639 --> 00:06:28.270 align:start position:0% there is some function that looks at the menol<00:06:26.280> and<00:06:26.520> generates<00:06:26.960> a<00:06:27.120> block<00:06:27.599> as<00:06:27.759> simple<00:06:28.080> as 00:06:28.270 --> 00:06:28.280 align:start position:0% menol and generates a block as simple as 00:06:28.280 --> 00:06:30.670 align:start position:0% menol and generates a block as simple as that<00:06:28.880> so<00:06:29.240> there's<00:06:29.680> some<00:06:30.039> let's<00:06:30.240> sa<00:06:30.479> in 00:06:30.670 --> 00:06:30.680 align:start position:0% that so there's some let's sa in 00:06:30.680 --> 00:06:33.150 align:start position:0% that so there's some let's sa in deterministic<00:06:31.440> function<00:06:32.199> that<00:06:32.800> goes<00:06:33.000> from 00:06:33.150 --> 00:06:33.160 align:start position:0% deterministic function that goes from 00:06:33.160 --> 00:06:35.469 align:start position:0% deterministic function that goes from the<00:06:33.280> men<00:06:33.560> poool<00:06:33.840> to<00:06:34.240> what<00:06:34.800> the<00:06:34.919> final<00:06:35.199> block 00:06:35.469 --> 00:06:35.479 align:start position:0% the men poool to what the final block 00:06:35.479 --> 00:06:37.550 align:start position:0% the men poool to what the final block will<00:06:35.680> be<00:06:36.160> the<00:06:36.280> point<00:06:36.479> is<00:06:36.639> there<00:06:36.759> are<00:06:36.880> no<00:06:37.080> agents 00:06:37.550 --> 00:06:37.560 align:start position:0% will be the point is there are no agents 00:06:37.560 --> 00:06:40.390 align:start position:0% will be the point is there are no agents in<00:06:37.759> this<00:06:37.919> slide<00:06:38.240> at<00:06:38.360> all<00:06:39.120> no<00:06:39.240> one<00:06:39.520> has<00:06:39.759> power 00:06:40.390 --> 00:06:40.400 align:start position:0% in this slide at all no one has power 00:06:40.400 --> 00:06:43.390 align:start position:0% in this slide at all no one has power over<00:06:40.840> what<00:06:41.000> goes<00:06:41.199> into<00:06:41.400> the<00:06:41.960> block<00:06:42.960> so<00:06:43.240> an 00:06:43.390 --> 00:06:43.400 align:start position:0% over what goes into the block so an 00:06:43.400 --> 00:06:45.110 align:start position:0% over what goes into the block so an allocation<00:06:43.800> rle<00:06:44.000> is<00:06:44.120> automated<00:06:44.639> if<00:06:44.720> it<00:06:44.880> takes 00:06:45.110 --> 00:06:45.120 align:start position:0% allocation rle is automated if it takes 00:06:45.120 --> 00:06:46.990 align:start position:0% allocation rle is automated if it takes this<00:06:45.240> format<00:06:45.720> it's<00:06:45.800> a<00:06:45.919> function<00:06:46.120> of<00:06:46.199> the<00:06:46.319> men 00:06:46.990 --> 00:06:47.000 align:start position:0% this format it's a function of the men 00:06:47.000 --> 00:06:51.909 align:start position:0% this format it's a function of the men pool<00:06:48.039> okay<00:06:49.039> so<00:06:49.440> a<00:06:49.639> gentic<00:06:50.120> block<00:06:50.720> building<00:06:51.720> we 00:06:51.909 --> 00:06:51.919 align:start position:0% pool okay so a gentic block building we 00:06:51.919 --> 00:06:55.070 align:start position:0% pool okay so a gentic block building we have<00:06:52.160> this<00:06:52.599> second<00:06:53.039> category<00:06:53.560> of<00:06:53.759> Agents<00:06:54.759> they 00:06:55.070 --> 00:06:55.080 align:start position:0% have this second category of Agents they 00:06:55.080 --> 00:06:57.629 align:start position:0% have this second category of Agents they also<00:06:55.879> give<00:06:56.120> an<00:06:56.280> input<00:06:56.639> to<00:06:56.840> this<00:06:57.080> allocation 00:06:57.629 --> 00:06:57.639 align:start position:0% also give an input to this allocation 00:06:57.639 --> 00:07:00.629 align:start position:0% also give an input to this allocation rule<00:06:58.520> and<00:06:58.720> their<00:06:58.919> input<00:06:59.280> is 00:07:00.629 --> 00:07:00.639 align:start position:0% rule and their input is 00:07:00.639 --> 00:07:03.230 align:start position:0% rule and their input is abstractly<00:07:01.639> defined<00:07:02.080> here<00:07:02.240> as<00:07:02.360> a<00:07:02.560> vector<00:07:02.960> of 00:07:03.230 --> 00:07:03.240 align:start position:0% abstractly defined here as a vector of 00:07:03.240 --> 00:07:04.990 align:start position:0% abstractly defined here as a vector of actions<00:07:03.800> they're<00:07:04.080> sophisticated<00:07:04.800> their 00:07:04.990 --> 00:07:05.000 align:start position:0% actions they're sophisticated their 00:07:05.000 --> 00:07:07.270 align:start position:0% actions they're sophisticated their actions<00:07:05.400> can<00:07:05.560> be<00:07:05.800> complex<00:07:06.759> and<00:07:06.879> the<00:07:06.960> point<00:07:07.160> is 00:07:07.270 --> 00:07:07.280 align:start position:0% actions can be complex and the point is 00:07:07.280 --> 00:07:08.990 align:start position:0% actions can be complex and the point is that<00:07:07.440> this<00:07:07.639> function<00:07:08.000> now<00:07:08.280> depends<00:07:08.639> on<00:07:08.840> the 00:07:08.990 --> 00:07:09.000 align:start position:0% that this function now depends on the 00:07:09.000 --> 00:07:11.390 align:start position:0% that this function now depends on the actions<00:07:09.360> of<00:07:09.520> the<00:07:09.800> agents<00:07:10.800> this<00:07:10.879> is<00:07:11.080> very 00:07:11.390 --> 00:07:11.400 align:start position:0% actions of the agents this is very 00:07:11.400 --> 00:07:13.830 align:start position:0% actions of the agents this is very abstract<00:07:12.039> not<00:07:12.319> very<00:07:12.520> useful<00:07:13.319> but<00:07:13.440> the<00:07:13.599> point 00:07:13.830 --> 00:07:13.840 align:start position:0% abstract not very useful but the point 00:07:13.840 --> 00:07:16.110 align:start position:0% abstract not very useful but the point is<00:07:14.080> that<00:07:14.560> depending<00:07:15.080> on<00:07:15.479> the<00:07:15.639> structure<00:07:16.000> of 00:07:16.110 --> 00:07:16.120 align:start position:0% is that depending on the structure of 00:07:16.120 --> 00:07:18.510 align:start position:0% is that depending on the structure of this<00:07:16.319> function<00:07:17.080> agents<00:07:17.520> can<00:07:17.800> exercise<00:07:18.360> more 00:07:18.510 --> 00:07:18.520 align:start position:0% this function agents can exercise more 00:07:18.520 --> 00:07:22.110 align:start position:0% this function agents can exercise more or<00:07:18.759> less<00:07:19.120> power<00:07:19.879> over<00:07:20.240> the<00:07:20.800> output<00:07:21.800> that<00:07:21.960> is 00:07:22.110 --> 00:07:22.120 align:start position:0% or less power over the output that is 00:07:22.120 --> 00:07:25.070 align:start position:0% or less power over the output that is the<00:07:22.720> block<00:07:23.720> so<00:07:23.879> let<00:07:24.000> me<00:07:24.199> now<00:07:24.479> Define<00:07:24.840> what<00:07:24.960> it 00:07:25.070 --> 00:07:25.080 align:start position:0% the block so let me now Define what it 00:07:25.080 --> 00:07:27.909 align:start position:0% the block so let me now Define what it means<00:07:25.319> to<00:07:25.520> be<00:07:25.879> agentic<00:07:26.680> it's<00:07:27.240> defined<00:07:27.639> as<00:07:27.720> a 00:07:27.909 --> 00:07:27.919 align:start position:0% means to be agentic it's defined as a 00:07:27.919 --> 00:07:31.150 align:start position:0% means to be agentic it's defined as a relation<00:07:28.639> we<00:07:28.800> say<00:07:29.560> an<00:07:29.759> allocation<00:07:30.199> rule<00:07:30.520> f<00:07:30.960> is 00:07:31.150 --> 00:07:31.160 align:start position:0% relation we say an allocation rule f is 00:07:31.160 --> 00:07:34.510 align:start position:0% relation we say an allocation rule f is more<00:07:31.440> agentic<00:07:32.160> than<00:07:32.319> an<00:07:32.479> allocation<00:07:32.960> rule<00:07:33.520> G 00:07:34.510 --> 00:07:34.520 align:start position:0% more agentic than an allocation rule G 00:07:34.520 --> 00:07:37.550 align:start position:0% more agentic than an allocation rule G if<00:07:35.120> um<00:07:35.599> I<00:07:35.759> guess<00:07:36.560> maybe<00:07:36.800> the<00:07:36.960> picture<00:07:37.199> is<00:07:37.319> more 00:07:37.550 --> 00:07:37.560 align:start position:0% if um I guess maybe the picture is more 00:07:37.560 --> 00:07:40.309 align:start position:0% if um I guess maybe the picture is more useful<00:07:38.000> if<00:07:38.120> the<00:07:38.280> set<00:07:38.479> of<00:07:38.680> blocks<00:07:39.160> that<00:07:39.759> agents 00:07:40.309 --> 00:07:40.319 align:start position:0% useful if the set of blocks that agents 00:07:40.319 --> 00:07:42.749 align:start position:0% useful if the set of blocks that agents can<00:07:40.879> generate<00:07:41.639> just<00:07:41.800> the<00:07:42.039> range<00:07:42.319> of<00:07:42.440> blocks 00:07:42.749 --> 00:07:42.759 align:start position:0% can generate just the range of blocks 00:07:42.759 --> 00:07:46.070 align:start position:0% can generate just the range of blocks that<00:07:42.879> they<00:07:42.960> can<00:07:43.160> generate<00:07:43.800> is<00:07:43.919> a<00:07:44.120> super<00:07:44.599> set<00:07:45.599> of 00:07:46.070 --> 00:07:46.080 align:start position:0% that they can generate is a super set of 00:07:46.080 --> 00:07:48.430 align:start position:0% that they can generate is a super set of the<00:07:46.199> range<00:07:46.479> of<00:07:46.639> blocks<00:07:47.000> of<00:07:47.199> the<00:07:47.639> less<00:07:47.919> agentic 00:07:48.430 --> 00:07:48.440 align:start position:0% the range of blocks of the less agentic 00:07:48.440 --> 00:07:51.790 align:start position:0% the range of blocks of the less agentic one<00:07:48.759> so<00:07:48.919> this<00:07:49.000> is<00:07:49.159> saying<00:07:49.479> G<00:07:49.840> is<00:07:50.000> less<00:07:50.360> agentic 00:07:51.790 --> 00:07:51.800 align:start position:0% one so this is saying G is less agentic 00:07:51.800 --> 00:07:54.469 align:start position:0% one so this is saying G is less agentic because<00:07:52.800> if<00:07:53.240> um<00:07:53.479> the<00:07:53.599> agents<00:07:53.960> collude 00:07:54.469 --> 00:07:54.479 align:start position:0% because if um the agents collude 00:07:54.479 --> 00:07:56.710 align:start position:0% because if um the agents collude together<00:07:54.919> and<00:07:55.080> range<00:07:55.479> over<00:07:55.800> all<00:07:56.199> possible 00:07:56.710 --> 00:07:56.720 align:start position:0% together and range over all possible 00:07:56.720 --> 00:07:59.070 align:start position:0% together and range over all possible action<00:07:57.159> vectors<00:07:58.159> the<00:07:58.319> set<00:07:58.479> of<00:07:58.599> blocks<00:07:58.919> that 00:07:59.070 --> 00:07:59.080 align:start position:0% action vectors the set of blocks that 00:07:59.080 --> 00:08:00.990 align:start position:0% action vectors the set of blocks that they<00:07:59.199> can 00:08:00.990 --> 00:08:01.000 align:start position:0% they can 00:08:01.000 --> 00:08:05.189 align:start position:0% they can generate<00:08:02.000> is<00:08:02.759> limited<00:08:03.400> it's<00:08:03.520> a<00:08:03.720> smaller 00:08:05.189 --> 00:08:05.199 align:start position:0% generate is limited it's a smaller 00:08:05.199 --> 00:08:09.909 align:start position:0% generate is limited it's a smaller set<00:08:06.599> good<00:08:07.599> so<00:08:08.000> that's<00:08:08.840> um<00:08:09.159> and<00:08:09.440> the<00:08:09.560> definition 00:08:09.909 --> 00:08:09.919 align:start position:0% set good so that's um and the definition 00:08:09.919 --> 00:08:12.629 align:start position:0% set good so that's um and the definition of<00:08:10.120> agentic<00:08:10.639> and<00:08:10.840> automated<00:08:11.759> and<00:08:12.159> naturally 00:08:12.629 --> 00:08:12.639 align:start position:0% of agentic and automated and naturally 00:08:12.639 --> 00:08:14.869 align:start position:0% of agentic and automated and naturally there's<00:08:12.840> a<00:08:13.080> spectrum<00:08:14.000> from<00:08:14.240> agentic<00:08:14.720> to 00:08:14.869 --> 00:08:14.879 align:start position:0% there's a spectrum from agentic to 00:08:14.879 --> 00:08:17.070 align:start position:0% there's a spectrum from agentic to automated<00:08:15.520> so<00:08:15.720> let's<00:08:15.919> throw<00:08:16.199> some<00:08:16.479> example 00:08:17.070 --> 00:08:17.080 align:start position:0% automated so let's throw some example 00:08:17.080 --> 00:08:19.950 align:start position:0% automated so let's throw some example projects<00:08:17.560> onto<00:08:18.000> this<00:08:18.840> I<00:08:18.919> will<00:08:19.199> throw<00:08:19.639> some 00:08:19.950 --> 00:08:19.960 align:start position:0% projects onto this I will throw some 00:08:19.960 --> 00:08:21.430 align:start position:0% projects onto this I will throw some acronyms<00:08:20.599> don't<00:08:20.759> worry<00:08:21.000> if<00:08:21.120> you<00:08:21.199> don't 00:08:21.430 --> 00:08:21.440 align:start position:0% acronyms don't worry if you don't 00:08:21.440 --> 00:08:23.270 align:start position:0% acronyms don't worry if you don't recognize<00:08:21.960> them<00:08:22.159> the<00:08:22.319> hope<00:08:22.560> is<00:08:22.759> that<00:08:23.039> if<00:08:23.159> you 00:08:23.270 --> 00:08:23.280 align:start position:0% recognize them the hope is that if you 00:08:23.280 --> 00:08:25.749 align:start position:0% recognize them the hope is that if you do<00:08:23.560> recognize<00:08:24.080> any<00:08:24.280> of<00:08:24.479> them<00:08:25.039> hopefully<00:08:25.639> it 00:08:25.749 --> 00:08:25.759 align:start position:0% do recognize any of them hopefully it 00:08:25.759 --> 00:08:28.909 align:start position:0% do recognize any of them hopefully it will<00:08:26.400> help<00:08:27.360> you<00:08:27.919> understand<00:08:28.599> how<00:08:28.759> the 00:08:28.909 --> 00:08:28.919 align:start position:0% will help you understand how the 00:08:28.919 --> 00:08:31.149 align:start position:0% will help you understand how the Spectrum<00:08:29.240> works<00:08:29.800> but<00:08:30.240> it's<00:08:30.400> not<00:08:30.599> important<00:08:31.000> if 00:08:31.149 --> 00:08:31.159 align:start position:0% Spectrum works but it's not important if 00:08:31.159 --> 00:08:34.190 align:start position:0% Spectrum works but it's not important if you<00:08:31.520> don't<00:08:31.759> recognize<00:08:32.279> them<00:08:32.640> so<00:08:33.599> at<00:08:33.719> the<00:08:33.919> very 00:08:34.190 --> 00:08:34.200 align:start position:0% you don't recognize them so at the very 00:08:34.200 --> 00:08:36.310 align:start position:0% you don't recognize them so at the very agentic<00:08:34.719> end<00:08:35.039> I've<00:08:35.200> put<00:08:35.360> in<00:08:35.719> Bitcoin<00:08:36.159> and 00:08:36.310 --> 00:08:36.320 align:start position:0% agentic end I've put in Bitcoin and 00:08:36.320 --> 00:08:40.350 align:start position:0% agentic end I've put in Bitcoin and salana<00:08:37.159> and<00:08:37.640> why<00:08:37.760> do<00:08:37.959> I<00:08:38.640> what<00:08:38.880> let<00:08:38.959> me<00:08:39.360> actually 00:08:40.350 --> 00:08:40.360 align:start position:0% salana and why do I what let me actually 00:08:40.360 --> 00:08:41.990 align:start position:0% salana and why do I what let me actually the<00:08:40.479> way<00:08:40.640> the<00:08:40.760> Bitcoin<00:08:41.080> fee<00:08:41.320> Market<00:08:41.640> Works<00:08:41.880> in 00:08:41.990 --> 00:08:42.000 align:start position:0% the way the Bitcoin fee Market Works in 00:08:42.000 --> 00:08:43.550 align:start position:0% the way the Bitcoin fee Market Works in case<00:08:42.159> you<00:08:42.240> don't<00:08:42.399> know<00:08:42.560> it's<00:08:42.640> a<00:08:42.959> first<00:08:43.320> price 00:08:43.550 --> 00:08:43.560 align:start position:0% case you don't know it's a first price 00:08:43.560 --> 00:08:45.750 align:start position:0% case you don't know it's a first price auction<00:08:44.080> transactions<00:08:44.680> submit<00:08:45.040> bids<00:08:45.640> if 00:08:45.750 --> 00:08:45.760 align:start position:0% auction transactions submit bids if 00:08:45.760 --> 00:08:47.590 align:start position:0% auction transactions submit bids if they're<00:08:45.959> included<00:08:46.440> they<00:08:46.600> pay<00:08:46.800> that<00:08:46.959> bid<00:08:47.519> there 