WEBVTT Kind: captions Language: en 00:00:04.690 --> 00:00:07.559 align:start position:0% I<00:00:05.130> wanted<00:00:06.130> to<00:00:06.190> we're<00:00:06.760> gonna<00:00:06.910> start<00:00:07.360> this 00:00:07.559 --> 00:00:07.569 align:start position:0% I wanted to we're gonna start this 00:00:07.569 --> 00:00:11.640 align:start position:0% I wanted to we're gonna start this presentation<00:00:08.200> with<00:00:09.190> a<00:00:09.550> kind<00:00:10.210> of<00:00:10.380> symbol<00:00:11.380> a 00:00:11.640 --> 00:00:11.650 align:start position:0% presentation with a kind of symbol a 00:00:11.650 --> 00:00:13.590 align:start position:0% presentation with a kind of symbol a question<00:00:12.130> which<00:00:12.340> is<00:00:12.520> just<00:00:12.760> what<00:00:13.000> did<00:00:13.180> Satoshi 00:00:13.590 --> 00:00:13.600 align:start position:0% question which is just what did Satoshi 00:00:13.600 --> 00:00:16.679 align:start position:0% question which is just what did Satoshi in<00:00:13.870> events<00:00:14.230> anyway<00:00:14.650> right<00:00:15.370> so<00:00:15.610> who<00:00:16.450> here<00:00:16.660> a 00:00:16.679 --> 00:00:16.689 align:start position:0% in events anyway right so who here a 00:00:16.689 --> 00:00:20.640 align:start position:0% in events anyway right so who here a sort<00:00:17.020> of<00:00:17.080> Bitcoin<00:00:18.630> who<00:00:19.630> here<00:00:19.900> is<00:00:20.020> aware<00:00:20.320> of<00:00:20.529> the 00:00:20.640 --> 00:00:20.650 align:start position:0% sort of Bitcoin who here is aware of the 00:00:20.650 --> 00:00:22.970 align:start position:0% sort of Bitcoin who here is aware of the fact<00:00:20.860> that<00:00:20.980> Satoshi<00:00:21.520> created<00:00:22.029> Bitcoin 00:00:22.970 --> 00:00:22.980 align:start position:0% fact that Satoshi created Bitcoin 00:00:22.980 --> 00:00:26.280 align:start position:0% fact that Satoshi created Bitcoin okay<00:00:23.980> so<00:00:24.579> Satoshi<00:00:25.270> created<00:00:25.689> Bitcoin<00:00:26.050> right 00:00:26.280 --> 00:00:26.290 align:start position:0% okay so Satoshi created Bitcoin right 00:00:26.290 --> 00:00:29.159 align:start position:0% okay so Satoshi created Bitcoin right but<00:00:26.500> what<00:00:26.770> makes<00:00:27.009> Bitcoin<00:00:27.450> interesting<00:00:28.450> now 00:00:29.159 --> 00:00:29.169 align:start position:0% but what makes Bitcoin interesting now 00:00:29.169 --> 00:00:31.319 align:start position:0% but what makes Bitcoin interesting now the<00:00:29.919> way<00:00:30.070> that<00:00:30.279> you<00:00:30.430> might<00:00:30.610> hear<00:00:30.910> a<00:00:30.970> lot<00:00:31.300> of 00:00:31.319 --> 00:00:31.329 align:start position:0% the way that you might hear a lot of 00:00:31.329 --> 00:00:34.620 align:start position:0% the way that you might hear a lot of people<00:00:31.599> describing<00:00:32.169> it<00:00:32.470> is<00:00:32.649> that<00:00:33.040> Satoshi<00:00:33.970> is 00:00:34.620 --> 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position:0% problem called the Byzantine generals problem<00:00:42.700> right<00:00:42.910> you<00:00:43.030> did<00:00:43.180> you<00:00:43.420> can<00:00:43.780> find<00:00:44.020> a 00:00:44.130 --> 00:00:44.140 align:start position:0% problem right you did you can find a 00:00:44.140 --> 00:00:45.660 align:start position:0% problem right you did you can find a bunch<00:00:44.260> of<00:00:44.410> people<00:00:44.470> saying<00:00:44.920> things<00:00:45.190> like<00:00:45.460> this 00:00:45.660 --> 00:00:45.670 align:start position:0% bunch of people saying things like this 00:00:45.670 --> 00:00:47.820 align:start position:0% bunch of people saying things like this that<00:00:45.940> the<00:00:46.720> solution<00:00:47.230> to<00:00:47.260> the<00:00:47.440> Byzantines 00:00:47.820 --> 00:00:47.830 align:start position:0% that the solution to the Byzantines 00:00:47.830 --> 00:00:49.890 align:start position:0% that the solution to the Byzantines generals<00:00:48.310> problem<00:00:48.730> was<00:00:48.880> invented<00:00:49.360> developed 00:00:49.890 --> 00:00:49.900 align:start position:0% generals problem was invented developed 00:00:49.900 --> 00:00:52.950 align:start position:0% generals problem was invented developed by<00:00:50.140> a<00:00:50.620> mian<00:00:51.340> group<00:00:51.640> open<00:00:52.240> bracket<00:00:52.570> identity 00:00:52.950 --> 00:00:52.960 align:start position:0% by a mian group open bracket identity 00:00:52.960 --> 00:00:54.660 align:start position:0% by a mian group open bracket identity unknown<00:00:53.110> cause<00:00:53.590> bracket<00:00:54.100> who<00:00:54.220> goes<00:00:54.400> by<00:00:54.610> the 00:00:54.660 --> 00:00:54.670 align:start position:0% unknown cause bracket who goes by the 00:00:54.670 --> 00:00:57.450 align:start position:0% unknown cause bracket who goes by the name<00:00:54.850> situation<00:00:55.420> Nakamoto<00:00:56.130> the<00:00:57.130> business<00:00:57.370> a 00:00:57.450 --> 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written in the about the decay<00:01:03.970> of<00:01:04.000> Western<00:01:04.570> civilization<00:01:05.439> and<00:01:05.560> how 00:01:05.670 --> 00:01:05.680 align:start position:0% decay of Western civilization and how 00:01:05.680 --> 00:01:07.620 align:start position:0% decay of Western civilization and how the<00:01:05.740> loss<00:01:05.950> of<00:01:06.130> power<00:01:06.310> causes<00:01:06.909> societies<00:01:07.450> to 00:01:07.620 --> 00:01:07.630 align:start position:0% the loss of power causes societies to 00:01:07.630 --> 00:01:10.559 align:start position:0% the loss of power causes societies to disintegrate<00:01:08.320> and<00:01:09.310> so<00:01:09.789> we<00:01:09.999> she<00:01:10.119> fixes<00:01:10.420> this 00:01:10.559 --> 00:01:10.569 align:start position:0% disintegrate and so we she fixes this 00:01:10.569 --> 00:01:21.260 align:start position:0% disintegrate and so we she fixes this problem<00:01:10.630> apparently<00:01:13.020> so<00:01:16.140> this<00:01:17.140> is<00:01:17.819> not<00:01:18.990> true 00:01:21.260 --> 00:01:21.270 align:start position:0% problem apparently so this is not true 00:01:21.270 --> 00:01:23.639 align:start position:0% problem apparently so this is not true the<00:01:22.270> Byzantine<00:01:22.689> generals<00:01:22.719> problem<00:01:23.499> was 00:01:23.639 --> 00:01:23.649 align:start position:0% the Byzantine generals problem was 00:01:23.649 --> 00:01:25.590 align:start position:0% the Byzantine generals problem was solved<00:01:24.009> by<00:01:24.100> am<00:01:24.490> a<00:01:24.520> wonderful<00:01:25.030> fellow<00:01:25.240> named 00:01:25.590 --> 00:01:25.600 align:start position:0% solved by am a wonderful fellow named 00:01:25.600 --> 00:01:29.489 align:start position:0% solved by am a wonderful fellow named Melissa<00:01:25.990> oil<00:01:26.229> import<00:01:26.619> in<00:01:26.999> 1982<00:01:27.999> so<00:01:28.380> in<00:01:29.380> the 00:01:29.489 --> 00:01:29.499 align:start position:0% Melissa oil import in 1982 so in the 00:01:29.499 --> 00:01:31.139 align:start position:0% Melissa oil import in 1982 so in the paper<00:01:29.740> that<00:01:29.859> introduced<00:01:30.579> the<00:01:30.729> Byzantine 00:01:31.139 --> 00:01:31.149 align:start position:0% paper that introduced the Byzantine 00:01:31.149 --> 00:01:33.599 align:start position:0% paper that introduced the Byzantine generals<00:01:31.179> problem<00:01:32.079> he<00:01:32.590> basically<00:01:33.069> provided 00:01:33.599 --> 00:01:33.609 align:start position:0% generals problem he basically provided 00:01:33.609 --> 00:01:37.399 align:start position:0% generals problem he basically provided algorithms<00:01:34.329> for<00:01:34.630> how<00:01:34.929> a<00:01:35.259> set<00:01:35.889> of<00:01:36.130> parties<00:01:36.549> that 00:01:37.399 --> 00:01:37.409 align:start position:0% algorithms for how a set of parties that 00:01:37.409 --> 00:01:41.639 align:start position:0% algorithms for how a set of parties that all<00:01:38.409> wants<00:01:39.249> to<00:01:39.549> agree<00:01:40.389> on<00:01:40.420> some<00:01:40.869> piece<00:01:41.109> some 00:01:41.639 --> 00:01:41.649 align:start position:0% all wants to agree on some piece some 00:01:41.649 --> 00:01:43.499 align:start position:0% all wants to agree on some piece some piece<00:01:41.829> of<00:01:41.859> data<00:01:42.159> some<00:01:42.639> and<00:01:42.909> if<00:01:42.999> I<00:01:43.149> a<00:01:43.179> choice 00:01:43.499 --> 00:01:43.509 align:start position:0% piece of data some and if I a choice 00:01:43.509 --> 00:01:46.859 align:start position:0% piece of data some and if I a choice between<00:01:43.840> some<00:01:44.409> large<00:01:45.100> set<00:01:45.340> of<00:01:45.369> choices<00:01:45.880> can<00:01:46.600> do 00:01:46.859 --> 00:01:46.869 align:start position:0% between some large set of choices can do 00:01:46.869 --> 00:01:50.969 align:start position:0% between some large set of choices can do so<00:01:47.139> and<00:01:47.469> can<00:01:48.249> do<00:01:48.520> so<00:01:48.789> fairly<00:01:49.060> easily<00:01:49.979> even 00:01:50.969 --> 00:01:50.979 align:start position:0% so and can do so fairly easily even 00:01:50.979 --> 00:01:53.910 align:start position:0% so and can do so fairly easily even under<00:01:51.689> assuming<00:01:52.689> up<00:01:52.869> to<00:01:53.020> a<00:01:53.049> third<00:01:53.350> of<00:01:53.499> them<00:01:53.709> are 00:01:53.910 --> 00:01:53.920 align:start position:0% under assuming up to a third of them are 00:01:53.920 --> 00:01:57.300 align:start position:0% under assuming up to a third of them are malicious<00:01:54.399> and<00:01:54.909> even<00:01:55.869> assuming<00:01:56.619> like<00:01:57.009> no 00:01:57.300 --> 00:01:57.310 align:start position:0% malicious and even assuming like no 00:01:57.310 --> 00:01:59.069 align:start position:0% malicious and even assuming like no assumptions<00:01:57.880> about<00:01:57.969> Network<00:01:58.450> synchrony<00:01:58.990> and 00:01:59.069 --> 00:01:59.079 align:start position:0% assumptions about Network synchrony and 00:01:59.079 --> 00:02:01.379 align:start position:0% assumptions about Network synchrony and all<00:01:59.229> of<00:01:59.350> these<00:01:59.439> things<00:01:59.740> right<00:02:00.549> so<00:02:00.849> there's<00:02:01.090> a 00:02:01.379 --> 00:02:01.389 align:start position:0% all of these things right so there's a 00:02:01.389 --> 00:02:03.779 align:start position:0% all of these things right so there's a bunch<00:02:01.990> of<00:02:02.229> different<00:02:02.409> solutions<00:02:02.950> to<00:02:03.429> the 00:02:03.779 --> 00:02:03.789 align:start position:0% bunch of different solutions to the 00:02:03.789 --> 00:02:05.849 align:start position:0% bunch of different solutions to the Byzantine<00:02:04.060> generals<00:02:04.329> a<00:02:04.990> problem<00:02:05.439> in<00:02:05.619> the 00:02:05.849 --> 00:02:05.859 align:start position:0% Byzantine generals a problem in the 00:02:05.859 --> 00:02:07.980 align:start position:0% Byzantine generals a problem in the visiting<00:02:06.609> generals<00:02:07.029> problem<00:02:07.420> paper<00:02:07.630> and<00:02:07.929> I 00:02:07.980 --> 00:02:07.990 align:start position:0% visiting generals problem paper and I 00:02:07.990 --> 00:02:09.089 align:start position:0% visiting generals problem paper and I encourage<00:02:08.349> people<00:02:08.500> to<00:02:08.679> read<00:02:08.950> it 00:02:09.089 --> 00:02:09.099 align:start position:0% encourage people to read it 00:02:09.099 --> 00:02:13.260 align:start position:0% encourage people to read it so<00:02:10.110> if<00:02:11.110> visited<00:02:12.069> generals<00:02:12.550> problem<00:02:13.030> was 00:02:13.260 --> 00:02:13.270 align:start position:0% so if visited generals problem was 00:02:13.270 --> 00:02:16.170 align:start position:0% so if visited generals problem was solved<00:02:13.840> at<00:02:14.380> the<00:02:14.440> very<00:02:14.740> beginning<00:02:15.190> and<00:02:15.460> if 00:02:16.170 --> 00:02:16.180 align:start position:0% solved at the very beginning and if 00:02:16.180 --> 00:02:17.260 align:start position:0% solved at the very beginning and if there<00:02:16.420> were 00:02:17.260 --> 00:02:17.270 align:start position:0% there were 00:02:17.270 --> 00:02:18.520 align:start position:0% there were whole<00:02:17.390> bunch<00:02:17.660> of<00:02:17.870> ways<00:02:18.170> of<00:02:18.380> doing 00:02:18.520 --> 00:02:18.530 align:start position:0% whole bunch of ways of doing 00:02:18.530 --> 00:02:21.700 align:start position:0% whole bunch of ways of doing decentralized<00:02:19.310> consensus<00:02:20.000> for<00:02:20.600> 25<00:02:21.320> years 00:02:21.700 --> 00:02:21.710 align:start position:0% decentralized consensus for 25 years 00:02:21.710 --> 00:02:24.940 align:start position:0% decentralized consensus for 25 years before<00:02:22.070> Bitcoin<00:02:22.700> and<00:02:23.000> 15<00:02:23.540> years<00:02:23.810> before<00:02:24.260> proof 00:02:24.940 --> 00:02:24.950 align:start position:0% before Bitcoin and 15 years before proof 00:02:24.950 --> 00:02:26.890 align:start position:0% before Bitcoin and 15 years before proof of<00:02:25.100> work<00:02:25.310> started<00:02:25.730> to<00:02:25.760> be<00:02:25.940> used<00:02:26.090> for<00:02:26.300> anything 00:02:26.890 --> 00:02:26.900 align:start position:0% of work started to be used for anything 00:02:26.900 --> 00:02:30.090 align:start position:0% of work started to be used for anything then<00:02:27.470> what<00:02:28.130> did<00:02:28.250> Satoshi<00:02:28.640> really<00:02:29.060> invent 00:02:30.090 --> 00:02:30.100 align:start position:0% then what did Satoshi really invent 00:02:30.100 --> 00:02:35.340 align:start position:0% then what did Satoshi really invent Satoshi<00:02:31.100> she<00:02:31.250> invented<00:02:31.610> crypto<00:02:31.910> economics<00:02:33.760> so 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align:start position:0% incentives to provide guarantees about applications<00:02:44.660> so<00:02:45.260> you<00:02:45.920> can<00:02:46.130> view<00:02:46.250> it<00:02:46.970> can 00:02:47.110 --> 00:02:47.120 align:start position:0% applications so you can view it can 00:02:47.120 --> 00:02:49.750 align:start position:0% applications so you can view it can crypto<00:02:47.600> economics<00:02:48.170> us<00:02:48.380> being<00:02:48.770> and<00:02:49.190> if<00:02:49.400> the<00:02:49.550> use 00:02:49.750 --> 00:02:49.760 align:start position:0% crypto economics us being and if the use 00:02:49.760 --> 00:02:53.530 align:start position:0% crypto economics us being and if the use of<00:02:50.090> appended<00:02:51.160> economics<00:02:52.160> and<00:02:52.910> game<00:02:53.240> theoretic 00:02:53.530 --> 00:02:53.540 align:start position:0% of appended economics and game theoretic 00:02:53.540 --> 00:02:56.200 align:start position:0% of appended economics and game theoretic reasoning<00:02:54.410> as<00:02:54.560> a<00:02:54.620> kind<00:02:55.310> of<00:02:55.460> appendage<00:02:56.180> to 00:02:56.200 --> 00:02:56.210 align:start position:0% reasoning as a kind of appendage to 00:02:56.210 --> 00:02:58.540 align:start position:0% reasoning as a kind of appendage to cryptographic<00:02:57.050> reasoning<00:02:57.770> I<00:02:58.070> mean<00:02:58.340> so 00:02:58.540 --> 00:02:58.550 align:start position:0% cryptographic reasoning I mean so 00:02:58.550 --> 00:03:01.000 align:start position:0% cryptographic reasoning I mean so cryptographic<00:02:58.910> reasoning<00:02:59.720> allows<00:03:00.440> you<00:03:00.770> to 00:03:01.000 --> 00:03:01.010 align:start position:0% cryptographic reasoning allows you to 00:03:01.010 --> 00:03:03.130 align:start position:0% cryptographic reasoning allows you to and<00:03:01.520> if<00:03:01.820> believe<00:03:02.360> certain<00:03:02.840> things 00:03:03.130 --> 00:03:03.140 align:start position:0% and if believe certain things 00:03:03.140 --> 00:03:05.050 align:start position:0% and if believe certain things conditional<00:03:03.890> on<00:03:04.040> some<00:03:04.280> assumptions<00:03:04.850> that 00:03:05.050 --> 00:03:05.060 align:start position:0% conditional on some assumptions that 00:03:05.060 --> 00:03:07.480 align:start position:0% conditional on some assumptions that basically<00:03:05.450> claim<00:03:05.870> that<00:03:06.110> the<00:03:06.680> adversary<00:03:07.250> does 00:03:07.480 --> 00:03:07.490 align:start position:0% basically claim that the adversary does 00:03:07.490 --> 00:03:09.040 align:start position:0% basically claim that the adversary does not<00:03:07.640> have<00:03:07.880> a<00:03:07.910> computer<00:03:08.270> that's<00:03:08.660> bigger<00:03:08.870> than 00:03:09.040 --> 00:03:09.050 align:start position:0% not have a computer that's bigger than 00:03:09.050 --> 00:03:11.290 align:start position:0% not have a computer that's bigger than the<00:03:09.170> size<00:03:09.290> of<00:03:09.500> the<00:03:09.590> observable<00:03:09.980> universe<00:03:10.300> and 00:03:11.290 --> 00:03:11.300 align:start position:0% the size of the observable universe and 00:03:11.300 --> 00:03:15.100 align:start position:0% the size of the observable universe and that's<00:03:11.900> all<00:03:12.110> really<00:03:12.380> nice<00:03:13.030> but<00:03:14.110> crypto 00:03:15.100 --> 00:03:15.110 align:start position:0% that's all really nice but crypto 00:03:15.110 --> 00:03:19.030 align:start position:0% that's all really nice but crypto economics<00:03:15.770> allows<00:03:16.550> you<00:03:16.880> to<00:03:17.180> have<00:03:18.110> other<00:03:18.560> kinds 00:03:19.030 --> 00:03:19.040 align:start position:0% economics allows you to have other kinds 00:03:19.040 --> 00:03:20.770 align:start position:0% economics allows you to have other kinds of<00:03:19.100> guarantees<00:03:19.280> that<00:03:19.730> cryptography<00:03:20.480> can't 00:03:20.770 --> 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a<00:03:36.620> platform 00:03:37.180 --> 00:03:37.190 align:start position:0% example the assumption that a platform 00:03:37.190 --> 00:03:40.390 align:start position:0% example the assumption that a platform will<00:03:37.550> continue<00:03:38.090> running<00:03:38.350> liveness<00:03:39.350> a<00:03:39.890> also 00:03:40.390 --> 00:03:40.400 align:start position:0% will continue running liveness a also 00:03:40.400 --> 00:03:42.280 align:start position:0% will continue running liveness a also known<00:03:40.580> as<00:03:40.760> censorship<00:03:41.120> resistance<00:03:41.780> is 00:03:42.280 --> 00:03:42.290 align:start position:0% known as censorship resistance is 00:03:42.290 --> 00:03:43.960 align:start position:0% known as censorship resistance is something<00:03:42.770> that<00:03:43.160> can<00:03:43.280> be<00:03:43.400> provided<00:03:43.670> by 00:03:43.960 --> 00:03:43.970 align:start position:0% something that can be provided by 00:03:43.970 --> 00:03:46.030 align:start position:0% something that can be provided by economics<00:03:44.570> cannot<00:03:45.350> be<00:03:45.500> provided<00:03:45.800> by 00:03:46.030 --> 00:03:46.040 align:start position:0% economics cannot be provided by 00:03:46.040 --> 00:03:50.010 align:start position:0% economics cannot be provided by cryptography<00:03:46.720> even<00:03:47.720> the<00:03:47.870> assumption<00:03:48.500> that<00:03:48.709> a 00:03:50.010 --> 00:03:50.020 align:start position:0% cryptography even the assumption that a 00:03:50.020 --> 00:03:52.180 align:start position:0% cryptography even the assumption that a decentralized<00:03:51.020> consensus<00:03:51.560> system<00:03:51.890> will<00:03:52.010> come 00:03:52.180 --> 00:03:52.190 align:start position:0% decentralized consensus system will come 00:03:52.190 --> 00:03:55.690 align:start position:0% decentralized consensus system will come to<00:03:52.310> consensus<00:03:52.850> is<00:03:53.230> something<00:03:54.230> that<00:03:54.770> cannot<00:03:55.550> be 00:03:55.690 --> 00:03:55.700 align:start position:0% to consensus is something that cannot be 00:03:55.700 --> 00:03:57.490 align:start position:0% to consensus is something that cannot be guaranteed<00:03:55.910> by<00:03:56.420> cryptography<00:03:57.140> it<00:03:57.260> can<00:03:57.380> only 00:03:57.490 --> 00:03:57.500 align:start position:0% guaranteed by cryptography it can only 00:03:57.500 --> 00:04:01.060 align:start position:0% guaranteed by cryptography it can only be<00:03:57.740> guaranteed<00:03:57.980> by<00:03:58.640> some<00:03:59.600> kind<00:04:00.170> of<00:04:00.380> model<00:04:00.830> that 00:04:01.060 --> 00:04:01.070 align:start position:0% be guaranteed by some kind of model that 00:04:01.070 --> 00:04:04.420 align:start position:0% be guaranteed by some kind of model that says<00:04:01.790> things<00:04:02.180> about<00:04:02.660> the<00:04:03.410> motivations<00:04:04.160> of 00:04:04.420 --> 00:04:04.430 align:start position:0% says things about the motivations of 00:04:04.430 --> 00:04:07.180 align:start position:0% says things about the motivations of participants<00:04:05.270> in<00:04:05.390> the<00:04:05.510> plan<00:04:05.600> the<00:04:06.350> platform 00:04:07.180 --> 00:04:07.190 align:start position:0% participants in the plan the platform 00:04:07.190 --> 00:04:09.640 align:start position:0% participants in the plan the platform so<00:04:07.880> what<00:04:08.330> chains<00:04:08.660> are<00:04:08.900> crypto<00:04:09.260> economic 00:04:09.640 --> 00:04:09.650 align:start position:0% so what chains are crypto economic 00:04:09.650 --> 00:04:11.800 align:start position:0% so what chains are crypto economic protocols<00:04:10.070> here's<00:04:10.730> a<00:04:10.850> blockchain<00:04:11.060> you<00:04:11.630> have 00:04:11.800 --> 00:04:11.810 align:start position:0% protocols here's a blockchain you have 00:04:11.810 --> 00:04:14.140 align:start position:0% protocols here's a blockchain you have blocks<00:04:12.110> and<00:04:12.470> five<00:04:13.370> of<00:04:13.489> those<00:04:13.580> blocks<00:04:13.820> are<00:04:14.030> in 00:04:14.140 --> 00:04:14.150 align:start position:0% blocks and five of those blocks are in 00:04:14.150 --> 00:04:16.599 align:start position:0% blocks and five of those blocks are in one<00:04:14.330> chain<00:04:14.600> one<00:04:14.840> of<00:04:14.989> those<00:04:15.140> blocks<00:04:15.650> is<00:04:15.980> kind<00:04:16.459> of 00:04:16.599 --> 00:04:16.609 align:start position:0% one chain one of those blocks is kind of 00:04:16.609 --> 00:04:18.720 align:start position:0% one chain one of those blocks is kind of off<00:04:16.850> to<00:04:17.299> the<00:04:17.330> side<00:04:17.419> and<00:04:17.720> the<00:04:17.840> wrong<00:04:17.959> chain<00:04:18.260> and 00:04:18.720 --> 00:04:18.730 align:start position:0% off to the side and the wrong chain and 00:04:18.730 --> 00:04:22.090 align:start position:0% off to the side and the wrong chain and in<00:04:19.730> a<00:04:20.209> blockchain<00:04:20.419> you<00:04:20.959> wants<00:04:21.260> to<00:04:21.470> encourage 00:04:22.090 --> 00:04:22.100 align:start position:0% in a blockchain you wants to encourage 00:04:22.100 --> 00:04:24.550 align:start position:0% in a blockchain you wants to encourage more<00:04:22.730> miners<00:04:23.150> to<00:04:23.330> create<00:04:23.630> blocks<00:04:23.960> that<00:04:24.169> extend 00:04:24.550 --> 00:04:24.560 align:start position:0% more miners to create blocks that extend 00:04:24.560 --> 00:04:26.230 align:start position:0% more miners to create blocks that extend the<00:04:24.650> correct<00:04:24.950> chain<00:04:25.160> and<00:04:25.400> you<00:04:25.490> do<00:04:25.610> not<00:04:25.760> want<00:04:25.970> to 00:04:26.230 --> 00:04:26.240 align:start position:0% the correct chain and you do not want to 00:04:26.240 --> 00:04:26.950 align:start position:0% the correct chain and you do not want to encourage<00:04:26.600> pea 00:04:26.950 --> 00:04:26.960 align:start position:0% encourage pea 00:04:26.960 --> 00:04:29.200 align:start position:0% encourage pea able<00:04:27.080> to<00:04:27.319> create<00:04:28.160> blocks<00:04:28.520> that<00:04:28.729> just<00:04:28.910> go<00:04:29.060> off 00:04:29.200 --> 00:04:29.210 align:start position:0% able to create blocks that just go off 00:04:29.210 --> 00:04:31.059 align:start position:0% able to create blocks that just go off to<00:04:29.419> the<00:04:29.449> side<00:04:29.539> to<00:04:30.229> the<00:04:30.319> side<00:04:30.530> and<00:04:30.860> make<00:04:31.039> a 00:04:31.059 --> 00:04:31.069 align:start position:0% to the side to the side and make a 00:04:31.069 --> 00:04:33.460 align:start position:0% to the side to the side and make a different<00:04:31.490> chain<00:04:31.699> and<00:04:31.880> confuse<00:04:32.240> people<00:04:32.470> so 00:04:33.460 --> 00:04:33.470 align:start position:0% different chain and confuse people so 00:04:33.470 --> 00:04:35.379 align:start position:0% different chain and confuse people so how<00:04:33.830> do<00:04:33.889> we<00:04:34.069> do<00:04:34.220> this<00:04:34.400> with<00:04:34.910> economic 00:04:35.379 --> 00:04:35.389 align:start position:0% how do we do this with economic 00:04:35.389 --> 00:04:48.159 align:start position:0% how do we do this with economic incentives<00:04:45.400> now<00:04:46.400> it's<00:04:47.389> actually<00:04:47.870> a<00:04:47.900> bit<00:04:48.139> more 00:04:48.159 --> 00:04:48.169 align:start position:0% incentives now it's actually a bit more 00:04:48.169 --> 00:04:49.719 align:start position:0% incentives now it's actually a bit more subtle<00:04:48.590> than<00:04:48.919> just<00:04:49.250> talking<00:04:49.490> about 00:04:49.719 --> 00:04:49.729 align:start position:0% subtle than just talking about 00:04:49.729 --> 00:04:52.600 align:start position:0% subtle than just talking about incentives<00:04:50.389> right<00:04:50.660> Bitcoin<00:04:51.470> uses<00:04:52.130> group<00:04:52.490> to 00:04:52.600 --> 00:04:52.610 align:start position:0% incentives right Bitcoin uses group to 00:04:52.610 --> 00:04:55.480 align:start position:0% incentives right Bitcoin uses group to economics<00:04:53.150> to<00:04:53.330> solve<00:04:53.569> two<00:04:53.900> problems<00:04:54.340> what<00:04:55.340> the 00:04:55.480 --> 00:04:55.490 align:start position:0% economics to solve two problems what the 00:04:55.490 --> 00:04:57.969 align:start position:0% economics to solve two problems what the first<00:04:55.840> problem<00:04:56.840> that<00:04:57.110> is<00:04:57.199> what<00:04:57.500> I<00:04:57.530> call<00:04:57.800> the 00:04:57.969 --> 00:04:57.979 align:start position:0% first problem that is what I call the 00:04:57.979 --> 00:05:00.550 align:start position:0% first problem that is what I call the waitest<00:04:58.310> assignment<00:04:59.000> problem<00:04:59.389> but<00:04:59.960> you<00:05:00.349> might 00:05:00.550 --> 00:05:00.560 align:start position:0% waitest assignment problem but you might 00:05:00.560 --> 00:05:02.409 align:start position:0% waitest assignment problem but you might also<00:05:00.800> have<00:05:01.160> heard<00:05:01.220> about<00:05:01.520> basically<00:05:02.180> the<00:05:02.300> same 00:05:02.409 --> 00:05:02.419 align:start position:0% also have heard about basically the same 00:05:02.419 --> 00:05:04.320 align:start position:0% also have heard about basically the same problem<00:05:02.930> under<00:05:03.139> the<00:05:03.229> name<00:05:03.380> civil<00:05:03.800> resistance 00:05:04.320 --> 00:05:04.330 align:start position:0% problem under the name civil resistance 00:05:04.330 --> 00:05:06.550 align:start position:0% problem under the name