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thanks<00:00:19.170><c> for</c><00:00:19.320><c> attention</c><00:00:19.800><c> thanks</c><00:00:20.189><c> for</c><00:00:20.340><c> the</c>

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thanks for attention thanks for the
 

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thanks for attention thanks for the
opportunity<00:00:20.970><c> to</c><00:00:21.090><c> speak</c><00:00:22.939><c> delousing</c><00:00:23.939><c> the</c>

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opportunity to speak delousing the
 

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opportunity to speak delousing the
market<00:00:24.660><c> of</c><00:00:25.789><c> parasitic</c><00:00:26.900><c> rent-seeking</c>

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market of parasitic rent-seeking
 

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market of parasitic rent-seeking
agents<00:00:31.969><c> dudes</c><00:00:32.969><c> David</c><00:00:33.300><c> Friedman</c><00:00:33.719><c> that</c><00:00:33.870><c> said</c>

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agents dudes David Friedman that said
 

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agents dudes David Friedman that said
market<00:00:34.590><c> mechanisms</c><00:00:35.219><c> are</c><00:00:35.480><c> institutions</c><00:00:36.480><c> that</c>

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market mechanisms are institutions that
 

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market mechanisms are institutions that
govern<00:00:37.050><c> our</c><00:00:37.290><c> economic</c><00:00:37.800><c> interactions</c><00:00:38.309><c> what</c>

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govern our economic interactions what
 

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govern our economic interactions what
I'm<00:00:38.820><c> gonna</c><00:00:38.940><c> argue</c><00:00:39.180><c> today</c><00:00:39.629><c> is</c><00:00:39.899><c> that</c><00:00:40.309><c> continuous</c>

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I'm gonna argue today is that continuous
 

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I'm gonna argue today is that continuous
auctions<00:00:41.640><c> are</c><00:00:41.760><c> evil</c><00:00:42.350><c> don't</c><00:00:43.350><c> use</c><00:00:43.620><c> them</c><00:00:44.059><c> instead</c>

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auctions are evil don't use them instead
 

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auctions are evil don't use them instead
use<00:00:45.570><c> back</c><00:00:45.780><c> to</c><00:00:45.960><c> actions</c><00:00:46.350><c> with</c><00:00:46.620><c> single</c><00:00:47.160><c> price</c>

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use back to actions with single price
 

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use back to actions with single price
clearing<00:00:47.760><c> and</c><00:00:48.200><c> furthermore</c><00:00:49.550><c> the</c><00:00:50.550><c> auctions</c>

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clearing and furthermore the auctions
 

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clearing and furthermore the auctions
are<00:00:51.120><c> just</c><00:00:51.270><c> the</c><00:00:51.360><c> first</c><00:00:51.510><c> step</c><00:00:53.120><c> to</c><00:00:54.120><c> having</c><00:00:54.480><c> our</c>

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are just the first step to having our
 

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are just the first step to having our
economic<00:00:55.530><c> interactions</c><00:00:56.039><c> be</c><00:00:56.250><c> mediated</c><00:00:56.850><c> by</c>

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economic interactions be mediated by
 

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economic interactions be mediated by
intelligent<00:00:58.590><c> agents</c><00:00:59.010><c> working</c><00:00:59.340><c> in</c><00:00:59.520><c> our</c><00:00:59.640><c> best</c>

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intelligent agents working in our best
 

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intelligent agents working in our best
interests<00:01:00.629><c> not</c><00:01:00.989><c> for</c><00:01:01.199><c> the</c><00:01:01.530><c> profit</c><00:01:01.949><c> of</c><00:01:02.329><c> somebody</c>

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interests not for the profit of somebody
 

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interests not for the profit of somebody
else<00:01:04.040><c> if</c><00:01:05.040><c> there</c><00:01:05.339><c> is</c><00:01:05.460><c> anything</c><00:01:05.670><c> original</c><00:01:07.490><c> here</c>

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else if there is anything original here
 

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else if there is anything original here
it<00:01:08.700><c> would</c><00:01:08.939><c> be</c><00:01:09.090><c> this</c><00:01:09.390><c> breakdown</c><00:01:10.110><c> just</c>

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it would be this breakdown just
 

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it would be this breakdown just
identification<00:01:11.610><c> of</c><00:01:11.700><c> four</c><00:01:12.060><c> essential</c><00:01:12.630><c> market</c>

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identification of four essential market
 

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identification of four essential market
mechanisms<00:01:13.409><c> the</c><00:01:14.250><c> first</c><00:01:14.490><c> to</c><00:01:14.729><c> the</c><00:01:14.970><c> issuer</c><00:01:15.240><c> in</c>

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mechanisms the first to the issuer in
 

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mechanisms the first to the issuer in
the<00:01:15.420><c> clearing</c><00:01:15.689><c> up</c><00:01:15.810><c> the</c><00:01:16.500><c> issuer</c><00:01:16.860><c> and</c><00:01:16.950><c> the</c>

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the clearing up the issuer and the
 

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the clearing up the issuer and the
Clearing<00:01:17.490><c> House</c><00:01:17.670><c> are</c><00:01:18.170><c> concerned</c><00:01:19.170><c> with</c>

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Clearing House are concerned with
 

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Clearing House are concerned with
settlement<00:01:19.799><c> and</c><00:01:19.890><c> clearing</c><00:01:20.930><c> the</c><00:01:21.930><c> next</c><00:01:22.200><c> two</c><00:01:22.320><c> are</c>

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settlement and clearing the next two are
 