00:08:47.590 --> 00:08:47.600 align:start position:0% they're included they pay that bid there 00:08:47.600 --> 00:08:50.310 align:start position:0% they're included they pay that bid there is<00:08:47.800> no<00:08:48.160> restriction<00:08:49.160> on<00:08:49.519> what<00:08:49.640> the<00:08:49.760> minor<00:08:50.120> can 00:08:50.310 --> 00:08:50.320 align:start position:0% is no restriction on what the minor can 00:08:50.320 --> 00:08:52.470 align:start position:0% is no restriction on what the minor can include<00:08:50.880> in<00:08:51.000> the<00:08:51.160> Block<00:08:51.640> it's<00:08:51.800> agentic 00:08:52.470 --> 00:08:52.480 align:start position:0% include in the Block it's agentic 00:08:52.480 --> 00:08:54.190 align:start position:0% include in the Block it's agentic because<00:08:53.000> it's<00:08:53.160> just<00:08:53.279> not<00:08:53.560> restrictive<00:08:54.080> the 00:08:54.190 --> 00:08:54.200 align:start position:0% because it's just not restrictive the 00:08:54.200 --> 00:08:57.110 align:start position:0% because it's just not restrictive the set<00:08:54.399> of<00:08:55.320> blocks<00:08:55.680> that<00:08:55.800> the<00:08:55.920> minor<00:08:56.240> is<00:08:56.440> able<00:08:56.760> to 00:08:57.110 --> 00:08:57.120 align:start position:0% set of blocks that the minor is able to 00:08:57.120 --> 00:08:59.430 align:start position:0% set of blocks that the minor is able to create<00:08:57.480> is<00:08:57.640> just<00:08:57.760> all<00:08:58.000> valid<00:08:58.320> blocks<00:08:59.200> so 00:08:59.430 --> 00:08:59.440 align:start position:0% create is just all valid blocks so 00:08:59.440 --> 00:09:01.509 align:start position:0% create is just all valid blocks so Solana<00:08:59.839> similarly<00:09:00.320> doesn't<00:09:00.680> have<00:09:00.959> any<00:09:01.360> like 00:09:01.509 --> 00:09:01.519 align:start position:0% Solana similarly doesn't have any like 00:09:01.519 --> 00:09:02.790 align:start position:0% Solana similarly doesn't have any like the<00:09:01.680> protocol<00:09:02.040> doesn't<00:09:02.279> impose<00:09:02.600> any 00:09:02.790 --> 00:09:02.800 align:start position:0% the protocol doesn't impose any 00:09:02.800 --> 00:09:05.150 align:start position:0% the protocol doesn't impose any restrictions<00:09:03.399> on<00:09:03.600> what<00:09:03.720> blocks<00:09:04.000> are 00:09:05.150 --> 00:09:05.160 align:start position:0% restrictions on what blocks are 00:09:05.160 --> 00:09:08.269 align:start position:0% restrictions on what blocks are valid<00:09:06.160> and<00:09:06.680> ethereum<00:09:07.240> I<00:09:07.399> think<00:09:07.560> is<00:09:07.800> very<00:09:08.040> close 00:09:08.269 --> 00:09:08.279 align:start position:0% valid and ethereum I think is very close 00:09:08.279 --> 00:09:10.430 align:start position:0% valid and ethereum I think is very close to<00:09:08.399> the<00:09:08.519> agentic<00:09:09.040> end<00:09:09.640> uh<00:09:09.760> it's<00:09:09.920> almost<00:09:10.200> a 00:09:10.430 --> 00:09:10.440 align:start position:0% to the agentic end uh it's almost a 00:09:10.440 --> 00:09:13.350 align:start position:0% to the agentic end uh it's almost a subtle<00:09:10.959> Point<00:09:11.279> why<00:09:11.480> a59<00:09:12.480> is<00:09:12.640> slightly<00:09:13.000> to<00:09:13.160> the 00:09:13.350 --> 00:09:13.360 align:start position:0% subtle Point why a59 is slightly to the 00:09:13.360 --> 00:09:16.269 align:start position:0% subtle Point why a59 is slightly to the right<00:09:14.040> because<00:09:14.480> currently<00:09:15.040> a<00:09:15.240> valid<00:09:15.600> block<00:09:16.079> is 00:09:16.269 --> 00:09:16.279 align:start position:0% right because currently a valid block is 00:09:16.279 --> 00:09:18.430 align:start position:0% right because currently a valid block is not<00:09:16.480> allowed<00:09:16.800> to<00:09:16.920> include<00:09:17.240> a<00:09:17.440> transaction 00:09:18.430 --> 00:09:18.440 align:start position:0% not allowed to include a transaction 00:09:18.440 --> 00:09:20.750 align:start position:0% not allowed to include a transaction with<00:09:18.600> a<00:09:18.760> bid<00:09:19.040> lower<00:09:19.360> than<00:09:19.519> the<00:09:19.680> base<00:09:19.959> fee<00:09:20.560> so 00:09:20.750 --> 00:09:20.760 align:start position:0% with a bid lower than the base fee so 00:09:20.760 --> 00:09:23.069 align:start position:0% with a bid lower than the base fee so that<00:09:20.880> is<00:09:21.040> some<00:09:21.240> form<00:09:21.480> of<00:09:21.680> restriction<00:09:22.640> maybe<00:09:22.959> a 00:09:23.069 --> 00:09:23.079 align:start position:0% that is some form of restriction maybe a 00:09:23.079 --> 00:09:25.310 align:start position:0% that is some form of restriction maybe a block<00:09:23.399> producer<00:09:23.880> wants<00:09:24.120> to<00:09:24.279> include<00:09:24.600> a<00:09:25.079> maybe 00:09:25.310 --> 00:09:25.320 align:start position:0% block producer wants to include a maybe 00:09:25.320 --> 00:09:26.990 align:start position:0% block producer wants to include a maybe like<00:09:25.480> there<00:09:25.560> is<00:09:25.720> me<00:09:26.120> in<00:09:26.200> a<00:09:26.320> transaction<00:09:26.880> they 00:09:26.990 --> 00:09:27.000 align:start position:0% like there is me in a transaction they 00:09:27.000 --> 00:09:28.350 align:start position:0% like there is me in a transaction they want<00:09:27.079> to<00:09:27.240> include<00:09:27.560> a<00:09:27.680> transaction<00:09:28.160> and 00:09:28.350 --> 00:09:28.360 align:start position:0% want to include a transaction and 00:09:28.360 --> 00:09:29.910 align:start position:0% want to include a transaction and subsidize<00:09:28.880> its<00:09:29.079> bids 00:09:29.910 --> 00:09:29.920 align:start position:0% subsidize its bids 00:09:29.920 --> 00:09:32.670 align:start position:0% subsidize its bids that<00:09:30.040> is<00:09:30.200> not<00:09:30.399> allowed<00:09:31.040> right<00:09:31.200> now<00:09:32.160> so<00:09:32.360> Mev 00:09:32.670 --> 00:09:32.680 align:start position:0% that is not allowed right now so Mev 00:09:32.680 --> 00:09:34.670 align:start position:0% that is not allowed right now so Mev boost<00:09:33.279> a<00:09:33.399> lot<00:09:33.560> of<00:09:33.720> the<00:09:33.959> block<00:09:34.200> production 00:09:34.670 --> 00:09:34.680 align:start position:0% boost a lot of the block production 00:09:34.680 --> 00:09:38.829 align:start position:0% boost a lot of the block production pipeline<00:09:35.200> in<00:09:35.760> uh<00:09:35.880> ethereum<00:09:36.360> is<00:09:36.680> very<00:09:37.839> agentic 00:09:38.829 --> 00:09:38.839 align:start position:0% pipeline in uh ethereum is very agentic 00:09:38.839 --> 00:09:40.670 align:start position:0% pipeline in uh ethereum is very agentic get<00:09:39.040> the<00:09:39.160> me<00:09:39.640> out<00:09:39.959> then<00:09:40.079> figure<00:09:40.320> out<00:09:40.480> how<00:09:40.560> to 00:09:40.670 --> 00:09:40.680 align:start position:0% get the me out then figure out how to 00:09:40.680 --> 00:09:42.590 align:start position:0% get the me out then figure out how to democratize<00:09:41.200> and<00:09:41.399> distribute 00:09:42.590 --> 00:09:42.600 align:start position:0% democratize and distribute 00:09:42.600 --> 00:09:44.590 align:start position:0% democratize and distribute it<00:09:43.600> all<00:09:43.720> right<00:09:43.880> so<00:09:44.000> I<00:09:44.079> think<00:09:44.200> the<00:09:44.320> Shar 00:09:44.590 --> 00:09:44.600 align:start position:0% it all right so I think the Shar 00:09:44.600 --> 00:09:46.190 align:start position:0% it all right so I think the Shar sequencing<00:09:45.040> marketplaces<00:09:45.720> also<00:09:46.040> like 00:09:46.190 --> 00:09:46.200 align:start position:0% sequencing marketplaces also like 00:09:46.200 --> 00:09:49.150 align:start position:0% sequencing marketplaces also like espresso<00:09:46.839> take<00:09:47.000> a<00:09:47.160> very<00:09:47.399> agentic<00:09:48.000> approach<00:09:49.000> um 00:09:49.150 --> 00:09:49.160 align:start position:0% espresso take a very agentic approach um 00:09:49.160 --> 00:09:51.230 align:start position:0% espresso take a very agentic approach um let's<00:09:50.040> Outsource<00:09:50.519> this<00:09:50.640> to<00:09:50.760> a<00:09:50.839> market<00:09:51.079> of 00:09:51.230 --> 00:09:51.240 align:start position:0% let's Outsource this to a market of 00:09:51.240 --> 00:09:55.590 align:start position:0% let's Outsource this to a market of complex<00:09:51.680> agents<00:09:52.360> and<00:09:53.560> um<00:09:54.560> yeah<00:09:54.760> hope<00:09:55.440> and 00:09:55.590 --> 00:09:55.600 align:start position:0% complex agents and um yeah hope and 00:09:55.600 --> 00:09:58.470 align:start position:0% complex agents and um yeah hope and sequence<00:09:56.120> that<00:09:56.279> way<00:09:56.880> all<00:09:57.000> right<00:09:57.800> on<00:09:58.000> the<00:09:58.240> other 00:09:58.470 --> 00:09:58.480 align:start position:0% sequence that way all right on the other 00:09:58.480 --> 00:10:00.150 align:start position:0% sequence that way all right on the other end<00:09:58.680> of<00:09:58.800> the<00:09:58.959> spectrum 00:10:00.150 --> 00:10:00.160 align:start position:0% end of the spectrum 00:10:00.160 --> 00:10:02.910 align:start position:0% end of the spectrum um<00:10:01.160> automated<00:10:01.720> block<00:10:02.000> building<00:10:02.600> there's 00:10:02.910 --> 00:10:02.920 align:start position:0% um automated block building there's 00:10:02.920 --> 00:10:04.670 align:start position:0% um automated block building there's ordering<00:10:03.360> rules<00:10:03.680> that<00:10:03.760> are<00:10:03.920> enforced<00:10:04.399> by<00:10:04.519> a 00:10:04.670 --> 00:10:04.680 align:start position:0% ordering rules that are enforced by a 00:10:04.680 --> 00:10:07.350 align:start position:0% ordering rules that are enforced by a combination<00:10:05.279> of<00:10:05.839> consensus<00:10:06.560> cryptography 00:10:07.350 --> 00:10:07.360 align:start position:0% combination of consensus cryptography 00:10:07.360 --> 00:10:10.269 align:start position:0% combination of consensus cryptography usted<00:10:08.200> Hardware<00:10:09.200> so<00:10:09.399> for<00:10:09.560> example<00:10:10.000> chain 00:10:10.269 --> 00:10:10.279 align:start position:0% usted Hardware so for example chain 00:10:10.279 --> 00:10:12.670 align:start position:0% usted Hardware so for example chain links<00:10:10.560> Fair<00:10:10.839> sequencing<00:10:11.519> service<00:10:12.440> is<00:10:12.560> the 00:10:12.670 --> 00:10:12.680 align:start position:0% links Fair sequencing service is the 00:10:12.680 --> 00:10:15.230 align:start position:0% links Fair sequencing service is the first<00:10:12.920> come<00:10:13.120> first<00:10:13.360> serve<00:10:13.839> service<00:10:14.839> is<00:10:15.120> kind 00:10:15.230 --> 00:10:15.240 align:start position:0% first come first serve service is kind 00:10:15.240 --> 00:10:16.550 align:start position:0% first come first serve service is kind of<00:10:15.440> dictating<00:10:15.880> The<00:10:16.000> Ordering<00:10:16.360> of 00:10:16.550 --> 00:10:16.560 align:start position:0% of dictating The Ordering of 00:10:16.560 --> 00:10:19.269 align:start position:0% of dictating The Ordering of transactions<00:10:17.279> most<00:10:17.480> L2<00:10:17.880> sequencers<00:10:18.720> are<00:10:19.120> this 00:10:19.269 --> 00:10:19.279 align:start position:0% transactions most L2 sequencers are this 00:10:19.279 --> 00:10:23.630 align:start position:0% transactions most L2 sequencers are this way<00:10:19.839> suav<00:10:20.440> Prof<00:10:21.240> are<00:10:22.240> uh<00:10:22.560> use<00:10:22.880> cryptography<00:10:23.519> to 00:10:23.630 --> 00:10:23.640 align:start position:0% way suav Prof are uh use cryptography to 00:10:23.640 --> 00:10:27.069 align:start position:0% way suav Prof are uh use cryptography to encrypt<00:10:24.000> them<00:10:24.120> M<00:10:24.360> Pool<00:10:24.760> and<00:10:24.959> then<00:10:25.839> um<00:10:26.680> enforce 00:10:27.069 --> 00:10:27.079 align:start position:0% encrypt them M Pool and then um enforce 00:10:27.079 --> 00:10:28.829 align:start position:0% encrypt them M Pool and then um enforce a<00:10:27.320> specific<00:10:27.680> ordering<00:10:28.160> these<00:10:28.279> are<00:10:28.480> fairly 00:10:28.829 --> 00:10:28.839 align:start position:0% a specific ordering these are fairly 00:10:28.839 --> 00:10:31.630 align:start position:0% a specific ordering these are fairly automated<00:10:29.440> there<00:10:29.560> isn't<00:10:29.920> that<00:10:30.120> much<00:10:30.640> room<00:10:31.000> for 00:10:31.630 --> 00:10:31.640 align:start position:0% automated there isn't that much room for 00:10:31.640 --> 00:10:34.630 align:start position:0% automated there isn't that much room for um<00:10:32.440> block<00:10:32.880> production<00:10:33.760> um<00:10:33.880> markets<00:10:34.519> there 00:10:34.630 --> 00:10:34.640 align:start position:0% um block production um markets there 00:10:34.640 --> 00:10:36.870 align:start position:0% um block production um markets there isn't<00:10:35.040> that<00:10:35.200> much 00:10:36.870 --> 00:10:36.880 align:start position:0% isn't that much 00:10:36.880 --> 00:10:39.230 align:start position:0% isn't that much Freedom<00:10:37.880> okay<00:10:38.079> I've<00:10:38.200> put<00:10:38.399> fossil<00:10:38.760> and<00:10:38.920> braid 00:10:39.230 --> 00:10:39.240 align:start position:0% Freedom okay I've put fossil and braid 00:10:39.240 --> 00:10:41.710 align:start position:0% Freedom okay I've put fossil and braid in<00:10:39.320> the<00:10:39.440> middle<00:10:40.120> I<00:10:40.200> think<00:10:40.440> these<00:10:40.560> are<00:10:41.240> somewhat 00:10:41.710 --> 00:10:41.720 align:start position:0% in the middle I think these are somewhat 00:10:41.720 --> 00:10:43.670 align:start position:0% in the middle I think these are somewhat restrictive<00:10:42.519> of<00:10:42.760> what<00:10:42.920> the<00:10:43.040> block<00:10:43.320> producer 00:10:43.670 --> 00:10:43.680 align:start position:0% restrictive of what the block producer 00:10:43.680 --> 00:10:45.990 align:start position:0% restrictive of what the block producer can<00:10:43.839> do<00:10:44.360> so<00:10:44.519> in<00:10:44.680> fossil<00:10:45.279> there<00:10:45.360> is<00:10:45.440> a<00:10:45.600> committee 00:10:45.990 --> 00:10:46.000 align:start position:0% can do so in fossil there is a committee 00:10:46.000 --> 00:10:48.470 align:start position:0% can do so in fossil there is a committee that<00:10:46.160> enforces<00:10:46.560> a<00:10:46.720> template<00:10:47.639> on<00:10:47.959> some 00:10:48.470 --> 00:10:48.480 align:start position:0% that enforces a template on some 00:10:48.480 --> 00:10:50.990 align:start position:0% that enforces a template on some fraction<00:10:49.040> of<00:10:49.240> the<00:10:49.399> block<00:10:50.120> and<00:10:50.320> what<00:10:50.440> it<00:10:50.560> can 00:10:50.990 --> 00:10:51.000 align:start position:0% fraction of the block and what it can 00:10:51.000 --> 00:10:54.310 align:start position:0% fraction of the block and what it can include<00:10:52.000> in<00:10:52.200> braid<00:10:52.880> the<00:10:53.279> power<00:10:53.560> of<00:10:53.720> any 00:10:54.310 --> 00:10:54.320 align:start position:0% include in braid the power of any 00:10:54.320 --> 00:10:59.069 align:start position:0% include in braid the power of any specific<00:10:55.320> proposer<00:10:56.000> is<00:10:56.560> limited<00:10:57.720> um<00:10:58.720> so<00:10:58.920> both 00:10:59.069 --> 00:10:59.079 align:start position:0% specific proposer is limited um so both 00:10:59.079 --> 00:11:01.110 align:start position:0% specific proposer is limited um so both of<00:10:59.440> these<00:10:59.560> are<00:10:59.839> they<00:11:00.040> they're<00:11:00.240> still<00:11:00.399> a<00:11:00.560> market 00:11:01.110 --> 00:11:01.120 align:start position:0% of these are they they're still a market 00:11:01.120 --> 00:11:04.190 align:start position:0% of these are they they're still a market agents<00:11:01.519> Al<00:11:01.959> together<00:11:02.639> can<00:11:03.440> uh<00:11:03.680> affect<00:11:04.040> the 00:11:04.190 --> 