civil resistance so<00:05:05.330> here's<00:05:05.570> the<00:05:05.720> problem<00:05:06.110> right 00:05:06.550 --> 00:05:06.560 align:start position:0% so here's the problem right 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them send<00:05:14.180> a<00:05:14.240> bunch<00:05:14.419> of<00:05:14.479> messages<00:05:14.690> to<00:05:14.960> each<00:05:15.229> other 00:05:15.460 --> 00:05:15.470 align:start position:0% send a bunch of messages to each other 00:05:15.470 --> 00:05:18.279 align:start position:0% send a bunch of messages to each other and<00:05:15.770> as<00:05:16.729> long<00:05:17.090> as<00:05:17.120> less<00:05:17.539> than<00:05:17.720> five<00:05:17.930> of<00:05:17.960> them 00:05:18.279 --> 00:05:18.289 align:start position:0% and as long as less than five of them 00:05:18.289 --> 00:05:21.580 align:start position:0% and as long as less than five of them are<00:05:18.409> malicious<00:05:18.710> then<00:05:19.870> the<00:05:20.870> system<00:05:21.259> is<00:05:21.409> going 00:05:21.580 --> 00:05:21.590 align:start position:0% are malicious then the system is going 00:05:21.590 --> 00:05:23.620 align:start position:0% are malicious then the system is going to<00:05:21.740> come<00:05:21.889> to<00:05:22.039> consensus<00:05:22.550> and<00:05:22.759> if<00:05:23.180> you<00:05:23.270> can<00:05:23.449> make 00:05:23.620 --> 00:05:23.630 align:start position:0% to come to consensus and if you can make 00:05:23.630 --> 00:05:25.719 align:start position:0% to come to consensus and if you can make assumptions<00:05:24.080> about<00:05:24.560> the<00:05:24.770> maximum<00:05:25.430> amount<00:05:25.610> of 00:05:25.719 --> 00:05:25.729 align:start position:0% assumptions about the maximum amount of 00:05:25.729 --> 00:05:28.120 align:start position:0% assumptions about the maximum amount of time<00:05:26.000> that<00:05:26.030> messages<00:05:26.720> can<00:05:26.930> will<00:05:27.590> take<00:05:27.800> to<00:05:27.979> pass 00:05:28.120 --> 00:05:28.130 align:start position:0% time that messages can will take to pass 00:05:28.130 --> 00:05:29.559 align:start position:0% time that messages can will take to pass between<00:05:28.370> these<00:05:28.669> nodes<00:05:28.940> that<00:05:29.180> instead<00:05:29.449> of 00:05:29.559 --> 00:05:29.569 align:start position:0% between these nodes that instead of 00:05:29.569 --> 00:05:31.360 align:start position:0% between these nodes that instead of tolerating<00:05:30.139> up<00:05:30.259> to<00:05:30.440> four<00:05:30.650> militias<00:05:31.070> you<00:05:31.220> can 00:05:31.360 --> 00:05:31.370 align:start position:0% tolerating up to four militias you can 00:05:31.370 --> 00:05:33.100 align:start position:0% tolerating up to four militias you can tolerate<00:05:31.550> up<00:05:31.909> to<00:05:32.030> seven<00:05:32.330> militias<00:05:32.750> and<00:05:32.960> that's 00:05:33.100 --> 00:05:33.110 align:start position:0% tolerate up to seven militias and that's 00:05:33.110 --> 00:05:36.430 align:start position:0% tolerate up to seven militias and that's like<00:05:33.289> even<00:05:33.440> better<00:05:34.090> and<00:05:35.090> it<00:05:35.659> turns<00:05:36.199> out<00:05:36.380> that 00:05:36.430 --> 00:05:36.440 align:start position:0% like even better and it turns out that 00:05:36.440 --> 00:05:38.740 align:start position:0% like even better and it turns out that if<00:05:36.710> you<00:05:36.830> can<00:05:36.860> allow<00:05:37.460> even<00:05:37.970> stronger<00:05:38.389> like 00:05:38.740 --> 00:05:38.750 align:start position:0% if you can allow even stronger like 00:05:38.750 --> 00:05:40.540 align:start position:0% if you can allow even stronger like really<00:05:39.110> strong<00:05:39.409> security<00:05:39.889> assumptions<00:05:40.340> you 00:05:40.540 --> 00:05:40.550 align:start position:0% really strong security assumptions you 00:05:40.550 --> 00:05:42.279 align:start position:0% really strong security assumptions you can<00:05:40.729> tolerate<00:05:41.000> all<00:05:41.270> the<00:05:41.539> way<00:05:41.630> up<00:05:41.780> to<00:05:41.900> thirteen 00:05:42.279 --> 00:05:42.289 align:start position:0% can tolerate all the way up to thirteen 00:05:42.289 --> 00:05:44.499 align:start position:0% can tolerate all the way up to thirteen being<00:05:42.530> malicious<00:05:42.860> but<00:05:43.219> that's<00:05:43.430> a<00:05:43.759> topic<00:05:44.210> for 00:05:44.499 --> 00:05:44.509 align:start position:0% being malicious but that's a topic for 00:05:44.509 --> 00:05:47.529 align:start position:0% being malicious but that's a topic for another<00:05:44.570> day<00:05:45.099> so<00:05:46.240> we've<00:05:47.240> had<00:05:47.419> these 00:05:47.529 --> 00:05:47.539 align:start position:0% another day so we've had these 00:05:47.539 --> 00:05:52.029 align:start position:0% another day so we've had these algorithms<00:05:48.110> for<00:05:48.289> a<00:05:48.349> long<00:05:48.560> time<00:05:48.830> right<00:05:49.460> and<00:05:51.039> so 00:05:52.029 --> 00:05:52.039 align:start position:0% algorithms for a long time right and so 00:05:52.039 --> 00:05:53.529 align:start position:0% algorithms for a long time right and so we<00:05:52.219> had<00:05:52.430> these<00:05:52.580> centralized<00:05:53.000> consensus 00:05:53.529 --> 00:05:53.539 align:start position:0% we had these centralized consensus 00:05:53.539 --> 00:05:55.270 align:start position:0% we had these centralized consensus what's<00:05:53.990> the<00:05:54.139> problem<00:05:54.469> what<00:05:54.650> why<00:05:54.830> hasn't<00:05:55.219> this 00:05:55.270 --> 00:05:55.280 align:start position:0% what's the problem what why hasn't this 00:05:55.280 --> 00:05:58.240 align:start position:0% what's the problem what why hasn't this taken<00:05:55.639> off<00:05:55.789> and<00:05:56.120> the<00:05:56.320> reason<00:05:57.320> is<00:05:57.590> ultimately 00:05:58.240 --> 00:05:58.250 align:start position:0% taken off and the reason is ultimately 00:05:58.250 --> 00:06:01.360 align:start position:0% taken off and the reason is ultimately that<00:05:58.400> even<00:05:59.389> in<00:05:59.570> a<00:05:59.599> system<00:06:00.199> that<00:06:00.229> has<00:06:00.409> say<00:06:00.949> 15 00:06:01.360 --> 00:06:01.370 align:start position:0% that even in a system that has say 15 00:06:01.370 --> 00:06:03.670 align:start position:0% that even in a system that has say 15 different<00:06:01.729> parties<00:06:02.060> you<00:06:02.960> have<00:06:02.990> to<00:06:03.289> have<00:06:03.440> some 00:06:03.670 --> 00:06:03.680 align:start position:0% different parties you have to have some 00:06:03.680 --> 00:06:05.469 align:start position:0% different parties you have to have some mechanism<00:06:03.800> for<00:06:04.370> choosing<00:06:04.789> who<00:06:04.940> these<00:06:05.090> 15 00:06:05.469 --> 00:06:05.479 align:start position:0% mechanism for choosing who these 15 00:06:05.479 --> 00:06:08.830 align:start position:0% mechanism for choosing who these 15 parties<00:06:05.840> are<00:06:06.050> right<00:06:06.710> you<00:06:07.190> could<00:06:07.400> say<00:06:07.699> oh<00:06:07.969> it's 00:06:08.830 --> 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00:06:20.090 align:start position:0% banks it could be 15 of the top world 00:06:20.090 --> 00:06:22.120 align:start position:0% banks it could be 15 of the top world governments<00:06:20.719> who<00:06:20.870> here<00:06:21.080> trusts<00:06:21.500> at<00:06:21.620> least<00:06:21.770> 11 00:06:22.120 --> 00:06:22.130 align:start position:0% governments who here trusts at least 11 00:06:22.130 --> 00:06:27.100 align:start position:0% governments who here trusts at least 11 of<00:06:22.250> the<00:06:22.370> top<00:06:22.550> 15<00:06:22.880> world<00:06:23.120> governments<00:06:24.729> so<00:06:26.110> this 00:06:27.100 --> 00:06:27.110 align:start position:0% of the top 15 world governments so this 00:06:27.110 --> 00:06:29.529 align:start position:0% of the top 15 world governments so this is<00:06:27.289> this<00:06:27.949> is<00:06:28.009> a<00:06:28.130> challenge<00:06:28.669> right<00:06:28.849> if<00:06:29.030> he<00:06:29.180> wants 00:06:29.529 --> 00:06:29.539 align:start position:0% is this is a challenge right if he wants 00:06:29.539 --> 00:06:32.980 align:start position:0% is this is a challenge right if he wants to<00:06:29.659> create<00:06:30.020> a<00:06:30.169> system<00:06:30.800> that<00:06:31.310> actually<00:06:31.630> will<00:06:32.630> be 00:06:32.980 --> 00:06:32.990 align:start position:0% to create a system that actually will be 00:06:32.990 --> 00:06:34.600 align:start position:0% to create a system that actually will be a<00:06:33.020> kind<00:06:33.320> of<00:06:33.409> accepted<00:06:34.009> by<00:06:34.190> large 00:06:34.600 --> 00:06:34.610 align:start position:0% a kind of accepted by large 00:06:34.610 --> 00:06:37.390 align:start position:0% a kind of accepted by large constituencies<00:06:35.599> around<00:06:36.589> around 00:06:37.390 --> 00:06:37.400 align:start position:0% constituencies around around 00:06:37.400 --> 00:06:41.469 align:start position:0% constituencies around around world<00:06:37.840> then<00:06:38.919> it's<00:06:39.919> hard<00:06:40.520> to<00:06:40.639> kind<00:06:41.000> of<00:06:41.180> create 00:06:41.469 --> 00:06:41.479 align:start position:0% world then it's hard to kind of create 00:06:41.479 --> 00:06:44.170 align:start position:0% world then it's hard to kind of create this<00:06:41.600> set<00:06:41.990> of<00:06:42.139> 50<00:06:42.500> of<00:06:42.650> 15<00:06:43.490> people<00:06:43.880> that 00:06:44.170 --> 00:06:44.180 align:start position:0% this set of 50 of 15 people that 00:06:44.180 --> 00:06:46.450 align:start position:0% this set of 50 of 15 people that everyone<00:06:44.840> will<00:06:45.169> agree<00:06:45.290> then<00:06:45.979> you<00:06:46.070> actually 00:06:46.450 --> 00:06:46.460 align:start position:0% everyone will agree then you actually 00:06:46.460 --> 00:06:48.100 align:start position:0% everyone will agree then you actually can't<00:06:46.669> trust<00:06:46.940> that<00:06:47.090> we<00:06:47.210> still<00:06:47.419> love<00:06:47.509> them<00:06:47.930> it's 00:06:48.100 --> 00:06:48.110 align:start position:0% can't trust that we still love them it's 00:06:48.110 --> 00:06:50.499 align:start position:0% can't trust that we still love them it's hard<00:06:48.259> to<00:06:48.590> come<00:06:49.220> up<00:06:49.340> with<00:06:49.460> a<00:06:49.520> set<00:06:49.940> of<00:06:50.150> actors 00:06:50.499 --> 00:06:50.509 align:start position:0% hard to come up with a set of actors 00:06:50.509 --> 00:06:53.260 align:start position:0% hard to come up with a set of actors running<00:06:50.930> the<00:06:51.050> system<00:06:51.470> that<00:06:51.949> actually<00:06:52.220> is<00:06:52.880> kind 00:06:53.260 --> 00:06:53.270 align:start position:0% running the system that actually is kind 00:06:53.270 --> 00:06:57.340 align:start position:0% running the system that actually is kind of<00:06:53.330> credibly<00:06:53.780> neutral<00:06:54.259> right<00:06:54.889> and<00:06:55.930> this<00:06:56.930> is 00:06:57.340 --> 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align:start position:0% basically what proof of work and proof of<00:07:04.880> stage<00:07:05.150> do<00:07:05.360> as<00:07:05.570> they<00:07:05.750> say 00:07:06.189 --> 00:07:06.199 align:start position:0% of stage do as they say 00:07:06.199 --> 00:07:09.340 align:start position:0% of stage do as they say well<00:07:06.380> instead<00:07:07.130> of<00:07:07.190> pre-selecting<00:07:08.180> 15<00:07:08.900> people 00:07:09.340 --> 00:07:09.350 align:start position:0% well instead of pre-selecting 15 people 00:07:09.350 --> 00:07:12.820 align:start position:0% well instead of pre-selecting 15 people that<00:07:09.800> will<00:07:10.280> be<00:07:10.970> run<00:07:11.240> this<00:07:11.389> system<00:07:11.680> what<00:07:12.680> we're 00:07:12.820 --> 00:07:12.830 align:start position:0% that will be run this system what we're 00:07:12.830 --> 00:07:15.460 align:start position:0% that will be run this system what we're going<00:07:13.100> to<00:07:13.160> kind<00:07:13.550> of<00:07:13.639> de<00:07:14.180> facto<00:07:14.210> do<00:07:14.930> is<00:07:15.229> we're 00:07:15.460 --> 00:07:15.470 align:start position:0% going to kind of de facto do is we're 00:07:15.470 --> 00:07:18.310 align:start position:0% going to kind of de facto do is we're going<00:07:15.620> to<00:07:15.710> say<00:07:16.060> anyone<00:07:17.060> who<00:07:17.120> publishes<00:07:17.930> a 00:07:18.310 --> 00:07:18.320 align:start position:0% going to say anyone who publishes a 00:07:18.320 --> 00:07:20.560 align:start position:0% going to say anyone who publishes a certificate<00:07:19.070> that<00:07:19.550> kind<00:07:19.820> of<00:07:19.910> Matt 00:07:20.560 --> 00:07:20.570 align:start position:0% certificate that kind of Matt 00:07:20.570 --> 00:07:23.320 align:start position:0% certificate that kind of Matt cryptographically<00:07:21.400> proves<00:07:22.400> that<00:07:23.030> they've 00:07:23.320 --> 00:07:23.330 align:start position:0% cryptographically proves that they've 00:07:23.330 --> 00:07:25.930 align:start position:0% cryptographically proves that they've keep<00:07:23.690> I<00:07:23.840> computed<00:07:24.830> some<00:07:25.100> large<00:07:25.460> amounts<00:07:25.880> of 00:07:25.930 --> 00:07:25.940 align:start position:0% keep I computed some large amounts of 00:07:25.940 --> 00:07:28.300 align:start position:0% keep I computed some large amounts of mathematical<00:07:26.630> work<00:07:26.810> gets<00:07:27.650> to<00:07:27.800> join<00:07:27.979> the<00:07:28.130> set 00:07:28.300 --> 00:07:28.310 align:start position:0% mathematical work gets to join the set 00:07:28.310 --> 00:07:31.629 align:start position:0% mathematical work gets to join the set so<00:07:29.120> if<00:07:29.240> you<00:07:29.449> can<00:07:29.660> solve<00:07:29.960> like<00:07:30.470> some<00:07:30.800> extremely 00:07:31.629 --> 00:07:31.639 align:start position:0% so if you can solve like some extremely 00:07:31.639 --> 00:07:33.790 align:start position:0% so if you can solve like some extremely complicated<00:07:32.120> mathematical<00:07:32.960> problem<00:07:33.349> and<00:07:33.500> you 00:07:33.790 --> 00:07:33.800 align:start position:0% complicated mathematical problem and you 00:07:33.800 --> 00:07:35.409 align:start position:0% complicated mathematical problem and you published<00:07:34.250> a<00:07:34.430> solution<00:07:35.030> to<00:07:35.150> this<00:07:35.240> problem 00:07:35.409 --> 00:07:35.419 align:start position:0% published a solution to this problem 00:07:35.419 --> 00:07:38.080 align:start position:0% published a solution to this problem said<00:07:36.380> ah<00:07:36.470> you're<00:07:36.740> part<00:07:36.949> of<00:07:37.009> the<00:07:37.099> set<00:07:37.340> I<00:07:37.520> mean 00:07:38.080 --> 00:07:38.090 align:start position:0% said ah you're part of the set I mean 00:07:38.090 --> 00:07:40.240 align:start position:0% said ah you're part of the set I mean proof<00:07:38.389> of<00:07:38.509> stake<00:07:38.750> if<00:07:39.020> you<00:07:39.620> have<00:07:39.800> a<00:07:39.830> bunch<00:07:40.130> of 00:07:40.240 --> 00:07:40.250 align:start position:0% proof of stake if you have a bunch of 00:07:40.250 --> 00:07:42.550 align:start position:0% proof of stake if you have a bunch of coins<00:07:40.490> and<00:07:40.910> you<00:07:41.389> send<00:07:41.720> those<00:07:41.900> coins<00:07:42.260> to<00:07:42.470> the 00:07:42.550 --> 00:07:42.560 align:start position:0% coins and you send those coins to the 00:07:42.560 --> 00:07:44.529 align:start position:0% coins and you send those coins to the deposit<00:07:42.949> contract<00:07:43.430> that<00:07:43.880> I<00:07:43.940> you're<00:07:44.270> part<00:07:44.479> of 00:07:44.529 --> 00:07:44.539 align:start position:0% deposit contract that I you're part of 00:07:44.539 --> 00:07:47.260 align:start position:0% deposit contract that I you're part of the<00:07:44.660> set<00:07:44.840> and<00:07:45.199> so<00:07:46.039> instead<00:07:46.490> of<00:07:46.729> the<00:07:46.970> kind<00:07:47.180> of 00:07:47.260 --> 00:07:47.270 align:start position:0% the set and so instead of the kind of 00:07:47.270 --> 00:07:49.180 align:start position:0% the set and so instead of the kind of pre<00:07:47.510> selecting<00:07:48.080> 15<00:07:48.470> people<00:07:48.680> that<00:07:48.800> everyone 00:07:49.180 --> 00:07:49.190 align:start position:0% pre selecting 15 people that everyone 00:07:49.190 --> 00:07:51.610 align:start position:0% pre selecting 15 people that everyone trusts<00:07:49.669> we<00:07:50.270> create<00:07:50.720> this<00:07:50.930> kind<00:07:51.110> of<00:07:51.229> open 00:07:51.610 --> 00:07:51.620 align:start position:0% trusts we create this kind of open 00:07:51.620 --> 00:07:54.040 align:start position:0% trusts we create this kind of open permissionless<00:07:52.130> system<00:07:52.699> where<00:07:52.940> anyone<00:07:53.750> can 00:07:54.040 --> 00:07:54.050 align:start position:0% permissionless system where anyone can 00:07:54.050 --> 00:07:58.390 align:start position:0% permissionless system where anyone can join<00:07:54.229> and<00:07:54.470> participate<00:07:54.580> but<00:07:55.580> then<00:07:55.909> we<00:07:57.070> we<00:07:58.070> wait 00:07:58.390 --> 00:07:58.400 align:start position:0% join and participate but then we we wait 00:07:58.400 --> 00:08:00.820 align:start position:0% join and participate but then we we wait the<00:07:58.880> birth<00:07:59.060> of<00:07:59.180> participants<00:07:59.900> by<00:08:00.169> the<00:08:00.229> number 00:08:00.820 --> 00:08:00.830 align:start position:0% the birth of participants by the number 00:08:00.830 --> 00:08:02.260 align:start position:0% the birth of participants by the number of<00:08:00.860> economic<00:08:01.430> resources<00:08:01.909> that<00:08:02.150> they 00:08:02.260 --> 00:08:02.270 align:start position:0% of economic resources that they 00:08:02.270 --> 00:08:04.629 align:start position:0% of economic resources that they contribute<00:08:02.750> right<00:08:03.320> so<00:08:03.470> in<00:08:03.560> proof<00:08:03.770> of<00:08:03.889> work<00:08:04.099> the 00:08:04.629 --> 00:08:04.639 align:start position:0% contribute right so in proof of work the 00:08:04.639 --> 00:08:07.390 align:start position:0% contribute right so in proof of work the the<00:08:04.909> kind<00:08:05.090> of<00:08:05.180> the<00:08:05.300> weight<00:08:05.510> of<00:08:05.979> the<00:08:06.979> impacts 00:08:07.390 --> 00:08:07.400 align:start position:0% the kind of the weight of the impacts 00:08:07.400 --> 00:08:08.800 align:start position:0% the kind of the weight of the impacts that<00:08:07.580> you<00:08:07.639> have<00:08:07.880> on<00:08:08.030> the<00:08:08.120> consensus<00:08:08.630> is 00:08:08.800 --> 00:08:08.810 align:start position:0% that you have on the consensus is 00:08:08.810 --> 00:08:10.360 align:start position:0% that you have on the consensus is proportional<00:08:09.470> to<00:08:09.500> the<00:08:09.680> amount<00:08:09.770> of<00:08:09.949> computing 00:08:10.360 --> 00:08:10.370 align:start position:0% proportional to the amount of computing 00:08:10.370 --> 00:08:11.649 align:start position:0% proportional to the amount of computing power<00:08:10.520> that<00:08:10.669> you're<00:08:10.940> bringing<00:08:11.270> to<00:08:11.389> the<00:08:11.449> table 00:08:11.649 --> 00:08:11.659 align:start position:0% power that you're bringing to the table 00:08:11.659 --> 00:08:13.689 align:start position:0% power that you're bringing to the table and<00:08:12.020> in<00:08:12.470> proof<00:08:12.650> of<00:08:12.770> stake<00:08:12.979> it's<00:08:13.159> proportional 00:08:13.689 --> 00:08:13.699 align:start position:0% and in proof of stake it's proportional 00:08:13.699 --> 00:08:15.730 align:start position:0% and in proof of stake it's proportional to<00:08:13.820> the<00:08:13.880> number<00:08:14.030> of<00:08:14.180> coins<00:08:14.539> and<00:08:14.900> both<00:08:15.470> of<00:08:15.650> those 00:08:15.730 --> 00:08:15.740 align:start position:0% to the number of coins and both of those 00:08:15.740 --> 00:08:17.890 align:start position:0% to the number of coins and both of those things<00:08:16.010> take<00:08:16.400> a<00:08:16.580> lot<00:08:16.760> of<00:08:16.940> economic<00:08:17.570> resources 00:08:17.890 --> 00:08:17.900 align:start position:0% things take a lot of economic resources 00:08:17.900 --> 00:08:20.649 align:start position:0% things take a lot of economic resources to<00:08:18.289> get<00:08:18.440> the<00:08:19.370> reason<00:08:19.699> we<00:08:19.820> can't<00:08:20.120> just<00:08:20.389> allow 00:08:20.649 --> 00:08:20.659 align:start position:0% to get the reason we can't just allow 00:08:20.659 --> 00:08:22.510 align:start position:0% to get the reason we can't just allow everyone<00:08:21.020> to<00:08:21.289> join<00:08:21.440> in<00:08:21.590> give<00:08:21.889> them<00:08:21.979> one<00:08:22.280> vote 00:08:22.510 --> 00:08:22.520 align:start position:0% everyone to join in give them one vote 00:08:22.520 --> 00:08:25.149 align:start position:0% everyone to join in give them one vote is<00:08:22.760> because<00:08:23.150> well<00:08:23.870> on<00:08:24.169> the<00:08:24.470> internet<00:08:24.919> nobody 00:08:25.149 --> 00:08:25.159 align:start position:0% is because well on the internet nobody 00:08:25.159 --> 00:08:26.890 align:start position:0% is because well on the internet nobody knows<00:08:25.490> you're<00:08:25.699> a<00:08:25.760> dog<00:08:26.030> and<00:08:26.060> on<00:08:26.419> the<00:08:26.539> internet 00:08:26.890 --> 00:08:26.900 align:start position:0% knows you're a dog and on the internet 00:08:26.900 --> 00:08:28.899 align:start position:0% knows you're a dog and on the internet nobody<00:08:27.199> knows<00:08:27.590> you're<00:08:27.949> a<00:08:27.979> virtual<00:08:28.490> machine 00:08:28.899 --> 00:08:28.909 align:start position:0% nobody knows you're a virtual machine 00:08:28.909 --> 00:08:31.600 align:start position:0% nobody knows you're a virtual machine inside<00:08:29.690> of<00:08:29.990> a<00:08:30.110> computer<00:08:30.260> with<00:08:30.680> 10,000<00:08:31.250> virtual 00:08:31.600 --> 00:08:31.610 align:start position:0% inside of a computer with 10,000 virtual 00:08:31.610 --> 00:08:33.699 align:start position:0% inside of a computer with 10,000 virtual machines<00:08:31.909> where<00:08:32.180> that<00:08:32.300> computer<00:08:32.479> is<00:08:32.839> run<00:08:33.529> by<00:08:33.680> a 00:08:33.699 --> 00:08:33.709 align:start position:0% machines where that computer is run by a 00:08:33.709 --> 00:08:38.409 align:start position:0% machines where that computer is run by a dog<00:08:34.180> so<00:08:36.430> like<00:08:37.430> this<00:08:37.700> is<00:08:37.880> the<00:08:38.000> problem<00:08:38.390> that 00:08:38.409 --> 00:08:38.419 align:start position:0% dog so like this is the problem that 00:08:38.419 --> 00:08:43.360 align:start position:0% dog so like this is the problem that we're<00:08:39.010> trying<00:08:40.010> to<00:08:40.190> solve<00:08:40.400> right<00:08:40.729> so<00:08:42.370> economics 00:08:43.360 --> 00:08:43.370 align:start position:0% we're trying to solve right so economics 00:08:43.370 --> 00:08:45.760 align:start position:0% we're trying to solve right so economics actually<00:08:43.849> does<00:08:44.120> do<00:08:44.900> a<00:08:44.930> very<00:08:45.230> good<00:08:45.320> job<00:08:45.529> of 00:08:45.760 --> 00:08:45.770 align:start position:0% actually does do a very good job of 00:08:45.770 --> 00:08:47.980 align:start position:0% actually does do a very good job of solving<00:08:46.339> this<00:08:46.459> problem<00:08:46.579> of<00:08:47.120> kind<00:08:47.329> of<00:08:47.420> creating 00:08:47.980 --> 00:08:47.990 align:start position:0% solving this problem of kind of creating 00:08:47.990 --> 00:08:48.879 align:start position:0% solving this problem of kind of creating this 00:08:48.879 --> 00:08:48.889 align:start position:0% this 00:08:48.889 --> 00:08:51.239 align:start position:0% this said<00:08:49.279> of<00:08:49.579> actors<00:08:50.059> and<00:08:50.299> this<00:08:50.509> kind<00:08:50.689> of<00:08:50.809> set<00:08:51.019> of 00:08:51.239 --> 00:08:51.249 align:start position:0% said of actors and this kind of set of 00:08:51.249 --> 00:08:54.099 align:start position:0% said of actors and this kind of set of assignments<00:08:52.249> of<00:08:52.399> voting<00:08:52.609> power<00:08:52.910> to<00:08:53.269> basically 00:08:54.099 --> 00:08:54.109 align:start position:0% assignments of voting power to basically 00:08:54.109 --> 00:08:56.259 align:start position:0% assignments of voting power to basically an<00:08:54.559> open<00:08:54.889> permission<00:08:55.399> Allah<00:08:55.579> set<00:08:55.790> of<00:08:55.910> actors 00:08:56.259 --> 00:08:56.269 align:start position:0% an open permission Allah set of actors 00:08:56.269 --> 00:08:59.710 align:start position:0% an open permission Allah set of actors that<00:08:57.019> actually<00:08:57.709> is<00:08:57.980> very<00:08:58.720> economically 00:08:59.710 --> 00:08:59.720 align:start position:0% that actually is very economically 00:08:59.720 --> 00:09:01.780 align:start position:0% that actually is very economically difficult<00:08:59.959> to<00:09:00.619> kind<00:09:00.980> of<00:09:01.069> take<00:09:01.309> over<00:09:01.459> and 00:09:01.780 --> 00:09:01.790 align:start position:0% difficult to kind of take over and 00:09:01.790 --> 00:09:05.679 align:start position:0% difficult to kind of take over and become<00:09:01.989> 51%<00:09:02.989> of<00:09:03.170> so<00:09:04.119> this<00:09:05.119> is<00:09:05.179> what<00:09:05.419> perfect 00:09:05.679 --> 00:09:05.689 align:start position:0% become 51% of so this is what perfect 00:09:05.689 --> 00:09:07.650 align:start position:0% become 51% of so this is what perfect work<00:09:05.839> solves<00:09:06.230> and<00:09:06.410> this<00:09:06.529> is<00:09:06.679> basically<00:09:07.189> the 00:09:07.650 --> 00:09:07.660 align:start position:0% work solves and this is basically the 00:09:07.660 --> 00:09:09.849 align:start position:0% work solves and this is basically the innovation<00:09:08.660> that<00:09:08.689> made<00:09:09.230> vic<00:09:09.439> when<00:09:09.589> possible 00:09:09.849 --> 00:09:09.859 align:start position:0% innovation that made vic when possible 00:09:09.859 --> 00:09:11.319 align:start position:0% innovation that made vic when possible the<00:09:10.220> innovation<00:09:10.669> that<00:09:10.790> makes<00:09:10.970> theory 00:09:11.319 --> 00:09:11.329 align:start position:0% the innovation that makes theory 00:09:11.329 --> 00:09:14.559 align:start position:0% the innovation that makes theory impossible<00:09:11.989> and<00:09:12.319> proof<00:09:13.220> of<00:09:13.339> stake<00:09:13.669> is<00:09:13.970> and<00:09:14.449> it 00:09:14.559 --> 00:09:14.569 align:start position:0% impossible and proof of stake is and it 00:09:14.569 --> 00:09:16.569 align:start position:0% impossible and proof of stake is and it fundamentally<00:09:14.929> in<00:09:15.379> the<00:09:15.470> exact<00:09:15.829> same<00:09:16.009> spirit 00:09:16.569 --> 00:09:16.579 align:start position:0% fundamentally in the exact same spirit 00:09:16.579 --> 00:09:18.729 align:start position:0% fundamentally in the exact same spirit except<00:09:17.449> instead<00:09:17.809> of<00:09:17.959> burning<00:09:18.379> a<00:09:18.439> bunch<00:09:18.619> of 00:09:18.729 --> 00:09:18.739 align:start