00:11:04.200 align:start position:0% agents Al together can uh affect the 00:11:04.200 --> 00:11:06.190 align:start position:0% agents Al together can uh affect the outcome<00:11:04.680> or<00:11:04.880> like<00:11:05.000> the<00:11:05.120> block<00:11:05.399> that<00:11:05.519> is 00:11:06.190 --> 00:11:06.200 align:start position:0% outcome or like the block that is 00:11:06.200 --> 00:11:08.509 align:start position:0% outcome or like the block that is produced<00:11:06.959> but<00:11:07.440> they<00:11:07.600> can't<00:11:07.839> produce<00:11:08.240> any 00:11:08.509 --> 00:11:08.519 align:start position:0% produced but they can't produce any 00:11:08.519 --> 00:11:10.269 align:start position:0% produced but they can't produce any block<00:11:08.839> they 00:11:10.269 --> 00:11:10.279 align:start position:0% block they 00:11:10.279 --> 00:11:13.269 align:start position:0% block they want<00:11:11.279> cool<00:11:11.560> so<00:11:11.920> how<00:11:12.120> do<00:11:12.279> we<00:11:12.519> choose<00:11:12.839> the<00:11:13.040> right 00:11:13.269 --> 00:11:13.279 align:start position:0% want cool so how do we choose the right 00:11:13.279 --> 00:11:15.910 align:start position:0% want cool so how do we choose the right place<00:11:13.800> on<00:11:13.959> the<00:11:14.160> Spectrum<00:11:14.600> for<00:11:14.760> our<00:11:15.040> specific 00:11:15.910 --> 00:11:15.920 align:start position:0% place on the Spectrum for our specific 00:11:15.920 --> 00:11:19.150 align:start position:0% place on the Spectrum for our specific app<00:11:16.920> and<00:11:17.440> to<00:11:17.639> do<00:11:17.880> that<00:11:18.040> we<00:11:18.120> need<00:11:18.279> to<00:11:18.399> Define 00:11:19.150 --> 00:11:19.160 align:start position:0% app and to do that we need to Define 00:11:19.160 --> 00:11:21.790 align:start position:0% app and to do that we need to Define benchmarks<00:11:20.160> uh<00:11:20.279> so<00:11:20.440> what<00:11:20.519> do<00:11:20.639> we<00:11:20.800> care 00:11:21.790 --> 00:11:21.800 align:start position:0% benchmarks uh so what do we care 00:11:21.800 --> 00:11:24.310 align:start position:0% benchmarks uh so what do we care about<00:11:22.800> these<00:11:22.920> are<00:11:23.079> some<00:11:23.600> properties<00:11:24.160> that 00:11:24.310 --> 00:11:24.320 align:start position:0% about these are some properties that 00:11:24.320 --> 00:11:27.150 align:start position:0% about these are some properties that people<00:11:24.639> like<00:11:24.920> in<00:11:25.079> fee<00:11:25.680> markets<00:11:26.680> none<00:11:26.880> of<00:11:27.040> them 00:11:27.150 --> 00:11:27.160 align:start position:0% people like in fee markets none of them 00:11:27.160 --> 00:11:30.350 align:start position:0% people like in fee markets none of them is<00:11:27.320> new<00:11:28.079> low<00:11:28.360> latency<00:11:28.839> is<00:11:28.959> pretty<00:11:29.680> obvious<00:11:30.200> you 00:11:30.350 --> 00:11:30.360 align:start position:0% is new low latency is pretty obvious you 00:11:30.360 --> 00:11:33.750 align:start position:0% is new low latency is pretty obvious you want<00:11:31.120> fast<00:11:31.320> turnaround<00:11:32.040> times<00:11:33.040> uh 00:11:33.750 --> 00:11:33.760 align:start position:0% want fast turnaround times uh 00:11:33.760 --> 00:11:36.910 align:start position:0% want fast turnaround times uh tractability<00:11:34.760> uh<00:11:34.920> this<00:11:35.079> is<00:11:35.600> maybe<00:11:36.040> less<00:11:36.440> often 00:11:36.910 --> 00:11:36.920 align:start position:0% tractability uh this is maybe less often 00:11:36.920 --> 00:11:39.389 align:start position:0% tractability uh this is maybe less often cited<00:11:37.680> as<00:11:37.800> a<00:11:37.959> property<00:11:38.360> that<00:11:38.480> we<00:11:38.600> need<00:11:39.160> but<00:11:39.320> if 00:11:39.389 --> 00:11:39.399 align:start position:0% cited as a property that we need but if 00:11:39.399 --> 00:11:41.829 align:start position:0% cited as a property that we need but if we<00:11:39.560> have<00:11:39.720> an<00:11:40.000> automated 00:11:41.829 --> 00:11:41.839 align:start position:0% we have an automated 00:11:41.839 --> 00:11:45.629 align:start position:0% we have an automated um<00:11:42.839> rule<00:11:43.480> if<00:11:43.639> it's<00:11:44.040> requires<00:11:44.600> solving<00:11:45.279> very 00:11:45.629 --> 00:11:45.639 align:start position:0% um rule if it's requires solving very 00:11:45.639 --> 00:11:48.670 align:start position:0% um rule if it's requires solving very complex<00:11:46.399> MP<00:11:46.959> hard<00:11:47.320> problems<00:11:48.040> we<00:11:48.200> can't<00:11:48.440> run 00:11:48.670 --> 00:11:48.680 align:start position:0% complex MP hard problems we can't run 00:11:48.680 --> 00:11:52.269 align:start position:0% complex MP hard problems we can't run that<00:11:48.839> on<00:11:49.000> chain<00:11:49.880> so<00:11:50.079> it<00:11:50.200> is<00:11:50.440> crucial<00:11:51.440> that<00:11:52.040> um 00:11:52.269 --> 00:11:52.279 align:start position:0% that on chain so it is crucial that um 00:11:52.279 --> 00:11:54.750 align:start position:0% that on chain so it is crucial that um the<00:11:52.440> auction<00:11:52.880> itself<00:11:53.680> is<00:11:54.040> computationally 00:11:54.750 --> 00:11:54.760 align:start position:0% the auction itself is computationally 00:11:54.760 --> 00:11:56.150 align:start position:0% the auction itself is computationally tractable<00:11:55.240> to 00:11:56.150 --> 00:11:56.160 align:start position:0% tractable to 00:11:56.160 --> 00:11:58.990 align:start position:0% tractable to run<00:11:57.160> simple<00:11:57.519> ux<00:11:57.959> is<00:11:58.160> capturing<00:11:58.560> a<00:11:58.680> bunch<00:11:58.839> of 00:11:58.990 --> 00:11:59.000 align:start position:0% run simple ux is capturing a bunch of 00:11:59.000 --> 00:11:59.750 align:start position:0% run simple ux is capturing a bunch of things 00:11:59.750 --> 00:11:59.760 align:start position:0% things 00:11:59.760 --> 00:12:01.590 align:start position:0% things but<00:12:00.000> roughly<00:12:00.360> speaking<00:12:00.760> we<00:12:00.880> don't<00:12:01.040> want<00:12:01.240> users 00:12:01.590 --> 00:12:01.600 align:start position:0% but roughly speaking we don't want users 00:12:01.600 --> 00:12:07.190 align:start position:0% but roughly speaking we don't want users to<00:12:01.839> have<00:12:01.959> to<00:12:02.120> do<00:12:02.440> very<00:12:02.680> complex 00:12:07.190 --> 00:12:07.200 align:start position:0% 00:12:07.200 --> 00:12:10.430 align:start position:0% strategizes<00:12:08.200> two<00:12:08.639> points<00:12:09.639> that<00:12:09.800> are 00:12:10.430 --> 00:12:10.440 align:start position:0% strategizes two points that are 00:12:10.440 --> 00:12:12.910 align:start position:0% strategizes two points that are addressing<00:12:11.200> efficiency<00:12:12.160> one<00:12:12.320> of<00:12:12.480> them<00:12:12.760> is 00:12:12.910 --> 00:12:12.920 align:start position:0% addressing efficiency one of them is 00:12:12.920 --> 00:12:15.430 align:start position:0% addressing efficiency one of them is Surplus<00:12:13.639> maximization<00:12:14.639> and<00:12:14.760> if<00:12:14.839> you<00:12:14.959> remember 00:12:15.430 --> 00:12:15.440 align:start position:0% Surplus maximization and if you remember 00:12:15.440 --> 00:12:19.069 align:start position:0% Surplus maximization and if you remember the<00:12:15.680> first<00:12:15.959> slide<00:12:16.399> was<00:12:16.720> supply<00:12:17.120> and<00:12:17.320> demand<00:12:18.240> um 00:12:19.069 --> 00:12:19.079 align:start position:0% the first slide was supply and demand um 00:12:19.079 --> 00:12:21.150 align:start position:0% the first slide was supply and demand um there<00:12:19.199> is<00:12:19.399> gains<00:12:19.720> from<00:12:19.959> trade<00:12:20.560> the<00:12:20.760> PO 00:12:21.150 --> 00:12:21.160 align:start position:0% there is gains from trade the PO 00:12:21.160 --> 00:12:23.790 align:start position:0% there is gains from trade the PO possibility<00:12:21.839> of<00:12:22.240> generating<00:12:22.760> Surplus<00:12:23.639> by 00:12:23.790 --> 00:12:23.800 align:start position:0% possibility of generating Surplus by 00:12:23.800 --> 00:12:26.829 align:start position:0% possibility of generating Surplus by matching<00:12:24.279> supply<00:12:24.600> and<00:12:24.800> demand<00:12:25.839> effectively 00:12:26.829 --> 00:12:26.839 align:start position:0% matching supply and demand effectively 00:12:26.839 --> 00:12:29.710 align:start position:0% matching supply and demand effectively and<00:12:27.760> ideally<00:12:28.320> we<00:12:28.440> want<00:12:28.639> to<00:12:29.199> create<00:12:29.440> the<00:12:29.519> most 00:12:29.710 --> 00:12:29.720 align:start position:0% and ideally we want to create the most 00:12:29.720 --> 00:12:32.910 align:start position:0% and ideally we want to create the most Surplus<00:12:30.680> possible<00:12:31.680> and<00:12:31.920> simultaneously<00:12:32.760> to 00:12:32.910 --> 00:12:32.920 align:start position:0% Surplus possible and simultaneously to 00:12:32.920 --> 00:12:35.269 align:start position:0% Surplus possible and simultaneously to be<00:12:33.120> efficient<00:12:33.560> we<00:12:33.720> don't<00:12:33.880> want<00:12:34.160> extraction<00:12:35.000> so 00:12:35.269 --> 00:12:35.279 align:start position:0% be efficient we don't want extraction so 00:12:35.279 --> 00:12:37.790 align:start position:0% be efficient we don't want extraction so users<00:12:35.800> are<00:12:36.079> the<00:12:36.199> people<00:12:36.519> whose<00:12:37.279> uh<00:12:37.399> utility 00:12:37.790 --> 00:12:37.800 align:start position:0% users are the people whose uh utility 00:12:37.800 --> 00:12:40.910 align:start position:0% users are the people whose uh utility and<00:12:37.959> Welfare<00:12:38.320> we<00:12:38.480> care<00:12:38.680> about<00:12:39.160> agents<00:12:39.800> are<00:12:40.199> not 00:12:40.910 --> 00:12:40.920 align:start position:0% and Welfare we care about agents are not 00:12:40.920 --> 00:12:42.590 align:start position:0% and Welfare we care about agents are not so<00:12:41.120> we<00:12:41.240> don't<00:12:41.440> want<00:12:41.639> all<00:12:41.800> of<00:12:41.920> the<00:12:42.040> Surplus<00:12:42.440> to 00:12:42.590 --> 00:12:42.600 align:start position:0% so we don't want all of the Surplus to 00:12:42.600 --> 00:12:44.150 align:start position:0% so we don't want all of the Surplus to go<00:12:42.720> to<00:12:42.920> agents<00:12:43.360> and<00:12:43.440> if<00:12:43.519> we're<00:12:43.680> not<00:12:43.839> careful 00:12:44.150 --> 00:12:44.160 align:start position:0% go to agents and if we're not careful 00:12:44.160 --> 00:12:46.509 align:start position:0% go to agents and if we're not careful with<00:12:44.279> Market<00:12:44.600> design<00:12:45.480> the<00:12:45.680> Surplus<00:12:46.199> will<00:12:46.399> go 00:12:46.509 --> 00:12:46.519 align:start position:0% with Market design the Surplus will go 00:12:46.519 --> 00:12:49.150 align:start position:0% with Market design the Surplus will go to 00:12:49.150 --> 00:12:49.160 align:start position:0% 00:12:49.160 --> 00:12:52.069 align:start position:0% agents<00:12:50.160> and<00:12:50.320> I<00:12:50.440> guess<00:12:50.600> let<00:12:50.760> me<00:12:51.000> highlight<00:12:51.880> the 00:12:52.069 --> 00:12:52.079 align:start position:0% agents and I guess let me highlight the 00:12:52.079 --> 00:12:54.710 align:start position:0% agents and I guess let me highlight the fact<00:12:52.360> that<00:12:52.839> the<00:12:53.519> these<00:12:53.720> two<00:12:54.199> are<00:12:54.600> they 00:12:54.710 --> 00:12:54.720 align:start position:0% fact that the these two are they 00:12:54.720 --> 00:12:56.829 align:start position:0% fact that the these two are they interact<00:12:55.079> in<00:12:55.160> a<00:12:55.279> subtle<00:12:55.680> way<00:12:56.360> they're<00:12:56.600> kind<00:12:56.720> of 00:12:56.829 --> 00:12:56.839 align:start position:0% interact in a subtle way they're kind of 00:12:56.839 --> 00:12:59.230 align:start position:0% interact in a subtle way they're kind of a<00:12:57.000> dual<00:12:57.560> objective<00:12:58.199> both<00:12:58.440> trying<00:12:58.639> to<00:12:58.800> Target 00:12:59.230 --> 00:12:59.240 align:start position:0% a dual objective both trying to Target 00:12:59.240 --> 00:13:02.110 align:start position:0% a dual objective both trying to Target welfare<00:13:00.160> and<00:13:00.360> the<00:13:00.519> tension<00:13:00.959> between<00:13:01.399> them<00:13:01.959> is 00:13:02.110 --> 00:13:02.120 align:start position:0% welfare and the tension between them is 00:13:02.120 --> 00:13:04.150 align:start position:0% welfare and the tension between them is at<00:13:02.279> the<00:13:02.440> core<00:13:02.800> of<00:13:03.040> when<00:13:03.199> you<00:13:03.320> use<00:13:03.560> a<00:13:03.800> gentic 00:13:04.150 --> 00:13:04.160 align:start position:0% at the core of when you use a gentic 00:13:04.160 --> 00:13:06.230 align:start position:0% at the core of when you use a gentic versus<00:13:04.480> automated<00:13:04.959> block<00:13:05.199> building<00:13:06.000> and<00:13:06.120> the 00:13:06.230 --> 00:13:06.240 align:start position:0% versus automated block building and the 00:13:06.240 --> 00:13:08.470 align:start position:0% versus automated block building and the reason<00:13:06.560> is<00:13:06.720> that<00:13:07.199> sometimes<00:13:07.720> one<00:13:07.959> end<00:13:08.160> of<00:13:08.279> the 00:13:08.470 --> 00:13:08.480 align:start position:0% reason is that sometimes one end of the 00:13:08.480 --> 00:13:10.829 align:start position:0% reason is that sometimes one end of the spectrum<00:13:09.000> is<00:13:09.240> really<00:13:09.639> good<00:13:09.959> at<00:13:10.199> maximizing 00:13:10.829 --> 00:13:10.839 align:start position:0% spectrum is really good at maximizing 00:13:10.839 --> 00:13:14.150 align:start position:0% spectrum is really good at maximizing Surplus<00:13:11.800> but<00:13:11.959> at<00:13:12.120> the<00:13:12.279> same<00:13:12.560> time<00:13:13.040> it<00:13:13.160> will<00:13:13.320> be 00:13:14.150 --> 00:13:14.160 align:start position:0% Surplus but at the same time it will be 00:13:14.160 --> 00:13:16.910 align:start position:0% Surplus but at the same time it will be extractive<00:13:15.160> so<00:13:15.320> you<00:13:15.480> have<00:13:15.600> to<00:13:15.760> figure<00:13:16.040> out<00:13:16.320> how 00:13:16.910 --> 00:13:16.920 align:start position:0% extractive so you have to figure out how 00:13:16.920 --> 00:13:19.509 align:start position:0% extractive so you have to figure out how to<00:13:17.560> trade<00:13:17.920> these<00:13:18.079> two<00:13:18.320> off<00:13:18.839> based<00:13:19.079> on<00:13:19.199> your 00:13:19.509 --> 00:13:19.519 align:start position:0% to trade these two off based on your 00:13:19.519 --> 00:13:22.550 align:start position:0% to trade these two off based on your application<00:13:20.519> so<00:13:20.920> I<00:13:21.040> have<00:13:21.360> some<00:13:21.680> time<00:13:21.959> left<00:13:22.480> I 00:13:22.550 --> 00:13:22.560 align:start position:0% application so I have some time left I 00:13:22.560 --> 00:13:24.910 align:start position:0% application so I have some time left I will<00:13:22.720> go<00:13:22.920> through<00:13:23.240> two<00:13:23.600> specific<00:13:24.000> di<00:13:24.519> based 00:13:24.910 --> 00:13:24.920 align:start position:0% will go through two specific di based 00:13:24.920 --> 00:13:28.030 align:start position:0% will go through two specific di based examples<00:13:25.880> and<00:13:26.040> use<00:13:26.399> them<00:13:27.000> to<00:13:27.560> highlight<00:13:27.920> the 00:13:28.030 --> 00:13:28.040 align:start position:0% examples and use them to highlight the 00:13:28.040 --> 00:13:30.470 align:start position:0% examples and use them to highlight the trade-offs<00:13:28.839> between<00:13:29.120> between<00:13:30.000> the<00:13:30.079> two<00:13:30.240> ends 00:13:30.470 --> 00:13:30.480 align:start position:0% trade-offs between between the two ends 00:13:30.480 --> 00:13:32.470 align:start position:0% trade-offs between between the two ends of<00:13:30.600> the<00:13:30.720> spectrum<00:13:31.639> the<00:13:31.800> first<00:13:31.959> one<00:13:32.120> is<00:13:32.240> front 00:13:32.470 --> 00:13:32.480 align:start position:0% of the spectrum the first one is front 00:13:32.480 --> 00:13:34.069 align:start position:0% of the spectrum the first one is front Runing<00:13:33.040> if<00:13:33.120> you're<00:13:33.279> not<00:13:33.480> familiar<00:13:33.880> I'll 00:13:34.069 --> 00:13:34.079 align:start position:0% Runing if you're not familiar I'll 00:13:34.079 --> 00:13:36.269 align:start position:0% Runing if you're not familiar I'll quickly<00:13:34.399> explain<00:13:34.720> what<00:13:34.839> it<00:13:34.920> means<00:13:35.920> um<00:13:36.079> there's 00:13:36.269 --> 00:13:36.279 align:start position:0% quickly explain what it means um there's 00:13:36.279 --> 00:13:40.030 align:start position:0% quickly explain what it means um there's a<00:13:36.560> user<00:13:37.160> wanting<00:13:37.519> to<00:13:37.720> buy<00:13:38.440> eth<00:13:38.839> on<00:13:39.160> uni<00:13:39.800> this<00:13:39.920> is 00:13:40.030 --> 00:13:40.040 align:start position:0% a user wanting to buy eth on uni this is 00:13:40.040 --> 00:13:44.150 align:start position:0% a user wanting to buy eth on uni this is the<00:13:40.199> current<00:13:40.519> eth<00:13:40.839> price<00:13:41.079> is<00:13:41.320> 3200<00:13:42.320> USD 00:13:44.150 --> 00:13:44.160 align:start position:0% the current eth price is 3200 USD 00:13:44.160 --> 00:13:47.509 align:start position:0% the current eth price is 3200 USD usdc<00:13:45.160> and<00:13:45.760> um<00:13:46.480> the<00:13:46.600> User<00:13:46.920> submitted<00:13:47.399> this 00:13:47.509 --> 00:13:47.519 align:start position:0% usdc and um the User submitted this 00:13:47.519 --> 00:13:49.310 align:start position:0% usdc and um the User submitted this transaction<00:13:47.920> to<00:13:48.040> a<00:13:48.120> public<00:13:48.360> men<00:13:48.639> poool<00:13:49.199> an 00:13:49.310 --> 00:13:49.320 align:start position:0% transaction to a public men poool an 00:13:49.320 --> 00:13:52.430 align:start position:0% transaction to a public men poool an agent<00:13:49.639> sees<00:13:49.959> that<00:13:50.240> transaction<00:13:51.240> and<00:13:51.480> puts<00:13:51.839> a 00:13:52.430 --> 00:13:52.440 align:start position:0% agent sees that transaction and puts a 00:13:52.440 --> 00:13:56.150 align:start position:0% agent sees that transaction and puts a sandwiches<00:13:53.160> it<00:13:53.800> with<00:13:54.079> a<00:13:54.320> Buy<00:13:54.880> on<00:13:55.199> the<00:13:55.759> left<00:13:56.000> and 00:13:56.150 --> 00:13:56.160 align:start position:0% sandwiches it with a Buy on the left and 00:13:56.160 --> 00:13:58.069 align:start position:0% sandwiches it with a Buy on the left and the<00:13:56.240> sell<00:13:56.480> on<00:13:56.600> the<00:13:56.759> right<00:13:57.240> and<00:13:57.399> the<00:13:57.560> effect<00:13:57.880> of 00:13:58.069 --> 00:13:58.079 align:start position:0% the sell on the right and the effect of 00:13:58.079 --> 00:14:01.030 align:start position:0% the sell on the right and the effect of that<00:13:58.279> is<00:13:58.480> that<00:13:59.279> the<00:13:59.759> first<00:14:00.160> agent<00:14:00.480> transaction 00:14:01.030 --> 00:14:01.040 align:start position:0% that is that the first agent transaction 00:14:01.040 --> 00:14:04.350 align:start position:0% that is that the first agent transaction drives<00:14:01.399> off<00:14:01.600> the<00:14:01.759> price<00:14:02.199> of<00:14:02.399> e<00:14:02.720> on<00:14:02.920> uni<00:14:03.920> then 00:14:04.350 --> 00:14:04.360 align:start position:0% drives off the price of e on uni then 00:14:04.360 --> 00:14:06.710 align:start position:0% drives off the price of e on uni then the<00:14:04.480> user<00:14:04.920> transaction<00:14:05.519> happens<00:14:05.839> at<00:14:05.959> a<00:14:06.120> worse 00:14:06.710 --> 00:14:06.720 align:start position:0% the user transaction happens at a worse 00:14:06.720 --> 00:14:09.430 align:start position:0% the user transaction happens at a worse price<00:14:07.720> and<00:14:07.920> then<00:14:08.360> immediately<00:14:08.920> the<00:14:09.040> agent<00:14:09.279> can 00:14:09.430 --> 00:14:09.440 align:start position:0% price and then immediately the agent can 00:14:09.440 --> 00:14:11.949 align:start position:0% price and then immediately the agent can turn<00:14:09.680> around<00:14:10.240> sell<00:14:10.600> the<00:14:10.720> same<00:14:10.959> amount<00:14:11.160> of 00:14:11.949 --> 00:14:11.959 align:start position:0% turn around sell the same amount of 00:14:11.959 --> 00:14:15.550 align:start position:0% turn around sell the same amount of eth<00:14:12.959> basically<00:14:13.399> make<00:14:13.639> $300<00:14:14.560> a<00:14:14.759> profit<00:14:15.240> at<00:14:15.360> the 00:14:15.550 --> 00:14:15.560 align:start position:0% eth basically make $300 a profit at the 00:14:15.560 --> 00:14:19.470 align:start position:0% eth basically make $300 a profit at the cost<00:14:15.800> of<00:14:16.360> $300<00:14:17.360> lost<00:14:17.720> to<00:14:17.920> the<00:14:18.040> user<00:14:18.560> this<00:14:18.680> is<00:14:18.839> a 00:14:19.470 --> 00:14:19.480 align:start position:0% cost of $300 lost to the user this is a 00:14:19.480 --> 00:14:22.110 align:start position:0% cost of $300 lost to the user this is a perfect<00:14:19.880> example<00:14:20.199> of<00:14:20.440> purely<00:14:21.000> extractive<00:14:21.639> me 00:14:22.110 --> 00:14:22.120 align:start position:0% perfect example of purely extractive me 00:14:22.120 --> 00:14:24.829 align:start position:0% perfect example of purely extractive me it's<00:14:22.240> a<00:14:22.440> zero<00:14:22.759> sum<00:14:23.120> game<00:14:23.839> between<00:14:24.199> the<00:14:24.320> user 00:14:24.829 --> 00:14:24.839 align:start position:0% it's a zero sum game between the user 00:14:24.839 --> 00:14:26.910 align:start position:0% it's a zero sum game between the user and<00:14:25.000> the<00:14:25.160> agent<00:14:25.639> this<00:14:25.759> is<00:14:25.920> the<00:14:26.040> kind<00:14:26.160> of<00:14:26.320> M<00:14:26.800> we 00:14:26.910 --> 00:14:26.920 align:start position:0% and the agent this is the kind of M we 00:14:26.920 --> 00:14:31.509 align:start position:0% and the agent this is the kind of M we want<00:14:27.279> to<00:14:28.279> get<00:14:28.519> rid<00:14:28.680> of<00:14:28.880> of<00:14:29.120> avoid<00:14:29.519> as<00:14:29.639> much<00:14:29.800> as 00:14:31.509 --> 00:14:31.519 align:start position:0% want to get rid of of avoid as much as 00:14:31.519 --> 00:14:34.590 align:start position:0% want to get rid of of avoid as much as possible<00:14:32.519> okay<00:14:32.720> so<00:14:33.440> should<00:14:33.680> be<00:14:33.839> pretty<00:14:34.120> clear 00:14:34.590 --> 00:14:34.600 align:start position:0% possible okay so should be pretty clear 00:14:34.600 --> 00:14:37.629 align:start position:0% possible okay so should be pretty clear that<00:14:35.399> agents<00:14:35.839> will<00:14:36.120> extract<00:14:36.519> this<00:14:36.680> MV<00:14:37.480> so 00:14:37.629 --> 00:14:37.639 align:start position:0% that agents will extract this MV so 00:14:37.639 --> 00:14:39.590 align:start position:0% that agents will extract this MV so agentic<00:14:38.120> block<00:14:38.320> building<00:14:38.639> will<00:14:38.759> be<00:14:39.040> bad<00:14:39.240> at 00:14:39.590 --> 00:14:39.600 align:start position:0% agentic block building will be bad at 00:14:39.600 --> 00:14:42.069 align:start position:0% agentic block building will be bad at this<00:14:40.600> um<00:14:40.759> whereas<00:14:41.079> automated<00:14:41.600> will<00:14:41.720> be<00:14:41.880> pretty 00:14:42.069 --> 00:14:42.079 align:start position:0% this um whereas automated will be pretty 00:14:42.079 --> 00:14:43.550 align:start position:0% this um whereas automated will be pretty good<00:14:42.240> at<00:14:42.360> this<00:14:42.560> the<00:14:42.680> design<00:14:43.000> principle<00:14:43.360> of 00:14:43.550 --> 00:14:43.560 align:start position:0% good at this the design principle of 00:14:43.560 --> 00:14:45.670 align:start position:0% good at this the design principle of profer<00:14:44.000> suave<00:14:44.360> and<00:14:44.480> these<00:14:44.680> Inc<00:14:45.079> M<00:14:45.240> Pools<00:14:45.440> where 00:14:45.670 --> 00:14:45.680 align:start position:0% profer suave and these Inc M Pools where 00:14:45.680 --> 00:14:47.949 align:start position:0% profer suave and these Inc M Pools where exactly<00:14:46.040> to<00:14:46.240> mitigate<00:14:46.959> this<00:14:47.440> maybe<00:14:47.680> if<00:14:47.800> we 00:14:47.949 --> 00:14:47.959 align:start position:0% exactly to mitigate this maybe if we 00:14:47.959 --> 00:14:50.910 align:start position:0% exactly to mitigate this maybe if we hide<00:14:48.199> the<00:14:48.399> direction<00:14:48.800> and<00:14:49.000> size<00:14:49.240> of<00:14:49.440> the<00:14:49.920> order 00:14:50.910 --> 00:14:50.920 align:start position:0% hide the direction and size of the order 00:14:50.920 --> 00:14:53.189 align:start position:0% hide the direction and size of the order we<00:14:51.000> will<00:14:51.160> like<00:14:51.320> leak<00:14:51.600> less<00:14:51.839> information<00:14:52.680> and 00:14:53.189 --> 00:14:53.199 align:start position:0% we will like leak less information and 00:14:53.199 --> 00:14:54.310 align:start position:0% we will like leak less information and there<00:14:53.279> is<00:14:53.480> less<00:14:53.680> front<00:14:53.920> running<00:14:54.199> and 00:14:54.310 --> 00:14:54.320 align:start position:0% there is less front running and 00:14:54.320 --> 00:14:57.910 align:start position:0% there is less front running and sandwiching<00:14:54.880> happening<00:14:56.160> okay<00:14:57.160> so<00:14:57.440> the<00:14:57.600> second 00:14:57.910 --> 00:14:57.920 align:start position:0% sandwiching happening okay so the second 00:14:57.920 --> 00:15:00.030 align:start position:0% sandwiching happening okay so the second example<00:14:58.480> is<00:14:58.759> uh<00:14:59.040> Arbitrage<00:14:59.639> between<00:14:59.880> a 00:15:00.030 --> 00:15:00.040 align:start position:0% example is uh Arbitrage between a 00:15:00.040 --> 00:15:02.069 align:start position:0% example is uh Arbitrage between a centralized<00:15:00.560> exchange<00:15:01.120> and<00:15:01.279> a<00:15:01.440> decentralized 00:15:02.069 --> 00:15:02.079 align:start position:0% centralized exchange and a decentralized 00:15:02.079 --> 00:15:04.310 align:start position:0% centralized exchange and a decentralized exchange<00:15:02.800> again<00:15:03.000> I'll<00:15:03.279> kind<00:15:03.399> of<00:15:03.560> Define<00:15:03.839> it 00:15:04.310 --> 00:15:04.320 align:start position:0% exchange again I'll kind of Define it 00:15:04.320 --> 00:15:08.990 align:start position:0% exchange again I'll kind of Define it quickly<00:15:05.800> um<00:15:06.800> basically<00:15:07.360> you<00:15:07.639> have<00:15:08.320> um<00:15:08.720> you<00:15:08.839> can 00:15:08.990 --> 00:15:09.000 align:start position:0% quickly um basically you have um you can 00:15:09.000 --> 00:15:11.590 align:start position:0% quickly um basically you have um you can have<00:15:09.160> an<00:15:09.360> asset<00:15:09.639> pair<00:15:10.079> again<00:15:10.279> e<00:15:10.600> or<00:15:10.800> and<00:15:11.040> usdc 00:15:11.590 --> 00:15:11.600 align:start position:0% have an asset pair again e or and usdc 00:15:11.600 --> 00:15:13.710 align:start position:0% have an asset pair again e or and usdc or<00:15:11.759> USD<00:15:12.560> trading<00:15:12.959> on<00:15:13.160> two<00:15:13.399> different 00:15:13.710 --> 00:15:13.720 align:start position:0% or USD trading on two different 00:15:13.720 --> 00:15:15.470 align:start position:0% or USD trading on two different exchanges<00:15:14.279> in<00:15:14.440> this<00:15:14.639> case<00:15:14.880> binance<00:15:15.360> a 00:15:15.470 --> 00:15:15.480 align:start position:0% exchanges in this case binance a 00:15:15.480 --> 00:15:19.069 align:start position:0% exchanges in this case binance a centralized<00:15:16.000> exchange<00:15:16.720> and<00:15:16.920> Unis<00:15:17.320> Swap<00:15:18.279> and 00:15:19.069 --> 00:15:19.079 align:start position:0% centralized exchange and Unis Swap and 00:15:19.079 --> 00:15:22.030 align:start position:0% centralized exchange and Unis Swap and so<00:15:19.399> block<00:15:19.759> times<00:15:20.000> are<00:15:20.600> discret<00:15:21.600> uh 00:15:22.030 --> 00:15:22.040 align:start position:0% so block times are discret uh 00:15:22.040 --> 00:15:24.470 align:start position:0% so block times are discret uh centralized<00:15:22.639> exchanges<00:15:23.360> are<00:15:23.680> not<00:15:24.120> they 00:15:24.470 --> 00:15:24.480 align:start position:0% centralized exchanges are not they 00:15:24.480 --> 00:15:26.430 align:start position:0% centralized exchanges are not they operate<00:15:24.880> continuously<00:15:25.680> with<00:15:25.880> wall<00:15:26.160> clock 00:15:26.430 --> 00:15:26.440 align:start position:0% operate continuously with wall clock 00:15:26.440 --> 00:15:28.430 align:start position:0% operate continuously with wall clock time<00:15:26.959> so<00:15:27.160> here<00:15:27.399> the<00:15:27.519> orange<00:15:27.839> line<00:15:28.120> is<00:15:28.279> the 00:15:28.430 --> 00:15:28.440 align:start position:0% time so here the orange line is the 00:15:28.440 --> 00:15:32.189 align:start position:0% time so here the orange line is the price<00:15:29.199> on<00:15:29.519> binance<00:15:30.519> and<00:15:30.839> the<00:15:31.160> red<00:15:31.399> line<00:15:31.680> is<00:15:32.040> the 00:15:32.189 --> 00:15:32.199 align:start position:0% price on binance and the red line is the 00:15:32.199 --> 00:15:34.150 align:start position:0% price on binance and the red line is the price<00:15:32.360> on<00:15:32.560> uni<00:15:32.920> basically<00:15:33.240> the<00:15:33.360> price<00:15:33.680> was<00:15:34.000> as 00:15:34.150 --> 00:15:34.160 align:start position:0% price on uni basically the price was as 00:15:34.160 --> 00:15:36.990 align:start position:0% price on uni basically the price was as of<00:15:34.319> the<00:15:34.480> previous<00:15:34.839> block<00:15:35.440> 3200<00:15:36.440> nothing<00:15:36.720> is 00:15:36.990 --> 00:15:37.000 align:start position:0% of the previous block 3200 nothing is 00:15:37.000 --> 00:15:38.629 align:start position:0% of the previous block 3200 nothing is happen<00:15:37.360> since<00:15:37.880> because<00:15:38.279> this<00:15:38.399> is<00:15:38.519> the 00:15:38.629 --> 00:15:38.639 align:start position:0% happen since because this is the 00:15:38.639 --> 00:15:41.069 align:start position:0% happen since because this is the deadline<00:15:38.920> for<00:15:39.040> the<00:15:39.160> next<00:15:39.360> block<00:15:40.240> and<00:15:40.880> there 00:15:41.069 --> 00:15:41.079 align:start position:0% deadline for the next block and there 00:15:41.079 --> 00:15:42.829 align:start position:0% deadline for the next block and there can<00:15:41.240> be<00:15:41.360> a<00:15:41.480> discrepancy<00:15:42.079> a<00:15:42.240> gap<00:15:42.480> between<00:15:42.720> the 00:15:42.829 --> 00:15:42.839 align:start position:0% can be a discrepancy a gap between the 00:15:42.839 --> 00:15:45.470 align:start position:0% can be a discrepancy a gap between the prices<00:15:43.120> on<00:15:43.279> the<00:15:43.399> two 00:15:45.470 --> 00:15:45.480 align:start position:0% prices on the two 00:15:45.480 --> 00:15:49.150 align:start position:0% prices on the two exchanges<00:15:46.480> so<00:15:46.759> what<00:15:46.959> an<00:15:47.240> agent<00:15:47.600> can<00:15:47.759> do<00:15:48.279> is<00:15:48.959> for 00:15:49.150 --> 00:15:49.160 align:start position:0% exchanges so what an agent can do is for 00:15:49.160 --> 00:15:52.110 align:start position:0% exchanges so what an agent can do is for example<00:15:49.519> at<00:15:49.759> this<00:15:49.959> point<00:15:50.800> in<00:15:50.959> this<00:15:51.199> slot 00:15:52.110 --> 00:15:52.120 align:start position:0% example at this point in this slot 00:15:52.120 --> 00:15:55.110 align:start position:0% example at this point in this slot observe<00:15:52.560> that<00:15:52.720> oh<00:15:52.959> the<00:15:53.680> price<00:15:54.519> is<00:15:54.680> lower<00:15:54.959> on 