position:0% except instead of burning a bunch of 00:09:18.739 --> 00:09:21.669 align:start position:0% except instead of burning a bunch of your<00:09:18.859> tricity<00:09:19.339> to<00:09:19.749> to<00:09:20.749> prove<00:09:21.019> that<00:09:21.290> you<00:09:21.499> have 00:09:21.669 --> 00:09:21.679 align:start position:0% your tricity to to prove that you have 00:09:21.679 --> 00:09:24.609 align:start position:0% your tricity to to prove that you have economic<00:09:22.160> resources<00:09:22.819> you<00:09:23.119> just<00:09:23.449> like<00:09:23.989> points 00:09:24.609 --> 00:09:24.619 align:start position:0% economic resources you just like points 00:09:24.619 --> 00:09:26.919 align:start position:0% economic resources you just like points to<00:09:24.739> the<00:09:24.919> address<00:09:25.879> where<00:09:25.910> you<00:09:26.149> deposited<00:09:26.749> some 00:09:26.919 --> 00:09:26.929 align:start position:0% to the address where you deposited some 00:09:26.929 --> 00:09:29.289 align:start position:0% to the address where you deposited some coins<00:09:27.199> into<00:09:27.410> your<00:09:27.589> contract<00:09:28.009> so<00:09:28.939> this<00:09:29.089> is<00:09:29.209> the 00:09:29.289 --> 00:09:29.299 align:start position:0% coins into your contract so this is the 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actors and some of<00:09:37.669> them<00:09:37.819> might<00:09:37.999> be<00:09:38.029> wonderful<00:09:38.569> people<00:09:38.720> and 00:09:39.400 --> 00:09:39.410 align:start position:0% of them might be wonderful people and 00:09:39.410 --> 00:09:43.449 align:start position:0% of them might be wonderful people and some<00:09:40.009> of<00:09:40.189> them<00:09:40.429> might<00:09:41.059> might<00:09:41.600> be<00:09:41.899> people<00:09:42.709> in 00:09:43.449 --> 00:09:43.459 align:start position:0% some of them might might be people in 00:09:43.459 --> 00:09:46.179 align:start position:0% some of them might might be people in some<00:09:44.389> country<00:09:45.019> that<00:09:45.350> can<00:09:45.559> mind<00:09:45.829> really 00:09:46.179 --> 00:09:46.189 align:start position:0% some country that can mind really 00:09:46.189 --> 00:09:48.400 align:start position:0% some country that can mind really cheaply<00:09:46.609> that<00:09:47.059> you<00:09:47.179> have<00:09:47.389> and<00:09:47.660> you<00:09:47.809> have<00:09:47.989> like 00:09:48.400 --> 00:09:48.410 align:start position:0% cheaply that you have and you have like 00:09:48.410 --> 00:09:50.650 align:start position:0% cheaply that you have and you have like no<00:09:49.069> you<00:09:49.369> don't<00:09:49.519> really<00:09:49.910> understand<00:09:50.419> what 00:09:50.650 --> 00:09:50.660 align:start position:0% no you don't really understand what 00:09:50.660 --> 00:09:53.259 align:start position:0% no you don't really understand what their<00:09:50.779> psychology<00:09:51.079> is<00:09:51.529> some<00:09:52.399> of<00:09:52.579> them<00:09:52.759> might 00:09:53.259 --> 00:09:53.269 align:start position:0% their psychology is some of them might 00:09:53.269 --> 00:09:55.809 align:start position:0% their psychology is some of them might be<00:09:53.299> like<00:09:54.079> big<00:09:54.319> big<00:09:54.709> corporations 00:09:55.809 --> 00:09:55.819 align:start position:0% be like big big corporations 00:09:55.819 --> 00:09:59.470 align:start position:0% be like big big corporations some<00:09:56.569> of<00:09:56.749> them<00:09:57.160> might<00:09:58.160> might<00:09:58.759> be<00:09:58.910> hobbyist 00:09:59.470 --> 00:09:59.480 align:start position:0% some of them might might be hobbyist 00:09:59.480 --> 00:10:02.499 align:start position:0% some of them might might be hobbyist some<00:10:00.079> some<00:10:00.679> of<00:10:00.799> them<00:10:00.980> might<00:10:01.249> be<00:10:01.279> like<00:10:02.239> hackers 00:10:02.499 --> 00:10:02.509 align:start position:0% some some of them might be like hackers 00:10:02.509 --> 00:10:04.809 align:start position:0% some some of them might be like hackers that<00:10:02.899> gain<00:10:03.079> and<00:10:03.499> gain<00:10:03.889> access<00:10:04.069> to<00:10:04.309> computing 00:10:04.809 --> 00:10:04.819 align:start position:0% that gain and gain access to computing 00:10:04.819 --> 00:10:07.119 align:start position:0% that gain and gain access to computing resources<00:10:05.329> and<00:10:06.110> like<00:10:06.439> these<00:10:06.589> are<00:10:06.799> kind<00:10:07.069> of 00:10:07.119 --> 00:10:07.129 align:start position:0% resources and like these are kind of 00:10:07.129 --> 00:10:08.769 align:start position:0% resources and like these are kind of disparate<00:10:07.489> groups<00:10:07.790> of<00:10:07.939> people<00:10:08.119> and<00:10:08.419> we<00:10:08.569> can 00:10:08.769 --> 00:10:08.779 align:start position:0% disparate groups of people and we can 00:10:08.779 --> 00:10:10.929 align:start position:0% disparate groups of people and we can know<00:10:08.989> and<00:10:09.439> of<00:10:09.529> fairly<00:10:10.249> little<00:10:10.519> about<00:10:10.759> what 00:10:10.929 --> 00:10:10.939 align:start position:0% know and of fairly little about what 00:10:10.939 --> 00:10:12.909 align:start position:0% know and of fairly little about what motivates<00:10:11.360> them<00:10:11.569> well<00:10:12.230> what's<00:10:12.559> the<00:10:12.709> thing 00:10:12.909 --> 00:10:12.919 align:start position:0% motivates them well what's the thing 00:10:12.919 --> 00:10:15.100 align:start position:0% motivates them well what's the thing that<00:10:12.949> motivates<00:10:13.279> a<00:10:13.639> lot<00:10:13.669> of<00:10:13.910> people<00:10:14.239> economic 00:10:15.100 --> 00:10:15.110 align:start position:0% that motivates a lot of people economic 00:10:15.110 --> 00:10:16.989 align:start position:0% that motivates a lot of people economic incentives<00:10:15.649> right<00:10:16.069> like<00:10:16.339> we<00:10:16.549> know<00:10:16.730> that 00:10:16.989 --> 00:10:16.999 align:start position:0% incentives right like we know that 00:10:16.999 --> 00:10:18.609 align:start position:0% incentives right like we know that people<00:10:17.329> in<00:10:17.419> all<00:10:17.569> these<00:10:17.809> disparate<00:10:18.199> regions 00:10:18.609 --> 00:10:18.619 align:start position:0% people in all these disparate regions 00:10:18.619 --> 00:10:20.769 align:start position:0% people in all these disparate regions like<00:10:18.889> money<00:10:19.160> and<00:10:19.339> wants<00:10:19.579> the<00:10:19.699> game<00:10:19.879> more<00:10:20.119> it's 00:10:20.769 --> 00:10:20.779 align:start position:0% like money and wants the game more it's 00:10:20.779 --> 00:10:23.019 align:start position:0% like money and wants the game more it's generally<00:10:21.649> people<00:10:21.980> that<00:10:22.369> don't<00:10:22.579> like<00:10:22.790> money 00:10:23.019 --> 00:10:23.029 align:start position:0% generally people that don't like money 00:10:23.029 --> 00:10:24.639 align:start position:0% generally people that don't like money and<00:10:23.119> what<00:10:23.389> to<00:10:23.540> gain<00:10:23.689> more<00:10:23.899> are<00:10:24.169> not<00:10:24.350> going<00:10:24.589> to 00:10:24.639 --> 00:10:24.649 align:start position:0% and what to gain more are not going to 00:10:24.649 --> 00:10:26.650 align:start position:0% and what to gain more are not going to be<00:10:24.739> the<00:10:24.860> ones<00:10:25.040> that<00:10:25.279> have<00:10:25.489> you<00:10:26.209> know<00:10:26.449> the 00:10:26.650 --> 00:10:26.660 align:start position:0% be the ones that have you know the 00:10:26.660 --> 00:10:29.199 align:start position:0% be the ones that have you know the economic<00:10:27.319> resources<00:10:27.769> to<00:10:28.040> make<00:10:28.160> up<00:10:28.309> 51%<00:10:28.610> of<00:10:29.119> the 00:10:29.199 --> 00:10:29.209 align:start position:0% economic resources to make up 51% of the 00:10:29.209 --> 00:10:32.229 align:start position:0% economic resources to make up 51% of the network<00:10:29.480> in<00:10:29.600> the<00:10:29.689> first<00:10:29.809> place<00:10:30.139> so<00:10:30.970> we<00:10:31.970> can 00:10:32.229 --> 00:10:32.239 align:start position:0% network in the first place so we can 00:10:32.239 --> 00:10:35.619 align:start position:0% network in the first place so we can infuse<00:10:33.230> economic<00:10:34.220> incentives<00:10:34.850> as<00:10:35.089> a<00:10:35.419> way<00:10:35.600> of 00:10:35.619 --> 00:10:35.629 align:start position:0% infuse economic incentives as a way of 00:10:35.629 --> 00:10:38.289 align:start position:0% infuse economic incentives as a way of driving<00:10:36.379> over<00:10:36.439> and<00:10:36.799> of<00:10:36.919> driving<00:10:37.789> this<00:10:38.029> wide 00:10:38.289 --> 00:10:38.299 align:start position:0% driving over and of driving this wide 00:10:38.299 --> 00:10:40.289 align:start position:0% driving over and of driving this wide disparate<00:10:38.869> group<00:10:39.079> of<00:10:39.199> participants<00:10:39.350> to 00:10:40.289 --> 00:10:40.299 align:start position:0% disparate group of participants to 00:10:40.299 --> 00:10:42.340 align:start position:0% disparate group of participants to participate<00:10:41.299> in<00:10:41.419> the<00:10:41.509> network<00:10:41.660> in<00:10:41.959> good<00:10:42.139> ways 00:10:42.340 --> 00:10:42.350 align:start position:0% participate in the network in good ways 00:10:42.350 --> 00:10:43.720 align:start position:0% participate in the network in good ways instead<00:10:42.679> of<00:10:42.799> participating<00:10:42.980> in<00:10:43.459> the<00:10:43.549> network 00:10:43.720 --> 00:10:43.730 align:start position:0% instead of participating in the network 00:10:43.730 --> 00:10:46.269 align:start position:0% instead of participating in the network in<00:10:43.999> bad<00:10:44.149> ways<00:10:44.329> so<00:10:45.259> these<00:10:45.379> are<00:10:45.589> both<00:10:45.799> kind<00:10:46.189> of 00:10:46.269 --> 00:10:46.279 align:start position:0% in bad ways so these are both kind of 00:10:46.279 --> 00:10:48.099 align:start position:0% in bad ways so these are both kind of crazy<00:10:46.519> uses<00:10:46.910> that<00:10:47.029> use<00:10:47.209> cases<00:10:47.480> of<00:10:47.809> crypto 00:10:48.099 --> 00:10:48.109 align:start position:0% crazy uses that use cases of crypto 00:10:48.109 --> 00:10:49.840 align:start position:0% crazy uses that use cases of crypto economics<00:10:48.679> and<00:10:48.949> they're<00:10:49.160> used<00:10:49.309> in<00:10:49.519> Bitcoin 00:10:49.840 --> 00:10:49.850 align:start position:0% economics and they're used in Bitcoin 00:10:49.850 --> 00:10:51.159 align:start position:0% economics and they're used in Bitcoin they're<00:10:50.029> used<00:10:50.149> in<00:10:50.269> aetherium<00:10:50.749> they're<00:10:50.929> used 00:10:51.159 --> 00:10:51.169 align:start position:0% they're used in aetherium they're used 00:10:51.169 --> 00:10:54.069 align:start position:0% they're used in aetherium they're used in<00:10:51.429> basically<00:10:52.429> an<00:10:52.730> every<00:10:53.089> main<00:10:53.329> major<00:10:53.600> public 00:10:54.069 --> 00:10:54.079 align:start position:0% in basically an every main major public 00:10:54.079 --> 00:10:59.079 align:start position:0% in basically an every main major public watching<00:10:55.809> so<00:10:56.919> incentives<00:10:57.919> pretty<00:10:58.279> clear<00:10:58.610> if 00:10:59.079 --> 00:10:59.089 align:start position:0% watching so incentives pretty clear if 00:10:59.089 --> 00:11:00.639 align:start position:0% watching so incentives pretty clear if you<00:10:59.360> make<00:10:59.509> a<00:10:59.539> block<00:10:59.869> that's<00:11:00.110> part<00:11:00.319> of<00:11:00.379> the<00:11:00.499> main 00:11:00.639 --> 00:11:00.649 align:start position:0% you make a block that's part of the main 00:11:00.649 --> 00:11:02.080 align:start position:0% you make a block that's part of the main chain<00:11:00.679> you<00:11:01.100> get<00:11:01.249> a<00:11:01.279> reward 00:11:02.080 --> 00:11:02.090 align:start position:0% chain you get a reward 00:11:02.090 --> 00:11:03.940 align:start position:0% chain you get a reward and<00:11:02.210> you<00:11:02.510> have<00:11:02.690> to<00:11:02.840> pay<00:11:03.020> some<00:11:03.380> electricity 00:11:03.940 --> 00:11:03.950 align:start position:0% and you have to pay some electricity 00:11:03.950 --> 00:11:05.650 align:start position:0% and you have to pay some electricity costs<00:11:04.430> to<00:11:04.520> make<00:11:04.670> a<00:11:04.700> plug<00:11:04.970> but<00:11:05.210> the<00:11:05.330> rewards 00:11:05.650 --> 00:11:05.660 align:start position:0% costs to make a plug but the rewards 00:11:05.660 --> 00:11:07.360 align:start position:0% costs to make a plug but the rewards gonna<00:11:05.840> be<00:11:05.990> a<00:11:06.020> bit<00:11:06.260> bigger<00:11:06.470> than<00:11:06.650> the<00:11:06.770> cost<00:11:07.010> and 00:11:07.360 --> 00:11:07.370 align:start position:0% gonna be a bit bigger than the cost and 00:11:07.370 --> 00:11:09.100 align:start position:0% gonna be a bit bigger than the cost and if<00:11:07.790> you<00:11:07.820> make<00:11:08.030> a<00:11:08.060> block<00:11:08.330> that's<00:11:08.540> not<00:11:08.750> part<00:11:09.050> of 00:11:09.100 --> 00:11:09.110 align:start position:0% if you make a block that's not part of 00:11:09.110 --> 00:11:10.540 align:start position:0% if you make a block that's not part of the<00:11:09.170> main<00:11:09.380> chain<00:11:09.410> you<00:11:09.800> have<00:11:09.830> to<00:11:09.980> pay<00:11:10.190> a<00:11:10.220> cost 00:11:10.540 --> 00:11:10.550 align:start position:0% the main chain you have to pay a cost 00:11:10.550 --> 00:11:13.270 align:start position:0% the main chain you have to pay a cost and<00:11:10.910> so<00:11:11.270> if<00:11:11.750> you're<00:11:12.230> making<00:11:12.380> blocks<00:11:12.830> you<00:11:13.130> have 00:11:13.270 --> 00:11:13.280 align:start position:0% and so if you're making blocks you have 00:11:13.280 --> 00:11:15.190 align:start position:0% and so if you're making blocks you have an<00:11:13.400> incentive<00:11:13.760> to<00:11:13.970> kind<00:11:14.540> of<00:11:14.600> continue<00:11:14.900> to 00:11:15.190 --> 00:11:15.200 align:start position:0% an incentive to kind of continue to 00:11:15.200 --> 00:11:17.790 align:start position:0% an incentive to kind of continue to extend<00:11:15.470> the<00:11:15.740> chain<00:11:15.980> that<00:11:16.160> everyone<00:11:16.460> else's 00:11:17.790 --> 00:11:17.800 align:start position:0% extend the chain that everyone else's 00:11:17.800 --> 00:11:23.040 align:start position:0% extend the chain that everyone else's who<00:11:18.800> here<00:11:19.010> understands<00:11:19.430> this<00:11:20.650> yay 00:11:23.040 --> 00:11:23.050 align:start position:0% who here understands this yay 00:11:23.050 --> 00:11:26.500 align:start position:0% who here understands this yay so<00:11:24.100> crypto<00:11:25.100> economics<00:11:25.640> is<00:11:25.820> great<00:11:26.090> because 00:11:26.500 --> 00:11:26.510 align:start position:0% so crypto economics is great because 00:11:26.510 --> 00:11:28.450 align:start position:0% so crypto economics is great because cryptography<00:11:27.290> lets<00:11:27.530> us<00:11:27.710> prove<00:11:27.980> things<00:11:28.250> with 00:11:28.450 --> 00:11:28.460 align:start position:0% cryptography lets us prove things with 00:11:28.460 --> 00:11:30.280 align:start position:0% cryptography lets us prove things with very<00:11:28.700> minimal<00:11:28.940> assumptions<00:11:29.600> about<00:11:29.840> behavior 00:11:30.280 --> 00:11:30.290 align:start position:0% very minimal assumptions about behavior 00:11:30.290 --> 00:11:31.660 align:start position:0% very minimal assumptions about behavior actually<00:11:30.680> without<00:11:30.980> assumptions<00:11:31.520> about 00:11:31.660 --> 00:11:31.670 align:start position:0% actually without assumptions about 00:11:31.670 --> 00:11:34.330 align:start position:0% actually without assumptions about behavior<00:11:32.210> group<00:11:33.170> to<00:11:33.290> economics<00:11:33.890> allowed<00:11:34.130> us 00:11:34.330 --> 00:11:34.340 align:start position:0% behavior group to economics allowed us 00:11:34.340 --> 00:11:36.190 align:start position:0% behavior group to economics allowed us to<00:11:34.520> approve<00:11:34.820> things<00:11:35.150> with<00:11:35.420> kind<00:11:35.630> of<00:11:35.750> minimal 00:11:36.190 --> 00:11:36.200 align:start position:0% to approve things with kind of minimal 00:11:36.200 --> 00:11:39.100 align:start position:0% to approve things with kind of minimal assumptions<00:11:36.740> about<00:11:36.890> participants<00:11:37.670> so<00:11:38.570> this 00:11:39.100 --> 00:11:39.110 align:start position:0% assumptions about participants so this 00:11:39.110 --> 00:11:44.260 align:start position:0% assumptions about participants so this an<00:11:39.950> assumption<00:11:40.790> that<00:11:42.550> they're<00:11:43.550> motivated<00:11:43.760> by 00:11:44.260 --> 00:11:44.270 align:start position:0% an assumption that they're motivated by 00:11:44.270 --> 00:11:47.740 align:start position:0% an assumption that they're motivated by economic<00:11:44.420> incentives<00:11:45.350> and<00:11:46.120> actually<00:11:47.120> systems 00:11:47.740 --> 00:11:47.750 align:start position:0% economic incentives and actually systems 00:11:47.750 --> 00:11:50.590 align:start position:0% economic incentives and actually systems can<00:11:48.050> even<00:11:48.470> work<00:11:48.950> even<00:11:49.460> if<00:11:49.670> people<00:11:49.970> are<00:11:50.360> not 00:11:50.590 --> 00:11:50.600 align:start position:0% can even work even if people are not 00:11:50.600 --> 00:11:52.990 align:start position:0% can even work even if people are not willing<00:11:50.900> to<00:11:51.110> kind<00:11:51.710> of<00:11:51.830> just<00:11:52.310> motivated<00:11:52.880> by 00:11:52.990 --> 00:11:53.000 align:start position:0% willing to kind of just motivated by 00:11:53.000 --> 00:11:55.000 align:start position:0% willing to kind of just motivated by economic<00:11:53.120> incentives<00:11:53.990> all<00:11:54.440> you<00:11:54.740> need<00:11:54.860> to 00:11:55.000 --> 00:11:55.010 align:start position:0% economic incentives all you need to 00:11:55.010 --> 00:11:57.310 align:start position:0% economic incentives all you need to assume<00:11:55.340> is<00:11:55.580> just<00:11:55.790> an<00:11:55.940> upper<00:11:56.180> bound<00:11:56.420> on<00:11:56.720> like 00:11:57.310 --> 00:11:57.320 align:start position:0% assume is just an upper bound on like 00:11:57.320 --> 00:11:59.350 align:start position:0% assume is just an upper bound on like basically<00:11:57.740> how<00:11:58.010> much<00:11:58.190> money<00:11:58.490> attackers<00:11:59.060> have 00:11:59.350 --> 00:11:59.360 align:start position:0% basically how much money attackers have 00:11:59.360 --> 00:12:01.960 align:start position:0% basically how much money attackers have that<00:12:00.080> they're<00:12:00.230> willing<00:12:00.350> to<00:12:00.620> burn<00:12:00.770> and<00:12:01.160> both<00:12:01.940> of 00:12:01.960 --> 00:12:01.970 align:start position:0% that they're willing to burn and both of 00:12:01.970 --> 00:12:03.940 align:start position:0% that they're willing to burn and both of these<00:12:02.180> assumptions<00:12:02.540> are<00:12:02.930> pretty<00:12:03.140> ideal<00:12:03.530> for 00:12:03.940 --> 00:12:03.950 align:start position:0% these assumptions are pretty ideal for 00:12:03.950 --> 00:12:06.720 align:start position:0% these assumptions are pretty ideal for decentralized<00:12:04.370> and<00:12:04.850> trust<00:12:05.030> me<00:12:05.180> to<00:12:05.240> my<00:12:05.390> systems 00:12:06.720 --> 00:12:06.730 align:start position:0% decentralized and trust me to my systems 00:12:06.730 --> 00:12:09.730 align:start position:0% decentralized and trust me to my systems so<00:12:07.730> what<00:12:08.540> are<00:12:08.690> the<00:12:08.840> security<00:12:09.080> goals<00:12:09.470> that<00:12:09.620> we 00:12:09.730 --> 00:12:09.740 align:start position:0% so what are the security goals that we 00:12:09.740 --> 00:12:11.290 align:start position:0% so what are the security goals that we have<00:12:09.890> in<00:12:09.920> corruptive<00:12:10.400> economic<00:12:10.880> systems 00:12:11.290 --> 00:12:11.300 align:start position:0% have in corruptive economic systems 00:12:11.300 --> 00:12:13.480 align:start position:0% have in corruptive economic systems right<00:12:11.600> so<00:12:11.840> first<00:12:12.080> of<00:12:12.290> all<00:12:12.380> we<00:12:13.070> want<00:12:13.340> the 00:12:13.480 --> 00:12:13.490 align:start position:0% right so first of all we want the 00:12:13.490 --> 00:12:15.430 align:start position:0% right so first of all we want the correct<00:12:13.820> execution<00:12:14.150> of<00:12:14.570> the<00:12:14.660> protocol<00:12:15.110> to<00:12:15.290> be 00:12:15.430 --> 00:12:15.440 align:start position:0% correct execution of the protocol to be 00:12:15.440 --> 00:12:17.980 align:start position:0% correct execution of the protocol to be a<00:12:15.470> robust<00:12:15.950> equilibrium<00:12:16.670> so<00:12:17.300> you<00:12:17.390> have<00:12:17.690> Nash 00:12:17.980 --> 00:12:17.990 align:start position:0% a robust equilibrium so you have Nash 00:12:17.990 --> 00:12:19.810 align:start position:0% a robust equilibrium so you have Nash equilibriums<00:12:18.740> that<00:12:18.980> basically<00:12:19.460> say<00:12:19.670> if 00:12:19.810 --> 00:12:19.820 align:start position:0% equilibriums that basically say if 00:12:19.820 --> 00:12:21.430 align:start position:0% equilibriums that basically say if everyone<00:12:20.210> is<00:12:20.330> following<00:12:20.630> the<00:12:20.780> protocol<00:12:21.230> it 00:12:21.430 --> 00:12:21.440 align:start position:0% everyone is following the protocol it 00:12:21.440 --> 00:12:22.930 align:start position:0% everyone is following the protocol it should<00:12:21.950> be<00:12:22.100> in<00:12:22.220> each<00:12:22.400> individual 00:12:22.930 --> 00:12:22.940 align:start position:0% should be in each individual 00:12:22.940 --> 00:12:24.820 align:start position:0% should be in each individual participants<00:12:23.540> interest<00:12:24.020> to<00:12:24.170> also<00:12:24.470> follow<00:12:24.650> the 00:12:24.820 --> 00:12:24.830 align:start position:0% participants interest to also follow the 00:12:24.830 --> 00:12:26.800 align:start position:0% participants interest to also follow the protocol<00:12:25.280> well<00:12:25.910> we<00:12:26.120> need<00:12:26.240> something<00:12:26.540> that's 00:12:26.800 --> 00:12:26.810 align:start position:0% protocol well we need something that's 00:12:26.810 --> 00:12:29.650 align:start position:0% protocol well we need something that's even<00:12:26.990> more<00:12:27.260> robust<00:12:27.650> we<00:12:27.920> wants<00:12:28.310> the<00:12:28.660> incentive 00:12:29.650 --> 00:12:29.660 align:start position:0% even more robust we wants the incentive 00:12:29.660 --> 00:12:31.360 align:start position:0% even more robust we wants the incentive to<00:12:29.840> follow<00:12:30.050> the<00:12:30.230> protocol<00:12:30.650> honestly<00:12:31.190> to<00:12:31.340> be 00:12:31.360 --> 00:12:31.370 align:start position:0% to follow the protocol honestly to be 00:12:31.370 --> 00:12:34.270 align:start position:0% to follow the protocol honestly to be pretty<00:12:31.670> substantial<00:12:31.850> and<00:12:32.840> we<00:12:33.830> want<00:12:34.160> the 00:12:34.270 --> 00:12:34.280 align:start position:0% pretty substantial and we want the 00:12:34.280 --> 00:12:37.030 align:start position:0% pretty substantial and we want the equilibrium<00:12:34.970> to<00:12:35.270> survive<00:12:35.750> even<00:12:36.170> if<00:12:36.560> some<00:12:36.860> sort 00:12:37.030 --> 00:12:37.040 align:start position:0% equilibrium to survive even if some sort 00:12:37.040 --> 00:12:38.530 align:start position:0% equilibrium to survive even if some sort of<00:12:37.130> significant<00:12:37.790> percentage<00:12:38.300> of<00:12:38.360> other 00:12:38.530 --> 00:12:38.540 align:start position:0% of significant percentage of other 00:12:38.540 --> 00:12:41.430 align:start position:0% of significant percentage of other participants<00:12:39.160> start<00:12:40.160> doing<00:12:40.460> nasty<00:12:40.640> things 00:12:41.430 --> 00:12:41.440 align:start position:0% participants start doing nasty things 00:12:41.440 --> 00:12:43.990 align:start position:0% participants start doing nasty things take<00:12:42.440> into<00:12:42.710> account<00:12:42.980> kind<00:12:43.340> of<00:12:43.430> games<00:12:43.670> that<00:12:43.820> are 00:12:43.990 --> 00:12:44.000 align:start position:0% take into account kind of games that are 00:12:44.000 --> 00:12:45.550 align:start position:0% take into account kind of games that are perturbed<00:12:44.420> by<00:12:44.660> third<00:12:44.840> parties<00:12:45.290> like 00:12:45.550 --> 00:12:45.560 align:start position:0% perturbed by third parties like 00:12:45.560 --> 00:12:48.280 align:start position:0% perturbed by third parties like attackers<00:12:46.070> making<00:12:46.400> bribes<00:12:46.670> and<00:12:47.060> also<00:12:47.840> ideally 00:12:48.280 --> 00:12:48.290 align:start position:0% attackers making bribes and also ideally 00:12:48.290 --> 00:12:49.960 align:start position:0% attackers making bribes and also ideally to<00:12:48.410> just<00:12:48.590> maximize<00:12:49.220> the<00:12:49.460> cost<00:12:49.700> of<00:12:49.910> a 00:12:49.960 --> 00:12:49.970 align:start position:0% to just maximize the cost of a 00:12:49.970 --> 00:12:51.850 align:start position:0% to just maximize the cost of a successful<00:12:50.360> attack<00:12:50.600> so<00:12:51.080> if<00:12:51.230> a<00:12:51.320> successful 00:12:51.850 --> 00:12:51.860 align:start position:0% successful attack so if a successful 00:12:51.860 --> 00:12:54.250 align:start position:0% successful attack so if a successful attack<00:12:52.100> happens<00:12:52.550> then<00:12:52.840> someone<00:12:53.840> who<00:12:53.990> who 00:12:54.250 --> 00:12:54.260 align:start position:0% attack happens then someone who who 00:12:54.260 --> 00:12:55.810 align:start position:0% attack happens then someone who who caused<00:12:54.560> the<00:12:54.710> attacks<00:12:55.010> to<00:12:55.130> happen<00:12:55.430> who<00:12:55.550> is<00:12:55.670> a 00:12:55.810 --> 00:12:55.820 align:start position:0% caused the attacks to happen who is a 00:12:55.820 --> 00:12:59.440 align:start position:0% caused the attacks to happen who is a lot<00:12:56.000> of<00:12:56.120> money<00:12:57.070> there's<00:12:58.070> different<00:12:58.550> security 00:12:59.440 --> 00:12:59.450 align:start position:0% lot of money there's different security 00:12:59.450 --> 00:13:01.930 align:start position:0% lot of money there's different security models<00:12:59.840> that<00:13:00.050> you<00:13:00.140> can<00:13:00.350> have<00:13:00.530> so<00:13:01.160> for<00:13:01.370> example 00:13:01.930 --> 00:13:01.940 align:start position:0% models that you can have so for example 00:13:01.940 --> 00:13:03.190 align:start position:0% models that you can have so for example you<00:13:02.150> can<00:13:02.330> have<00:13:02.480> different<00:13:02.720> kinds<00:13:03.140> of 00:13:03.190 --> 00:13:03.200 align:start position:0% you can have different kinds of 00:13:03.200 --> 00:13:05.070 align:start position:0% you can have different kinds of assumptions<00:13:03.680> about<00:13:03.770> participants<00:13:04.520> you<00:13:04.730> can 