00:15:55.110 --> 00:15:55.120 align:start position:0% observe that oh the price is lower on 00:15:55.120 --> 00:15:57.309 align:start position:0% observe that oh the price is lower on uni<00:15:55.480> higher<00:15:55.720> on<00:15:55.880> binance<00:15:56.399> I<00:15:56.480> can<00:15:56.759> inject<00:15:57.160> a 00:15:57.309 --> 00:15:57.319 align:start position:0% uni higher on binance I can inject a 00:15:57.319 --> 00:16:01.870 align:start position:0% uni higher on binance I can inject a transaction<00:15:57.880> on<00:15:58.120> chain<00:15:58.519> to<00:15:58.720> buy<00:15:59.199> e<00:16:00.360> and<00:16:01.360> sell 00:16:01.870 --> 00:16:01.880 align:start position:0% transaction on chain to buy e and sell 00:16:01.880 --> 00:16:06.309 align:start position:0% transaction on chain to buy e and sell on<00:16:02.480> binance<00:16:03.480> and<00:16:03.759> collect<00:16:04.120> a<00:16:04.399> profit<00:16:05.279> very 00:16:06.309 --> 00:16:06.319 align:start position:0% on binance and collect a profit very 00:16:06.319 --> 00:16:09.269 align:start position:0% on binance and collect a profit very simple<00:16:07.319> and<00:16:07.880> I<00:16:08.000> guess<00:16:08.319> first<00:16:08.480> of<00:16:08.639> all<00:16:08.880> why<00:16:09.040> is 00:16:09.269 --> 00:16:09.279 align:start position:0% simple and I guess first of all why is 00:16:09.279 --> 00:16:11.269 align:start position:0% simple and I guess first of all why is this<00:16:09.800> good<00:16:10.120> I'm<00:16:10.279> arguing<00:16:10.720> there<00:16:10.839> is 00:16:11.269 --> 00:16:11.279 align:start position:0% this good I'm arguing there is 00:16:11.279 --> 00:16:13.470 align:start position:0% this good I'm arguing there is possibility<00:16:11.720> for<00:16:11.920> generating<00:16:12.639> Surplus<00:16:13.160> this 00:16:13.470 --> 00:16:13.480 align:start position:0% possibility for generating Surplus this 00:16:13.480 --> 00:16:16.710 align:start position:0% possibility for generating Surplus this arbitragers<00:16:14.240> are<00:16:14.480> providing<00:16:14.800> a<00:16:15.040> service<00:16:16.040> and 00:16:16.710 --> 00:16:16.720 align:start position:0% arbitragers are providing a service and 00:16:16.720 --> 00:16:19.230 align:start position:0% arbitragers are providing a service and guess<00:16:16.920> the<00:16:17.040> reason<00:16:17.360> is<00:16:17.839> the<00:16:18.040> same<00:16:18.440> reason 00:16:19.230 --> 00:16:19.240 align:start position:0% guess the reason is the same reason 00:16:19.240 --> 00:16:22.670 align:start position:0% guess the reason is the same reason markets<00:16:20.240> being<00:16:21.240> efficient<00:16:21.839> is<00:16:22.079> good<00:16:22.519> right 00:16:22.670 --> 00:16:22.680 align:start position:0% markets being efficient is good right 00:16:22.680 --> 00:16:25.509 align:start position:0% markets being efficient is good right you<00:16:22.800> want<00:16:23.160> the<00:16:23.560> markets<00:16:23.920> can<00:16:24.040> be<00:16:24.199> viewed<00:16:24.600> as<00:16:24.800> an 00:16:25.509 --> 00:16:25.519 align:start position:0% you want the markets can be viewed as an 00:16:25.519 --> 00:16:28.350 align:start position:0% you want the markets can be viewed as an a<00:16:26.360> an<00:16:26.480> a<00:16:26.639> venue<00:16:26.959> for<00:16:27.240> aggregating<00:16:27.839> information 00:16:28.350 --> 00:16:28.360 align:start position:0% a an a venue for aggregating information 00:16:28.360 --> 00:16:31.389 align:start position:0% a an a venue for aggregating information and<00:16:28.440> you<00:16:28.560> want<00:16:28.959> prices<00:16:29.639> to<00:16:29.839> be<00:16:30.600> uh<00:16:30.759> reflecting 00:16:31.389 --> 00:16:31.399 align:start position:0% and you want prices to be uh reflecting 00:16:31.399 --> 00:16:35.110 align:start position:0% and you want prices to be uh reflecting the<00:16:31.600> true<00:16:32.040> value<00:16:33.040> of<00:16:33.560> um<00:16:33.920> assets<00:16:34.680> and<00:16:34.800> so<00:16:34.959> for 00:16:35.110 --> 00:16:35.120 align:start position:0% the true value of um assets and so for 00:16:35.120 --> 00:16:36.590 align:start position:0% the true value of um assets and so for the<00:16:35.199> health<00:16:35.440> of<00:16:35.560> the<00:16:35.639> market<00:16:36.040> it's<00:16:36.240> good<00:16:36.440> that 00:16:36.590 --> 00:16:36.600 align:start position:0% the health of the market it's good that 00:16:36.600 --> 00:16:39.110 align:start position:0% the health of the market it's good that the<00:16:36.759> price<00:16:37.399> on<00:16:37.639> uni<00:16:38.079> is<00:16:38.279> reflecting<00:16:38.800> the<00:16:38.920> price 00:16:39.110 --> 00:16:39.120 align:start position:0% the price on uni is reflecting the price 00:16:39.120 --> 00:16:41.030 align:start position:0% the price on uni is reflecting the price on<00:16:39.279> binance<00:16:39.839> and<00:16:39.959> they're<00:16:40.160> all<00:16:40.519> reflecting 00:16:41.030 --> 00:16:41.040 align:start position:0% on binance and they're all reflecting 00:16:41.040 --> 00:16:42.710 align:start position:0% on binance and they're all reflecting the<00:16:41.240> overall<00:16:41.720> Market<00:16:42.040> sentiment<00:16:42.519> and 00:16:42.710 --> 00:16:42.720 align:start position:0% the overall Market sentiment and 00:16:42.720 --> 00:16:44.550 align:start position:0% the overall Market sentiment and everyone's 00:16:44.550 --> 00:16:44.560 align:start position:0% everyone's 00:16:44.560 --> 00:16:47.350 align:start position:0% everyone's information<00:16:45.560> but<00:16:46.120> um<00:16:46.399> at<00:16:46.560> the<00:16:46.680> same<00:16:47.000> time 00:16:47.350 --> 00:16:47.360 align:start position:0% information but um at the same time 00:16:47.360 --> 00:16:50.749 align:start position:0% information but um at the same time there<00:16:47.480> is<00:16:47.639> a<00:16:48.040> possibility<00:16:48.519> for<00:16:49.199> extraction<00:16:50.199> so 00:16:50.749 --> 00:16:50.759 align:start position:0% there is a possibility for extraction so 00:16:50.759 --> 00:16:52.509 align:start position:0% there is a possibility for extraction so this<00:16:50.920> person<00:16:51.240> is<00:16:51.399> making<00:16:51.800> money<00:16:52.199> where<00:16:52.360> does 00:16:52.509 --> 00:16:52.519 align:start position:0% this person is making money where does 00:16:52.519 --> 00:16:55.189 align:start position:0% this person is making money where does the<00:16:52.639> money<00:16:53.000> come<00:16:53.279> from<00:16:53.639> you<00:16:53.800> can't<00:16:54.079> print<00:16:54.360> it 00:16:55.189 --> 00:16:55.199 align:start position:0% the money come from you can't print it 00:16:55.199 --> 00:16:57.430 align:start position:0% the money come from you can't print it uh<00:16:55.360> there<00:16:55.480> are<00:16:55.720> liquidity<00:16:56.279> providers<00:16:57.160> on 00:16:57.430 --> 00:16:57.440 align:start position:0% uh there are liquidity providers on 00:16:57.440 --> 00:16:59.389 align:start position:0% uh there are liquidity providers on unisoft<00:16:58.440> and 00:16:59.389 --> 00:16:59.399 align:start position:0% unisoft and 00:16:59.399 --> 00:17:01.749 align:start position:0% unisoft and this<00:16:59.560> is<00:16:59.800> coming<00:17:00.319> kind<00:17:00.480> of<00:17:00.720> at<00:17:00.959> the<00:17:01.199> at<00:17:01.279> a<00:17:01.480> cost 00:17:01.749 --> 00:17:01.759 align:start position:0% this is coming kind of at the at a cost 00:17:01.759 --> 00:17:03.870 align:start position:0% this is coming kind of at the at a cost to<00:17:02.000> them<00:17:02.800> I<00:17:02.880> won't<00:17:03.079> be<00:17:03.199> able<00:17:03.319> to<00:17:03.480> like<00:17:03.560> fully 00:17:03.870 --> 00:17:03.880 align:start position:0% to them I won't be able to like fully 00:17:03.880 --> 00:17:06.309 align:start position:0% to them I won't be able to like fully Define<00:17:04.600> this<00:17:04.919> but<00:17:05.039> this<00:17:05.160> is<00:17:05.280> what<00:17:05.480> lever<00:17:05.959> loss 00:17:06.309 --> 00:17:06.319 align:start position:0% Define this but this is what lever loss 00:17:06.319 --> 00:17:09.990 align:start position:0% Define this but this is what lever loss versus<00:17:06.640> rebalancing<00:17:07.360> refers<00:17:07.839> to<00:17:08.839> and<00:17:09.480> I<00:17:09.600> chose 00:17:09.990 --> 00:17:10.000 align:start position:0% versus rebalancing refers to and I chose 00:17:10.000 --> 00:17:12.189 align:start position:0% versus rebalancing refers to and I chose this<00:17:10.280> example<00:17:10.919> because<00:17:11.199> it<00:17:11.439> shows<00:17:12.000> the 00:17:12.189 --> 00:17:12.199 align:start position:0% this example because it shows the 00:17:12.199 --> 00:17:15.270 align:start position:0% this example because it shows the tradeoff<00:17:12.839> between<00:17:13.160> the<00:17:13.319> two<00:17:14.079> welfare 00:17:15.270 --> 00:17:15.280 align:start position:0% tradeoff between the two welfare 00:17:15.280 --> 00:17:18.669 align:start position:0% tradeoff between the two welfare objectives<00:17:16.280> um<00:17:16.839> you<00:17:17.839> yeah<00:17:18.039> like<00:17:18.160> you<00:17:18.319> can't 00:17:18.669 --> 00:17:18.679 align:start position:0% objectives um you yeah like you can't 00:17:18.679 --> 00:17:22.669 align:start position:0% objectives um you yeah like you can't simultaneously<00:17:19.559> satisfy<00:17:20.079> both<00:17:20.240> of<00:17:20.400> them<00:17:20.559> at 00:17:22.669 --> 00:17:22.679 align:start position:0% simultaneously satisfy both of them at 00:17:22.679 --> 00:17:24.909 align:start position:0% simultaneously satisfy both of them at once<00:17:23.679> and<00:17:23.880> yeah<00:17:24.000> there's<00:17:24.160> a<00:17:24.280> tension<00:17:24.600> between 00:17:24.909 --> 00:17:24.919 align:start position:0% once and yeah there's a tension between 00:17:24.919 --> 00:17:28.390 align:start position:0% once and yeah there's a tension between them<00:17:25.919> okay<00:17:26.559> and<00:17:27.559> maybe<00:17:27.880> one<00:17:28.160> other 00:17:28.390 --> 00:17:28.400 align:start position:0% them okay and maybe one other 00:17:28.400 --> 00:17:30.590 align:start position:0% them okay and maybe one other observation<00:17:29.200> here<00:17:29.559> is<00:17:29.679> that<00:17:29.840> to<00:17:30.039> successfully 00:17:30.590 --> 00:17:30.600 align:start position:0% observation here is that to successfully 00:17:30.600 --> 00:17:33.669 align:start position:0% observation here is that to successfully run<00:17:30.960> this<00:17:31.360> trade<00:17:32.360> it's<00:17:32.600> important<00:17:33.200> that<00:17:33.400> this 00:17:33.669 --> 00:17:33.679 align:start position:0% run this trade it's important that this 00:17:33.679 --> 00:17:36.390 align:start position:0% run this trade it's important that this agent<00:17:34.600> knows<00:17:35.039> that<00:17:35.240> they<00:17:35.440> will<00:17:35.679> be<00:17:35.880> the<00:17:36.000> block 00:17:36.390 --> 00:17:36.400 align:start position:0% agent knows that they will be the block 00:17:36.400 --> 00:17:40.390 align:start position:0% agent knows that they will be the block producer<00:17:37.400> so<00:17:37.600> remember<00:17:37.919> in<00:17:38.120> this<00:17:38.760> step<00:17:39.760> the 00:17:40.390 --> 00:17:40.400 align:start position:0% producer so remember in this step the 00:17:40.400 --> 00:17:43.350 align:start position:0% producer so remember in this step the selling<00:17:40.840> on<00:17:41.039> binance<00:17:41.600> I<00:17:41.679> can<00:17:41.840> do<00:17:42.080> at<00:17:42.280> any<00:17:42.600> time 00:17:43.350 --> 00:17:43.360 align:start position:0% selling on binance I can do at any time 00:17:43.360 --> 00:17:46.630 align:start position:0% selling on binance I can do at any time the<00:17:43.520> buying<00:17:43.919> on<00:17:44.200> E<00:17:45.160> in<00:17:45.320> the<00:17:45.919> middle<00:17:46.280> of<00:17:46.440> the 00:17:46.630 --> 00:17:46.640 align:start position:0% the buying on E in the middle of the 00:17:46.640 --> 00:17:49.110 align:start position:0% the buying on E in the middle of the slot<00:17:47.240> I'm<00:17:47.400> not<00:17:47.679> sure<00:17:48.120> necessarily<00:17:48.840> that<00:17:48.960> I 00:17:49.110 --> 00:17:49.120 align:start position:0% slot I'm not sure necessarily that I 00:17:49.120 --> 00:17:51.350 align:start position:0% slot I'm not sure necessarily that I will<00:17:49.360> be<00:17:49.520> able<00:17:49.720> to<00:17:49.880> do<00:17:50.160> this<00:17:50.799> side<00:17:51.080> of<00:17:51.200> the 00:17:51.350 --> 00:17:51.360 align:start position:0% will be able to do this side of the 00:17:51.360 --> 00:17:54.310 align:start position:0% will be able to do this side of the trade<00:17:52.160> and<00:17:52.679> if<00:17:52.960> I<00:17:53.160> can't<00:17:53.480> do<00:17:53.679> it<00:17:54.000> if<00:17:54.120> I'm 00:17:54.310 --> 00:17:54.320 align:start position:0% trade and if I can't do it if I'm 00:17:54.320 --> 00:17:57.830 align:start position:0% trade and if I can't do it if I'm uncertain<00:17:54.880> about<00:17:55.240> that<00:17:56.240> uh<00:17:57.240> there<00:17:57.360> are<00:17:57.559> a<00:17:57.679> lot 00:17:57.830 --> 00:17:57.840 align:start position:0% uncertain about that uh there are a lot 00:17:57.840 --> 00:17:59.590 align:start position:0% uncertain about that uh there are a lot of<00:17:58.000> costs<00:17:58.320> I<00:17:58.440> will<00:17:58.559> pay<00:17:58.840> in<00:17:58.919> fact<00:17:59.120> like<00:17:59.320> my<00:17:59.480> this 00:17:59.590 --> 00:17:59.600 align:start position:0% of costs I will pay in fact like my this 00:17:59.600 --> 00:18:02.830 align:start position:0% of costs I will pay in fact like my this trade<00:17:59.880> is<00:18:00.159> negative<00:18:00.640> EV<00:18:01.200> it's<00:18:01.440> bad<00:18:01.720> for<00:18:01.919> me<00:18:02.480> so 00:18:02.830 --> 00:18:02.840 align:start position:0% trade is negative EV it's bad for me so 00:18:02.840 --> 00:18:05.230 align:start position:0% trade is negative EV it's bad for me so the<00:18:02.960> more<00:18:03.280> uncertainty<00:18:04.039> arbitragers<00:18:04.880> have 00:18:05.230 --> 00:18:05.240 align:start position:0% the more uncertainty arbitragers have 00:18:05.240 --> 00:18:07.230 align:start position:0% the more uncertainty arbitragers have about<00:18:05.480> their<00:18:05.679> ability<00:18:06.039> to<00:18:06.240> do<00:18:06.520> both<00:18:06.880> legs<00:18:07.120> of 00:18:07.230 --> 00:18:07.240 align:start position:0% about their ability to do both legs of 00:18:07.240 --> 00:18:09.110 align:start position:0% about their ability to do both legs of the<00:18:07.360> trade<00:18:07.960> the<00:18:08.120> less<00:18:08.320> willing<00:18:08.679> they<00:18:08.799> are<00:18:08.960> to 00:18:09.110 --> 00:18:09.120 align:start position:0% the trade the less willing they are to 00:18:09.120 --> 00:18:11.789 align:start position:0% the trade the less willing they are to do<00:18:09.320> it<00:18:09.799> they<00:18:09.919> will<00:18:10.159> require<00:18:10.720> higher<00:18:11.039> margins 00:18:11.789 --> 00:18:11.799 align:start position:0% do it they will require higher margins 00:18:11.799 --> 00:18:13.029 align:start position:0% do it they will require higher margins larger<00:18:12.159> AR 00:18:13.029 --> 00:18:13.039 align:start position:0% larger AR 00:18:13.039 --> 00:18:16.190 align:start position:0% larger AR bounds<00:18:14.039> then<00:18:14.320> the<00:18:15.080> price<00:18:15.400> between<00:18:15.720> uni<00:18:16.039> and 00:18:16.190 --> 00:18:16.200 align:start position:0% bounds then the price between uni and 00:18:16.200 --> 00:18:18.350 align:start position:0% bounds then the price between uni and binance<00:18:16.679> will<00:18:16.799> deviate<00:18:17.200> more<00:18:17.360> and<00:18:17.520> more<00:18:18.200> that 00:18:18.350 --> 00:18:18.360 align:start position:0% binance will deviate more and more that 00:18:18.360 --> 00:18:21.830 align:start position:0% binance will deviate more and more that is<00:18:19.000> less<00:18:19.919> uh<00:18:20.200> accurate<00:18:20.640> pricing<00:18:21.360> that's<00:18:21.600> less 00:18:21.830 --> 00:18:21.840 