00:13:05.070 --> 00:13:05.080 align:start position:0% assumptions about participants you can 00:13:05.080 --> 00:13:07.900 align:start position:0% assumptions about participants you can assume<00:13:06.080> participants<00:13:06.710> are<00:13:06.800> honest<00:13:07.190> you<00:13:07.460> can 00:13:07.900 --> 00:13:07.910 align:start position:0% assume participants are honest you can 00:13:07.910 --> 00:13:09.550 align:start position:0% assume participants are honest you can assume<00:13:08.270> that<00:13:08.300> they're<00:13:08.690> rational<00:13:08.960> but<00:13:09.440> they're 00:13:09.550 --> 00:13:09.560 align:start position:0% assume that they're rational but they're 00:13:09.560 --> 00:13:11.560 align:start position:0% assume that they're rational but they're not<00:13:09.710> coordinated<00:13:10.490> so<00:13:10.940> they<00:13:11.060> want<00:13:11.300> to<00:13:11.420> make 00:13:11.560 --> 00:13:11.570 align:start position:0% not coordinated so they want to make 00:13:11.570 --> 00:13:13.120 align:start position:0% not coordinated so they want to make money<00:13:11.750> but<00:13:11.900> they're<00:13:12.170> not<00:13:12.350> kind<00:13:12.650> of<00:13:12.710> colluding 00:13:13.120 --> 00:13:13.130 align:start position:0% money but they're not kind of colluding 00:13:13.130 --> 00:13:14.530 align:start position:0% money but they're not kind of colluding with<00:13:13.160> each<00:13:13.370> other<00:13:13.580> to<00:13:13.760> make<00:13:13.790> as<00:13:14.030> much<00:13:14.180> money<00:13:14.240> as 00:13:14.530 --> 00:13:14.540 align:start position:0% with each other to make as much money as 00:13:14.540 --> 00:13:15.639 align:start position:0% with each other to make as much money as possible 00:13:15.639 --> 00:13:15.649 align:start position:0% possible 00:13:15.649 --> 00:13:18.220 align:start position:0% possible you<00:13:15.680> could<00:13:15.860> assume<00:13:16.100> they<00:13:16.279> are<00:13:16.309> coordinated<00:13:17.230> do 00:13:18.220 --> 00:13:18.230 align:start position:0% you could assume they are coordinated do 00:13:18.230 --> 00:13:19.840 align:start position:0% you could assume they are coordinated do your<00:13:18.410> assumptions<00:13:18.920> apply<00:13:19.220> to<00:13:19.279> a<00:13:19.459> super 00:13:19.840 --> 00:13:19.850 align:start position:0% your assumptions apply to a super 00:13:19.850 --> 00:13:21.519 align:start position:0% your assumptions apply to a super majority<00:13:19.970> of<00:13:20.449> participants<00:13:20.600> your<00:13:21.259> majority 00:13:21.519 --> 00:13:21.529 align:start position:0% majority of participants your majority 00:13:21.529 --> 00:13:24.639 align:start position:0% majority of participants your majority adjust<00:13:22.129> to<00:13:22.249> a<00:13:22.279> minority<00:13:23.529> assumptions<00:13:24.529> about 00:13:24.639 --> 00:13:24.649 align:start position:0% adjust to a minority assumptions about 00:13:24.649 --> 00:13:26.949 align:start position:0% adjust to a minority assumptions about the<00:13:24.860> network<00:13:25.189> is<00:13:25.759> the<00:13:26.119> network<00:13:26.149> synchronous 00:13:26.949 --> 00:13:26.959 align:start position:0% the network is the network synchronous 00:13:26.959 --> 00:13:29.259 align:start position:0% the network is the network synchronous our<00:13:27.230> message<00:13:27.589> is<00:13:27.740> guaranteed<00:13:28.309> to<00:13:28.550> get<00:13:28.939> across 00:13:29.259 --> 00:13:29.269 align:start position:0% our message is guaranteed to get across 00:13:29.269 --> 00:13:31.600 align:start position:0% our message is guaranteed to get across within<00:13:29.749> some<00:13:30.079> very<00:13:30.559> strict<00:13:30.860> time<00:13:31.160> bound<00:13:31.399> is 00:13:31.600 --> 00:13:31.610 align:start position:0% within some very strict time bound is 00:13:31.610 --> 00:13:33.489 align:start position:0% within some very strict time bound is there<00:13:32.240> partial<00:13:32.689> synchrony<00:13:33.170> is<00:13:33.290> there<00:13:33.470> a 00:13:33.489 --> 00:13:33.499 align:start position:0% there partial synchrony is there a 00:13:33.499 --> 00:13:34.989 align:start position:0% there partial synchrony is there a complete<00:13:33.889> a<00:13:33.920> synchrony<00:13:34.459> where<00:13:34.610> you<00:13:34.699> have<00:13:34.850> no 00:13:34.989 --> 00:13:34.999 align:start position:0% complete a synchrony where you have no 00:13:34.999 --> 00:13:36.639 align:start position:0% complete a synchrony where you have no idea<00:13:35.329> how<00:13:35.480> long<00:13:35.660> messages<00:13:36.110> will<00:13:36.290> take<00:13:36.470> to 00:13:36.639 --> 00:13:36.649 align:start position:0% idea how long messages will take to 00:13:36.649 --> 00:13:39.549 align:start position:0% idea how long messages will take to arrive<00:13:37.329> outside<00:13:38.329> influences<00:13:38.959> so<00:13:39.230> if<00:13:39.350> there's 00:13:39.549 --> 00:13:39.559 align:start position:0% arrive outside influences so if there's 00:13:39.559 --> 00:13:41.739 align:start position:0% arrive outside influences so if there's an<00:13:39.709> attacker<00:13:40.040> that's<00:13:40.369> willing<00:13:40.639> to<00:13:41.029> make 00:13:41.739 --> 00:13:41.749 align:start position:0% an attacker that's willing to make 00:13:41.749 --> 00:13:43.840 align:start position:0% an attacker that's willing to make economic<00:13:42.350> rewards<00:13:42.769> to<00:13:42.949> participants<00:13:43.519> already 00:13:43.840 --> 00:13:43.850 align:start position:0% economic rewards to participants already 00:13:43.850 --> 00:13:46.480 align:start position:0% economic rewards to participants already in<00:13:43.970> the<00:13:44.089> system<00:13:44.509> is<00:13:44.689> there<00:13:45.290> a<00:13:45.319> balance<00:13:45.619> on<00:13:45.980> the 00:13:46.480 --> 00:13:46.490 align:start position:0% in the system is there a balance on the 00:13:46.490 --> 00:13:48.129 align:start position:0% in the system is there a balance on the budget<00:13:46.819> the<00:13:46.999> amount<00:13:47.059> they<00:13:47.329> need<00:13:47.360> willing<00:13:47.899> to 00:13:48.129 --> 00:13:48.139 align:start position:0% budget the amount they need willing to 00:13:48.139 --> 00:13:50.199 align:start position:0% budget the amount they need willing to pay<00:13:48.350> is<00:13:48.619> there<00:13:48.949> a<00:13:48.980> bound<00:13:49.279> on<00:13:49.550> the<00:13:49.730> email<00:13:49.939> that 00:13:50.199 --> 00:13:50.209 align:start position:0% pay is there a bound on the email that 00:13:50.209 --> 00:13:51.759 align:start position:0% pay is there a bound on the email that they<00:13:50.300> actually<00:13:50.449> have<00:13:50.869> to<00:13:50.899> pay<00:13:51.199> if<00:13:51.319> an<00:13:51.470> attack 00:13:51.759 --> 00:13:51.769 align:start position:0% they actually have to pay if an attack 00:13:51.769 --> 00:13:57.100 align:start position:0% they actually have to pay if an attack happens<00:13:53.439> so<00:13:54.879> one<00:13:55.879> common<00:13:56.209> kind<00:13:56.629> of<00:13:56.689> critique 00:13:57.100 --> 00:13:57.110 align:start position:0% happens so one common kind of critique 00:13:57.110 --> 00:13:59.410 align:start position:0% happens so one common kind of critique of<00:13:57.379> the<00:13:57.529> crypto<00:13:57.949> economic<00:13:58.429> approach<00:13:58.759> which 00:13:59.410 --> 00:13:59.420 align:start position:0% of the crypto economic approach which 00:13:59.420 --> 00:14:01.840 align:start position:0% of the crypto economic approach which focuses<00:14:00.050> on<00:14:00.290> incentives<00:14:01.040> rather<00:14:01.550> than 00:14:01.840 --> 00:14:01.850 align:start position:0% focuses on incentives rather than 00:14:01.850 --> 00:14:03.850 align:start position:0% focuses on incentives rather than focusing<00:14:02.269> on<00:14:02.329> honest<00:14:03.079> majorities<00:14:03.589> is 00:14:03.850 --> 00:14:03.860 align:start position:0% focusing on honest majorities is 00:14:03.860 --> 00:14:06.819 align:start position:0% focusing on honest majorities is basically<00:14:04.730> like<00:14:05.540> what<00:14:05.839> about<00:14:06.079> attackers<00:14:06.679> that 00:14:06.819 --> 00:14:06.829 align:start position:0% basically like what about attackers that 00:14:06.829 --> 00:14:08.710 align:start position:0% basically like what about attackers that just<00:14:07.069> have<00:14:07.249> this<00:14:07.459> really<00:14:07.910> large<00:14:08.149> extra 00:14:08.710 --> 00:14:08.720 align:start position:0% just have this really large extra 00:14:08.720 --> 00:14:10.569 align:start position:0% just have this really large extra protocol<00:14:09.139> incentive<00:14:09.679> like<00:14:09.889> participants 00:14:10.569 --> 00:14:10.579 align:start position:0% protocol incentive like participants 00:14:10.579 --> 00:14:12.730 align:start position:0% protocol incentive like participants that<00:14:10.730> basically<00:14:11.119> just<00:14:11.929> wants<00:14:12.259> to<00:14:12.379> watch<00:14:12.529> the 00:14:12.730 --> 00:14:12.740 align:start position:0% that basically just wants to watch the 00:14:12.740 --> 00:14:15.639 align:start position:0% that basically just wants to watch the world<00:14:12.920> burn<00:14:13.040> right<00:14:13.759> this<00:14:13.999> could<00:14:14.269> be<00:14:14.540> a<00:14:15.079> keep 00:14:15.639 --> 00:14:15.649 align:start position:0% world burn right this could be a keep 00:14:15.649 --> 00:14:17.259 align:start position:0% world burn right this could be a keep eating<00:14:16.009> blockchain<00:14:16.579> this<00:14:16.879> could<00:14:17.089> be<00:14:17.240> a 00:14:17.259 --> 00:14:17.269 align:start position:0% eating blockchain this could be a 00:14:17.269 --> 00:14:20.530 align:start position:0% eating blockchain this could be a government<00:14:17.540> saying<00:14:18.410> this<00:14:18.709> could<00:14:19.040> be<00:14:19.429> the<00:14:20.179> just 00:14:20.530 --> 00:14:20.540 align:start position:0% government saying this could be the just 00:14:20.540 --> 00:14:22.239 align:start position:0% government saying this could be the just hackers<00:14:20.959> that<00:14:21.170> take<00:14:21.379> over<00:14:21.559> and<00:14:21.889> want<00:14:22.040> to<00:14:22.129> have 00:14:22.239 --> 00:14:22.249 align:start position:0% hackers that take over and want to have 00:14:22.249 --> 00:14:26.259 align:start position:0% hackers that take over and want to have some<00:14:22.490> fun<00:14:22.699> so<00:14:24.399> the<00:14:25.399> the<00:14:25.639> critique<00:14:25.999> here 00:14:26.259 --> 00:14:26.269 align:start position:0% some fun so the the critique here 00:14:26.269 --> 00:14:28.540 align:start position:0% some fun so the the critique here basically<00:14:26.809> says<00:14:27.050> well<00:14:27.379> we're<00:14:28.009> assuming<00:14:28.279> that 00:14:28.540 --> 00:14:28.550 align:start position:0% basically says well we're assuming that 00:14:28.550 --> 00:14:29.949 align:start position:0% basically says well we're assuming that you<00:14:28.790> have<00:14:28.970> these<00:14:29.149> participants<00:14:29.480> that<00:14:29.899> are 00:14:29.949 --> 00:14:29.959 align:start position:0% you have these participants that are 00:14:29.959 --> 00:14:31.960 align:start position:0% you have these participants that are motivated<00:14:30.439> by<00:14:30.559> economic<00:14:30.679> incentives<00:14:31.610> and 00:14:31.960 --> 00:14:31.970 align:start position:0% motivated by economic incentives and 00:14:31.970 --> 00:14:35.350 align:start position:0% motivated by economic incentives and what<00:14:32.929> if<00:14:33.110> there's<00:14:33.439> people<00:14:33.679> that<00:14:33.889> just<00:14:34.670> wants 00:14:35.350 --> 00:14:35.360 align:start position:0% what if there's people that just wants 00:14:35.360 --> 00:14:37.360 align:start position:0% what if there's people that just wants to<00:14:35.480> break<00:14:35.689> the<00:14:35.899> thing<00:14:36.110> regardless<00:14:36.740> of<00:14:36.889> how<00:14:37.009> of 00:14:37.360 --> 00:14:37.370 align:start position:0% to break the thing regardless of how of 00:14:37.370 --> 00:14:39.069 align:start position:0% to break the thing regardless of how of how<00:14:37.819> much<00:14:37.970> money<00:14:38.209> is<00:14:38.329> on<00:14:38.449> the<00:14:38.509> table<00:14:38.720> if<00:14:38.990> they 00:14:39.069 --> 00:14:39.079 align:start position:0% how much money is on the table if they 00:14:39.079 --> 00:14:41.829 align:start position:0% how much money is on the table if they don't<00:14:39.259> break<00:14:39.470> the<00:14:39.649> thing<00:14:39.910> so<00:14:40.910> there's<00:14:41.629> two 00:14:41.829 --> 00:14:41.839 align:start position:0% don't break the thing so there's two 00:14:41.839 --> 00:14:42.999 align:start position:0% don't break the thing so there's two replies<00:14:42.110> to<00:14:42.350> this<00:14:42.499> right 00:14:42.999 --> 00:14:43.009 align:start position:0% replies to this right 00:14:43.009 --> 00:14:45.819 align:start position:0% replies to this right one<00:14:43.490> of<00:14:43.639> them<00:14:43.790> is<00:14:44.059> that<00:14:44.420> the<00:14:44.899> traditional<00:14:45.589> kind 00:14:45.819 --> 00:14:45.829 align:start position:0% one of them is that the traditional kind 00:14:45.829 --> 00:14:47.679 align:start position:0% one of them is that the traditional kind of<00:14:45.980> honest<00:14:46.370> majority<00:14:46.910> driven<00:14:47.360> approach 00:14:47.679 --> 00:14:47.689 align:start position:0% of honest majority driven approach 00:14:47.689 --> 00:14:50.290 align:start position:0% of honest majority driven approach actually<00:14:48.110> is<00:14:48.860> even<00:14:49.160> more<00:14:49.339> realistic<00:14:49.699> because 00:14:50.290 --> 00:14:50.300 align:start position:0% actually is even more realistic because 00:14:50.300 --> 00:14:53.319 align:start position:0% actually is even more realistic because it<00:14:50.449> assumed<00:14:50.839> even<00:14:51.309> more<00:14:52.309> unrealistic<00:14:52.910> because 00:14:53.319 --> 00:14:53.329 align:start position:0% it assumed even more unrealistic because 00:14:53.329 --> 00:14:54.819 align:start position:0% it assumed even more unrealistic because it<00:14:53.629> assumes<00:14:53.899> that<00:14:54.079> the<00:14:54.230> majority<00:14:54.470> of<00:14:54.649> the 00:14:54.819 --> 00:14:54.829 align:start position:0% it assumes that the majority of the 00:14:54.829 --> 00:14:57.999 align:start position:0% it assumes that the majority of the participants<00:14:55.490> are<00:14:55.610> kind<00:14:56.389> of<00:14:57.009> altruistically 00:14:57.999 --> 00:14:58.009 align:start position:0% participants are kind of altruistically 00:14:58.009 --> 00:15:00.119 align:start position:0% participants are kind of altruistically honest<00:14:58.490> they're<00:14:58.639> honest<00:14:58.999> even<00:14:59.269> if<00:14:59.569> they<00:14:59.870> have 00:15:00.119 --> 00:15:00.129 align:start position:0% honest they're honest even if they have 00:15:00.129 --> 00:15:03.039 align:start position:0% honest they're honest even if they have incentives<00:15:01.129> to<00:15:01.220> be<00:15:01.339> dishonest<00:15:01.759> which<00:15:02.660> is<00:15:02.809> even 00:15:03.039 --> 00:15:03.049 align:start position:0% incentives to be dishonest which is even 00:15:03.049 --> 00:15:04.389 align:start position:0% incentives to be dishonest which is even more<00:15:03.079> unrealistic<00:15:03.769> than<00:15:04.129> the<00:15:04.220> economic 00:15:04.389 --> 00:15:04.399 align:start position:0% more unrealistic than the economic 00:15:04.399 --> 00:15:06.340 align:start position:0% more unrealistic than the economic approach<00:15:04.939> right<00:15:05.360> it's<00:15:05.540> basically<00:15:06.110> saying 00:15:06.340 --> 00:15:06.350 align:start position:0% approach right it's basically saying 00:15:06.350 --> 00:15:08.919 align:start position:0% approach right it's basically saying that<00:15:06.499> like<00:15:07.160> more<00:15:07.549> than<00:15:07.759> half<00:15:07.970> of<00:15:08.209> this<00:15:08.389> network 00:15:08.919 --> 00:15:08.929 align:start position:0% that like more than half of this network 00:15:08.929 --> 00:15:11.769 align:start position:0% that like more than half of this network that<00:15:09.529> that<00:15:09.559> in<00:15:10.189> order<00:15:10.459> to<00:15:10.490> get<00:15:10.759> into<00:15:11.149> you<00:15:11.569> have 00:15:11.769 --> 00:15:11.779 align:start position:0% that that in order to get into you have 00:15:11.779 --> 00:15:14.230 align:start position:0% that that in order to get into you have to<00:15:12.110> like<00:15:12.709> put<00:15:13.009> in<00:15:13.100> a<00:15:13.220> huge<00:15:13.459> pile<00:15:13.670> of<00:15:13.819> money<00:15:13.970> with 00:15:14.230 --> 00:15:14.240 align:start position:0% to like put in a huge pile of money with 00:15:14.240 --> 00:15:15.730 align:start position:0% to like put in a huge pile of money with the<00:15:14.329> expectation<00:15:14.990> of<00:15:15.049> getting<00:15:15.319> more<00:15:15.499> money 00:15:15.730 --> 00:15:15.740 align:start position:0% the expectation of getting more money 00:15:15.740 --> 00:15:17.410 align:start position:0% the expectation of getting more money and<00:15:16.249> more<00:15:16.549> than<00:15:16.759> one<00:15:16.939> half<00:15:17.179> of<00:15:17.329> these 00:15:17.410 --> 00:15:17.420 align:start position:0% and more than one half of these 00:15:17.420 --> 00:15:19.949 align:start position:0% and more than one half of these participants<00:15:18.139> are<00:15:18.290> going<00:15:18.499> to<00:15:18.879> just 00:15:19.949 --> 00:15:19.959 align:start position:0% participants are going to just 00:15:19.959 --> 00:15:22.840 align:start position:0% participants are going to just voluntarily<00:15:20.959> forego<00:15:21.529> forgo<00:15:22.069> opportunities 00:15:22.840 --> 00:15:22.850 align:start position:0% voluntarily forego forgo opportunities 00:15:22.850 --> 00:15:24.939 align:start position:0% voluntarily forego forgo opportunities to<00:15:23.029> save<00:15:23.209> money<00:15:23.449> and<00:15:23.779> this<00:15:24.319> has<00:15:24.499> already<00:15:24.649> been 00:15:24.939 --> 00:15:24.949 align:start position:0% to save money and this has already been 00:15:24.949 --> 00:15:27.369 align:start position:0% to save money and this has already been falsified<00:15:25.490> right<00:15:25.790> so<00:15:25.999> for<00:15:26.209> example<00:15:26.749> a<00:15:26.929> couple 00:15:27.369 --> 00:15:27.379 align:start position:0% falsified right so for example a couple 00:15:27.379 --> 00:15:29.030 align:start position:0% falsified right so for example a couple of<00:15:27.589> years<00:15:27.740> ago<00:15:27.949> there<00:15:28.279> was<00:15:28.459> this 00:15:29.030 --> 00:15:29.040 align:start position:0% of years ago there was this 00:15:29.040 --> 00:15:30.980 align:start position:0% of years ago there was this fork<00:15:29.880> that<00:15:30.120> happens<00:15:30.480> on<00:15:30.630> the<00:15:30.720> Bitcoin 00:15:30.980 --> 00:15:30.990 align:start position:0% fork that happens on the Bitcoin 00:15:30.990 --> 00:15:33.830 align:start position:0% fork that happens on the Bitcoin blockchain<00:15:31.260> where<00:15:31.850> miners<00:15:32.850> stopped 00:15:33.830 --> 00:15:33.840 align:start position:0% blockchain where miners stopped 00:15:33.840 --> 00:15:36.230 align:start position:0% blockchain where miners stopped verifying<00:15:34.740> blocks<00:15:35.280> because<00:15:35.820> they<00:15:36.030> just 00:15:36.230 --> 00:15:36.240 align:start position:0% verifying blocks because they just 00:15:36.240 --> 00:15:37.850 align:start position:0% verifying blocks because they just assumed<00:15:36.600> that<00:15:36.660> everyone<00:15:37.050> else<00:15:37.170> was<00:15:37.380> verifying 00:15:37.850 --> 00:15:37.860 align:start position:0% assumed that everyone else was verifying 00:15:37.860 --> 00:15:40.490 align:start position:0% assumed that everyone else was verifying blocks<00:15:38.160> and<00:15:38.490> so<00:15:39.060> one<00:15:39.450> invalid<00:15:39.900> block<00:15:40.110> got<00:15:40.320> in 00:15:40.490 --> 00:15:40.500 align:start position:0% blocks and so one invalid block got in 00:15:40.500 --> 00:15:42.770 align:start position:0% blocks and so one invalid block got in and<00:15:40.740> a<00:15:40.800> bunch<00:15:40.950> of<00:15:41.040> other<00:15:41.880> blocks<00:15:42.210> but<00:15:42.420> built<00:15:42.630> on 00:15:42.770 --> 00:15:42.780 align:start position:0% and a bunch of other blocks but built on 00:15:42.780 --> 00:15:44.990 align:start position:0% and a bunch of other blocks but built on top<00:15:42.930> of<00:15:42.990> it<00:15:43.260> and<00:15:43.470> about<00:15:44.100> six<00:15:44.400> blocks<00:15:44.640> had<00:15:44.880> to 00:15:44.990 --> 00:15:45.000 align:start position:0% top of it and about six blocks had to 00:15:45.000 --> 00:15:47.630 align:start position:0% top of it and about six blocks had to get<00:15:45.150> thrown<00:15:45.390> out<00:15:45.540> right<00:15:45.990> so<00:15:46.290> we<00:15:47.160> know<00:15:47.370> for<00:15:47.610> a 00:15:47.630 --> 00:15:47.640 align:start position:0% get thrown out right so we know for a 00:15:47.640 --> 00:15:49.640 align:start position:0% get thrown out right so we know for a fact<00:15:47.910> that<00:15:48.210> participants<00:15:49.020> in<00:15:49.110> these<00:15:49.200> networks 00:15:49.640 --> 00:15:49.650 align:start position:0% fact that participants in these networks 00:15:49.650 --> 00:15:51.860 align:start position:0% fact that participants in these networks are<00:15:49.950> willing<00:15:50.760> to<00:15:50.910> be<00:15:51.000> lazy<00:15:51.240> if<00:15:51.480> they<00:15:51.600> can<00:15:51.750> get 00:15:51.860 --> 00:15:51.870 align:start position:0% are willing to be lazy if they can get 00:15:51.870 --> 00:15:54.020 align:start position:0% are willing to be lazy if they can get away<00:15:52.080> with<00:15:52.260> it<00:15:52.410> and<00:15:53.370> the<00:15:53.580> second<00:15:53.910> argument 00:15:54.020 --> 00:15:54.030 align:start position:0% away with it and the second argument 00:15:54.030 --> 00:15:57.110 align:start position:0% away with it and the second argument here<00:15:54.570> is<00:15:54.600> that<00:15:54.750> well<00:15:55.560> pushing<00:15:56.520> the<00:15:56.670> cost<00:15:56.910> of 00:15:57.110 --> 00:15:57.120 align:start position:0% here is that well pushing the cost of 00:15:57.120 --> 00:16:00.200 align:start position:0% here is that well pushing the cost of attack<00:15:57.450> as<00:15:58.260> high<00:15:58.830> as<00:15:58.980> possible<00:15:59.010> matters<00:15:59.880> right 00:16:00.200 --> 00:16:00.210 align:start position:0% attack as high as possible matters right 00:16:00.210 --> 00:16:02.480 align:start position:0% attack as high as possible matters right because<00:16:00.600> the<00:16:01.140> higher<00:16:01.380> the<00:16:01.650> cost<00:16:01.830> of<00:16:02.070> an<00:16:02.160> attack 00:16:02.480 --> 00:16:02.490 align:start position:0% because the higher the cost of an attack 00:16:02.490 --> 00:16:04.730 align:start position:0% because the higher the cost of an attack the<00:16:03.150> lower<00:16:03.330> the<00:16:03.690> risk<00:16:03.930> that<00:16:04.050> there<00:16:04.320> is<00:16:04.530> an 00:16:04.730 --> 00:16:04.740 align:start position:0% the lower the risk that there is an 00:16:04.740 --> 00:16:06.830 align:start position:0% the lower the risk that there is an attacker<00:16:05.100> with<00:16:05.490> enough<00:16:05.910> resources<00:16:06.480> they're 00:16:06.830 --> 00:16:06.840 align:start position:0% attacker with enough resources they're 00:16:06.840 --> 00:16:08.270 align:start position:0% attacker with enough resources they're not<00:16:06.960> just<00:16:07.170> incentive<00:16:07.710> if<00:16:07.770> you<00:16:07.830> also<00:16:07.980> need 00:16:08.270 --> 00:16:08.280 align:start position:0% not just incentive if you also need 00:16:08.280 --> 00:16:11.750 align:start position:0% not just incentive if you also need resources<00:16:08.640> and<00:16:09.230> enough<00:16:10.230> will<00:16:10.500> to<00:16:10.980> kind<00:16:11.640> of 00:16:11.750 --> 00:16:11.760 align:start position:0% resources and enough will to kind of 00:16:11.760 --> 00:16:13.820 align:start position:0% resources and enough will to kind of actually<00:16:11.970> attack<00:16:12.510> the<00:16:12.690> system<00:16:12.900> actually 00:16:13.820 --> 00:16:13.830 align:start position:0% actually attack the system actually 00:16:13.830 --> 00:16:17.930 align:start position:0% actually attack the system actually exists<00:16:14.360> so<00:16:16.160> another<00:16:17.160> kind<00:16:17.400> of<00:16:17.520> version<00:16:17.850> of 00:16:17.930 --> 00:16:17.940 align:start position:0% exists so another kind of version of 00:16:17.940 --> 00:16:20.390 align:start position:0% exists so another kind of version of this<00:16:18.090> critique<00:16:18.330> basically<00:16:19.020> says<00:16:19.260> well<00:16:19.620> you 00:16:20.390 --> 00:16:20.400 align:start position:0% this critique basically says well you 00:16:20.400 --> 00:16:23.000 align:start position:0% this critique basically says well you can't<00:16:20.760> assume<00:16:21.180> that<00:16:21.240> people<00:16:21.930> don't<00:16:22.650> have<00:16:22.860> an 00:16:23.000 --> 00:16:23.010 align:start position:0% can't assume that people don't have an 00:16:23.010 --> 00:16:24.740 align:start position:0% can't assume that people don't have an incentive<00:16:23.370> to<00:16:23.610> break<00:16:23.760> the<00:16:23.970> chain<00:16:24.210> because<00:16:24.420> if 00:16:24.740 --> 00:16:24.750 align:start position:0% incentive to break the chain because if 00:16:24.750 --> 00:16:25.880 align:start position:0% incentive to break the chain because if they<00:16:24.840> have<00:16:24.960> an<00:16:25.080> incentive<00:16:25.380> to<00:16:25.560> break<00:16:25.680> the 00:16:25.880 --> 00:16:25.890 align:start position:0% they have an incentive to break the 00:16:25.890 --> 00:16:28.280 align:start position:0% they have an incentive to break the chain<00:16:26.130> then<00:16:26.520> you<00:16:27.210> can<00:16:27.390> just<00:16:27.570> like<00:16:27.810> hedge<00:16:28.080> on 00:16:28.280 --> 00:16:28.290 align:start position:0% chain then you can just like hedge on 00:16:28.290 --> 00:16:29.810 align:start position:0% chain then you can just like hedge on financial<00:16:28.800> markets<00:16:28.950> and<00:16:29.340> you<00:16:29.430> can<00:16:29.580> kind<00:16:29.760> of 00:16:29.810 --> 00:16:29.820 align:start position:0% financial markets and you can kind of 00:16:29.820 --> 00:16:31.730 align:start position:0% financial markets and you can kind of have<00:16:30.000> you<00:16:30.090> basically<00:16:30.720> make<00:16:31.290> money<00:16:31.560> on 00:16:31.730 --> 00:16:31.740 align:start position:0% have you basically make money on 00:16:31.740 --> 00:16:33.470 align:start position:0% have you basically make money on derivatives<00:16:32.010> from<00:16:32.550> like<00:16:32.880> watching<00:16:33.330> the 00:16:33.470 --> 00:16:33.480 align:start position:0% derivatives from like watching the 00:16:33.480 --> 00:16:36.710 align:start position:0% derivatives from like watching the watching<00:16:33.930> the<00:16:34.020> coin<00:16:34.260> price<00:16:34.560> drop<00:16:34.950> and<00:16:35.220> so<00:16:35.910> does 00:16:36.710 --> 00:16:36.720 align:start position:0% watching the coin price drop and