align:start position:0% is less uh accurate pricing that's less 00:18:21.840 --> 00:18:25.029 align:start position:0% is less uh accurate pricing that's less Surplus<00:18:22.480> and<00:18:22.919> that's 00:18:25.029 --> 00:18:25.039 align:start position:0% Surplus and that's 00:18:25.039 --> 00:18:29.230 align:start position:0% Surplus and that's bad<00:18:26.039> okay<00:18:26.880> so<00:18:27.280> this<00:18:27.640> observation<00:18:28.640> um<00:18:28.840> um<00:18:29.159> I 00:18:29.230 --> 00:18:29.240 align:start position:0% bad okay so this observation um um I 00:18:29.240 --> 00:18:30.789 align:start position:0% bad okay so this observation um um I want<00:18:29.360> to<00:18:29.559> highlight<00:18:30.039> and<00:18:30.320> ask<00:18:30.480> you<00:18:30.600> to 00:18:30.789 --> 00:18:30.799 align:start position:0% want to highlight and ask you to 00:18:30.799 --> 00:18:33.149 align:start position:0% want to highlight and ask you to remember<00:18:31.400> because<00:18:32.120> it<00:18:32.240> will<00:18:32.400> be<00:18:32.600> relevant<00:18:33.000> to 00:18:33.149 --> 00:18:33.159 align:start position:0% remember because it will be relevant to 00:18:33.159 --> 00:18:37.990 align:start position:0% remember because it will be relevant to the<00:18:33.280> next<00:18:33.760> slide<00:18:34.799> um<00:18:35.799> I<00:18:35.919> am<00:18:36.039> short<00:18:36.400> on<00:18:36.799> time<00:18:37.799> so 00:18:37.990 --> 00:18:38.000 align:start position:0% the next slide um I am short on time so 00:18:38.000 --> 00:18:42.390 align:start position:0% the next slide um I am short on time so let<00:18:38.159> me<00:18:38.360> maybe<00:18:39.200> pick<00:18:40.200> a<00:18:40.440> specific<00:18:40.960> point<00:18:41.159> to 00:18:42.390 --> 00:18:42.400 align:start position:0% let me maybe pick a specific point to 00:18:42.400 --> 00:18:45.950 align:start position:0% let me maybe pick a specific point to make 00:18:45.950 --> 00:18:45.960 align:start position:0% 00:18:45.960 --> 00:18:52.310 align:start position:0% um<00:18:46.960> okay<00:18:47.400> so<00:18:48.080> let<00:18:48.200> me<00:18:48.400> focus<00:18:49.240> on<00:18:50.240> this<00:18:51.159> point<00:18:52.159> um 00:18:52.310 --> 00:18:52.320 align:start position:0% um okay so let me focus on this point um 00:18:52.320 --> 00:18:54.990 align:start position:0% um okay so let me focus on this point um so<00:18:52.480> the<00:18:52.640> claim<00:18:53.039> here<00:18:53.600> is<00:18:54.000> that<00:18:54.400> automated 00:18:54.990 --> 00:18:55.000 align:start position:0% so the claim here is that automated 00:18:55.000 --> 00:18:57.870 align:start position:0% so the claim here is that automated block<00:18:55.440> building<00:18:56.440> will<00:18:56.679> not<00:18:56.880> be<00:18:57.039> able<00:18:57.320> to<00:18:57.679> get 00:18:57.870 --> 00:18:57.880 align:start position:0% block building will not be able to get 00:18:57.880 --> 00:19:00.630 align:start position:0% block building will not be able to get Surplus<00:18:58.360> Max<00:18:59.120> ization<00:19:00.120> and<00:19:00.400> be 00:19:00.630 --> 00:19:00.640 align:start position:0% Surplus Max ization and be 00:19:00.640 --> 00:19:04.350 align:start position:0% Surplus Max ization and be computationally<00:19:01.720> tractable<00:19:02.720> and<00:19:03.440> here<00:19:04.080> let's 00:19:04.350 --> 00:19:04.360 align:start position:0% computationally tractable and here let's 00:19:04.360 --> 00:19:07.669 align:start position:0% computationally tractable and here let's consider<00:19:04.720> a<00:19:05.000> specific<00:19:05.720> way<00:19:06.200> of<00:19:07.120> automating 00:19:07.669 --> 00:19:07.679 align:start position:0% consider a specific way of automating 00:19:07.679 --> 00:19:09.270 align:start position:0% consider a specific way of automating block<00:19:08.000> building<00:19:08.480> based<00:19:08.679> on<00:19:08.880> priority 00:19:09.270 --> 00:19:09.280 align:start position:0% block building based on priority 00:19:09.280 --> 00:19:11.310 align:start position:0% block building based on priority ordering<00:19:10.039> there's<00:19:10.280> this<00:19:10.440> nice<00:19:10.640> post<00:19:11.080> about 00:19:11.310 --> 00:19:11.320 align:start position:0% ordering there's this nice post about 00:19:11.320 --> 00:19:15.070 align:start position:0% ordering there's this nice post about why<00:19:11.480> this<00:19:11.559> is<00:19:11.679> a<00:19:11.960> pretty<00:19:12.200> good<00:19:12.559> idea<00:19:13.600> um<00:19:14.600> so<00:19:14.960> the 00:19:15.070 --> 00:19:15.080 align:start position:0% why this is a pretty good idea um so the 00:19:15.080 --> 00:19:17.230 align:start position:0% why this is a pretty good idea um so the way<00:19:15.240> this<00:19:15.360> works<00:19:15.799> is<00:19:16.440> every<00:19:16.679> transaction 00:19:17.230 --> 00:19:17.240 align:start position:0% way this works is every transaction 00:19:17.240 --> 00:19:19.549 align:start position:0% way this works is every transaction comes<00:19:17.440> with<00:19:17.559> a<00:19:17.679> single<00:19:17.960> bid<00:19:18.520> you<00:19:19.000> order 00:19:19.549 --> 00:19:19.559 align:start position:0% comes with a single bid you order 00:19:19.559 --> 00:19:22.390 align:start position:0% comes with a single bid you order transactions<00:19:20.159> in<00:19:20.320> decreasing<00:19:20.840> order<00:19:21.120> of<00:19:21.320> bids 00:19:22.390 --> 00:19:22.400 align:start position:0% transactions in decreasing order of bids 00:19:22.400 --> 00:19:25.909 align:start position:0% transactions in decreasing order of bids and<00:19:23.400> that<00:19:23.520> that's<00:19:23.679> all<00:19:23.880> it<00:19:24.039> is<00:19:24.440> and<00:19:25.440> the<00:19:25.600> hope 00:19:25.909 --> 00:19:25.919 align:start position:0% and that that's all it is and the hope 00:19:25.919 --> 00:19:29.070 align:start position:0% and that that's all it is and the hope is<00:19:26.159> that<00:19:26.600> this<00:19:26.720> will<00:19:26.919> be<00:19:27.200> efficient<00:19:28.200> but<00:19:28.919> as 00:19:29.070 --> 00:19:29.080 align:start position:0% is that this will be efficient but as 00:19:29.080 --> 00:19:31.909 align:start position:0% is that this will be efficient but as this<00:19:29.240> post<00:19:29.559> also<00:19:29.799> points<00:19:30.200> out<00:19:30.960> this<00:19:31.159> scheme<00:19:31.640> is 00:19:31.909 --> 00:19:31.919 align:start position:0% this post also points out this scheme is 00:19:31.919 --> 00:19:34.830 align:start position:0% this post also points out this scheme is vulnerable<00:19:32.559> to<00:19:33.240> reversions<00:19:34.159> the<00:19:34.320> issue<00:19:34.600> is 00:19:34.830 --> 00:19:34.840 align:start position:0% vulnerable to reversions the issue is 00:19:34.840 --> 00:19:37.549 align:start position:0% vulnerable to reversions the issue is that<00:19:35.440> if<00:19:35.679> coordination<00:19:36.480> has<00:19:36.679> to<00:19:36.960> happen 00:19:37.549 --> 00:19:37.559 align:start position:0% that if coordination has to happen 00:19:37.559 --> 00:19:40.070 align:start position:0% that if coordination has to happen through<00:19:37.799> the<00:19:37.960> men<00:19:38.320> poool<00:19:38.960> instead<00:19:39.360> of<00:19:39.880> by 00:19:40.070 --> 00:19:40.080 align:start position:0% through the men poool instead of by 00:19:40.080 --> 00:19:41.950 align:start position:0% through the men poool instead of by delegating<00:19:40.640> fully<00:19:40.960> to<00:19:41.120> an<00:19:41.280> agent<00:19:41.600> who<00:19:41.799> has 00:19:41.950 --> 00:19:41.960 align:start position:0% delegating fully to an agent who has 00:19:41.960 --> 00:19:44.190 align:start position:0% delegating fully to an agent who has full<00:19:42.320> control<00:19:42.880> and<00:19:43.039> knows<00:19:43.320> for<00:19:43.520> certain<00:19:44.000> that 00:19:44.190 --> 00:19:44.200 align:start position:0% full control and knows for certain that 00:19:44.200 --> 00:19:46.190 align:start position:0% full control and knows for certain that they<00:19:44.360> will<00:19:44.559> be<00:19:44.799> in<00:19:44.919> charge<00:19:45.200> of<00:19:45.400> this<00:19:45.600> block<00:19:46.039> and 00:19:46.190 --> 00:19:46.200 align:start position:0% they will be in charge of this block and 00:19:46.200 --> 00:19:48.310 align:start position:0% they will be in charge of this block and they<00:19:46.360> can<00:19:46.919> for<00:19:47.159> sure<00:19:47.360> do<00:19:47.559> all<00:19:47.760> legs<00:19:48.000> of<00:19:48.159> the 00:19:48.310 --> 00:19:48.320 align:start position:0% they can for sure do all legs of the 00:19:48.320 --> 00:19:51.590 align:start position:0% they can for sure do all legs of the trade<00:19:49.120> there<00:19:49.799> is<00:19:50.039> some<00:19:50.360> risk<00:19:50.720> that<00:19:50.960> these 00:19:51.590 --> 00:19:51.600 align:start position:0% trade there is some risk that these 00:19:51.600 --> 00:19:53.110 align:start position:0% trade there is some risk that these people<00:19:51.919> don't<00:19:52.120> know<00:19:52.320> for<00:19:52.480> sure<00:19:52.760> whether<00:19:52.960> their 00:19:53.110 --> 00:19:53.120 align:start position:0% people don't know for sure whether their 00:19:53.120 --> 00:19:55.390 align:start position:0% people don't know for sure whether their trades<00:19:53.400> will<00:19:53.559> go<00:19:53.760> through<00:19:54.679> uh<00:19:54.799> there<00:19:54.919> is<00:19:55.120> some 00:19:55.390 --> 00:19:55.400 align:start position:0% trades will go through uh there is some 00:19:55.400 --> 00:19:57.870 align:start position:0% trades will go through uh there is some loss<00:19:55.960> efficiency<00:19:56.480> loss<00:19:56.880> because<00:19:57.080> of<00:19:57.280> that<00:19:57.640> I 00:19:57.870 --> 00:19:57.880 align:start position:0% loss efficiency loss because of that I 00:19:57.880 --> 00:20:01.510 align:start position:0% loss efficiency loss because of that I think<00:19:58.159> I'm<00:19:58.760> about<00:19:59.000> out<00:19:59.159> of<00:19:59.400> time<00:20:00.280> so<00:20:01.120> let<00:20:01.240> me 00:20:01.510 --> 00:20:01.520 align:start position:0% think I'm about out of time so let me 00:20:01.520 --> 00:20:05.230 align:start position:0% think I'm about out of time so let me skip<00:20:02.640> to<00:20:03.640> the 00:20:05.230 --> 00:20:05.240 align:start position:0% skip to the 00:20:05.240 --> 00:20:08.390 align:start position:0% skip to the conclusion<00:20:06.240> I've<00:20:06.960> introduced<00:20:07.520> agentic<00:20:08.039> ISM 00:20:08.390 --> 00:20:08.400 align:start position:0% conclusion I've introduced agentic ISM 00:20:08.400 --> 00:20:10.710 align:start position:0% conclusion I've introduced agentic ISM outline<00:20:08.919> the<00:20:09.200> spectrum<00:20:09.720> between<00:20:10.039> agentic<00:20:10.520> and 00:20:10.710 --> 00:20:10.720 align:start position:0% outline the spectrum between agentic and 00:20:10.720 --> 00:20:13.029 align:start position:0% outline the spectrum between agentic and automated<00:20:11.280> block<00:20:11.600> building<00:20:12.600> roughly 00:20:13.029 --> 00:20:13.039 align:start position:0% automated block building roughly 00:20:13.039 --> 00:20:14.710 align:start position:0% automated block building roughly speaking<00:20:13.440> automated<00:20:13.880> block<00:20:14.159> building<00:20:14.480> is 00:20:14.710 --> 00:20:14.720 align:start position:0% speaking automated block building is 00:20:14.720 --> 00:20:17.110 align:start position:0% speaking automated block building is good<00:20:14.919> with<00:20:15.159> respect<00:20:15.440> to<00:20:15.919> latency<00:20:16.600> there<00:20:16.720> isn't 00:20:17.110 --> 00:20:17.120 align:start position:0% good with respect to latency there isn't 00:20:17.120 --> 00:20:18.510 align:start position:0% good with respect to latency there isn't there<00:20:17.200> aren't<00:20:17.440> a<00:20:17.520> lot<00:20:17.640> of<00:20:17.799> parties<00:20:18.200> that<00:20:18.360> have 00:20:18.510 --> 00:20:18.520 align:start position:0% there aren't a lot of parties that have 00:20:18.520 --> 00:20:21.830 align:start position:0% there aren't a lot of parties that have to<00:20:19.080> communicate<00:20:20.080> uh<00:20:20.240> and<00:20:20.400> also<00:20:20.799> generally 00:20:21.830 --> 00:20:21.840 align:start position:0% to communicate uh and also generally 00:20:21.840 --> 00:20:23.990 align:start position:0% to communicate uh and also generally it's<00:20:22.840> there's<00:20:23.159> less 00:20:23.990 --> 00:20:24.000 align:start position:0% it's there's less 00:20:24.000 --> 00:20:26.990 align:start position:0% it's there's less extraction<00:20:25.000> but<00:20:25.480> they<00:20:25.720> might<00:20:25.919> not<00:20:26.120> be<00:20:26.480> optimal 00:20:26.990 --> 00:20:27.000 align:start position:0% extraction but they might not be optimal 00:20:27.000 --> 00:20:28.789 align:start position:0% extraction but they might not be optimal they<00:20:27.120> might<00:20:27.320> not<00:20:27.960> uh<00:20:28.080> generate<00:20:28.400> the<00:20:28.480> most 00:20:28.789 --> 00:20:28.799 align:start position:0% they might not uh generate the most 00:20:28.799 --> 00:20:30.990 align:start position:0% they might not uh generate the most economic<00:20:29.320> value<00:20:29.919> so<00:20:30.120> what's<00:20:30.280> an<00:20:30.480> application 00:20:30.990 --> 00:20:31.000 align:start position:0% economic value so what's an application 00:20:31.000 --> 00:20:34.070 align:start position:0% economic value so what's an application where<00:20:31.200> we<00:20:31.320> should<00:20:32.159> opt<00:20:32.480> for<00:20:32.720> automation<00:20:33.679> for 00:20:34.070 --> 00:20:34.080 align:start position:0% where we should opt for automation for 00:20:34.080 --> 00:20:37.029 align:start position:0% where we should opt for automation for if<00:20:34.200> you<00:20:34.320> want<00:20:34.559> naon<00:20:35.159> chain<00:20:35.880> you<00:20:36.000> want<00:20:36.200> low<00:20:36.440> laty 00:20:37.029 --> 00:20:37.039 align:start position:0% if you want naon chain you want low laty 00:20:37.039 --> 00:20:39.029 align:start position:0% if you want naon chain you want low laty you<00:20:37.159> don't<00:20:37.360> want<00:20:37.559> front<00:20:37.840> running<00:20:38.559> you<00:20:38.679> should 00:20:39.029 --> 00:20:39.039 align:start position:0% you don't want front running you should 00:20:39.039 --> 00:20:41.590 align:start position:0% you don't want front running you should be<00:20:39.200> more<00:20:39.360> and<00:20:39.520> more<00:20:39.960> automated<00:20:40.960> agents<00:20:41.320> on<00:20:41.480> the 00:20:41.590 --> 00:20:41.600 align:start position:0% be more and more automated agents on the 00:20:41.600 --> 00:20:43.950 align:start position:0% be more and more automated agents on the other<00:20:41.840> hand<00:20:42.120> are<00:20:42.679> very<00:20:42.919> good<00:20:43.120> for<00:20:43.320> maximizing 00:20:43.950 --> 00:20:43.960 align:start position:0% other hand are very good for maximizing 00:20:43.960 --> 00:20:46.029 align:start position:0% other hand are very good for maximizing Surplus<00:20:44.720> especially<00:20:45.320> when<00:20:45.559> the<00:20:45.720> user 00:20:46.029 --> 00:20:46.039 align:start position:0% Surplus especially when the user 00:20:46.039 --> 00:20:49.669 align:start position:0% Surplus especially when the user preferences<00:20:46.480> are<00:20:46.919> complex<00:20:47.919> but<00:20:48.679> they<00:20:48.960> will<00:20:49.280> be 00:20:49.669 --> 00:20:49.679 align:start position:0% preferences are complex but they will be 00:20:49.679 --> 00:20:51.390 align:start position:0% preferences are complex but they will be selfishly<00:20:50.200> trying<00:20:50.440> to<00:20:50.600> extract<00:20:51.039> as<00:20:51.159> much<00:20:51.280> of 00:20:51.390 --> 00:20:51.400 align:start position:0% selfishly trying to extract as much of 00:20:51.400 --> 00:20:54.549 align:start position:0% selfishly trying to extract as much of the<00:20:51.520> Surplus<00:20:51.919> as<00:20:52.080> they<00:20:52.240> can<00:20:53.120> and<00:20:53.640> one<00:20:53.960> example 00:20:54.549 --> 00:20:54.559 align:start position:0% the