so does 00:16:36.720 --> 00:16:38.570 align:start position:0% watching the coin price drop and so does it<00:16:36.750> really<00:16:37.050> matter<00:16:37.320> if<00:16:37.530> like<00:16:37.920> two<00:16:38.160> million<00:16:38.340> of 00:16:38.570 --> 00:16:38.580 align:start position:0% it really matter if like two million of 00:16:38.580 --> 00:16:40.220 align:start position:0% it really matter if like two million of your<00:16:38.700> eath<00:16:38.880> get<00:16:39.090> burned<00:16:39.330> if<00:16:39.660> you<00:16:39.840> make<00:16:40.020> your 00:16:40.220 --> 00:16:40.230 align:start position:0% your eath get burned if you make your 00:16:40.230 --> 00:16:41.990 align:start position:0% your eath get burned if you make your two<00:16:40.380> million<00:16:40.740> he's<00:16:40.890> back<00:16:41.130> by<00:16:41.370> doing<00:16:41.670> a<00:16:41.760> short 00:16:41.990 --> 00:16:42.000 align:start position:0% two million he's back by doing a short 00:16:42.000 --> 00:16:42.830 align:start position:0% two million he's back by doing a short on<00:16:42.210> bid<00:16:42.360> Finex 00:16:42.830 --> 00:16:42.840 align:start position:0% on bid Finex 00:16:42.840 --> 00:16:46.130 align:start position:0% on bid Finex and<00:16:43.880> like<00:16:44.880> a<00:16:44.910> lot<00:16:45.120> of<00:16:45.180> people<00:16:45.360> say<00:16:45.690> this<00:16:45.900> right 00:16:46.130 --> 00:16:46.140 align:start position:0% and like a lot of people say this right 00:16:46.140 --> 00:16:48.080 align:start position:0% and like a lot of people say this right as<00:16:46.320> an<00:16:46.470> argument<00:16:46.950> for<00:16:47.160> why<00:16:47.220> kind<00:16:47.880> of<00:16:47.970> the 00:16:48.080 --> 00:16:48.090 align:start position:0% as an argument for why kind of the 00:16:48.090 --> 00:16:50.690 align:start position:0% as an argument for why kind of the economic<00:16:48.510> model<00:16:48.780> that's<00:16:48.930> broken<00:16:49.140> but<00:16:49.860> the 00:16:50.690 --> 00:16:50.700 align:start position:0% economic model that's broken but the 00:16:50.700 --> 00:16:52.910 align:start position:0% economic model that's broken but the problem<00:16:51.060> with<00:16:51.240> this<00:16:51.420> is<00:16:51.600> right<00:16:51.900> that<00:16:52.140> first<00:16:52.740> of 00:16:52.910 --> 00:16:52.920 align:start position:0% problem with this is right that first of 00:16:52.920 --> 00:16:55.250 align:start position:0% problem with this is right that first of all<00:16:53.040> there<00:16:53.850> is<00:16:53.880> a<00:16:53.970> man<00:16:54.210> there<00:16:54.240> is<00:16:54.570> some<00:16:54.990> maximum 00:16:55.250 --> 00:16:55.260 align:start position:0% all there is a man there is some maximum 00:16:55.260 --> 00:16:57.230 align:start position:0% all there is a man there is some maximum amount<00:16:55.920> that<00:16:56.070> you<00:16:56.190> can<00:16:56.370> earn<00:16:56.490> by<00:16:56.730> breaking<00:16:57.120> the 00:16:57.230 --> 00:16:57.240 align:start position:0% amount that you can earn by breaking the 00:16:57.240 --> 00:16:59.840 align:start position:0% amount that you can earn by breaking the chain<00:16:57.450> right<00:16:58.320> there<00:16:58.380> like<00:16:58.950> finding<00:16:59.280> financial 00:16:59.840 --> 00:16:59.850 align:start position:0% chain right there like finding financial 00:16:59.850 --> 00:17:03.650 align:start position:0% chain right there like finding financial markets<00:17:00.390> are<00:17:00.630> not<00:17:01.110> infinitely<00:17:01.590> cheap<00:17:01.830> and<00:17:02.660> the 00:17:03.650 --> 00:17:03.660 align:start position:0% markets are not infinitely cheap and the 00:17:03.660 --> 00:17:05.960 align:start position:0% markets are not infinitely cheap and the attacker<00:17:04.050> is<00:17:04.440> motivated<00:17:05.280> to<00:17:05.490> already<00:17:05.820> have 00:17:05.960 --> 00:17:05.970 align:start position:0% attacker is motivated to already have 00:17:05.970 --> 00:17:08.120 align:start position:0% attacker is motivated to already have taken<00:17:06.600> this<00:17:06.720> maximum<00:17:07.230> trade<00:17:07.470> the<00:17:07.680> attack<00:17:07.949> if 00:17:08.120 --> 00:17:08.130 align:start position:0% taken this maximum trade the attack if 00:17:08.130 --> 00:17:09.710 align:start position:0% taken this maximum trade the attack if an<00:17:08.310> attacker<00:17:08.640> is<00:17:08.880> gonna<00:17:09.060> try<00:17:09.270> to<00:17:09.329> break<00:17:09.540> the 00:17:09.710 --> 00:17:09.720 align:start position:0% an attacker is gonna try to break the 00:17:09.720 --> 00:17:11.870 align:start position:0% an attacker is gonna try to break the chain<00:17:09.959> they're<00:17:10.560> gonna<00:17:10.650> be<00:17:10.860> motivated<00:17:11.430> to<00:17:11.459> like 00:17:11.870 --> 00:17:11.880 align:start position:0% chain they're gonna be motivated to like 00:17:11.880 --> 00:17:13.819 align:start position:0% chain they're gonna be motivated to like Meek<00:17:12.120> not<00:17:12.720> just<00:17:13.079> enough<00:17:13.320> money<00:17:13.530> to<00:17:13.650> cover 00:17:13.819 --> 00:17:13.829 align:start position:0% Meek not just enough money to cover 00:17:13.829 --> 00:17:15.500 align:start position:0% Meek not just enough money to cover their<00:17:14.040> losses<00:17:14.220> but<00:17:14.670> as<00:17:14.850> much<00:17:15.060> money<00:17:15.300> as 00:17:15.500 --> 00:17:15.510 align:start position:0% their losses but as much money as 00:17:15.510 --> 00:17:18.620 align:start position:0% their losses but as much money as possible<00:17:15.750> to<00:17:16.730> benefit<00:17:17.730> from<00:17:17.850> the<00:17:18.030> attack<00:17:18.360> and 00:17:18.620 --> 00:17:18.630 align:start position:0% possible to benefit from the attack and 00:17:18.630 --> 00:17:21.410 align:start position:0% possible to benefit from the attack and there<00:17:19.110> is<00:17:19.290> kind<00:17:19.680> of<00:17:19.740> some<00:17:20.010> fixed<00:17:20.430> number<00:17:20.490> that 00:17:21.410 --> 00:17:21.420 align:start position:0% there is kind of some fixed number that 00:17:21.420 --> 00:17:24.319 align:start position:0% there is kind of some fixed number that the<00:17:22.320> is<00:17:23.070> the<00:17:23.400> amount<00:17:23.610> of<00:17:23.790> money<00:17:23.940> that<00:17:24.150> they<00:17:24.300> can 00:17:24.319 --> 00:17:24.329 align:start position:0% the is the amount of money that they can 00:17:24.329 --> 00:17:27.050 align:start position:0% the is the amount of money that they can make<00:17:24.630> and<00:17:24.870> so<00:17:25.500> if<00:17:26.010> the<00:17:26.310> cost<00:17:26.520> of<00:17:26.670> attack<00:17:26.940> is 00:17:27.050 --> 00:17:27.060 align:start position:0% make and so if the cost of attack is 00:17:27.060 --> 00:17:28.430 align:start position:0% make and so if the cost of attack is higher<00:17:27.209> than<00:17:27.480> this<00:17:27.570> number<00:17:27.630> then<00:17:28.110> you've<00:17:28.230> won 00:17:28.430 --> 00:17:28.440 align:start position:0% higher than this number then you've won 00:17:28.440 --> 00:17:31.310 align:start position:0% higher than this number then you've won and<00:17:28.770> if<00:17:29.550> the<00:17:30.000> cost<00:17:30.210> of<00:17:30.390> attack<00:17:30.690> is<00:17:30.870> lower<00:17:31.080> than 00:17:31.310 --> 00:17:31.320 align:start position:0% and if the cost of attack is lower than 00:17:31.320 --> 00:17:33.320 align:start position:0% and if the cost of attack is lower than this<00:17:31.440> number<00:17:31.830> well<00:17:32.100> the<00:17:32.340> lower<00:17:32.520> it<00:17:32.790> is<00:17:32.820> then 00:17:33.320 --> 00:17:33.330 align:start position:0% this number well the lower it is then 00:17:33.330 --> 00:17:35.090 align:start position:0% this number well the lower it is then the<00:17:33.780> more<00:17:33.990> of<00:17:34.080> a<00:17:34.170> risk<00:17:34.410> that<00:17:34.620> this<00:17:34.770> kind<00:17:35.010> of 00:17:35.090 --> 00:17:35.100 align:start position:0% the more of a risk that this kind of 00:17:35.100 --> 00:17:37.240 align:start position:0% the more of a risk that this kind of attack<00:17:35.220> actually<00:17:35.610> will<00:17:36.060> happen<00:17:36.450> right<00:17:36.990> so 00:17:37.240 --> 00:17:37.250 align:start position:0% attack actually will happen right so 00:17:37.250 --> 00:17:40.430 align:start position:0% attack actually will happen right so there<00:17:38.250> is<00:17:38.520> an<00:17:38.940> a<00:17:39.030> very<00:17:39.300> significant<00:17:39.990> benefit 00:17:40.430 --> 00:17:40.440 align:start position:0% there is an a very significant benefit 00:17:40.440 --> 00:17:41.600 align:start position:0% there is an a very significant benefit to<00:17:40.590> you 00:17:41.600 --> 00:17:41.610 align:start position:0% to you 00:17:41.610 --> 00:17:43.460 align:start position:0% to you increasing<00:17:42.000> the<00:17:42.150> cost<00:17:42.360> of<00:17:42.570> attack<00:17:42.900> and<00:17:43.200> so 00:17:43.460 --> 00:17:43.470 align:start position:0% increasing the cost of attack and so 00:17:43.470 --> 00:17:47.690 align:start position:0% increasing the cost of attack and so increasing<00:17:44.400> the<00:17:44.929> amount<00:17:45.929> of<00:17:46.230> like<00:17:47.070> basically 00:17:47.690 --> 00:17:47.700 align:start position:0% increasing the amount of like basically 00:17:47.700 --> 00:17:50.060 align:start position:0% increasing the amount of like basically kind<00:17:48.030> of<00:17:48.150> course<00:17:48.450> but<00:17:48.690> outside<00:17:49.650> the<00:17:49.860> system 00:17:50.060 --> 00:17:50.070 align:start position:0% kind of course but outside the system 00:17:50.070 --> 00:17:52.400 align:start position:0% kind of course but outside the system incentives<00:17:50.760> you<00:17:50.940> know<00:17:51.210> you<00:17:51.510> need<00:17:51.660> to<00:17:51.690> have<00:17:51.870> in 00:17:52.400 --> 00:17:52.410 align:start position:0% incentives you know you need to have in 00:17:52.410 --> 00:17:54.860 align:start position:0% incentives you know you need to have in order<00:17:52.620> to<00:17:53.130> actually<00:17:53.760> be<00:17:54.210> willing<00:17:54.390> to<00:17:54.600> attack 00:17:54.860 --> 00:17:54.870 align:start position:0% order to actually be willing to attack 00:17:54.870 --> 00:17:57.890 align:start position:0% order to actually be willing to attack the<00:17:55.080> chain<00:17:55.290> so<00:17:55.980> like<00:17:56.160> for<00:17:56.370> example<00:17:56.540> if<00:17:57.540> you're 00:17:57.890 --> 00:17:57.900 align:start position:0% the chain so like for example if you're 00:17:57.900 --> 00:18:00.740 align:start position:0% the chain so like for example if you're going<00:17:58.170> to<00:17:58.559> attack<00:17:59.130> the<00:17:59.309> chain<00:17:59.580> then<00:17:59.940> it's 00:18:00.740 --> 00:18:00.750 align:start position:0% going to attack the chain then it's 00:18:00.750 --> 00:18:03.080 align:start position:0% going to attack the chain then it's going<00:18:00.929> to<00:18:00.990> be<00:18:01.080> fairly<00:18:01.350> easy<00:18:01.799> to<00:18:01.980> make<00:18:02.520> say<00:18:03.059> a 00:18:03.080 --> 00:18:03.090 align:start position:0% going to be fairly easy to make say a 00:18:03.090 --> 00:18:04.970 align:start position:0% going to be fairly easy to make say a few<00:18:03.480> thousand<00:18:03.929> worth<00:18:04.049> of<00:18:04.200> even<00:18:04.559> profits 00:18:04.970 --> 00:18:04.980 align:start position:0% few thousand worth of even profits 00:18:04.980 --> 00:18:06.770 align:start position:0% few thousand worth of even profits anonymous<00:18:05.460> way<00:18:05.610> on<00:18:05.730> decentralized<00:18:06.330> markets 00:18:06.770 --> 00:18:06.780 align:start position:0% anonymous way on decentralized markets 00:18:06.780 --> 00:18:09.740 align:start position:0% anonymous way on decentralized markets but<00:18:07.470> if<00:18:08.070> the<00:18:08.520> cost<00:18:08.730> of<00:18:08.880> attack<00:18:09.179> goes<00:18:09.420> up<00:18:09.600> to<00:18:09.720> a 00:18:09.740 --> 00:18:09.750 align:start position:0% but if the cost of attack goes up to a 00:18:09.750 --> 00:18:13.100 align:start position:0% but if the cost of attack goes up to a million<00:18:10.020> if<00:18:10.410> then<00:18:11.130> making<00:18:12.030> the<00:18:12.390> corresponding 00:18:13.100 --> 00:18:13.110 align:start position:0% million if then making the corresponding 00:18:13.110 --> 00:18:15.080 align:start position:0% million if then making the corresponding amount<00:18:13.380> on<00:18:13.620> financial<00:18:14.130> markets<00:18:14.490> anonymously 00:18:15.080 --> 00:18:15.090 align:start position:0% amount on financial markets anonymously 00:18:15.090 --> 00:18:16.490 align:start position:0% amount on financial markets anonymously and<00:18:15.330> getting<00:18:15.600> away<00:18:15.690> with<00:18:15.840> it<00:18:16.020> is<00:18:16.260> gonna<00:18:16.440> be 00:18:16.490 --> 00:18:16.500 align:start position:0% and getting away with it is gonna be 00:18:16.500 --> 00:18:19.520 align:start position:0% and getting away with it is gonna be vastly<00:18:16.950> harder<00:18:17.340> right<00:18:17.820> so<00:18:18.150> the<00:18:18.780> more<00:18:19.049> you<00:18:19.290> but 00:18:19.520 --> 00:18:19.530 align:start position:0% vastly harder right so the more you but 00:18:19.530 --> 00:18:21.289 align:start position:0% vastly harder right so the more you but you<00:18:19.650> push<00:18:19.919> up<00:18:20.100> the<00:18:20.250> requirement<00:18:20.850> for<00:18:20.910> how<00:18:21.120> much 00:18:21.289 --> 00:18:21.299 align:start position:0% you push up the requirement for how much 00:18:21.299 --> 00:18:22.730 align:start position:0% you push up the requirement for how much money<00:18:21.540> they<00:18:21.720> need<00:18:21.870> to<00:18:21.990> make<00:18:22.140> to<00:18:22.169> offset<00:18:22.590> the 00:18:22.730 --> 00:18:22.740 align:start position:0% money they need to make to offset the 00:18:22.740 --> 00:18:24.919 align:start position:0% money they need to make to offset the cost<00:18:22.950> of<00:18:23.130> an<00:18:23.220> attack<00:18:23.520> then<00:18:23.850> the<00:18:24.480> harder<00:18:24.809> and 00:18:24.919 --> 00:18:24.929 align:start position:0% cost of an attack then the harder and 00:18:24.929 --> 00:18:27.530 align:start position:0% cost of an attack then the harder and attack<00:18:25.169> the<00:18:25.860> more<00:18:26.370> unrealistic<00:18:26.970> an<00:18:27.270> attack 00:18:27.530 --> 00:18:27.540 align:start position:0% attack the more unrealistic an attack 00:18:27.540 --> 00:18:31.490 align:start position:0% attack the more unrealistic an attack becomes<00:18:28.940> so<00:18:29.940> we<00:18:30.540> can<00:18:30.690> look<00:18:30.809> at<00:18:30.929> proof<00:18:31.140> of<00:18:31.290> work 00:18:31.490 --> 00:18:31.500 align:start position:0% becomes so we can look at proof of work 00:18:31.500 --> 00:18:33.740 align:start position:0% becomes so we can look at proof of work in<00:18:31.830> a<00:18:32.040> kind<00:18:32.340> of<00:18:32.400> cryptic<00:18:32.730> economic<00:18:33.210> context 00:18:33.740 --> 00:18:33.750 align:start position:0% in a kind of cryptic economic context 00:18:33.750 --> 00:18:37.340 align:start position:0% in a kind of cryptic economic context right<00:18:33.929> so<00:18:34.290> you<00:18:35.100> can<00:18:35.340> look<00:18:35.610> at<00:18:35.880> like<00:18:36.840> models 00:18:37.340 --> 00:18:37.350 align:start position:0% right so you can look at like models 00:18:37.350 --> 00:18:39.710 align:start position:0% right so you can look at like models that<00:18:37.620> say<00:18:37.919> the<00:18:38.580> majority<00:18:39.090> of<00:18:39.120> the<00:18:39.270> network<00:18:39.390> is 00:18:39.710 --> 00:18:39.720 align:start position:0% that say the majority of the network is 00:18:39.720 --> 00:18:41.720 align:start position:0% that say the majority of the network is honest<00:18:40.140> or<00:18:40.410> the<00:18:40.679> majority<00:18:41.130> of<00:18:41.160> the<00:18:41.309> network<00:18:41.429> is 00:18:41.720 --> 00:18:41.730 align:start position:0% honest or the majority of the network is 00:18:41.730 --> 00:18:45.049 align:start position:0% honest or the majority of the network is uncoordinated<00:18:42.169> or<00:18:43.169> we<00:18:43.559> can<00:18:43.770> talk<00:18:44.160> about<00:18:44.400> the 00:18:45.049 --> 00:18:45.059 align:start position:0% uncoordinated or we can talk about the 00:18:45.059 --> 00:18:46.909 align:start position:0% uncoordinated or we can talk about the amount<00:18:45.360> of<00:18:45.510> budget<00:18:45.750> an<00:18:46.110> attacker<00:18:46.470> needs<00:18:46.679> to 00:18:46.909 --> 00:18:46.919 align:start position:0% amount of budget an attacker needs to 00:18:46.919 --> 00:18:49.039 align:start position:0% amount of budget an attacker needs to have<00:18:47.100> to<00:18:47.370> be<00:18:47.730> able<00:18:47.790> to<00:18:47.940> make<00:18:48.150> an<00:18:48.299> attack<00:18:48.600> or<00:18:48.929> we 00:18:49.039 --> 00:18:49.049 align:start position:0% have to be able to make an attack or we 00:18:49.049 --> 00:18:50.570 align:start position:0% have to be able to make an attack or we can<00:18:49.200> talk<00:18:49.320> about<00:18:49.620> the<00:18:49.740> cost<00:18:49.919> of<00:18:50.070> an<00:18:50.160> attack<00:18:50.429> if 00:18:50.570 --> 00:18:50.580 align:start position:0% can talk about the cost of an attack if 00:18:50.580 --> 00:18:53.060 align:start position:0% can talk about the cost of an attack if it<00:18:50.700> succeeds<00:18:51.059> and<00:18:51.330> then<00:18:52.230> we<00:18:52.440> can<00:18:52.590> also<00:18:52.740> talk 00:18:53.060 --> 00:18:53.070 align:start position:0% it succeeds and then we can also talk 00:18:53.070 --> 00:18:54.440 align:start position:0% it succeeds and then we can also talk about<00:18:53.130> kind<00:18:53.580> of<00:18:53.669> different<00:18:54.000> assumptions 00:18:54.440 --> 00:18:54.450 align:start position:0% about kind of different assumptions 00:18:54.450 --> 00:18:57.230 align:start position:0% about kind of different assumptions about<00:18:54.660> network<00:18:54.960> synchrony<00:18:55.440> assaut<00:18:56.000> or<00:18:57.000> do 00:18:57.230 --> 00:18:57.240 align:start position:0% about network synchrony assaut or do 00:18:57.240 --> 00:18:58.909 align:start position:0% about network synchrony assaut or do messages<00:18:57.690> arrive<00:18:57.929> immediately<00:18:58.140> do<00:18:58.799> they 00:18:58.909 --> 00:18:58.919 align:start position:0% messages arrive immediately do they 00:18:58.919 --> 00:19:00.560 align:start position:0% messages arrive immediately do they arrive<00:18:59.160> after<00:18:59.549> one<00:18:59.700> minute<00:18:59.880> to<00:19:00.150> the<00:19:00.270> arrive 00:19:00.560 --> 00:19:00.570 align:start position:0% arrive after one minute to the arrive 00:19:00.570 --> 00:19:03.110 align:start position:0% arrive after one minute to the arrive after<00:19:00.750> 10<00:19:01.110> minutes<00:19:01.320> so<00:19:02.160> the<00:19:02.340> first<00:19:02.549> column<00:19:02.850> is 00:19:03.110 --> 00:19:03.120 align:start position:0% after 10 minutes so the first column is 00:19:03.120 --> 00:19:05.180 align:start position:0% after 10 minutes so the first column is just<00:19:03.480> the<00:19:03.600> usual<00:19:03.750> kind<00:19:04.230> of<00:19:04.350> 51<00:19:04.799> percent 00:19:05.180 --> 00:19:05.190 align:start position:0% just the usual kind of 51 percent 00:19:05.190 --> 00:19:08.210 align:start position:0% just the usual kind of 51 percent argument<00:19:05.700> and<00:19:06.290> the<00:19:07.290> longer<00:19:07.710> there<00:19:07.890> the 00:19:08.210 --> 00:19:08.220 align:start position:0% argument and the longer there the 00:19:08.220 --> 00:19:10.520 align:start position:0% argument and the longer there the network<00:19:08.549> latency<00:19:09.120> the<00:19:09.660> more<00:19:09.900> the<00:19:10.080> percentage 00:19:10.520 --> 00:19:10.530 align:start position:0% network latency the more the percentage 00:19:10.530 --> 00:19:12.710 align:start position:0% network latency the more the percentage goes<00:19:10.740> up<00:19:10.980> because<00:19:11.250> the<00:19:11.460> honest<00:19:12.000> network<00:19:12.450> like 00:19:12.710 --> 00:19:12.720 align:start position:0% goes up because the honest network like 00:19:12.720 --> 00:19:14.450 align:start position:0% goes up because the honest network like sometimes<00:19:13.169> accidentally<00:19:13.650> make<00:19:13.950> stale<00:19:14.160> blogs 00:19:14.450 --> 00:19:14.460 align:start position:0% sometimes accidentally make stale blogs 00:19:14.460 --> 00:19:17.030 align:start position:0% sometimes accidentally make stale blogs the<00:19:15.210> second<00:19:15.570> column<00:19:15.750> uncoordinated<00:19:16.260> the 00:19:17.030 --> 00:19:17.040 align:start position:0% the second column uncoordinated the 00:19:17.040 --> 00:19:18.590 align:start position:0% the second column uncoordinated the reason<00:19:17.370> why<00:19:17.490> that<00:19:17.700> column<00:19:18.150> what<00:19:18.330> kind<00:19:18.510> of 00:19:18.590 --> 00:19:18.600 align:start position:0% reason why that column what kind of 00:19:18.600 --> 00:19:20.060 align:start position:0% reason why that column what kind of looks<00:19:18.809> much<00:19:18.990> harsher<00:19:19.260> is<00:19:19.530> because<00:19:19.830> you<00:19:19.950> have 00:19:20.060 --> 00:19:20.070 align:start position:0% looks much harsher is because you have 00:19:20.070 --> 00:19:22.400 align:start position:0% looks much harsher is because you have selfish<00:19:20.400> minding<00:19:20.790> and<00:19:20.970> the<00:19:21.929> cost<00:19:22.140> of<00:19:22.320> an 00:19:22.400 --> 00:19:22.410 align:start position:0% selfish minding and the cost of an 00:19:22.410 --> 00:19:25.010 align:start position:0% selfish minding and the cost of an attack<00:19:22.679> is<00:19:22.860> zero<00:19:23.220> because<00:19:23.490> well<00:19:24.450> if<00:19:24.690> you<00:19:24.870> make 00:19:25.010 --> 00:19:25.020 align:start position:0% attack is zero because well if you make 00:19:25.020 --> 00:19:27.320 align:start position:0% attack is zero because well if you make an<00:19:25.169> attack<00:19:25.470> and<00:19:25.679> you<00:19:25.740> succeed<00:19:26.190> then<00:19:26.730> sure<00:19:27.090> you 00:19:27.320 --> 00:19:27.330 align:start position:0% an attack and you succeed then sure you 00:19:27.330 --> 00:19:29.180 align:start position:0% an attack and you succeed then sure you have<00:19:27.510> to<00:19:27.690> grind<00:19:28.020> a<00:19:28.200> bunch<00:19:28.410> and<00:19:28.620> like<00:19:28.799> pay<00:19:28.950> for<00:19:29.130> a 00:19:29.180 --> 00:19:29.190 align:start position:0% have to grind a bunch and like pay for a 00:19:29.190 --> 00:19:31.070 align:start position:0% have to grind a bunch and like pay for a bunch<00:19:29.370> of<00:19:29.460> the<00:19:29.580> electricity<00:19:30.179> it's<00:19:30.330> to<00:19:30.540> create 00:19:31.070 --> 00:19:31.080 align:start position:0% bunch of the electricity it's to create 00:19:31.080 --> 00:19:33.169 align:start position:0% bunch of the electricity it's to create the<00:19:31.260> plea<00:19:31.500> attacking<00:19:31.950> blocks<00:19:32.220> which<00:19:32.880> is<00:19:33.030> what 00:19:33.169 --> 00:19:33.179 align:start position:0% the plea attacking blocks which is what 00:19:33.179 --> 00:19:35.539 align:start position:0% the plea attacking blocks which is what the<00:19:33.270> budget<00:19:33.419> is<00:19:33.720> but<00:19:34.440> you<00:19:34.559> get<00:19:34.770> you<00:19:35.070> get<00:19:35.280> paid<00:19:35.520> a 00:19:35.539 --> 00:19:35.549 align:start position:0% the budget is but you get you get paid a 00:19:35.549 --> 00:19:37.610 align:start position:0% the budget is but you get you get paid a block<00:19:35.880> reward<00:19:36.090> for<00:19:36.450> all<00:19:36.540> of<00:19:36.750> the<00:19:36.870> attack<00:19:37.169> for 00:19:37.610 --> 00:19:37.620 align:start position:0% block reward for all of the attack for 00:19:37.620 --> 00:19:39.320 align:start position:0% block reward for all of the attack for all<00:19:37.679> of<00:19:37.830> the<00:19:37.950> blocks<00:19:38.220> that<00:19:38.370> you<00:19:38.549> make<00:19:38.730> and<00:19:39.000> so 00:19:39.320 --> 00:19:39.330 align:start position:0% all of the blocks that you make and so 00:19:39.330 --> 00:19:41.840 align:start position:0% all of the blocks that you make and so actually<00:19:39.990> the<00:19:40.350> total<00:19:40.890> cost<00:19:41.280> of<00:19:41.429> the<00:19:41.580> attack 00:19:41.840 --> 00:19:41.850 align:start position:0% actually the total cost of the attack 00:19:41.850 --> 00:19:44.060 align:start position:0% actually the total cost of the attack after<00:19:42.240> you<00:19:42.480> factoring<00:19:43.169> the<00:19:43.260> rewards<00:19:43.679> becomes 00:19:44.060 --> 00:19:44.070 align:start position:0% after you factoring the rewards becomes 00:19:44.070 --> 00:19:47.480 align:start position:0% after you factoring the rewards becomes either<00:19:44.280> 0<00:19:44.640> or<00:19:44.820> negative<00:19:45.080> so<00:19:46.080> we<00:19:46.950> can<00:19:47.160> look<00:19:47.370> at 00:19:47.480 --> 00:19:47.490 align:start position:0% either 0 or negative so we can look at 00:19:47.490 --> 00:19:49.070 align:start position:0% either 0 or negative so we can look at different<00:19:47.640> consensus<00:19:48.270> algorithms<00:19:48.809> in<00:19:48.960> this 00:19:49.070 --> 00:19:49.080 align:start position:0% different consensus algorithms in this 00:19:49.080 --> 00:19:51.950 align:start position:0% different consensus algorithms in this way<00:19:49.320> and<00:19:49.669> proof<00:19:50.669> of<00:19:50.820> stake<00:19:51.090> is<00:19:51.300> actually<00:19:51.780> kind 00:19:51.950 --> 00:19:51.960 align:start position:0% way and proof of stake is actually kind 00:19:51.960 --> 00:19:53.870 align:start position:0% way and proof of stake is actually kind of<00:19:52.050> in<00:19:52.559> a<00:19:52.679> large<00:19:52.830> part<00:19:53.190> about<00:19:53.460> trying<00:19:53.730> to<00:19:53.790> take 00:19:53.870 --> 00:19:53.880 align:start position:0% of in a large part about trying to take 00:19:53.880 --> 00:19:54.549 align:start position:0% of in a large part about trying to take this<00:19:54.179> chair 00:19:54.549 --> 00:19:54.559 align:start position:0% this chair 00:19:54.559 --> 00:19:58.720 align:start position:0% this chair improve<00:19:54.950> on<00:19:55.129> it<00:19:56.679> one<00:19:57.679> important<00:19:58.399> concept 00:19:58.720 --> 00:19:58.730 align:start position:0% improve on it one important concept 00:19:58.730 --> 00:20:01.269 align:start position:0% improve on it one important concept encrypt<00:19:59.539> of<00:19:59.659> economics<00:20:00.230> is<00:20:00.440> this<00:20:00.710> distinction 00:20:01.269 --> 00:20:01.279 align:start position:0% encrypt of economics is this distinction 00:20:01.279 --> 00:20:04.060 align:start position:0% encrypt of economics is this distinction between<00:20:01.460> and<00:20:02.149> if<00:20:02.419> attributable<00:20:02.990> or<00:20:03.529> uniquely 00:20:04.060 --> 00:20:04.070 align:start position:0% between and if attributable or uniquely 00:20:04.070 --> 00:20:06.279 align:start position:0% between and if attributable or uniquely attributable<00:20:04.519> false<00:20:04.879> and<00:20:05.210> not<00:20:05.840> uniquely 00:20:06.279 --> 00:20:06.289 align:start position:0% attributable false and not uniquely 00:20:06.289 --> 00:20:09.489 align:start position:0% attributable false and not uniquely attributable<00:20:06.740> false<00:20:07.090> so<00:20:08.090> I<00:20:08.120> am<00:20:08.870> not<00:20:09.169> uniquely 00:20:09.489 --> 00:20:09.499 align:start position:0% attributable false so I am not uniquely 00:20:09.499 --> 00:20:12.580 align:start position:0% attributable false so I am not uniquely attributable<00:20:10.100> fault<00:20:10.460> is<00:20:10.669> a<00:20:10.970> fault<00:20:11.450> where<00:20:11.809> you 00:20:12.580 --> 00:20:12.590 align:start position:0% attributable fault is a fault where you 00:20:12.590 --> 00:20:15.070 align:start position:0% attributable fault is a fault where you know<00:20:12.860> that<00:20:13.190> some<00:20:13.610> mistake<00:20:14.090> happened<00:20:14.600> but<00:20:14.990> you 00:20:15.070 --> 00:20:15.080 align:start position:0% know that some mistake happened but you 00:20:15.080 --> 00:20:16.899 align:start position:0% know that some mistake happened but you have<00:20:15.230> no<00:20:15.409> idea<00:20:15.710> who<00:20:15.919> is<00:20:16.070> responsible 00:20:16.899 --> 00:20:16.909 align:start position:0% have no idea who is responsible 00:20:16.909 --> 00:20:18.460 align:start position:0% have no idea who is responsible right<00:20:17.299> so<00:20:17.480> for<00:20:17.629> example<00:20:18.110> if<00:20:18.230> you<00:20:18.320> have<00:20:18.409> a 00:20:18.460 --> 00:20:18.470 align:start position:0% right so for example if you have a 00:20:18.470 --> 00:20:21.279 align:start position:0% right so for example if you have a blockchain<00:20:18.799> and<00:20:19.330> you<00:20:20.330> have<00:20:20.570> two<00:20:21.080> different 00:20:21.279 --> 00:20:21.289 align:start position:0% blockchain and you have two different 00:20:21.289 --> 00:20:24.999 align:start position:0% blockchain and you have two different Forks<00:20:21.850> then<00:20:22.850> one<00:20:23.840> of<00:20:24.019> the<00:20:24.139> two<00:20:24.289> sides<00:20:24.590> here<00:20:24.889> is 00:20:24.999 --> 00:20:25.009 align:start position:0% Forks then one of the two sides here is 00:20:25.009 --> 00:20:26.680 align:start position:0% Forks then one of the two sides here is responsible<00:20:25.249> right<00:20:25.850> one<00:20:26.029> of<00:20:26.149> the<00:20:26.269> two<00:20:26.389> sides 00:20:26.680 --> 00:20:26.690 align:start position:0% responsible right one of the two sides 00:20:26.690 --> 00:20:28.419 align:start position:0% responsible right one of the two sides here<00:20:26.960> builds<00:20:27.470> on<00:20:27.590> top<00:20:27.619> of<00:20:27.950> an<00:20:28.039> old<00:20:28.190> block 00:20:28.419 --> 00:20:28.429 align:start position:0% here builds on top of an old block 00:20:28.429 --> 00:20:29.830 align:start position:0% here builds on top of an old block instead<00:20:28.820> of<00:20:28.879> building<00:20:29.210> on<00:20:29.330> top<00:20:29.480> of<00:20:29.539> a<00:20:29.690> newer 00:20:29.830 --> 00:20:29.840 align:start position:0% instead of building on top of a newer 00:20:29.840 --> 00:20:32.200 align:start position:0% instead of building on top of a newer block<00:20:30.169> but<00:20:30.860> you<00:20:30.889> don't<00:20:31.129> know<00:20:31.279> which<00:20:31.399> one<00:20:31.669> you 00:20:32.200 --> 00:20:32.210 align:start position:0% block but you don't know which one you 00:20:32.210 --> 00:20:33.730 align:start position:0% block but you don't know which one you don't<00:20:32.360> know<00:20:32.629> whether<00:20:32.929> the<00:20:33.110> top<00:20:33.289> chain<00:20:33.529> came 00:20:33.730 --> 00:20:33.740 align:start position:0% don't know whether the top chain came 00:20:33.740 --> 00:20:35.739 align:start position:0% don't know whether the top chain came first<00:20:34.009> or<00:20:34.309> or<00:20:34.850> whether<00:20:35.119> in<00:20:35.210> the<00:20:35.299> bottom<00:20:35.539> chain 00:20:35.739 --> 00:20:35.749 align:start position:0% first or or whether in the bottom chain 00:20:35.749 --> 00:20:38.769 align:start position:0% first or or whether in the bottom chain came<00:20:36.019> first<00:20:36.289> like<00:20:37.279> some<00:20:37.999> people<00:20:38.299> might<00:20:38.539> know 00:20:38.769 --> 00:20:38.779 align:start position:0% came first like some people might know 00:20:38.779 --> 00:20:40.359 align:start position:0% came first like some people might know if<00:20:38.990> they're<00:20:39.169> watching<00:20:39.320> the<00:20:39.619> network<00:20:39.740> closely 00:20:40.359 --> 00:20:40.369 align:start position:0% if they're watching the network closely 00:20:40.369 --> 00:20:42.489 align:start position:0% if they're watching the network closely but<00:20:40.879> there<00:20:40.999> is<00:20:41.090> no<00:20:41.269> way<00:20:41.480> of<00:20:41.509> proving<00:20:41.869> who<00:20:42.289> did 00:20:42.489 --> 00:20:42.499 align:start position:0% but there is no way of proving who did 00:20:42.499 --> 00:20:44.739 align:start position:0% but there is no way of proving who did what<00:20:42.679> first<00:20:43.009> cryptographically<00:20:43.580> and<00:20:44.119> so<00:20:44.629> the 00:20:44.739 --> 00:20:44.749 align:start position:0% what first cryptographically and so the 00:20:44.749 --> 00:20:46.480 align:start position:0% what first cryptographically and so the fault<00:20:44.990> here<00:20:45.259> is<00:20:45.379> not<00:20:45.559> uniquely<00:20:45.919> attributable 00:20:46.480 --> 00:20:46.490 align:start position:0% fault here is not uniquely attributable 00:20:46.490 --> 00:20:49.480 align:start position:0% fault here is not uniquely attributable and<00:20:46.820> the<00:20:47.509> problem<00:20:48.019> with<00:20:48.230> them<00:20:48.529> not<00:20:49.009> uniquely 00:20:49.480 --> 00:20:49.490 align:start position:0% and the problem with them not uniquely 00:20:49.490 --> 00:20:51.730 align:start position:0% and the problem with them not uniquely attributable<00:20:50.059> faults<00:20:50.570> is<00:20:50.869> that<00:20:51.139> there's<00:20:51.649> a 00:20:51.730 --> 00:20:51.740 align:start position:0% attributable faults is that there's a 00:20:51.740 --> 00:20:53.799 align:start position:0% attributable faults is that there's a limit<00:20:52.190> to<00:20:52.369> how<00:20:52.399> much<00:20:52.759> you<00:20:52.940> can<00:20:52.970> penalize<00:20:53.269> them 00:20:53.799 --> 00:20:53.809 align:start position:0% limit to how much you can penalize them 00:20:53.809 --> 00:20:56.200 align:start position:0% limit to how much you can penalize them because<00:20:54.499> if<00:20:54.679> you<00:20:54.710> penalized<00:20:55.279> on<00:20:55.429> a<00:20:55.549> non<00:20:55.970> unique 00:20:56.200 --> 00:20:56.210 align:start position:0% because if you penalized on a non unique 00:20:56.210 --> 00:20:57.519 align:start position:0% because if you penalized on a non unique way<00:20:56.360> to<00:20:56.389> your<00:20:56.570> variable<00:20:56.869> faults<00:20:57.169> too<00:20:57.320> much 00:20:57.519 --> 00:20:57.529 align:start position:0% way to your variable faults too much 00:20:57.529 --> 00:21:00.249 align:start position:0% way to your variable faults too much then<00:20:58.279> there's<00:20:59.179> a<00:20:59.269> risk<00:20:59.539> that<00:20:59.690> innocent<00:21:00.230> people 00:21:00.249 --> 00:21:00.259 align:start position:0% then there's a risk that innocent people 00:21:00.259 --> 00:21:02.379 align:start position:0% then there's a risk that innocent people will<00:21:00.590> get<00:21:00.740> caught<00:21:01.039> and<00:21:01.340> so<00:21:01.639> you're<00:21:01.940> making<00:21:02.269> the 00:21:02.379 --> 00:21:02.389 align:start position:0% will get caught and so you're making the 00:21:02.389 --> 00:21:03.759 align:start position:0% will get caught and so you're making the system<00:21:02.749> much<00:21:02.929> was<00:21:03.139> attractive<00:21:03.649> to 00:21:03.759 --> 00:21:03.769 align:start position:0% system much was attractive to 00:21:03.769 --> 00:21:06.460 align:start position:0% system much was attractive to participate<00:21:04.309> in<00:21:04.809> unique<00:21:05.809> way<00:21:05.990> attributable 00:21:06.460 --> 00:21:06.470 align:start position:0% participate in unique way attributable 00:21:06.470 --> 00:21:09.279 align:start position:0% participate in unique way attributable faults<00:21:06.889> are<00:21:07.070> faults<00:21:07.549> where<00:21:07.850> if<00:21:08.179> some<00:21:08.809> actor 00:21:09.279 --> 00:21:09.289 align:start position:0% faults are faults where if some actor 00:21:09.289 --> 00:21:11.470 align:start position:0% faults are faults where if some actor misbehaves<00:21:09.860> it<00:21:10.220> can<00:21:10.369> be<00:21:10.460> unambiguously<00:21:11.179> shown 00:21:11.470 --> 00:21:11.480 align:start position:0% misbehaves it can be unambiguously shown 00:21:11.480 --> 00:21:13.690 align:start position:0% misbehaves it can be unambiguously shown that<00:21:11.659> it<00:21:11.779> was<00:21:11.929> their<00:21:12.110> fault<00:21:12.159> so<00:21:13.159> if<00:21:13.399> some 00:21:13.690 --> 00:21:13.700 align:start position:0% that it was their fault so if some 00:21:13.700 --> 00:21:15.369 align:start position:0% that it was their fault so if some protocol<00:21:14.210> requires<00:21:14.629> you<00:21:14.840> to<00:21:14.869> shell<00:21:15.200> the 00:21:15.369 --> 00:21:15.379 align:start position:0% protocol requires you to shell the 00:21:15.379 --> 00:21:17.499 align:start position:0% protocol requires you to shell the result<00:21:15.679> of<00:21:15.799> a<00:21:15.889> calculation<00:21:16.009> and<00:21:16.789> someone 00:21:17.499 --> 00:21:17.509 align:start position:0% result of a calculation and someone 00:21:17.509 --> 00:21:20.710 align:start position:0% result of a calculation and someone shouts<00:21:17.779> 2+2<00:21:18.259> equals<00:21:18.440> 5<00:21:18.919> then<00:21:19.720> that's 00:21:20.710 --> 00:21:20.720 align:start position:0% shouts 2+2 equals 5 then that's 00:21:20.720 --> 00:21:23.320 align:start position:0% shouts 2+2 equals 5 then that's something<00:21:21.289> that<00:21:21.649> you<00:21:22.279> can<00:21:22.580> kind<00:21:22.909> of<00:21:22.970> point<00:21:23.269> to 00:21:23.320 --> 00:21:23.330 align:start position:0% something that you can kind of point to 00:21:23.330 --> 00:21:25.960 align:start position:0% something that you can kind of point to and<00:21:23.600> say<00:21:23.659> look<00:21:24.470> at<00:21:24.889> this<00:21:25.220> guy<00:21:25.399> over<00:21:25.490> here<00:21:25.700> and 00:21:25.960 --> 00:21:25.970 align:start position:0% and say look at this guy over here and 00:21:25.970 --> 00:21:27.700 align:start position:0% and say look at this guy over here and clearly<00:21:26.480> it's<00:21:26.749> definitely<00:21:27.230> this<00:21:27.409> guy<00:21:27.559> over 00:21:27.700 --> 00:21:27.710 align:start position:0% clearly it's definitely this guy over 00:21:27.710 --> 00:21:30.070 align:start position:0% clearly it's definitely this guy over here<00:21:27.860> who<00:21:28.639> me<00:21:28.789> who<00:21:29.029> made<00:21:29.210> a<00:21:29.240> mistake<00:21:29.659> and 00:21:30.070 --> 00:21:30.080 align:start position:0% here who me who made a mistake and 00:21:30.080 --> 00:21:32.409 align:start position:0% here who me who made a mistake and published<00:21:30.830> a<00:21:30.950> false<00:21:31.159> statement<00:21:31.580> and<00:21:31.730> you<00:21:32.269> can 00:21:32.409 --> 00:21:32.419 align:start position:0% published a false statement and you can 00:21:32.419 --> 00:21:33.940 align:start position:0% published a false statement and you can given<00:21:32.600> them<00:21:32.779> a<00:21:32.840> pretty<00:21:33.019> large<00:21:33.289> in<00:21:33.559> protocol 00:21:33.940 --> 00:21:33.950 align:start position:0% given them a pretty large in protocol 00:21:33.950 --> 00:21:38.019 align:start position:0% given them a pretty large in protocol penalty<00:21:34.429> so<00:21:35.470> this<00:21:36.470> kind<00:21:37.129> of<00:21:37.220> gets<00:21:37.369> us<00:21:37.669> to<00:21:37.850> the 00:21:38.019 --> 00:21:38.029 align:start position:0% penalty so this kind of gets us to the 00:21:38.029 --> 00:21:39.549 align:start position:0% penalty so this kind of gets us to the goals<00:21:38.240> of<00:21:38.419> proof<00:21:38.600> of<00:21:38.690> stake<00:21:38.929> right<00:21:39.259> so<00:21:39.440> in 00:21:39.549 --> 00:21:39.559 align:start position:0% goals of proof of stake right so in 00:21:39.559 --> 00:21:41.830 align:start position:0% goals of proof of stake right so in proof<00:21:39.740> of<00:21:39.860> stake<00:21:40.269> validators<00:21:41.269> have<00:21:41.509> to<00:21:41.659> make 00:21:41.830 --> 00:21:41.840 align:start position:0% proof of stake validators have to make 00:21:41.840 --> 00:21:43.359 align:start position:0% proof of stake validators have to make deposits<00:21:42.470> they<00:21:42.590> have<00:21:42.740> to<00:21:42.889> put<00:21:43.039> their<00:21:43.190> eath 00:21:43.359 --> 00:21:43.369 align:start position:0% deposits they have to put their eath 00:21:43.369 --> 00:21:44.950 align:start position:0% deposits they have to put their eath into<00:21:43.669> a<00:21:43.700> smart<00:21:44.029> contract<00:21:44.210> in<00:21:44.690> order<00:21:44.840> to 00:21:44.950 --> 00:21:44.960 align:start position:0% into a smart contract in order to 00:21:44.960 --> 00:21:47.350 align:start position:0% into a smart contract in order to participate<00:21:45.590> and<00:21:45.830> the<00:21:46.580> reason<00:21:46.970> why<00:21:47.119> those 00:21:47.350 --> 00:21:47.360 align:start position:0% participate and the reason why those 00:21:47.360 --> 00:21:50.340 align:start position:0% participate and the reason why those coins<00:21:47.720> have<00:21:47.960> to<00:21:47.990> be<00:21:48.230> locked<00:21:48.470> up<00:21:48.740> is<00:21:49.070> so<00:21:49.549> that<00:21:49.820> if 00:21:50.340 --> 00:21:50.350 align:start position:0% coins have to be locked up is so that if 00:21:50.350 --> 00:21:53.080 align:start position:0% coins have to be locked up is so that if validators<00:21:51.350> make<00:21:52.129> uniquely<00:21:52.820> available 00:21:53.080 --> 00:21:53.090 align:start position:0% validators make uniquely available 00:21:53.090 --> 00:21:56.109 align:start position:0% validators make uniquely available faults<00:21:53.720> if<00:21:53.899> validators<00:21:54.799> do<00:21:55.460> wrong<00:21:55.789> things 00:21:56.109 --> 00:21:56.119 align:start position:0% faults if validators do wrong things 00:21:56.119 --> 00:21:57.909 align:start position:0% faults if validators do wrong things that<00:21:56.480> they<00:21:56.600> that<00:21:56.840> can<00:21:56.960> be<00:21:57.110> identified<00:21:57.529> as 00:21:57.909 --> 00:21:57.919 align:start position:0% that they that can be identified as 00:21:57.919 --> 00:21:59.560 align:start position:0% that they that can be identified as specifically<00:21:58.429> them<00:21:58.759> doing<00:21:58.999> wrong<00:21:59.330> things 00:21:59.560 --> 00:21:59.570 align:start position:0% specifically them doing wrong things 00:21:59.570 --> 00:22:02.259 align:start position:0% specifically them doing wrong things then<00:22:00.499> you<00:22:00.590> can<00:22:00.619> have<00:22:00.980> in<00:22:01.279> protocol<00:22:01.820> penalties 00:22:02.259 --> 00:22:02.269 align:start position:0% then you can have in protocol penalties 00:22:02.269 --> 00:22:04.450 align:start position:0% then you can have in protocol penalties touch<00:22:02.600> these<00:22:02.809> deposits<00:22:03.169> and<00:22:03.679> take<00:22:04.009> away<00:22:04.250> than 00:22:04.450 --> 00:22:04.460 align:start position:0% touch these deposits and take away than 00:22:04.460 --> 00:22:07.389 align:start position:0% touch these deposits and take away than the<00:22:04.610> deposits<00:22:05.119> and<00:22:05.330> this<00:22:06.080> is<00:22:06.350> what<00:22:06.710> weeds<00:22:06.950> -<00:22:07.190> in 00:22:07.389 --> 00:22:07.399 align:start position:0% the deposits and this is what weeds - in 00:22:07.399 --> 00:22:08.230 align:start position:0% the deposits and this is what weeds - in extremely 00:22:08.230 --> 00:22:08.240 align:start position:0% extremely 00:22:08.240 --> 00:22:10.270 align:start position:0% extremely my<00:22:08.300> cost<00:22:08.570> of<00:22:08.750> attacking<00:22:09.050> purpose<00:22:09.500> take<00:22:09.710> that 00:22:10.270 --> 00:22:10.280 align:start position:0% my cost of attacking purpose take that 00:22:10.280 --> 00:22:11.830 align:start position:0% my cost of attacking purpose take that you<00:22:10.370> just<00:22:10.610> do<00:22:10.760> not<00:22:10.880> get<00:22:11.120> any<00:22:11.360> proof<00:22:11.570> of<00:22:11.690> work 00:22:11.830 --> 00:22:11.840 align:start position:0% you just do not get any proof of work 00:22:11.840 --> 00:22:15.640 align:start position:0% you just do not get any proof of work system<00:22:12.550> so<00:22:13.550> finality<00:22:14.090> a<00:22:14.330> block<00:22:14.809> is<00:22:15.020> finalized 00:22:15.640 --> 00:22:15.650 align:start position:0% system so finality a block is finalized 00:22:15.650 --> 00:22:18.940 align:start position:0% system so finality a block is finalized basically<00:22:16.460> if<00:22:17.140> validators<00:22:18.140> kind<00:22:18.470> of<00:22:18.559> make<00:22:18.770> a 00:22:18.940 --> 00:22:18.950 align:start position:0% basically if validators kind of make a 00:22:18.950 --> 00:22:21.130 align:start position:0% basically if validators kind of make a series<00:22:19.340> of<00:22:19.370> messages<00:22:19.700> supporting<00:22:20.510> a<00:22:20.600> blog<00:22:20.840> in 00:22:21.130 --> 00:22:21.140 align:start position:0% series of messages supporting a blog in 00:22:21.140 --> 00:22:23.590 align:start position:0% series of messages supporting a blog in such<00:22:21.890> a<00:22:21.920> way<00:22:22.280> that<00:22:22.309> in<00:22:22.880> order<00:22:23.150> to<00:22:23.179> also 00:22:23.590 --> 00:22:23.600 align:start position:0% such a way that in order to also 00:22:23.600 --> 00:22:26.290 align:start position:0% such a way that in order to also finalize<00:22:24.080> a<00:22:24.110> competing<00:22:24.559> block<00:22:24.860> the<00:22:25.550> valid<00:22:25.910> at 00:22:26.290 --> 00:22:26.300 align:start position:0% finalize a competing block the valid at 00:22:26.300 --> 00:22:27.910 align:start position:0% finalize a competing block the valid at least<00:22:26.510> one<00:22:26.780> third<00:22:26.960> of<00:22:27.170> validators<00:22:27.679> would 00:22:27.910 --> 00:22:27.920 align:start position:0% least one third of validators would 00:22:27.920 --> 00:22:29.560 align:start position:0% least one third of validators would basically<00:22:28.100> have<00:22:28.520> to<00:22:28.670> publicly<00:22:28.970> contradict 00:22:29.560 --> 00:22:29.570 align:start position:0% basically have to publicly contradict 00:22:29.570 --> 00:22:32.320 align:start position:0% basically have to publicly contradict themselves<00:22:29.720> so<00:22:30.710> the<00:22:31.490> kind<00:22:31.700> of<00:22:31.790> naive<00:22:32.090> way<00:22:32.270> to 00:22:32.320 --> 00:22:32.330 align:start position:0% themselves so the kind of naive way to 00:22:32.330 --> 00:22:33.790 align:start position:0% themselves so the kind of naive way to think<00:22:32.570> about<00:22:32.809> it<00:22:32.929> is<00:22:33.110> for<00:22:33.290> a<00:22:33.320> block<00:22:33.559> to<00:22:33.710> be 00:22:33.790 --> 00:22:33.800 align:start position:0% think about it is for a block to be 00:22:33.800 --> 00:22:35.560 align:start position:0% think about it is for a block to be finalized<00:22:34.309> two-thirds<00:22:34.820> of<00:22:35.030> people<00:22:35.120> have<00:22:35.420> to 00:22:35.560 --> 00:22:35.570 align:start position:0% finalized two-thirds of people have to 00:22:35.570 --> 00:22:37.930 align:start position:0% finalized two-thirds of people have to vote<00:22:35.690> for<00:22:35.750> it<00:22:36.140> and<00:22:36.320> so<00:22:36.920> for<00:22:37.220> a<00:22:37.250> competing<00:22:37.550> block 00:22:37.930 --> 00:22:37.940 align:start position:0% vote for it and so for a competing block 00:22:37.940 --> 00:22:40.210 align:start position:0% vote for it and so for a competing block to<00:22:38.120> be<00:22:38.210> finalized<00:22:38.780> then<00:22:39.260> two-thirds<00:22:40.040> of 00:22:40.210 --> 00:22:40.220 align:start position:0% to be finalized then two-thirds of 00:22:40.220 --> 00:22:41.590 align:start position:0% to be finalized then two-thirds of people<00:22:40.340> would<00:22:40.640> also<00:22:40.760> have<00:22:41.059> to<00:22:41.179> vote<00:22:41.300> for<00:22:41.510> the 00:22:41.590 --> 00:22:41.600 align:start position:0% people would also have to vote for the 00:22:41.600 --> 00:22:44.500 align:start position:0% people would also have to vote for the competing<00:22:41.929> block<00:22:42.230> and<00:22:42.530> so<00:22:43.330> one-third<00:22:44.330> of 00:22:44.500 --> 00:22:44.510 align:start position:0% competing block and so one-third of 00:22:44.510 --> 00:22:46.090 align:start position:0% competing block and so one-third of validators<00:22:45.050> would<00:22:45.320> have<00:22:45.500> to<00:22:45.650> contradict 00:22:46.090 --> 00:22:46.100 align:start position:0% validators would have to contradict 00:22:46.100 --> 00:22:47.350 align:start position:0% validators would have to contradict themselves<00:22:46.250> and<00:22:46.730> if<00:22:46.820> a<00:22:46.910> validator 00:22:47.350 --> 00:22:47.360 align:start position:0% themselves and if a validator 00:22:47.360 --> 00:22:49.810 align:start position:0% themselves and if a validator contradicts<00:22:48.320> themselves<00:22:48.860> you<00:22:49.100> can<00:22:49.280> take<00:22:49.610> the 00:22:49.810 --> 00:22:49.820 align:start position:0% contradicts themselves you can take the 00:22:49.820 --> 00:22:51.310 align:start position:0% contradicts themselves you can take the evidence<00:22:49.940> of<00:22:50.300> that<00:22:50.450> and<00:22:50.600> you<00:22:50.720> can<00:22:50.750> use<00:22:50.960> that<00:22:51.140> to 00:22:51.310 --> 00:22:51.320 align:start position:0% evidence of that and you can use that to 00:22:51.320 --> 00:22:53.770 align:start position:0% evidence of that and you can use that to penalize<00:22:51.710> them<00:22:51.950> in<00:22:52.760> a<00:22:52.820> reality<00:22:53.360> it's<00:22:53.510> more 00:22:53.770 --> 00:22:53.780 align:start position:0% penalize them in a reality it's more 00:22:53.780 --> 00:22:55.450 align:start position:0% penalize them in a reality it's more complex<00:22:54.170> than<00:22:54.320> one<00:22:54.590> round<00:22:54.830> of<00:22:54.980> voting<00:22:55.100> it's 00:22:55.450 --> 00:22:55.460 align:start position:0% complex than one round of voting it's 00:22:55.460 --> 00:22:56.740 align:start position:0% complex than one round of voting it's kind<00:22:55.700> of<00:22:55.790> at<00:22:55.880> least<00:22:56.030> two<00:22:56.270> rounds<00:22:56.450> of<00:22:56.720> voting 00:22:56.740 --> 00:22:56.750 align:start position:0% kind of at least two rounds of voting 00:22:56.750 --> 00:22:59.080 align:start position:0% kind of at least two rounds of voting using<00:22:57.440> this<00:22:57.590> clever<00:22:57.800> algorithm<00:22:58.490> called 00:22:59.080 --> 00:22:59.090 align:start position:0% using this clever algorithm called 00:22:59.090 --> 00:23:01.660 align:start position:0% using this clever algorithm called Caspar<00:22:59.540> FFG<00:23:00.020> I<00:23:00.350> encourage<00:23:01.040> people<00:23:01.280> to<00:23:01.429> learn 00:23:01.660 --> 00:23:01.670 align:start position:0% Caspar FFG I encourage people to learn 00:23:01.670 --> 00:23:03.490 align:start position:0% Caspar FFG I encourage people to learn more<00:23:01.850> about<00:23:01.910> Caspar<00:23:02.510> FFG<00:23:02.900> by<00:23:03.080> reading<00:23:03.410> the 00:23:03.490 --> 00:23:03.500 align:start position:0% more about Caspar FFG by reading the 00:23:03.500 --> 00:23:10.030 align:start position:0% more about Caspar FFG by reading the paper<00:23:03.679> on<00:23:03.890> archive<00:23:04.250> yay<00:23:07.480> so<00:23:08.679> proof<00:23:09.679> of<00:23:09.830> stake 00:23:10.030 --> 00:23:10.040 align:start position:0% paper on archive yay so proof of stake 00:23:10.040 --> 00:23:12.040 align:start position:0% paper on archive yay so proof of stake is<00:23:10.340> all<00:23:10.610> about<00:23:10.910> crypto<00:23:11.330> economics<00:23:11.870> at<00:23:12.020> the 00:23:12.040 --> 00:23:12.050 align:start position:0% is all about crypto economics at the 00:23:12.050 --> 00:23:13.780 align:start position:0% is all about crypto economics at the core<00:23:12.350> proof<00:23:12.590> of<00:23:12.710> work<00:23:12.860> is<00:23:13.070> all<00:23:13.190> about<00:23:13.220> crypto 00:23:13.780 --> 00:23:13.790 align:start position:0% core proof of work is all about crypto 00:23:13.790 --> 00:23:16.000 align:start position:0% core proof of work is all about crypto economics<00:23:14.330> at<00:23:14.480> the<00:23:14.510> core<00:23:14.840> there<00:23:15.470> is<00:23:15.500> a<00:23:15.590> lot<00:23:15.830> of 00:23:16.000 --> 00:23:16.010 align:start position:0% economics at the core there is a lot of 00:23:16.010 --> 00:23:17.890 align:start position:0% economics at the core there is a lot of other<00:23:16.190> things<00:23:16.610> that<00:23:16.820> are<00:23:16.910> also<00:23:17.090> about<00:23:17.480> crypto 00:23:17.890 --> 00:23:17.900 align:start position:0% other things that are also about crypto 00:23:17.900 --> 00:23:20.410 align:start position:0% other things that are also about crypto economics<00:23:18.410> at<00:23:18.590> the<00:23:18.620> core<00:23:18.920> one<00:23:19.880> interesting 00:23:20.410 --> 00:23:20.420 align:start position:0% economics at the core one interesting 00:23:20.420 --> 00:23:22.510 align:start position:0% economics at the core one interesting thing<00:23:20.450> is<00:23:20.809> that<00:23:20.840> crypto<00:23:21.679> economics<00:23:22.280> can 00:23:22.510 --> 00:23:22.520 align:start position:0% thing is that crypto economics can 00:23:22.520 --> 00:23:24.280 align:start position:0% thing is that crypto economics can sometimes<00:23:23.000> compete<00:23:23.480> with<00:23:23.630> cryptography 00:23:24.280 --> 00:23:24.290 align:start position:0% sometimes compete with cryptography 00:23:24.290 --> 00:23:28.510 align:start position:0% sometimes compete with cryptography right<00:23:24.920> so<00:23:25.720> for<00:23:26.720> this<00:23:26.929> one<00:23:27.350> useful<00:23:27.890> example<00:23:28.429> to 00:23:28.510 --> 00:23:28.520 align:start position:0% right so for this one useful example to 00:23:28.520 --> 00:23:30.640 align:start position:0% right so for this one useful example to think<00:23:28.730> about<00:23:29.000> is<00:23:29.210> interactive<00:23:29.960> computation 00:23:30.640 --> 00:23:30.650 align:start position:0% think about is interactive computation 00:23:30.650 --> 00:23:33.880 align:start position:0% think about is interactive computation so<00:23:31.610> interactive<00:23:31.990> computation<00:23:32.990> is<00:23:33.200> this<00:23:33.650> kind 00:23:33.880 --> 00:23:33.890 align:start position:0% so interactive computation is this kind 00:23:33.890 --> 00:23:36.160 align:start position:0% so interactive computation is this kind