Surplus as they can and one example 00:20:54.559 --> 00:20:59.230 align:start position:0% the Surplus as they can and one example of<00:20:54.880> where<00:20:55.400> agism<00:20:56.080> is<00:20:56.280> good<00:20:57.039> is<00:20:57.520> um<00:20:57.799> ritual<00:20:58.840> uh 00:20:59.230 --> 00:20:59.240 align:start position:0% of where agism is good is um ritual uh 00:20:59.240 --> 00:21:01.230 align:start position:0% of where agism is good is um ritual uh ver<00:20:59.480> rual<00:20:59.919> resonance<00:21:00.360> is<00:21:00.480> a<00:21:00.600> Marketplace<00:21:01.080> we 00:21:01.230 --> 00:21:01.240 align:start position:0% ver rual resonance is a Marketplace we 00:21:01.240 --> 00:21:04.070 align:start position:0% ver rual resonance is a Marketplace we designed<00:21:01.559> for<00:21:01.840> AI<00:21:02.280> computation<00:21:03.280> the<00:21:03.440> setting 00:21:04.070 --> 00:21:04.080 align:start position:0% designed for AI computation the setting 00:21:04.080 --> 00:21:07.149 align:start position:0% designed for AI computation the setting is<00:21:05.080> nodes<00:21:05.480> and<00:21:05.679> AI<00:21:05.919> queries<00:21:06.320> all<00:21:06.640> have<00:21:06.880> very 00:21:07.149 --> 00:21:07.159 align:start position:0% is nodes and AI queries all have very 00:21:07.159 --> 00:21:09.950 align:start position:0% is nodes and AI queries all have very complex<00:21:07.919> preferences<00:21:08.919> and<00:21:09.400> there's<00:21:09.600> a 00:21:09.950 --> 00:21:09.960 align:start position:0% complex preferences and there's a 00:21:09.960 --> 00:21:12.470 align:start position:0% complex preferences and there's a because<00:21:10.320> this<00:21:10.600> allocation<00:21:11.240> problem<00:21:11.600> is<00:21:12.200> very 00:21:12.470 --> 00:21:12.480 align:start position:0% because this allocation problem is very 00:21:12.480 --> 00:21:14.789 align:start position:0% because this allocation problem is very hard<00:21:13.039> uh<00:21:13.200> because<00:21:13.559> it's<00:21:13.720> a<00:21:13.840> large<00:21:14.320> complex 00:21:14.789 --> 00:21:14.799 align:start position:0% hard uh because it's a large complex 00:21:14.799 --> 00:21:16.390 align:start position:0% hard uh because it's a large complex matching<00:21:15.320> problem<00:21:15.720> so<00:21:15.880> there's<00:21:16.039> a<00:21:16.120> lot<00:21:16.240> of 00:21:16.390 --> 00:21:16.400 align:start position:0% matching problem so there's a lot of 00:21:16.400 --> 00:21:18.669 align:start position:0% matching problem so there's a lot of potential<00:21:16.799> for<00:21:17.000> generating<00:21:17.520> Surplus<00:21:18.520> and 00:21:18.669 --> 00:21:18.679 align:start position:0% potential for generating Surplus and 00:21:18.679 --> 00:21:20.710 align:start position:0% potential for generating Surplus and there<00:21:18.799> isn't<00:21:19.120> that<00:21:19.279> much<00:21:19.520> toxicity<00:21:20.080> or<00:21:20.240> defi 00:21:20.710 --> 00:21:20.720 align:start position:0% there isn't that much toxicity or defi 00:21:20.720 --> 00:21:23.310 align:start position:0% there isn't that much toxicity or defi activity<00:21:21.159> going<00:21:21.360> on<00:21:21.720> so<00:21:22.000> perfect<00:21:22.320> example<00:21:22.799> for 00:21:23.310 --> 00:21:23.320 align:start position:0% activity going on so perfect example for 00:21:23.320 --> 00:21:25.310 align:start position:0% activity going on so perfect example for being<00:21:23.640> very<00:21:23.919> agentic<00:21:24.480> and<00:21:24.760> that's<00:21:24.919> the<00:21:25.039> end<00:21:25.200> of 00:21:25.310 --> 00:21:25.320 align:start position:0% being very agentic and that's the end of 00:21:25.320 --> 00:21:28.230 align:start position:0% being very agentic and that's the end of the<00:21:25.480> spectrum<00:21:26.039> that<00:21:26.559> we<00:21:26.720> were<00:21:26.880> on<00:21:27.640> and<00:21:27.880> defit 00:21:28.230 --> 00:21:28.240 align:start position:0% the spectrum that we were on and defit 00:21:28.240 --> 00:21:30.950 align:start position:0% the spectrum that we were on and defit is<00:21:28.320> coming<00:21:28.679> out<00:21:28.840> today<00:21:29.400> so<00:21:29.600> check<00:21:29.760> it<00:21:29.880> out<00:21:30.840> all 00:21:30.950 --> 00:21:30.960 align:start position:0% is coming out today so check it out all 00:21:30.960 --> 00:21:34.950 align:start position:0% is coming out today so check it out all right<00:21:31.120> thank<00:21:31.320> you<00:21:31.520> for 00:21:34.950 --> 00:21:34.960 align:start position:0% 00:21:34.960 --> 00:21:37.190 align:start position:0% listening<00:21:35.960> my 00:21:37.190 --> 00:21:37.200 align:start position:0% listening my 00:21:37.200 --> 00:21:40.390 align:start position:0% listening my me<00:21:38.200> um<00:21:38.840> thanks<00:21:39.080> a<00:21:39.240> lot<00:21:39.400> for<00:21:39.559> that<00:21:39.760> talk<00:21:40.080> super 00:21:40.390 --> 00:21:40.400 align:start position:0% me um thanks a lot for that talk super 00:21:40.400 --> 00:21:44.029 align:start position:0% me um thanks a lot for that talk super detailed<00:21:41.039> and<00:21:41.559> um<00:21:42.200> and<00:21:42.480> and<00:21:42.960> gets<00:21:43.240> into<00:21:43.720> like 00:21:44.029 --> 00:21:44.039 align:start position:0% detailed and um and and gets into like 00:21:44.039 --> 00:21:46.750 align:start position:0% detailed and um and and gets into like nuances<00:21:44.720> and<00:21:44.880> also<00:21:45.240> like<00:21:45.480> the<00:21:46.039> examples<00:21:46.520> were 00:21:46.750 --> 00:21:46.760 align:start position:0% nuances and also like the examples were 00:21:46.760 --> 00:21:48.789 align:start position:0% nuances and also like the examples were good<00:21:47.200> you<00:21:47.320> can<00:21:47.480> scan<00:21:47.799> the<00:21:47.919> QR<00:21:48.279> code<00:21:48.480> for<00:21:48.600> your 00:21:48.789 --> 00:21:48.799 align:start position:0% good you can scan the QR code for your 00:21:48.799 --> 00:21:51.029 align:start position:0% good you can scan the QR code for your questions<00:21:49.279> and<00:21:49.440> let's<00:21:49.679> quickly<00:21:50.000> get<00:21:50.159> to<00:21:50.360> them 00:21:51.029 --> 00:21:51.039 align:start position:0% questions and let's quickly get to them 00:21:51.039 --> 00:21:53.230 align:start position:0% questions and let's quickly get to them talking<00:21:51.360> about<00:21:51.559> cir<00:21:52.000> plus<00:21:52.279> maximization<00:21:53.039> and 00:21:53.230 --> 00:21:53.240 align:start position:0% talking about cir plus maximization and 00:21:53.240 --> 00:21:55.549 align:start position:0% talking about cir plus maximization and decreasing<00:21:53.799> extraction<00:21:54.799> how<00:21:54.919> do<00:21:55.039> we<00:21:55.200> draw<00:21:55.440> the 00:21:55.549 --> 00:21:55.559 align:start position:0% decreasing extraction how do we draw the 00:21:55.559 --> 00:21:57.909 align:start position:0% decreasing extraction how do we draw the line<00:21:55.799> between<00:21:56.080> a<00:21:56.240> user<00:21:56.559> and<00:21:56.760> an<00:21:56.960> agent<00:21:57.720> what 00:21:57.909 --> 00:21:57.919 align:start position:0% line between a user and an agent what 00:21:57.919 --> 00:21:59.430 align:start position:0% line between a user and an agent what determines<00:21:58.600> whether<00:21:58.760> we<00:21:58.880> think<00:21:59.120> of<00:21:59.240> an 00:21:59.430 --> 00:21:59.440 align:start position:0% determines whether we think of an 00:21:59.440 --> 00:22:02.149 align:start position:0% determines whether we think of an extracting<00:21:59.960> entity<00:22:00.440> as<00:22:00.559> a<00:22:00.679> user<00:22:01.000> or<00:22:01.200> agent 00:22:02.149 --> 00:22:02.159 align:start position:0% extracting entity as a user or agent 00:22:02.159 --> 00:22:04.110 align:start position:0% extracting entity as a user or agent that's<00:22:02.320> a<00:22:02.559> very<00:22:02.799> very<00:22:03.039> good<00:22:03.320> question<00:22:03.720> it's 00:22:04.110 --> 00:22:04.120 align:start position:0% that's a very very good question it's 00:22:04.120 --> 00:22:05.990 align:start position:0% that's a very very good question it's exactly<00:22:04.640> the<00:22:04.919> trade-off<00:22:05.320> I<00:22:05.400> was<00:22:05.520> trying<00:22:05.720> to 00:22:05.990 --> 00:22:06.000 align:start position:0% exactly the trade-off I was trying to 00:22:06.000 --> 00:22:09.510 align:start position:0% exactly the trade-off I was trying to highlight<00:22:07.000> um<00:22:07.760> I<00:22:07.880> think<00:22:08.039> it's<00:22:08.159> an<00:22:08.400> art<00:22:09.080> not<00:22:09.279> a 00:22:09.510 --> 00:22:09.520 align:start position:0% highlight um I think it's an art not a 00:22:09.520 --> 00:22:11.710 align:start position:0% highlight um I think it's an art not a science<00:22:10.400> um<00:22:10.640> for<00:22:10.799> example<00:22:11.080> in<00:22:11.159> the<00:22:11.279> P 00:22:11.710 --> 00:22:11.720 align:start position:0% science um for example in the P 00:22:11.720 --> 00:22:13.669 align:start position:0% science um for example in the P Arbitrage<00:22:12.240> example<00:22:12.679> if<00:22:12.799> we<00:22:12.919> want<00:22:13.120> to<00:22:13.360> think<00:22:13.520> of 00:22:13.669 --> 00:22:13.679 align:start position:0% Arbitrage example if we want to think of 00:22:13.679 --> 00:22:15.669 align:start position:0% Arbitrage example if we want to think of the<00:22:13.880> liquidity<00:22:14.360> providers<00:22:14.919> as<00:22:15.120> users<00:22:15.480> as 00:22:15.669 --> 00:22:15.679 align:start position:0% the liquidity providers as users as 00:22:15.679 --> 00:22:17.510 align:start position:0% the liquidity providers as users as welfare<00:22:16.080> we<00:22:16.200> care<00:22:16.440> about<00:22:17.159> uh<00:22:17.240> it's<00:22:17.360> a 00:22:17.510 --> 00:22:17.520 align:start position:0% welfare we care about uh it's a 00:22:17.520 --> 00:22:19.269 align:start position:0% welfare we care about uh it's a different<00:22:17.799> story<00:22:18.200> than<00:22:18.480> if<00:22:18.600> we<00:22:18.799> just<00:22:19.039> care 00:22:19.269 --> 00:22:19.279 align:start position:0% different story than if we just care 00:22:19.279 --> 00:22:22.230 align:start position:0% different story than if we just care about<00:22:19.720> the<00:22:20.440> Traders<00:22:21.240> and<00:22:21.559> how<00:22:21.799> accurate<00:22:22.120> the 00:22:22.230 --> 00:22:22.240 align:start position:0% about the Traders and how accurate the 00:22:22.240 --> 00:22:23.950 align:start position:0% about the Traders and how accurate the price<00:22:22.440> is<00:22:22.640> for<00:22:22.840> them<00:22:23.240> so<00:22:23.440> I<00:22:23.559> think<00:22:23.799> what 00:22:23.950 --> 00:22:23.960 align:start position:0% price is for them so I think what 00:22:23.960 --> 00:22:26.510 align:start position:0% price is for them so I think what happens<00:22:24.360> is<00:22:24.799> for<00:22:25.039> a<00:22:25.240> specific<00:22:25.679> application 00:22:26.510 --> 00:22:26.520 align:start position:0% happens is for a specific application 00:22:26.520 --> 00:22:29.430 align:start position:0% happens is for a specific application you<00:22:27.520> um<00:22:27.840> try<00:22:28.039> to<00:22:28.240> de<00:22:28.600> side<00:22:28.840> just<00:22:29.000> draw<00:22:29.200> a 00:22:29.430 --> 00:22:29.440 align:start position:0% you um try to de side just draw a 00:22:29.440 --> 00:22:32.630 align:start position:0% you um try to de side just draw a boundary<00:22:30.440> that<00:22:30.880> uh<00:22:31.000> includes<00:22:31.520> the<00:22:32.000> people<00:22:32.400> who 00:22:32.630 --> 00:22:32.640 align:start position:0% boundary that uh includes the people who 00:22:32.640 --> 00:22:34.230 align:start position:0% boundary that uh includes the people who whose<00:22:32.880> welfare<00:22:33.200> and<00:22:33.360> utility<00:22:33.720> you<00:22:33.799> care<00:22:34.000> about 00:22:34.230 --> 00:22:34.240 align:start position:0% whose welfare and utility you care about 00:22:34.240 --> 00:22:37.149 align:start position:0% whose welfare and utility you care about the<00:22:34.360> most<00:22:35.159> and<00:22:35.880> yeah<00:22:36.039> so<00:22:36.240> you<00:22:36.480> draw<00:22:36.679> the<00:22:36.799> line 00:22:37.149 --> 00:22:37.159 align:start position:0% the most and yeah so you draw the line 00:22:37.159 --> 00:22:39.149 align:start position:0% the most and yeah so you draw the line based<00:22:37.440> on<00:22:38.200> uh<00:22:38.320> the<00:22:38.520> purpose<00:22:38.880> of<00:22:39.000> your 00:22:39.149 --> 00:22:39.159 align:start position:0% based on uh the purpose of your 00:22:39.159 --> 00:22:41.830 align:start position:0% based on uh the purpose of your application<00:22:40.039> right<00:22:40.919> um<00:22:41.159> the<00:22:41.320> other<00:22:41.559> question 00:22:41.830 --> 00:22:41.840 align:start position:0% application right um the other question 00:22:41.840 --> 00:22:44.029 align:start position:0% application right um the other question will<00:22:42.159> Jared<00:22:42.600> from<00:22:42.799> Subway<00:22:43.240> be<00:22:43.360> out<00:22:43.480> of<00:22:43.600> a<00:22:43.799> job 00:22:44.029 --> 00:22:44.039 align:start position:0% will Jared from Subway be out of a job 00:22:44.039 --> 00:22:46.190 align:start position:0% will Jared from Subway be out of a job with<00:22:44.200> automated<00:22:44.760> block<00:22:45.000> building<00:22:45.720> um<00:22:45.919> no 00:22:46.190 --> 00:22:46.200 align:start position:0% with automated block building um no 00:22:46.200 --> 00:22:49.470 align:start position:0% with automated block building um no comments<00:22:47.039> uh<00:22:48.039> uh<00:22:48.480> can<00:22:48.600> you<00:22:48.799> talk<00:22:49.039> about<00:22:49.279> the 00:22:49.470 --> 00:22:49.480 align:start position:0% comments uh uh can you talk about the 00:22:49.480 --> 00:22:51.669 align:start position:0% comments uh uh can you talk about the resources<00:22:50.200> the<00:22:50.360> ritual<00:22:50.760> is<00:22:50.880> selling<00:22:51.279> and<00:22:51.480> what 00:22:51.669 --> 00:22:51.679 align:start position:0% resources the ritual is selling and what 00:22:51.679 --> 00:22:53.710 align:start position:0% resources the ritual is selling and what preferences<00:22:52.200> the<00:22:52.320> users<00:22:52.799> might<00:22:53.080> Express<00:22:53.480> over 00:22:53.710 --> 00:22:53.720 align:start position:0% preferences the users might Express over 00:22:53.720 --> 00:22:57.789 align:start position:0% preferences the users might Express over there<00:22:54.360> yeah<00:22:54.559> so<00:22:54.919> uh<00:22:55.080> ritual<00:22:55.440> is<00:22:55.559> selling<00:22:56.360> uh<00:22:57.279> AI 00:22:57.789 --> 00:22:57.799 align:start position:0% there yeah so uh ritual is selling uh AI 00:22:57.799 --> 00:22:58.950 align:start position:0% there yeah so uh ritual is selling uh AI inference 00:22:58.950 --> 00:22:58.960 align:start position:0% inference 00:22:58.960 --> 00:23:02.350 align:start position:0% inference um<00:22:59.360> basically<00:23:00.640> but<00:23:01.640> it<00:23:01.760> could<00:23:01.919> be<00:23:02.080> different 00:23:02.350 --> 00:23:02.360 align:start position:0% um basically but it could be different 00:23:02.360 --> 00:23:04.070 align:start position:0% um basically but it could be different AI<00:23:02.640> models<00:23:03.080> and<00:23:03.240> there<00:23:03.360> are<00:23:03.480> nodes<00:23:03.840> that<00:23:03.960> are 00:23:04.070 --> 00:23:04.080 align:start position:0% AI models and there are nodes that are 00:23:04.080 --> 00:23:05.470 align:start position:0% AI models and there are nodes that are very<00:23:04.279> heterogeneous<00:23:04.960> so<00:23:05.120> they<00:23:05.240> have 00:23:05.470 --> 00:23:05.480 align:start position:0% very heterogeneous so they have 00:23:05.480 --> 00:23:09.190 align:start position:0% very heterogeneous so they have different<00:23:05.840> resources<00:23:06.480> CPU<00:23:07.000> GPU<00:23:08.000> uh<00:23:08.200> bandwidth 00:23:09.190 --> 00:23:09.200 align:start position:0% different resources CPU GPU uh bandwidth 00:23:09.200 --> 00:23:11.990 align:start position:0% different resources CPU GPU uh bandwidth um<00:23:09.600> it's<00:23:09.960> very<00:23:10.240> high-dimensional<00:23:11.159> so<00:23:11.360> much<00:23:11.600> so 00:23:11.990 --> 00:23:12.000 align:start position:0% um it's very high-dimensional so much so 00:23:12.000 --> 00:23:14.750 align:start position:0% um it's very high-dimensional so much so that<00:23:12.400> it<00:23:12.520> didn't<00:23:12.880> make<00:23:13.200> sense<00:23:13.559> to<00:23:14.120> design<00:23:14.520> a 00:23:14.750 --> 00:23:14.760 align:start position:0% that it didn't make sense to design a 00:23:14.760 --> 00:23:16.549 align:start position:0% that it didn't make sense to design a specific<00:23:15.120> multi-dimensional<00:23:15.840> fee<00:23:16.120> Market 00:23:16.549 --> 00:23:16.559 align:start position:0% specific multi-dimensional fee Market 00:23:16.559 --> 00:23:19.430 align:start position:0% specific multi-dimensional fee Market it's<00:23:16.720> just<00:23:16.840> too<00:23:17.039> many<00:23:17.600> dimensions<00:23:18.600> um<00:23:19.039> and 00:23:19.430 --> 00:23:19.440 align:start position:0% it's just too many dimensions um and 00:23:19.440 --> 00:23:21.310 align:start position:0% it's just too many dimensions um and users<00:23:20.080> have 00:23:21.310 --> 00:23:21.320 align:start position:0% users have 00:23:21.320 --> 00:23:24.830 align:start position:0% users have uh<00:23:22.320> infer<00:23:22.679> his<00:23:22.799> queries<00:23:23.600> and<00:23:23.799> ritual<00:23:24.440> is 00:23:24.830 --> 00:23:24.840 align:start position:0% uh infer his queries and ritual is 00:23:24.840 --> 00:23:28.510 align:start position:0% uh infer his queries and ritual is providing<00:23:25.480> this<00:23:26.320> or<00:23:27.159> this<00:23:27.360> Marketplace<00:23:27.960> to 00:23:28.510 --> 00:23:28.520 align:start position:0% providing this or this Marketplace to 00:23:28.520 --> 00:23:30.750 align:start position:0% providing this or this Marketplace to Mash<00:23:28.760> queries<00:23:29.159> to<00:23:29.400> nodes<00:23:30.400> uh<00:23:30.520> and<00:23:30.640> the 00:23:30.750 --> 00:23:30.760 align:start position:0% Mash queries to nodes uh and the 00:23:30.760 --> 00:23:32.950 align:start position:0% Mash queries to nodes uh and the preferences<00:23:31.360> can<00:23:31.559> be<00:23:31.720> as<00:23:31.960> complicated<00:23:32.600> as<00:23:32.799> a 00:23:32.950 --> 00:23:32.960 align:start position:0% preferences can be as complicated as a 00:23:32.960 --> 00:23:34.870 align:start position:0% preferences can be as complicated as a user<00:23:33.279> might<00:23:33.480> have<00:23:33.720> privacy<00:23:34.120> concerns<00:23:34.600> so<00:23:34.760> it 00:23:34.870 --> 00:23:34.880 align:start position:0% user might have privacy concerns so it 00:23:34.880 --> 00:23:38.310 align:start position:0% user might have privacy concerns so it might<00:23:35.080> want<00:23:35.840> uh<00:23:35.960> an<00:23:36.120> MPC<00:23:37.039> containing<00:23:37.799> a<00:23:37.960> set<00:23:38.159> of 00:23:38.310 --> 00:23:38.320 align:start position:0% might want uh an MPC containing a set of 00:23:38.320 --> 00:23:40.830 align:start position:0% might want uh an MPC containing a set of nodes<00:23:38.799> to<00:23:38.960> run<00:23:39.320> its<00:23:39.520> inference<00:23:40.279> u<00:23:40.440> a<00:23:40.520> user 00:23:40.830 --> 00:23:40.840 align:start position:0% nodes to run its inference u a user 00:23:40.840 --> 00:23:43.830 align:start position:0% nodes to run its inference u a user might<00:23:41.120> have<00:23:41.760> uh<00:23:41.880> latency<00:23:42.480> concerns<00:23:43.039> where<00:23:43.400> I'm 00:23:43.830 --> 00:23:43.840 align:start position:0% might have uh latency concerns where I'm 00:23:43.840 --> 00:23:46.070 align:start position:0% might have uh latency concerns where I'm patient<00:23:44.279> I'm<00:23:44.480> willing<00:23:44.720> to<00:23:44.960> wait<00:23:45.320> a<00:23:45.480> while<00:23:45.840> or 00:23:46.070 --> 00:23:46.080 align:start position:0% patient I'm willing to wait a while or 00:23:46.080 --> 00:23:48.789 align:start position:0% patient I'm willing to wait a while or not<00:23:46.840> and<00:23:47.120> all<00:23:47.279> of<00:23:47.480> these<00:23:47.679> preferences<00:23:48.600> should 00:23:48.789 --> 00:23:48.799 align:start position:0% not and all of these preferences should 00:23:48.799 --> 00:23:53.029 align:start position:0% not and all of these preferences should be<00:23:48.960> able<00:23:49.159> to<00:23:49.279> be<00:23:50.000> handled<00:23:51.480> um<00:23:52.480> why<00:23:52.600> is<00:23:52.720> it<00:23:52.840> bad 00:23:53.029 --> 00:23:53.039 align:start position:0% be able to be handled um why is it bad 00:23:53.039 --> 00:23:54.950 align:start position:0% be able to be handled um why is it bad for<00:23:53.240> automated<00:23:53.799> strategies<00:23:54.279> to<00:23:54.480> give<00:23:54.640> up<00:23:54.799> on 00:23:54.950 --> 00:23:54.960 align:start position:0% for automated strategies to give up on 00:23:54.960 --> 00:23:57.190 align:start position:0% for automated strategies to give up on Surplus<00:23:55.679> maximization<00:23:56.679> in<00:23:56.799> the<00:23:56.919> front 00:23:57.190 --> 00:23:57.200 align:start position:0% Surplus maximization in the front 00:23:57.200 --> 00:23:58.990 align:start position:0% Surplus maximization in the front running<00:23:57.559> example<00:23:57.960> the<00:23:58.080> Surplus<00:23:58.480> plus<00:23:58.679> capture 00:23:58.990 --> 00:23:59.000 align:start position:0% running example the Surplus plus capture 00:23:59.000 --> 00:24:01.549 align:start position:0% running example the Surplus plus capture appeared<00:23:59.360> to<00:23:59.440> be<00:23:59.640> bad<00:23:59.799> for<00:23:59.960> user<00:24:00.320> welfare<00:24:01.320> yes 00:24:01.549 --> 00:24:01.559 align:start position:0% appeared to be bad for user welfare yes 00:24:01.559 --> 00:24:02.830 align:start position:0% appeared to be bad for user welfare yes I<00:24:01.640> would<00:24:01.799> argue<00:24:02.120> in<00:24:02.200> the<00:24:02.320> front<00:24:02.520> Runing 00:24:02.830 --> 00:24:02.840 align:start position:0% I would argue in the front Runing 00:24:02.840 --> 00:24:05.230 align:start position:0% I would argue in the front Runing example<00:24:03.279> there<00:24:03.400> was<00:24:03.600> no<00:24:03.840> Surplus<00:24:04.480> generated 00:24:05.230 --> 00:24:05.240 align:start position:0% example there was no Surplus generated 00:24:05.240 --> 00:24:08.269 align:start position:0% example there was no Surplus generated it<00:24:05.360> was<00:24:05.480> a<00:24:05.679> zero<00:24:06.000> sum<00:24:06.440> game<00:24:07.440> um<00:24:07.960> it<00:24:08.039> was 00:24:08.269 --> 00:24:08.279 align:start position:0% it was a zero sum game um it was 00:24:08.279 --> 00:24:11.430 align:start position:0% it was a zero sum game um it was basically<00:24:08.679> a<00:24:08.880> transfer<00:24:09.520> from<00:24:09.760> the<00:24:09.919> user<00:24:10.440> to<00:24:11.279> uh 00:24:11.430 --> 00:24:11.440 align:start position:0% basically a transfer from the user to uh 00:24:11.440 --> 00:24:15.789 align:start position:0% basically a transfer from the user to uh the<00:24:11.640> agent<00:24:12.640> so<00:24:12.919> in<00:24:13.640> many<00:24:14.159> extractive<00:24:14.880> Zero<00:24:15.279> Sum 00:24:15.789 --> 00:24:15.799 align:start position:0% the agent so in many extractive Zero Sum 00:24:15.799 --> 00:24:20.070 align:start position:0% the agent so in many extractive Zero Sum examples<00:24:17.039> uh<00:24:18.039> is<00:24:18.240> just<00:24:18.440> not<00:24:18.720> good<00:24:19.279> to<00:24:19.799> have 00:24:20.070 --> 00:24:20.080 align:start position:0% examples uh is just not good to have 00:24:20.080 --> 00:24:22.630 align:start position:0% examples uh is just not good to have agents<00:24:20.919> but<00:24:21.400> uh<00:24:21.520> a<00:24:21.679> good<00:24:21.880> example<00:24:22.200> of<00:24:22.400> a<00:24:22.480> GU 00:24:22.630 --> 00:24:22.640 align:start position:0% agents but uh a good example of a GU 00:24:22.640 --> 00:24:26.149 align:start position:0% agents but uh a good example of a GU Surplus<00:24:23.120> is<00:24:23.279> maybe<00:24:23.520> in<00:24:23.640> the<00:24:23.840> case<00:24:24.159> of<00:24:24.600> ritual<00:24:25.480> I 00:24:26.149 --> 00:24:26.159 align:start position:0% Surplus is maybe in the case of ritual I 00:24:26.159 --> 00:24:29.230 align:start position:0% Surplus is maybe in the case of ritual I described<00:24:26.640> these<00:24:26.840> very<00:24:27.080> heterogeneous<00:24:28.559> um 00:24:29.230 --> 00:24:29.240 align:start position:0% described these very heterogeneous um 00:24:29.240 --> 00:24:32.630 align:start position:0% described these very heterogeneous um nodes<00:24:30.000> and<00:24:30.440> users<00:24:31.240> and<00:24:31.799> if<00:24:31.919> you<00:24:32.120> write<00:24:32.399> any 00:24:32.630 --> 00:24:32.640 align:start position:0% nodes and users and if you write any 00:24:32.640 --> 00:24:35.510 align:start position:0% nodes and users and if you write any piece<00:24:32.840> of<00:24:33.000> code<00:24:33.279> to<00:24:33.480> try<00:24:33.760> to<00:24:34.559> match<00:24:35.120> these 00:24:35.510 --> 00:24:35.520 align:start position:0% piece of code to try to match these 00:24:35.520 --> 00:24:37.190 align:start position:0% piece of code to try to match these together<00:24:36.000> the<00:24:36.200> problem<00:24:36.520> of<00:24:36.720> optimally 00:24:37.190 --> 00:24:37.200 align:start position:0% together the problem of optimally 00:24:37.200 --> 00:24:40.110 align:start position:0% together the problem of optimally matching<00:24:37.640> them<00:24:37.960> is<00:24:38.360> just<00:24:38.720> empty<00:24:39.159> hard<00:24:39.720> hard<00:24:39.919> to 00:24:40.110 --> 00:24:40.120 align:start position:0% matching them is just empty hard hard to 00:24:40.120 --> 00:24:42.310 align:start position:0% matching them is just empty hard hard to approximate<00:24:40.720> as<00:24:40.919> well<00:24:41.399> so<00:24:41.600> doing<00:24:41.960> that<00:24:42.120> on 00:24:42.310 --> 00:24:42.320 align:start position:0% approximate as well so doing that on 00:24:42.320 --> 00:24:44.590 align:start position:0% approximate as well so doing that on chain<00:24:42.720> will<00:24:42.960> lose<00:24:43.279> out<00:24:43.679> on<00:24:43.919> the<00:24:44.080> efficiency 00:24:44.590 --> 00:24:44.600 align:start position:0% chain will lose out on the efficiency 00:24:44.600 --> 00:24:47.630 align:start position:0% chain will lose out on the efficiency you<00:24:44.720> could<00:24:44.960> get<00:24:45.720> by<00:24:46.720> having<00:24:47.240> a<00:24:47.399> more 00:24:47.630 --> 00:24:47.640 align:start position:0% you could get by having a more 00:24:47.640 --> 00:24:50.710 align:start position:0% you could get by having a more sophisticated<00:24:48.480> agent<00:24:49.320> find<00:24:50.279> a<00:24:50.480> better 00:24:50.710 --> 00:24:50.720 align:start position:0% sophisticated agent find a better 00:24:50.720 --> 00:24:53.669 align:start position:0% sophisticated agent find a better allocation<00:24:51.520> I<00:24:51.679> hope<00:24:51.960> that<00:24:52.120> answer<00:24:52.919> the 00:24:53.669 --> 00:24:53.679 align:start position:0% allocation I hope that answer the 00:24:53.679 --> 00:24:56.669 align:start position:0% allocation I hope that answer the question<00:24:54.679> uh<00:24:54.960> seems<00:24:55.279> a<00:24:55.440> very<00:24:55.600> L1<00:24:56.159> problem<00:24:56.480> do 00:24:56.669 --> 00:24:56.679 align:start position:0% question uh seems a very L1 problem do 00:24:56.679 --> 00:24:58.750 align:start position:0% question uh seems a very L1 problem do L2<00:24:57.159> solve<00:24:57.480> this<00:24:57.600> by<00:24:57.720> running<00:24:57.960> a<00:24:58.080> s<00:24:58.360> calized 00:24:58.750 --> 00:24:58.760 align:start position:0% L2 solve this by running a s calized 00:24:58.760 --> 00:25:02.789 align:start position:0% L2 solve this by running a s calized sequence<00:24:59.559> I<00:24:59.679> think<00:24:59.880> it's<00:25:00.559> um<00:25:01.559> not<00:25:01.840> just<00:25:02.039> an<00:25:02.200> L1 00:25:02.789 --> 00:25:02.799 align:start position:0% sequence I think it's um not just an L1 00:25:02.799 --> 00:25:05.350 align:start position:0% sequence I think it's um not just an L1 problem<00:25:03.320> I<00:25:03.440> guess<00:25:03.640> like<00:25:03.760> if<00:25:03.880> an<00:25:04.039> L2<00:25:04.880> runs<00:25:05.120> a 00:25:05.350 --> 00:25:05.360 align:start position:0% problem I guess like if an L2 runs a 00:25:05.360 --> 00:25:07.590 align:start position:0% problem I guess like if an L2 runs a centralized<00:25:05.880> sequencer<00:25:06.679> that<00:25:06.799> is<00:25:07.039> committing 00:25:07.590 --> 00:25:07.600 align:start position:0% centralized sequencer that is committing 00:25:07.600 --> 00:25:10.510 align:start position:0% centralized sequencer that is committing to<00:25:08.600> a<00:25:08.799> first<00:25:09.120> come<00:25:09.320> first<00:25:09.520> serve<00:25:09.840> ordering 00:25:10.510 --> 00:25:10.520 align:start position:0% to a first come first serve ordering 00:25:10.520 --> 00:25:12.110 align:start position:0% to a first come first serve ordering they<00:25:10.640> are<00:25:10.799> choosing<00:25:11.159> a<00:25:11.320> very<00:25:11.520> automated 00:25:12.110 --> 00:25:12.120 align:start position:0% they are choosing a very automated 00:25:12.120 --> 00:25:14.029 align:start position:0% they are choosing a very automated approach<00:25:12.760> they<00:25:12.880> are<00:25:13.159> potentially<00:25:13.679> missing 00:25:14.029 --> 00:25:14.039 align:start position:0% approach they are potentially missing 00:25:14.039 --> 00:25:16.669 align:start position:0% approach they are potentially missing out<00:25:14.640> on<00:25:15.360> uh<00:25:15.520> complementarities<00:25:16.360> between 00:25:16.669 --> 00:25:16.679 align:start position:0% out on uh complementarities between 00:25:16.679 --> 00:25:18.110 align:start position:0% out on uh complementarities between transactions<00:25:17.320> or 00:25:18.110 --> 00:25:18.120 align:start position:0% transactions or 00:25:18.120 --> 00:25:21.430 align:start position:0% transactions or like<00:25:19.120> so<00:25:19.480> yeah<00:25:19.640> I<00:25:19.720> think<00:25:19.880> it<00:25:20.279> applies<00:25:20.600> to<00:25:20.799> other 00:25:21.430 --> 00:25:21.440 align:start position:0% like so yeah I think it applies to other 00:25:21.440 --> 00:25:23.710 align:start position:0% like so yeah I think it applies to other layers<00:25:21.880> too<00:25:22.440> and<00:25:22.559> the<00:25:22.760> last<00:25:23.000> question<00:25:23.440> what 00:25:23.710 --> 00:25:23.720 align:start position:0% layers too and the last question what 00:25:23.720 --> 00:25:25.710 align:start position:0% layers too and the last question what sort<00:25:23.960> of<00:25:24.120> support<00:25:24.480> or<00:25:24.679> major<00:25:25.000> changes<00:25:25.399> do<00:25:25.559> you 00:25:25.710 --> 00:25:25.720 align:start position:0% sort of support or major changes do you 00:25:25.720 --> 00:25:28.549 align:start position:0% sort of support or major changes do you expect<00:25:26.039> from<00:25:26.200> the<00:25:26.360> chain<00:25:26.600> or<00:25:26.760> the<00:25:26.880> foundation 00:25:28.549 --> 00:25:28.559 align:start position:0% expect from the chain or the foundation 00:25:28.559 --> 00:25:31.830 align:start position:0% expect from the chain or the foundation um<00:25:29.000> I<00:25:29.080> don't<00:25:29.279> know<00:25:29.480> that<00:25:29.720> this<00:25:29.960> applies<00:25:30.559> to<00:25:30.840> me 00:25:31.830 --> 00:25:31.840 align:start position:0% um I don't know that this applies to me 00:25:31.840 --> 00:25:34.389 align:start position:0% um I don't know that this applies to me is<00:25:31.960> it<00:25:32.159> ethereum<00:25:32.600> chain<00:25:32.840> or 00:25:34.389 --> 00:25:34.399 align:start position:0% is it ethereum chain or 00:25:34.399 --> 00:25:38.760 align:start position:0% is it ethereum chain or Foundation<00:25:35.399> um<00:25:36.039> yeah<00:25:36.279> I<00:25:36.360> don't<00:25:36.640> understand