of<00:23:33.950> scalability<00:23:34.429> primitive<00:23:35.090> that<00:23:35.570> basically 00:23:36.160 --> 00:23:36.170 align:start position:0% of scalability primitive that basically 00:23:36.170 --> 00:23:40.960 align:start position:0% of scalability primitive that basically is<00:23:36.410> trying<00:23:36.760> to<00:23:38.530> allow<00:23:39.530> block<00:23:40.010> chains<00:23:40.370> to<00:23:40.700> learn 00:23:40.960 --> 00:23:40.970 align:start position:0% is trying to allow block chains to learn 00:23:40.970 --> 00:23:43.510 align:start position:0% is trying to allow block chains to learn the<00:23:41.390> results<00:23:41.990> of<00:23:42.230> complex<00:23:42.890> facts<00:23:43.340> about 00:23:43.510 --> 00:23:43.520 align:start position:0% the results of complex facts about 00:23:43.520 --> 00:23:46.180 align:start position:0% the results of complex facts about computations<00:23:44.300> without<00:23:45.200> actually<00:23:45.740> doing<00:23:46.040> the 00:23:46.180 --> 00:23:46.190 align:start position:0% computations without actually doing the 00:23:46.190 --> 00:23:48.669 align:start position:0% computations without actually doing the entire<00:23:46.460> computation<00:23:46.880> on<00:23:47.330> the<00:23:47.390> blockchain<00:23:47.679> so 00:23:48.669 --> 00:23:48.679 align:start position:0% entire computation on the blockchain so 00:23:48.679 --> 00:23:50.200 align:start position:0% entire computation on the blockchain so for<00:23:48.890> example<00:23:49.340> suppose<00:23:49.700> you<00:23:49.850> have<00:23:49.880> some 00:23:50.200 --> 00:23:50.210 align:start position:0% for example suppose you have some 00:23:50.210 --> 00:23:52.570 align:start position:0% for example suppose you have some function<00:23:50.480> y<00:23:50.809> equals<00:23:51.140> f<00:23:51.290> of<00:23:51.410> X<00:23:51.559> and<00:23:51.860> it<00:23:52.370> turns 00:23:52.570 --> 00:23:52.580 align:start position:0% function y equals f of X and it turns 00:23:52.580 --> 00:23:55.240 align:start position:0% function y equals f of X and it turns out<00:23:52.820> that<00:23:53.120> f<00:23:53.420> it<00:23:53.780> can<00:23:54.110> be<00:23:54.230> decomposed<00:23:54.620> into 00:23:55.240 --> 00:23:55.250 align:start position:0% out that f it can be decomposed into 00:23:55.250 --> 00:23:57.460 align:start position:0% out that f it can be decomposed into this<00:23:55.490> format<00:23:55.910> where<00:23:56.270> it's<00:23:56.450> like<00:23:56.660> you<00:23:57.140> start 00:23:57.460 --> 00:23:57.470 align:start position:0% this format where it's like you start 00:23:57.470 --> 00:23:59.860 align:start position:0% this format where it's like you start with<00:23:57.620> X<00:23:57.830> then<00:23:58.400> you<00:23:58.520> apply<00:23:58.820> f<00:23:59.030> 1<00:23:59.270> then<00:23:59.510> you<00:23:59.600> apply 00:23:59.860 --> 00:23:59.870 align:start position:0% with X then you apply f 1 then you apply 00:23:59.870 --> 00:24:01.930 align:start position:0% with X then you apply f 1 then you apply F<00:24:00.050> 2<00:24:00.230> then<00:24:00.440> you<00:24:00.530> apply<00:24:00.800> F<00:24:00.950> 3<00:24:01.220> blah<00:24:01.490> blah<00:24:01.730> then 00:24:01.930 --> 00:24:01.940 align:start position:0% F 2 then you apply F 3 blah blah then 00:24:01.940 --> 00:24:04.270 align:start position:0% F 2 then you apply F 3 blah blah then you<00:24:02.030> apply<00:24:02.300> F<00:24:02.420> 99<00:24:02.840> and<00:24:03.080> then<00:24:03.140> you<00:24:03.230> apply<00:24:03.500> F<00:24:03.679> 100 00:24:04.270 --> 00:24:04.280 align:start position:0% you apply F 99 and then you apply F 100 00:24:04.280 --> 00:24:06.730 align:start position:0% you apply F 99 and then you apply F 100 and<00:24:04.630> basically<00:24:05.630> you<00:24:05.809> have<00:24:05.840> a<00:24:05.990> small<00:24:06.290> value<00:24:06.470> and 00:24:06.730 --> 00:24:06.740 align:start position:0% and basically you have a small value and 00:24:06.740 --> 00:24:08.290 align:start position:0% and basically you have a small value and you<00:24:06.800> go<00:24:06.920> through<00:24:07.100> a<00:24:07.190> series<00:24:07.550> of<00:24:07.580> small<00:24:07.910> values 00:24:08.290 --> 00:24:08.300 align:start position:0% you go through a series of small values 00:24:08.300 --> 00:24:12.430 align:start position:0% you go through a series of small values and<00:24:08.510> you<00:24:08.570> get<00:24:08.780> Y<00:24:08.960> at<00:24:09.170> the<00:24:09.320> end<00:24:09.700> so<00:24:11.020> here<00:24:12.020> is<00:24:12.170> a 00:24:12.430 --> 00:24:12.440 align:start position:0% and you get Y at the end so here is a 00:24:12.440 --> 00:24:15.010 align:start position:0% and you get Y at the end so here is a protocol<00:24:12.980> for<00:24:13.040> kind<00:24:13.970> of<00:24:14.150> how<00:24:14.540> the<00:24:14.600> blockchain 00:24:15.010 --> 00:24:15.020 align:start position:0% protocol for kind of how the blockchain 00:24:15.020 --> 00:24:17.010 align:start position:0% protocol for kind of how the blockchain can<00:24:15.320> warn<00:24:15.800> the<00:24:15.980> result<00:24:16.309> of<00:24:16.429> this<00:24:16.520> computation 00:24:17.010 --> 00:24:17.020 align:start position:0% can warn the result of this computation 00:24:17.020 --> 00:24:19.690 align:start position:0% can warn the result of this computation without<00:24:18.020> executing<00:24:18.559> all<00:24:18.800> of<00:24:18.919> it<00:24:19.010> on<00:24:19.100> chaining 00:24:19.690 --> 00:24:19.700 align:start position:0% without executing all of it on chaining 00:24:19.700 --> 00:24:21.140 align:start position:0% without executing all of it on chaining so 00:24:21.140 --> 00:24:21.150 align:start position:0% so 00:24:21.150 --> 00:24:23.780 align:start position:0% so yes<00:24:21.600> you<00:24:21.930> set<00:24:22.170> the<00:24:22.290> problem<00:24:22.650> you<00:24:22.800> said<00:24:23.040> here<00:24:23.640> is 00:24:23.780 --> 00:24:23.790 align:start position:0% yes you set the problem you said here is 00:24:23.790 --> 00:24:27.830 align:start position:0% yes you set the problem you said here is f<00:24:24.000> here<00:24:24.330> is<00:24:24.480> X<00:24:24.720> we<00:24:25.290> wants<00:24:25.620> to<00:24:25.740> learn<00:24:25.860> why<00:24:26.840> then 00:24:27.830 --> 00:24:27.840 align:start position:0% f here is X we wants to learn why then 00:24:27.840 --> 00:24:29.840 align:start position:0% f here is X we wants to learn why then you<00:24:28.380> have<00:24:28.650> a<00:24:28.680> smart<00:24:29.070> contract<00:24:29.550> that<00:24:29.730> contains 00:24:29.840 --> 00:24:29.850 align:start position:0% you have a smart contract that contains 00:24:29.850 --> 00:24:32.720 align:start position:0% you have a smart contract that contains some<00:24:30.360> reward<00:24:30.690> and<00:24:31.280> the<00:24:32.280> smart<00:24:32.580> contract 00:24:32.720 --> 00:24:32.730 align:start position:0% some reward and the smart contract 00:24:32.730 --> 00:24:35.720 align:start position:0% some reward and the smart contract implements<00:24:33.510> this<00:24:33.660> protocol<00:24:34.250> anyone<00:24:35.250> has<00:24:35.520> the 00:24:35.720 --> 00:24:35.730 align:start position:0% implements this protocol anyone has the 00:24:35.730 --> 00:24:37.760 align:start position:0% implements this protocol anyone has the ability<00:24:36.210> to<00:24:36.240> submit<00:24:36.780> a<00:24:37.020> sequence<00:24:37.500> of<00:24:37.620> values 00:24:37.760 --> 00:24:37.770 align:start position:0% ability to submit a sequence of values 00:24:37.770 --> 00:24:41.600 align:start position:0% ability to submit a sequence of values basically<00:24:38.700> X<00:24:39.270> 1<00:24:39.570> X<00:24:39.840> 2<00:24:39.930> X<00:24:40.230> 3<00:24:40.320> so<00:24:40.800> all<00:24:41.010> of<00:24:41.490> the 00:24:41.600 --> 00:24:41.610 align:start position:0% basically X 1 X 2 X 3 so all of the 00:24:41.610 --> 00:24:43.580 align:start position:0% basically X 1 X 2 X 3 so all of the intermediate<00:24:41.940> steps<00:24:42.510> of<00:24:42.690> the<00:24:42.809> computation<00:24:43.440> of 00:24:43.580 --> 00:24:43.590 align:start position:0% intermediate steps of the computation of 00:24:43.590 --> 00:24:46.940 align:start position:0% intermediate steps of the computation of all<00:24:44.250> and<00:24:44.600> you<00:24:45.600> can<00:24:45.809> you<00:24:46.380> can<00:24:46.410> have<00:24:46.710> the 00:24:46.940 --> 00:24:46.950 align:start position:0% all and you can you can have the 00:24:46.950 --> 00:24:49.040 align:start position:0% all and you can you can have the individual<00:24:47.760> steps<00:24:48.000> have<00:24:48.330> quite<00:24:48.750> a<00:24:48.780> bit<00:24:48.960> of 00:24:49.040 --> 00:24:49.050 align:start position:0% individual steps have quite a bit of 00:24:49.050 --> 00:24:50.570 align:start position:0% individual steps have quite a bit of computation<00:24:49.680> in<00:24:49.800> them<00:24:50.010> right<00:24:50.190> you<00:24:50.340> just 00:24:50.570 --> 00:24:50.580 align:start position:0% computation in them right you just 00:24:50.580 --> 00:24:53.510 align:start position:0% computation in them right you just basically<00:24:51.210> each<00:24:51.900> individual<00:24:52.680> step<00:24:52.920> has<00:24:53.220> to<00:24:53.250> be 00:24:53.510 --> 00:24:53.520 align:start position:0% basically each individual step has to be 00:24:53.520 --> 00:24:55.280 align:start position:0% basically each individual step has to be small<00:24:53.790> enough<00:24:53.820> that<00:24:54.150> you<00:24:54.480> can<00:24:54.660> execute<00:24:55.020> it 00:24:55.280 --> 00:24:55.290 align:start position:0% small enough that you can execute it 00:24:55.290 --> 00:24:58.340 align:start position:0% small enough that you can execute it inside<00:24:55.620> of<00:24:55.650> a<00:24:55.800> block<00:24:56.270> so<00:24:57.270> the<00:24:57.990> proposer 00:24:58.340 --> 00:24:58.350 align:start position:0% inside of a block so the proposer 00:24:58.350 --> 00:25:01.040 align:start position:0% inside of a block so the proposer submits<00:24:58.830> a<00:24:58.980> sequence<00:24:59.370> of<00:24:59.520> values<00:24:59.640> X<00:25:00.120> 1<00:25:00.360> X<00:25:00.570> 2<00:25:00.750> X<00:25:00.929> 3 00:25:01.040 --> 00:25:01.050 align:start position:0% submits a sequence of values X 1 X 2 X 3 00:25:01.050 --> 00:25:04.250 align:start position:0% submits a sequence of values X 1 X 2 X 3 all<00:25:01.920> the<00:25:02.070> way<00:25:02.100> up<00:25:02.220> to<00:25:02.460> X<00:25:02.610> 100<00:25:03.210> along<00:25:03.960> with<00:25:04.230> a 00:25:04.250 --> 00:25:04.260 align:start position:0% all the way up to X 100 along with a 00:25:04.260 --> 00:25:09.680 align:start position:0% all the way up to X 100 along with a deposit<00:25:04.620> so<00:25:05.550> this<00:25:05.730> is<00:25:05.850> step<00:25:06.030> one<00:25:07.040> step<00:25:08.040> two<00:25:08.690> you 00:25:09.680 --> 00:25:09.690 align:start position:0% deposit so this is step one step two you 00:25:09.690 --> 00:25:12.290 align:start position:0% deposit so this is step one step two you wait<00:25:09.900> right<00:25:10.890> and<00:25:11.370> there's<00:25:11.820> a<00:25:11.880> challenge 00:25:12.290 --> 00:25:12.300 align:start position:0% wait right and there's a challenge 00:25:12.300 --> 00:25:16.880 align:start position:0% wait right and there's a challenge period<00:25:12.690> so<00:25:14.540> suppose<00:25:15.540> for<00:25:15.840> example<00:25:15.870> that<00:25:16.380> as<00:25:16.830> a 00:25:16.880 --> 00:25:16.890 align:start position:0% period so suppose for example that as a 00:25:16.890 --> 00:25:19.280 align:start position:0% period so suppose for example that as a kind<00:25:17.370> of<00:25:17.490> quote<00:25:17.790> as<00:25:18.270> a<00:25:18.330> simple<00:25:18.750> example<00:25:18.900> the 00:25:19.280 --> 00:25:19.290 align:start position:0% kind of quote as a simple example the 00:25:19.290 --> 00:25:21.110 align:start position:0% kind of quote as a simple example the the<00:25:19.679> channel<00:25:20.040> the<00:25:20.220> problem<00:25:20.670> that<00:25:20.820> we're<00:25:21.090> going 00:25:21.110 --> 00:25:21.120 align:start position:0% the channel the problem that we're going 00:25:21.120 --> 00:25:22.850 align:start position:0% the channel the problem that we're going to<00:25:21.270> make<00:25:21.390> the<00:25:21.540> blockchain<00:25:21.750> try<00:25:22.110> to<00:25:22.170> solve<00:25:22.500> is 00:25:22.850 --> 00:25:22.860 align:start position:0% to make the blockchain try to solve is 00:25:22.860 --> 00:25:25.250 align:start position:0% to make the blockchain try to solve is we're<00:25:23.730> gonna<00:25:23.850> try<00:25:24.090> to<00:25:24.120> calculate<00:25:24.450> 2<00:25:24.990> to<00:25:25.140> the 00:25:25.250 --> 00:25:25.260 align:start position:0% we're gonna try to calculate 2 to the 00:25:25.260 --> 00:25:27.680 align:start position:0% we're gonna try to calculate 2 to the power<00:25:25.380> of<00:25:25.530> 10<00:25:25.860> in<00:25:26.130> suppose<00:25:27.059> we<00:25:27.300> live<00:25:27.510> in<00:25:27.630> a 00:25:27.680 --> 00:25:27.690 align:start position:0% power of 10 in suppose we live in a 00:25:27.690 --> 00:25:29.450 align:start position:0% power of 10 in suppose we live in a universe<00:25:27.960> where<00:25:28.350> multiplying<00:25:28.890> by<00:25:29.070> 2<00:25:29.130> is 00:25:29.450 --> 00:25:29.460 align:start position:0% universe where multiplying by 2 is 00:25:29.460 --> 00:25:31.430 align:start position:0% universe where multiplying by 2 is really<00:25:29.760> hard<00:25:30.000> and<00:25:30.150> so<00:25:30.240> you<00:25:30.690> can<00:25:30.929> only<00:25:31.140> multiply 00:25:31.430 --> 00:25:31.440 align:start position:0% really hard and so you can only multiply 00:25:31.440 --> 00:25:34.730 align:start position:0% really hard and so you can only multiply by<00:25:31.920> 2<00:25:31.980> once<00:25:32.550> inside<00:25:32.970> of<00:25:33.120> a<00:25:33.179> block<00:25:33.390> so<00:25:34.350> how<00:25:34.679> do 00:25:34.730 --> 00:25:34.740 align:start position:0% by 2 once inside of a block so how do 00:25:34.740 --> 00:25:36.980 align:start position:0% by 2 once inside of a block so how do you<00:25:34.890> do<00:25:35.130> an<00:25:35.490> interactive<00:25:36.120> computation<00:25:36.780> to 00:25:36.980 --> 00:25:36.990 align:start position:0% you do an interactive computation to 00:25:36.990 --> 00:25:39.110 align:start position:0% you do an interactive computation to compute<00:25:37.380> 2<00:25:37.559> to<00:25:37.679> the<00:25:37.770> power<00:25:37.920> of<00:25:38.040> 10<00:25:38.340> right 00:25:39.110 --> 00:25:39.120 align:start position:0% compute 2 to the power of 10 right 00:25:39.120 --> 00:25:40.760 align:start position:0% compute 2 to the power of 10 right basically<00:25:39.510> you<00:25:39.840> would<00:25:39.990> have<00:25:40.110> to<00:25:40.260> submit<00:25:40.620> all 00:25:40.760 --> 00:25:40.770 align:start position:0% basically you would have to submit all 00:25:40.770 --> 00:25:42.260 align:start position:0% basically you would have to submit all the<00:25:40.890> intermediate<00:25:41.370> values<00:25:41.790> right<00:25:42.059> you<00:25:42.150> would 00:25:42.260 --> 00:25:42.270 align:start position:0% the intermediate values right you would 00:25:42.270 --> 00:25:44.510 align:start position:0% the intermediate values right you would submit<00:25:42.480> these<00:25:43.110> 10<00:25:43.470> intermediate<00:25:44.010> values<00:25:44.370> you 00:25:44.510 --> 00:25:44.520 align:start position:0% submit these 10 intermediate values you 00:25:44.520 --> 00:25:47.540 align:start position:0% submit these 10 intermediate values you would<00:25:44.580> submit<00:25:44.940> 1<00:25:45.270> 2<00:25:45.720> 4<00:25:46.170> 8<00:25:46.200> 16<00:25:46.860> blah<00:25:47.220> blah<00:25:47.370> blah 00:25:47.540 --> 00:25:47.550 align:start position:0% would submit 1 2 4 8 16 blah blah blah 00:25:47.550 --> 00:25:50.570 align:start position:0% would submit 1 2 4 8 16 blah blah blah and<00:25:48.260> you<00:25:49.260> would<00:25:49.410> submit<00:25:49.620> these<00:25:49.890> values<00:25:50.309> and 00:25:50.570 --> 00:25:50.580 align:start position:0% and you would submit these values and 00:25:50.580 --> 00:25:51.890 align:start position:0% and you would submit these values and then<00:25:51.030> you<00:25:51.210> would<00:25:51.330> have<00:25:51.450> this<00:25:51.630> challenge 00:25:51.890 --> 00:25:51.900 align:start position:0% then you would have this challenge 00:25:51.900 --> 00:25:54.080 align:start position:0% then you would have this challenge period<00:25:52.410> and<00:25:52.590> in<00:25:53.070> this<00:25:53.250> challenge<00:25:53.670> period 00:25:54.080 --> 00:25:54.090 align:start position:0% period and in this challenge period 00:25:54.090 --> 00:25:56.960 align:start position:0% period and in this challenge period basically<00:25:54.720> anyone<00:25:55.559> has<00:25:55.800> the<00:25:55.980> ability<00:25:56.429> to<00:25:56.460> kind 00:25:56.960 --> 00:25:56.970 align:start position:0% basically anyone has the ability to kind 00:25:56.970 --> 00:25:58.549 align:start position:0% basically anyone has the ability to kind of<00:25:57.059> points<00:25:57.420> to<00:25:57.450> one<00:25:57.660> particular<00:25:57.809> value<00:25:58.530> and 00:25:58.549 --> 00:25:58.559 align:start position:0% of points to one particular value and 00:25:58.559 --> 00:26:01.820 align:start position:0% of points to one particular value and say<00:25:58.950> wait<00:25:59.610> this<00:25:59.850> value<00:26:00.660> actually<00:26:00.900> isn't<00:26:01.410> 2 00:26:01.820 --> 00:26:01.830 align:start position:0% say wait this value actually isn't 2 00:26:01.830 --> 00:26:04.460 align:start position:0% say wait this value actually isn't 2 times<00:26:02.100> the<00:26:02.280> value<00:26:02.550> before<00:26:02.900> so<00:26:03.900> in<00:26:04.050> this<00:26:04.170> case 00:26:04.460 --> 00:26:04.470 align:start position:0% times the value before so in this case 00:26:04.470 --> 00:26:06.200 align:start position:0% times the value before so in this case so<00:26:04.679> like<00:26:04.800> suppose<00:26:05.130> we<00:26:05.400> have<00:26:05.580> this<00:26:05.820> kind<00:26:06.090> of 00:26:06.200 --> 00:26:06.210 align:start position:0% so like suppose we have this kind of 00:26:06.210 --> 00:26:08.990 align:start position:0% so like suppose we have this kind of evil<00:26:06.480> smiley<00:26:06.900> face<00:26:07.080> guy<00:26:07.320> and<00:26:07.650> the<00:26:08.340> evil<00:26:08.610> smiley 00:26:08.990 --> 00:26:09.000 align:start position:0% evil smiley face guy and the evil smiley 00:26:09.000 --> 00:26:11.419 align:start position:0% evil smiley face guy and the evil smiley face<00:26:09.179> guy<00:26:09.420> is<00:26:09.480> just<00:26:09.870> really<00:26:10.590> really<00:26:10.920> tired<00:26:10.950> of 00:26:11.419 --> 00:26:11.429 align:start position:0% face guy is just really really tired of 00:26:11.429 --> 00:26:13.640 align:start position:0% face guy is just really really tired of this<00:26:11.580> stupid<00:26:11.820> idea<00:26:12.330> that<00:26:12.420> that<00:26:12.900> aquila<00:26:13.410> byte 00:26:13.640 --> 00:26:13.650 align:start position:0% this stupid idea that that aquila byte 00:26:13.650 --> 00:26:15.740 align:start position:0% this stupid idea that that aquila byte is<00:26:13.890> a<00:26:13.920> thousand<00:26:14.550> and<00:26:14.640> 24<00:26:15.030> bytes<00:26:15.210> instead<00:26:15.510> of 00:26:15.740 --> 00:26:15.750 align:start position:0% is a thousand and 24 bytes instead of 00:26:15.750 --> 00:26:17.660 align:start position:0% is a thousand and 24 bytes instead of being<00:26:15.960> a<00:26:16.050> thousand<00:26:16.440> bytes<00:26:16.559> and<00:26:16.830> so<00:26:16.890> this<00:26:17.550> guy 00:26:17.660 --> 00:26:17.670 align:start position:0% being a thousand bytes and so this guy 00:26:17.670 --> 00:26:19.880 align:start position:0% being a thousand bytes and so this guy wants<00:26:17.850> to<00:26:18.030> solve<00:26:18.210> the<00:26:18.390> problem<00:26:18.840> by<00:26:19.320> convincing 00:26:19.880 --> 00:26:19.890 align:start position:0% wants to solve the problem by convincing 00:26:19.890 --> 00:26:21.560 align:start position:0% wants to solve the problem by convincing the<00:26:19.980> world<00:26:20.010> that<00:26:20.340> two<00:26:20.580> to<00:26:20.670> the<00:26:20.760> power<00:26:20.820> of<00:26:21.090> 10<00:26:21.420> is 00:26:21.560 --> 00:26:21.570 align:start position:0% the world that two to the power of 10 is 00:26:21.570 --> 00:26:23.660 align:start position:0% the world that two to the power of 10 is not<00:26:21.690> a<00:26:21.750> thousand<00:26:22.230> 24<00:26:22.740> it's<00:26:22.980> actually<00:26:23.640> a 00:26:23.660 --> 00:26:23.670 align:start position:0% not a thousand 24 it's actually a 00:26:23.670 --> 00:26:26.990 align:start position:0% not a thousand 24 it's actually a thousand<00:26:24.240> and<00:26:24.920> the<00:26:25.920> evil<00:26:26.190> smiley<00:26:26.580> face<00:26:26.760> guy<00:26:26.940> is 00:26:26.990 --> 00:26:27.000 align:start position:0% thousand and the evil smiley face guy is 00:26:27.000 --> 00:26:28.970 align:start position:0% thousand and the evil smiley face guy is going<00:26:27.210> to<00:26:27.300> do<00:26:27.450> this<00:26:27.630> by<00:26:27.870> well<00:26:28.410> submitting 00:26:28.970 --> 00:26:28.980 align:start position:0% going to do this by well submitting 00:26:28.980 --> 00:26:30.950 align:start position:0% going to do this by well submitting these<00:26:29.070> 10<00:26:29.340> values<00:26:29.550> right<00:26:30.000> these<00:26:30.179> are<00:26:30.210> the 00:26:30.950 --> 00:26:30.960 align:start position:0% these 10 values right these are the 00:26:30.960 --> 00:26:33.330 align:start position:0% these 10 values right these are the powers<00:26:31.290> of<00:26:31.440> two<00:26:31.650> 1<00:26:32.400> to<00:26:32.790> 4 00:26:33.330 --> 00:26:33.340 align:start position:0% powers of two 1 to 4 00:26:33.340 --> 00:26:37.740 align:start position:0% powers of two 1 to 4 eight<00:26:33.430> 16<00:26:33.970> 32<00:26:34.000> 64<00:26:34.870> 128<00:26:35.320> -<00:26:36.010> and<00:26:36.160> 250<00:26:36.670> 500<00:26:36.880> 1000 00:26:37.740 --> 00:26:37.750 align:start position:0% eight 16 32 64 128 - and 250 500 1000 00:26:37.750 --> 00:26:39.540 align:start position:0% eight 16 32 64 128 - and 250 500 1000 there<00:26:38.410> the<00:26:38.500> powers<00:26:38.770> of<00:26:38.920> two<00:26:39.070> each<00:26:39.250> one<00:26:39.430> is 00:26:39.540 --> 00:26:39.550 align:start position:0% there the powers of two each one is 00:26:39.550 --> 00:26:41.250 align:start position:0% there the powers of two each one is twice<00:26:39.730> the<00:26:39.940> other<00:26:40.090> the<00:26:40.360> thing<00:26:40.660> at<00:26:40.930> the<00:26:41.020> end<00:26:41.140> is 00:26:41.250 --> 00:26:41.260 align:start position:0% twice the other the thing at the end is 00:26:41.260 --> 00:26:44.430 align:start position:0% twice the other the thing at the end is a<00:26:41.290> thousand<00:26:41.740> what's<00:26:41.890> the<00:26:42.010> big<00:26:42.130> deal<00:26:42.570> so<00:26:43.570> within 00:26:44.430 --> 00:26:44.440 align:start position:0% a thousand what's the big deal so within 00:26:44.440 --> 00:26:46.830 align:start position:0% a thousand what's the big deal so within this<00:26:44.680> challenge<00:26:45.130> period<00:26:45.550> a<00:26:45.730> challenger<00:26:46.600> can 00:26:46.830 --> 00:26:46.840 align:start position:0% this challenge period a challenger can 00:26:46.840 --> 00:26:49.620 align:start position:0% this challenge period a challenger can say<00:26:47.160> hmm<00:26:48.160> someone<00:26:48.670> is<00:26:48.820> wrong<00:26:49.120> on<00:26:49.510> the 00:26:49.620 --> 00:26:49.630 align:start position:0% say hmm someone is wrong on the 00:26:49.630 --> 00:26:50.490 align:start position:0% say hmm someone is wrong on the blockchain 00:26:50.490 --> 00:26:50.500 align:start position:0% blockchain 00:26:50.500 --> 00:26:54.120 align:start position:0% blockchain I<00:26:51.120> disagree<00:26:52.120> well<00:26:52.300> I<00:26:52.450> disagree<00:26:52.960> with<00:26:52.990> that<00:26:53.140> 250 00:26:54.120 --> 00:26:54.130 align:start position:0% I disagree well I disagree with that 250 00:26:54.130 --> 00:26:54.510 align:start position:0% I disagree well I disagree with that 250 there 00:26:54.510 --> 00:26:54.520 align:start position:0% there 00:26:54.520 --> 00:26:56.190 align:start position:0% there I<00:26:54.550> think<00:26:55.150> of<00:26:55.240> hundred<00:26:55.630> twenty<00:26:55.900> eight<00:26:55.930> times 00:26:56.190 --> 00:26:56.200 align:start position:0% I think of hundred twenty eight times 00:26:56.200 --> 00:26:59.750 align:start position:0% I think of hundred twenty eight times two<00:26:56.590> it's<00:26:56.950> two<00:26:57.430> hundred<00:26:57.550> and<00:26:57.820> fifty<00:26:58.180> six<00:26:58.510> and 00:26:59.750 --> 00:26:59.760 align:start position:0% two it's two hundred and fifty six and 00:26:59.760 --> 00:27:02.160 align:start position:0% two it's two hundred and fifty six and the<00:27:00.760> the<00:27:01.030> Challenger<00:27:01.570> can<00:27:01.810> submit<00:27:02.110> a 00:27:02.160 --> 00:27:02.170 align:start position:0% the the Challenger can submit a 00:27:02.170 --> 00:27:03.930 align:start position:0% the the Challenger can submit a transaction<00:27:02.800> that<00:27:02.890> points<00:27:03.310> to<00:27:03.430> this<00:27:03.550> index 00:27:03.930 --> 00:27:03.940 align:start position:0% transaction that points to this index 00:27:03.940 --> 00:27:06.150 align:start position:0% transaction that points to this index and<00:27:04.120> when<00:27:04.780> that<00:27:04.930> happens<00:27:05.380> the<00:27:05.530> calculation 00:27:06.150 --> 00:27:06.160 align:start position:0% and when that happens the calculation 00:27:06.160 --> 00:27:08.070 align:start position:0% and when that happens the calculation actually<00:27:06.520> runs<00:27:06.760> on<00:27:06.940> the<00:27:07.030> blockchain<00:27:07.240> that 00:27:08.070 --> 00:27:08.080 align:start position:0% actually runs on the blockchain that 00:27:08.080 --> 00:27:10.710 align:start position:0% actually runs on the blockchain that particular<00:27:08.770> multiplication<00:27:09.580> by<00:27:09.730> two<00:27:09.790> 128 00:27:10.710 --> 00:27:10.720 align:start position:0% particular multiplication by two 128 00:27:10.720 --> 00:27:12.720 align:start position:0% particular multiplication by two 128 times<00:27:10.960> two<00:27:11.260> is<00:27:11.500> run<00:27:11.980> on<00:27:12.100> the<00:27:12.190> blockchain<00:27:12.400> and 00:27:12.720 --> 00:27:12.730 align:start position:0% times two is run on the blockchain and 00:27:12.730 --> 00:27:15.960 align:start position:0% times two is run on the blockchain and the<00:27:13.240> block<00:27:13.420> chains<00:27:13.690> like<00:27:13.930> wait<00:27:14.580> the<00:27:15.580> actual 00:27:15.960 --> 00:27:15.970 align:start position:0% the block chains like wait the actual 00:27:15.970 --> 00:27:18.540 align:start position:0% the block chains like wait the actual inserts<00:27:16.330> 256<00:27:17.050> and<00:27:17.320> this<00:27:17.470> guy<00:27:17.620> submitted<00:27:18.040> 250 00:27:18.540 --> 00:27:18.550 align:start position:0% inserts 256 and this guy submitted 250 00:27:18.550 --> 00:27:21.360 align:start position:0% inserts 256 and this guy submitted 250 so<00:27:18.730> this<00:27:18.910> guy's<00:27:19.090> fraud<00:27:19.390> and<00:27:19.750> so<00:27:20.470> the<00:27:21.130> original 00:27:21.360 --> 00:27:21.370 align:start position:0% so this guy's fraud and so the original 00:27:21.370 --> 00:27:23.520 align:start position:0% so this guy's fraud and so the original submitters<00:27:22.030> deposit<00:27:22.630> gets<00:27:22.840> destroyed<00:27:23.260> and 00:27:23.520 --> 00:27:23.530 align:start position:0% submitters deposit gets destroyed and 00:27:23.530 --> 00:27:25.290 align:start position:0% submitters deposit gets destroyed and part<00:27:24.130> of<00:27:24.190> the<00:27:24.310> deposit<00:27:24.790> is<00:27:24.880> given<00:27:25.120> to<00:27:25.210> the 00:27:25.290 --> 00:27:25.300 align:start position:0% part of the deposit is given to the 00:27:25.300 --> 00:27:28.500 align:start position:0% part of the deposit is given to the Challenger<00:27:25.780> as<00:27:25.900> a<00:27:25.930> reward<00:27:26.490> so<00:27:27.490> this<00:27:28.330> is<00:27:28.480> a 00:27:28.500 --> 00:27:28.510 align:start position:0% Challenger as a reward so this is a 00:27:28.510 --> 00:27:30.630 align:start position:0% Challenger as a reward so this is a crypto<00:27:28.840> economic<00:27:29.290> protocol<00:27:29.770> right<00:27:30.130> because 00:27:30.630 --> 00:27:30.640 align:start position:0% crypto economic protocol right because 00:27:30.640 --> 00:27:33.480 align:start position:0% crypto economic protocol right because the<00:27:31.390> ability<00:27:32.200> of<00:27:32.530> this<00:27:32.650> protocol<00:27:33.100> to<00:27:33.280> work 00:27:33.480 --> 00:27:33.490 align:start position:0% the ability of this protocol to work 00:27:33.490 --> 00:27:36.840 align:start position:0% the ability of this protocol to work relies<00:27:34.240> on<00:27:34.270> incentives<00:27:35.050> it<00:27:35.530> relies<00:27:36.040> on<00:27:36.070> the 00:27:36.840 --> 00:27:36.850 align:start position:0% relies on incentives it relies on the 00:27:36.850 --> 00:27:39.600 align:start position:0% relies on incentives it relies on the penalty<00:27:37.720> that<00:27:38.050> the<00:27:38.410> submitter<00:27:38.800> gets<00:27:39.130> if<00:27:39.430> they 00:27:39.600 --> 00:27:39.610 align:start position:0% penalty that the submitter gets if they 00:27:39.610 --> 00:27:41.520 align:start position:0% penalty that the submitter gets if they submit<00:27:40.060> a<00:27:40.240> set<00:27:40.450> of<00:27:40.570> values<00:27:40.900> though<00:27:41.050> where<00:27:41.320> one 00:27:41.520 --> 00:27:41.530 align:start position:0% submit a set of values though where one 00:27:41.530 --> 00:27:43.410 align:start position:0% submit a set of values though where one of<00:27:41.560> those<00:27:41.710> values<00:27:42.070> is<00:27:42.100> wrong<00:27:42.460> and<00:27:42.850> it<00:27:43.270> also 00:27:43.410 --> 00:27:43.420 align:start position:0% of those values is wrong and it also 00:27:43.420 --> 00:27:45.870 align:start position:0% of those values is wrong and it also relies<00:27:43.990> on<00:27:44.020> this<00:27:44.410> reward<00:27:44.860> and<00:27:45.220> that<00:27:45.520> the<00:27:45.670> sum 00:27:45.870 --> 00:27:45.880 align:start position:0% relies on this reward and that the sum 00:27:45.880 --> 00:27:48.030 align:start position:0% relies on this reward and that the sum that<00:27:46.090> the<00:27:46.360> Challenger<00:27:46.870> can<00:27:47.080> get<00:27:47.290> if<00:27:47.500> the 00:27:48.030 --> 00:27:48.040 align:start position:0% that the Challenger can get if the 00:27:48.040 --> 00:27:49.620 align:start position:0% that the Challenger can get if the detects<00:27:48.520> that<00:27:48.760> one<00:27:48.910> of<00:27:49.030> these<00:27:49.090> values<00:27:49.480> is 00:27:49.620 --> 00:27:49.630 align:start position:0% detects that one of these values is 00:27:49.630 --> 00:27:51.720 align:start position:0% detects that one of these values is wrong<00:27:49.870> and<00:27:50.170> they<00:27:50.470> send<00:27:50.770> a<00:27:50.860> transaction<00:27:51.220> that 00:27:51.720 --> 00:27:51.730 align:start position:0% wrong and they send a transaction that 00:27:51.730 --> 00:27:54.690 align:start position:0% wrong and they send a transaction that we've<00:27:52.420> kind<00:27:52.660> of<00:27:52.740> for<00:27:53.740> show<00:27:53.980> us<00:27:54.130> up<00:27:54.280> watching 00:27:54.690 --> 00:27:54.700 align:start position:0% we've kind of for show us up watching 00:27:54.700 --> 00:27:56.250 align:start position:0% we've kind of for show us up watching which<00:27:54.910> transaction<00:27:55.450> is<00:27:55.570> wrong<00:27:55.750> allows<00:27:56.050> it<00:27:56.230> to 00:27:56.250 --> 00:27:56.260 align:start position:0% which transaction is wrong allows it to 00:27:56.260 --> 00:27:59.910 align:start position:0% which transaction is wrong allows it to be<00:27:56.410> verified<00:27:56.920> and<00:27:57.820> allows<00:27:58.450> the<00:27:58.780> submission<00:27:59.740> to 00:27:59.910 --> 00:27:59.920 align:start position:0% be verified and allows the submission to 00:27:59.920 --> 00:28:00.720 align:start position:0% be verified and allows the submission to get<00:28:00.100> rejected 00:28:00.720 --> 00:28:00.730 align:start position:0% get rejected 00:28:00.730 --> 00:28:03.720 align:start position:0% get rejected now<00:28:01.600> this<00:28:02.470> crypto<00:28:02.830> economic<00:28:03.250> protocol 00:28:03.720 --> 00:28:03.730 align:start position:0% now this crypto economic protocol 00:28:03.730 --> 00:28:07.650 align:start position:0% now this crypto economic protocol basically<00:28:04.030> is<00:28:05.130> in<00:28:06.130> some<00:28:06.670> ways<00:28:06.850> the<00:28:06.880> core<00:28:07.390> of 00:28:07.650 --> 00:28:07.660 align:start position:0% basically is in some ways the core of 00:28:07.660 --> 00:28:10.380 align:start position:0% basically is in some ways the core of how<00:28:07.810> optimistic<00:28:08.200> roll-up<00:28:08.770> works<00:28:08.980> right<00:28:09.730> so<00:28:10.090> if 00:28:10.380 --> 00:28:10.390 align:start position:0% how optimistic roll-up works right so if 00:28:10.390 --> 00:28:13.110 align:start position:0% how optimistic roll-up works right so if anyone<00:28:11.110> has<00:28:11.320> seen<00:28:11.350> am<00:28:12.040> optimistic<00:28:12.520> roll-up 00:28:13.110 --> 00:28:13.120 align:start position:0% anyone has seen am optimistic roll-up 00:28:13.120 --> 00:28:14.940 align:start position:0% anyone has seen am optimistic roll-up like<00:28:13.360> the<00:28:13.570> the<00:28:13.780> unipeg<00:28:14.170> exchange<00:28:14.680> thing 00:28:14.940 --> 00:28:14.950 align:start position:0% like the the unipeg exchange thing 00:28:14.950 --> 00:28:16.190 align:start position:0% like the the unipeg exchange thing that's<00:28:15.160> been<00:28:15.310> floating<00:28:15.640> around<00:28:15.730> recently 00:28:16.190 --> 00:28:16.200 align:start position:0% that's been floating around recently 00:28:16.200 --> 00:28:19.190 align:start position:0% that's been floating around recently like<00:28:17.200> this<00:28:17.440> is<00:28:17.590> the<00:28:17.710> kind<00:28:17.890> of<00:28:17.980> fundamental 00:28:19.190 --> 00:28:19.200 align:start position:0% like this is the kind of fundamental 00:28:19.200 --> 00:28:22.050 align:start position:0% like this is the kind of fundamental crypto<00:28:20.200> economic<00:28:20.710> math<00:28:20.980> and<00:28:21.760> that<00:28:21.850> that 00:28:22.050 --> 00:28:22.060 align:start position:0% crypto economic math and that that 00:28:22.060 --> 00:28:24.450 align:start position:0% crypto economic math and that that protocol<00:28:22.480> works<00:28:22.660> on<00:28:22.930> and<00:28:23.140> basically<00:28:23.620> how<00:28:23.860> it 00:28:24.450 --> 00:28:24.460 align:start position:0% protocol works on and basically how it 00:28:24.460 --> 00:28:26.970 align:start position:0% protocol works on and basically how it allows<00:28:24.880> scalability<00:28:25.750> to<00:28:25.780> happen<00:28:26.320> by<00:28:26.590> just 00:28:26.970 --> 00:28:26.980 align:start position:0% allows scalability to happen by just 00:28:26.980 --> 00:28:29.880 align:start position:0% allows scalability to happen by just doing<00:28:27.730> computation<00:28:28.660> off<00:28:28.900> chain<00:28:29.200> by<00:28:29.410> default 00:28:29.880 --> 00:28:29.890 align:start position:0% doing computation off chain by default 00:28:29.890 --> 00:28:32.340 align:start position:0% doing computation off chain by default unless<00:28:30.210> someone<00:28:31.210> complains<00:28:31.660> about<00:28:31.960> some 00:28:32.340 --> 00:28:32.350 align:start position:0% unless someone complains about some 00:28:32.350 --> 00:28:33.720 align:start position:0% unless someone complains about some particular<00:28:32.860> transaction<00:28:33.460> in<00:28:33.550> some 00:28:33.720 --> 00:28:33.730 align:start position:0% particular transaction in some 00:28:33.730 --> 00:28:36.200 align:start position:0% particular transaction in some particular<00:28:33.880> block<00:28:34.420> being<00:28:34.630> incorrect 00:28:36.200 --> 00:28:36.210 align:start position:0% particular block being incorrect 00:28:36.210 --> 00:28:39.630 align:start position:0% particular block being incorrect so<00:28:37.210> notice<00:28:37.720> that<00:28:37.980> interactive<00:28:38.980> computation 00:28:39.630 --> 00:28:39.640 align:start position:0% so notice that interactive computation 00:28:39.640 --> 00:28:42.270 align:start position:0% so notice that interactive computation does<00:28:40.120> the<00:28:40.330> same<00:28:40.540> thing<00:28:40.870> as<00:28:41.080> GK<00:28:41.410> snarks<00:28:41.920> right 00:28:42.270 --> 00:28:42.280 align:start position:0% does the same thing as GK snarks right 00:28:42.280 --> 00:28:45.450 align:start position:0% does the same thing as GK snarks right Ziqi<00:28:43.060> snarks<00:28:43.480> are<00:28:43.720> about<00:28:44.020> doing<00:28:44.800> computation 00:28:45.450 --> 00:28:45.460 align:start position:0% Ziqi snarks are about doing computation 00:28:45.460 --> 00:28:46.430 align:start position:0% Ziqi snarks are about doing computation off<00:28:45.640> chain 00:28:46.430 --> 00:28:46.440 align:start position:0% off chain 00:28:46.440 --> 00:28:49.340 align:start position:0% off chain being<00:28:46.590> a<00:28:46.649> proof<00:28:46.889> on<00:28:47.159> chain<00:28:47.460> and<00:28:48.350> allowing 00:28:49.340 --> 00:28:49.350 align:start position:0% being a proof on chain and allowing 00:28:49.350 --> 00:28:51.320 align:start position:0% being a proof on chain and allowing everyone<00:28:49.830> else<00:28:50.039> to<00:28:50.309> just<00:28:50.519> verify<00:28:50.789> the<00:28:50.970> proof 00:28:51.320 --> 00:28:51.330 align:start position:0% everyone else to just verify the proof 00:28:51.330 --> 00:28:53.119 align:start position:0% everyone else to just verify the proof instead<00:28:51.840> of<00:28:52.019> running<00:28:52.679> the<00:28:52.799> entire 00:28:53.119 --> 00:28:53.129 align:start position:0% instead of running the entire 00:28:53.129 --> 00:28:55.549 align:start position:0% instead of running the entire computation<00:28:53.549> themselves<00:28:54.559> interactive 00:28:55.549 --> 00:28:55.559 align:start position:0% computation themselves interactive 00:28:55.559 --> 00:28:57.740 align:start position:0% computation themselves interactive computation<00:28:56.190> does<00:28:56.370> the<00:28:56.460> same<00:28:56.639> thing<00:28:56.909> a<00:28:57.090> few 00:28:57.740 --> 00:28:57.750 align:start position:0% computation does the same thing a few 00:28:57.750 --> 00:28:59.539 align:start position:0% computation does the same thing a few people<00:28:58.080> run<00:28:58.289> the<00:28:58.409> computation<00:28:58.679> off<00:28:59.129> chain<00:28:59.340> and 00:28:59.539 --> 00:28:59.549 align:start position:0% people run the computation off chain and 00:28:59.549 --> 00:29:01.279 align:start position:0% people run the computation off chain and they<00:29:00.029> run<00:29:00.299> the<00:29:00.450> scripts<00:29:00.720> of<00:29:00.809> economic 00:29:01.279 --> 00:29:01.289 align:start position:0% they run the scripts of economic 00:29:01.289 --> 00:29:04.070 align:start position:0% they run the scripts of economic interactive<00:29:01.799> protocol<00:29:02.250> and<00:29:02.600> the<00:29:03.600> fact<00:29:03.899> that 00:29:04.070 --> 00:29:04.080 align:start position:0% interactive protocol and the fact that 00:29:04.080 --> 00:29:05.629 align:start position:0% interactive protocol and the fact that this<00:29:04.289> crypto<00:29:04.649> economic<00:29:05.129> interactive 00:29:05.629 --> 00:29:05.639 align:start position:0% this crypto economic interactive 00:29:05.639 --> 00:29:07.639 align:start position:0% this crypto economic interactive protocol<00:29:06.059> happens<00:29:06.509> in<00:29:06.720> the<00:29:06.840> clear<00:29:07.080> on<00:29:07.320> chain 00:29:07.639 --> 00:29:07.649 align:start position:0% protocol happens in the clear on chain 00:29:07.649 --> 00:29:10.369 align:start position:0% protocol happens in the clear on chain and<00:29:07.950> everyone<00:29:08.279> saw<00:29:08.460> this<00:29:08.669> happening<00:29:09.149> it<00:29:10.080> can 00:29:10.369 --> 00:29:10.379 align:start position:0% and everyone saw this happening it can 00:29:10.379 --> 00:29:12.680 align:start position:0% and everyone saw this happening it can convince<00:29:10.860> people<00:29:10.950> that<00:29:11.460> the<00:29:12.059> results<00:29:12.480> of<00:29:12.570> the 00:29:12.680 --> 00:29:12.690 align:start position:0% convince people that the results of the 00:29:12.690 --> 00:29:15.440 align:start position:0% convince people that the results of the computation<00:29:13.320> is<00:29:13.470> correct<00:29:13.799> without<00:29:14.549> them 00:29:15.440 --> 00:29:15.450 align:start position:0% computation is correct without them 00:29:15.450 --> 00:29:16.970 align:start position:0% computation is correct without them having<00:29:15.720> to<00:29:15.899> run<00:29:16.169> the<00:29:16.200> entire<00:29:16.559> computation 00:29:16.970 --> 00:29:16.980 align:start position:0% having to run the entire computation 00:29:16.980 --> 00:29:20.090 align:start position:0% having to run the entire computation themselves<00:29:17.759> and<00:29:17.970> this<00:29:18.659> is<00:29:18.929> kind<00:29:19.169> of<00:29:19.230> the<00:29:19.500> the 00:29:20.090 --> 00:29:20.100 align:start position:0% themselves and this is kind of the the 00:29:20.100 --> 00:29:22.129 align:start position:0% themselves and this is kind of the the schism<00:29:20.519> between<00:29:20.549> ZK<00:29:21.389> roll<00:29:21.629> up<00:29:21.779> versus 00:29:22.129 --> 00:29:22.139 align:start position:0% schism between ZK roll up versus 00:29:22.139 --> 00:29:24.889 align:start position:0% schism between ZK roll up versus optimistic<00:29:22.679> roll<00:29:22.889> up<00:29:23.009> which<00:29:23.759> is<00:29:23.909> better<00:29:24.090> well 00:29:24.889 --> 00:29:24.899 align:start position:0% optimistic roll up which is better well 00:29:24.899 --> 00:29:27.169 align:start position:0% optimistic roll up which is better well they<00:29:25.529> have<00:29:25.710> different<00:29:26.070> advantages<00:29:26.340> right<00:29:26.909> so 00:29:27.169 --> 00:29:27.179 align:start position:0% they have different advantages right so 00:29:27.179 --> 00:29:30.200 align:start position:0% they have different advantages right so snarks<00:29:27.740> do<00:29:28.740> not<00:29:28.919> require<00:29:29.279> a<00:29:29.309> challenge<00:29:29.850> period 00:29:30.200 --> 00:29:30.210 align:start position:0% snarks do not require a challenge period 00:29:30.210 --> 00:29:32.269 align:start position:0% snarks do not require a challenge period so<00:29:30.750> with<00:29:30.929> a<00:29:30.960> snark<00:29:31.350> you<00:29:31.500> can<00:29:31.679> know<00:29:31.830> the<00:29:31.980> answer 00:29:32.269 --> 00:29:32.279 align:start position:0% so with a snark you can know the answer 00:29:32.279 --> 00:29:32.840 align:start position:0% so with a snark you can know the answer immediately 00:29:32.840 --> 00:29:32.850 align:start position:0% immediately 00:29:32.850 --> 00:29:35.720 align:start position:0% immediately whereas<00:29:33.539> within<00:29:33.960> up<00:29:34.350> an<00:29:34.889> optimistic<00:29:35.399> or 00:29:35.720 --> 00:29:35.730 align:start position:0% whereas within up an optimistic or 00:29:35.730 --> 00:29:38.060 align:start position:0% whereas within up an optimistic or interactive<00:29:36.240> computation<00:29:36.870> game<00:29:37.110> you<00:29:37.649> have<00:29:37.860> to 00:29:38.060 --> 00:29:38.070 align:start position:0% interactive computation game you have to 00:29:38.070 --> 00:29:40.399 align:start position:0% interactive computation game you have to kind<00:29:38.340> of<00:29:38.429> wait<00:29:38.730> for<00:29:39.179> some<00:29:39.539> period<00:29:39.899> of<00:29:39.929> time<00:29:39.990> to 00:29:40.399 --> 00:29:40.409 align:start position:0% kind of wait for some period of time to 00:29:40.409 --> 00:29:41.779 align:start position:0% kind of wait for some period of time to make<00:29:40.440> sure<00:29:40.740> that<00:29:40.919> nobody<00:29:41.129> challenged<00:29:41.700> the 00:29:41.779 --> 00:29:41.789 align:start position:0% make sure that nobody challenged the 00:29:41.789 --> 00:29:45.230 align:start position:0% make sure that nobody challenged the computation<00:29:42.649> snarks<00:29:43.649> are<00:29:43.889> less<00:29:44.129> efficient<00:29:44.730> so 00:29:45.230 --> 00:29:45.240 align:start position:0% computation snarks are less efficient so 00:29:45.240 --> 00:29:47.029 align:start position:0% computation snarks are less efficient so a<00:29:45.269> zero<00:29:45.690> knowledge<00:29:45.870> proof<00:29:46.019> have<00:29:46.470> a<00:29:46.500> very<00:29:46.799> high 00:29:47.029 --> 00:29:47.039 align:start position:0% a zero knowledge proof have a very high 00:29:47.039 --> 00:29:49.610 align:start position:0% a zero knowledge proof have a very high computational<00:29:47.789> overhead<00:29:47.879> and<00:29:48.450> with<00:29:49.169> general 00:29:49.610 --> 00:29:49.620 align:start position:0% computational overhead and with general 00:29:49.620 --> 00:29:50.810 align:start position:0% computational overhead and with general purpose<00:29:49.769> of<00:29:50.039> your<00:29:50.159> virtual<00:29:50.549> machine 00:29:50.810 --> 00:29:50.820 align:start position:0% purpose of your virtual machine 00:29:50.820 --> 00:29:53.590 align:start position:0% purpose of your virtual machine execution<00:29:51.480> the<00:29:51.600> overhead<00:29:51.990> goes<00:29:52.169> way<00:29:52.529> higher 00:29:53.590 --> 00:29:53.600 align:start position:0% execution the overhead goes way higher 00:29:53.600 --> 00:29:56.389 align:start position:0% execution the overhead goes way higher all<00:29:54.600> optimistic<00:29:55.289> computation<00:29:55.679> does<00:29:56.070> not<00:29:56.190> have 00:29:56.389 --> 00:29:56.399 align:start position:0% all optimistic computation does not have 00:29:56.399 --> 00:29:58.730 align:start position:0% all optimistic computation does not have this<00:29:56.519> problem<00:29:56.820> an<00:29:57.240> interactive<00:29:58.139> computation 00:29:58.730 --> 00:29:58.740 align:start position:0% this problem an interactive computation 00:29:58.740 --> 00:30:01.669 align:start position:0% this problem an interactive computation is<00:29:58.860> also<00:29:59.129> easier<00:29:59.460> to<00:29:59.639> implement<00:29:59.759> so<00:30:00.659> if<00:30:01.169> you<00:30:01.470> do 00:30:01.669 --> 00:30:01.679 align:start position:0% is also easier to implement so if you do 00:30:01.679 --> 00:30:03.409 align:start position:0% is also easier to implement so if you do not<00:30:01.830> want<00:30:02.100> to<00:30:02.279> have<00:30:02.399> a<00:30:02.429> challenge<00:30:02.850> period<00:30:03.269> if 00:30:03.409 --> 00:30:03.419 align:start position:0% not want to have a challenge period if 00:30:03.419 --> 00:30:04.970 align:start position:0% not want to have a challenge period if you<00:30:03.509> do<00:30:03.659> not<00:30:03.779> want<00:30:04.049> to<00:30:04.230> have<00:30:04.379> this<00:30:04.529> fraud<00:30:04.769> proof 00:30:04.970 --> 00:30:04.980 align:start position:0% you do not want to have this fraud proof 00:30:04.980 --> 00:30:07.039 align:start position:0% you do not want to have this fraud proof dependency<00:30:05.549> then<00:30:05.730> snarks<00:30:06.090> are<00:30:06.240> better<00:30:06.419> but 00:30:07.039 --> 00:30:07.049 align:start position:0% dependency then snarks are better but 00:30:07.049 --> 00:30:08.720 align:start position:0% dependency then snarks are better but otherwise<00:30:07.409> kind<00:30:07.919> of<00:30:07.980> especially<00:30:08.250> in<00:30:08.639> the 00:30:08.720 --> 00:30:08.730 align:start position:0% otherwise kind of especially in the 00:30:08.730 --> 00:30:10.909 align:start position:0% otherwise kind of especially in the short<00:30:08.970> term<00:30:09.210> and<00:30:09.570> especially<00:30:10.320> for<00:30:10.740> more 00:30:10.909 --> 00:30:10.919 align:start position:0% short term and especially for more 00:30:10.919 --> 00:30:12.529 align:start position:0% short term and especially for more complicated<00:30:11.549> general<00:30:12.149> purpose<00:30:12.419> applications 00:30:12.529 --> 00:30:12.539 align:start position:0% complicated general purpose applications 00:30:12.539 --> 00:30:15.049 align:start position:0% complicated general purpose applications then<00:30:13.470> you<00:30:14.070> can<00:30:14.220> also<00:30:14.370> look<00:30:14.549> at<00:30:14.879> this 00:30:15.049 --> 00:30:15.059 align:start position:0% then you can also look at this 00:30:15.059 --> 00:30:18.499 align:start position:0% then you can also look at this optimistic<00:30:15.480> approach<00:30:16.039> so<00:30:17.039> crypto<00:30:17.970> economics 00:30:18.499 --> 00:30:18.509 align:start position:0% optimistic approach so crypto economics 00:30:18.509 --> 00:30:20.090 align:start position:0% optimistic approach so crypto economics is<00:30:18.690> used<00:30:18.929> in<00:30:19.139> a<00:30:19.200> theory<00:30:19.470> emily<00:30:19.679> and<00:30:19.799> for<00:30:19.950> lots 00:30:20.090 --> 00:30:20.100 align:start position:0% is used in a theory emily and for lots 00:30:20.100 --> 00:30:22.879 align:start position:0% is used in a theory emily and for lots of<00:30:20.279> things<00:30:20.340> it<00:30:20.960> protects<00:30:21.960> the<00:30:22.200> base<00:30:22.379> layer<00:30:22.679> of 00:30:22.879 --> 00:30:22.889 align:start position:0% of things it protects the base layer of 00:30:22.889 --> 00:30:24.669 align:start position:0% of things it protects the base layer of the<00:30:23.009> protocols<00:30:23.490> that<00:30:23.610> we<00:30:23.820> all<00:30:23.940> know<00:30:24.120> and<00:30:24.269> love 00:30:24.669 --> 00:30:24.679 align:start position:0% the protocols that we all know and love 00:30:24.679 --> 00:30:27.909 align:start position:0% the protocols that we all know and love it<00:30:25.679> protects<00:30:26.519> our<00:30:26.610> white<00:30:26.970> clients<00:30:27.539> it 00:30:27.909 --> 00:30:27.919 align:start position:0% it protects our white clients it 00:30:27.919 --> 00:30:30.649 align:start position:0% it protects our white clients it protects<00:30:28.919> the<00:30:29.070> security<00:30:29.309> of<00:30:29.820> our<00:30:30.090> glorious 00:30:30.649 --> 00:30:30.659 align:start position:0% protects the security of our glorious 00:30:30.659 --> 00:30:33.200 align:start position:0% protects the security of our glorious and<00:30:30.899> sacred<00:30:31.259> layer<00:30:31.440> to<00:30:31.710> games<00:30:32.210> plasma 00:30:33.200 --> 00:30:33.210 align:start position:0% and sacred layer to games plasma 00:30:33.210 --> 00:30:36.080 align:start position:0% and sacred layer to games plasma channels<00:30:33.720> optimistic<00:30:34.440> roll-up<00:30:34.740> trivet<00:30:35.250> it 00:30:36.080 --> 00:30:36.090 align:start position:0% channels optimistic roll-up trivet it 00:30:36.090 --> 00:30:38.539 align:start position:0% channels optimistic roll-up trivet it can<00:30:36.299> be<00:30:36.419> used<00:30:36.629> for<00:30:36.899> das<00:30:37.080> vs.<00:30:37.470> dots<00:30:37.950> resistance 00:30:38.539 --> 00:30:38.549 align:start position:0% can be used for das vs. dots resistance 00:30:38.549 --> 00:30:40.759 align:start position:0% can be used for das vs. dots resistance such<00:30:38.759> an<00:30:38.909> improved<00:30:39.779> security<00:30:39.929> of<00:30:40.409> option 00:30:40.759 --> 00:30:40.769 align:start position:0% such an improved security of option 00:30:40.769 --> 00:30:43.840 align:start position:0% such an improved security of option messaging<00:30:41.220> protocols<00:30:41.700> and<00:30:41.940> so<00:30:42.539> much<00:30:42.779> more<00:30:43.049> so 00:30:43.840 --> 00:30:43.850 align:start position:0% messaging protocols and so much more so 00:30:43.850 --> 00:30:47.539 align:start position:0% messaging protocols and so much more so this<00:30:44.850> really<00:30:45.120> is<00:30:45.509> kind<00:30:45.539> of<00:30:46.259> the<00:30:46.710> bedrock<00:30:47.190> of 00:30:47.539 --> 00:30:47.549 align:start position:0% this really is kind of the bedrock of 00:30:47.549 --> 00:30:50.090 align:start position:0% this really is kind of the bedrock of what<00:30:47.580> large<00:30:48.450> parts<00:30:48.899> of<00:30:49.019> our<00:30:49.139> ecosystem<00:30:49.980> are 00:30:50.090 --> 00:30:50.100 align:start position:0% what large parts of our ecosystem are 00:30:50.100 --> 00:30:53.810 align:start position:0% what large parts of our ecosystem are based<00:30:50.279> on<00:30:50.549> and<00:30:51.409> since<00:30:52.409> we're<00:30:52.830> by<00:30:53.490> kind<00:30:53.730> of 00:30:53.810 --> 00:30:53.820 align:start position:0% based on and since we're by kind of 00:30:53.820 --> 00:30:56.899 align:start position:0% based on and since we're by kind of planting<00:30:54.299> the<00:30:54.330> seed<00:30:54.720> in<00:30:54.929> 2009<00:30:55.740> Satoshi<00:30:56.610> Aaron 00:30:56.899 --> 00:30:56.909 align:start position:0% planting the seed in 2009 Satoshi Aaron 00:30:56.909 --> 00:30:58.909 align:start position:0% planting the seed in 2009 Satoshi Aaron have<00:30:57.059> created<00:30:57.570> a<00:30:57.659> really<00:30:57.929> interesting<00:30:58.590> and 00:30:58.909 --> 00:30:58.919 align:start position:0% have created a really interesting and 00:30:58.919 --> 00:30:59.430 align:start position:0% have created a really interesting and great 00:30:59.430 --> 00:30:59.440 align:start position:0% great 00:30:59.440 --> 00:31:01.500 align:start position:0% great and<00:30:59.770> now<00:31:00.400> we're<00:31:00.610> here<00:31:00.790> building<00:31:01.120> great<00:31:01.300> things 00:31:01.500 --> 00:31:01.510 align:start position:0% and now we're here building great things 00:31:01.510 --> 00:31:03.600 align:start position:0% and now we're here building great things on<00:31:01.660> top<00:31:01.810> of<00:31:01.870> it<00:31:02.080> thank<00:31:02.740> you 00:31:03.600 --> 00:31:03.610 align:start position:0% on top of it thank you 00:31:03.610 --> 00:31:12.490 align:start position:0% on top of it thank you [Applause] 00:31:12.490 --> 00:31:12.500 align:start position:0% 00:31:12.500 --> 00:31:14.560 align:start position:0% you