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settlement and clearing the next two are
the<00:01:23.310><c> ones</c><00:01:23.400><c> that</c><00:01:23.640><c> I'm</c><00:01:23.810><c> concerned</c><00:01:24.810><c> with</c><00:01:24.990><c> in</c><00:01:25.200><c> this</c>

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the ones that I'm concerned with in this
 

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the ones that I'm concerned with in this
talk

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talk
 

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talk
the<00:01:26.610><c> auctioneer</c><00:01:27.000><c> in</c><00:01:27.119><c> the</c><00:01:27.180><c> market</c><00:01:27.450><c> maker</c><00:01:27.829><c> have</c>

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the auctioneer in the market maker have
 

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the auctioneer in the market maker have
to<00:01:28.950><c> deal</c><00:01:29.070><c> with</c><00:01:29.220><c> trading</c><00:01:29.700><c> in</c><00:01:29.850><c> exchange</c><00:01:30.329><c> you</c>

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to deal with trading in exchange you
 

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to deal with trading in exchange you
don't<00:01:30.869><c> have</c><00:01:30.990><c> time</c><00:01:31.200><c> to</c><00:01:31.320><c> get</c><00:01:31.439><c> into</c><00:01:31.560><c> market</c>

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don't have time to get into market
 

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don't have time to get into market
makers<00:01:32.189><c> so</c><00:01:32.400><c> I'm</c><00:01:32.670><c> just</c><00:01:33.000><c> going</c><00:01:33.119><c> to</c><00:01:33.150><c> focus</c><00:01:33.360><c> on</c><00:01:34.100><c> two</c>

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makers so I'm just going to focus on two
 

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makers so I'm just going to focus on two
done

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done
 

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done
auctioneers<00:01:37.820><c> but</c><00:01:38.820><c> an</c><00:01:39.509><c> interesting</c><00:01:39.960><c> thing</c><00:01:39.990><c> to</c>

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auctioneers but an interesting thing to
 

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auctioneers but an interesting thing to
know<00:01:40.409><c> is</c><00:01:40.650><c> that</c><00:01:41.329><c> the</c><00:01:42.329><c> evolution</c><00:01:42.920><c> up</c><00:01:43.920><c> till</c><00:01:44.189><c> now</c>

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know is that the evolution up till now
 

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know is that the evolution up till now
the<00:01:44.340><c> crypto</c><00:01:44.850><c> currencies</c><00:01:45.240><c> has</c><00:01:45.479><c> been</c><00:01:45.659><c> moving</c>

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the crypto currencies has been moving
 

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the crypto currencies has been moving
these<00:01:46.110><c> mechanisms</c><00:01:46.619><c> from</c><00:01:47.430><c> third-party</c><00:01:47.700><c> agents</c>

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these mechanisms from third-party agents
 

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these mechanisms from third-party agents
to<00:01:48.780><c> on</c><00:01:48.960><c> chain</c><00:01:49.259><c> mechanisms</c><00:01:49.890><c> Bitcoin</c><00:01:50.640><c> was</c><00:01:51.030><c> the</c>

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to on chain mechanisms Bitcoin was the
 

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to on chain mechanisms Bitcoin was the
first<00:01:51.329><c> to</c><00:01:51.450><c> do</c><00:01:51.600><c> this</c><00:01:51.630><c> by</c><00:01:52.530><c> having</c><00:01:53.280><c> a</c><00:01:53.670><c> non</c><00:01:54.299><c> chain</c>

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first to do this by having a non chain
 

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first to do this by having a non chain
issuer<00:01:55.020><c> the</c><00:01:56.750><c> Bitcoin</c><00:01:57.750><c> reward</c><00:01:58.280><c> the</c><00:01:59.280><c> block</c><00:01:59.460><c> the</c>

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issuer the Bitcoin reward the block the
 

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issuer the Bitcoin reward the block the
block<00:02:00.030><c> reward</c><00:02:00.360><c> and</c><00:02:01.140><c> the</c><00:02:01.590><c> Clearing</c><00:02:01.860><c> House</c><00:02:02.009><c> is</c>

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block reward and the Clearing House is
 

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block reward and the Clearing House is
the<00:02:02.600><c> public</c><00:02:03.600><c> private</c><00:02:04.110><c> key</c><00:02:04.439><c> transfer</c><00:02:05.280><c> protocol</c>

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the public private key transfer protocol
 

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the public private key transfer protocol
ripple<00:02:07.320><c> had</c><00:02:07.500><c> on</c><00:02:07.890><c> chain</c><00:02:08.610><c> order</c><00:02:08.910><c> books</c><00:02:09.440><c> directly</c>

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ripple had on chain order books directly
 

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ripple had on chain order books directly
in<00:02:10.500><c> the</c><00:02:10.560><c> protocol</c><00:02:10.920><c> and</c><00:02:11.239><c> then</c>

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in the protocol and then
 

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in the protocol and then
on<00:02:12.920><c> chain</c><00:02:13.280><c> marketing</c><00:02:13.670><c> market</c><00:02:14.240><c> makers</c><00:02:15.910><c> done</c><00:02:16.910><c> by</c>

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on chain marketing market makers done by
 

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on chain marketing market makers done by
truth<00:02:17.510><c> coin</c><00:02:17.750><c> auger</c><00:02:18.080><c> gnosis</c><00:02:19.750><c> two</c><00:02:20.750><c> basic</c><00:02:20.990><c> types</c>

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truth coin auger gnosis two basic types
 

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truth coin auger gnosis two basic types
of<00:02:21.290><c> auctioneers</c><00:02:22.420><c> continuous-time</c><00:02:24.460><c> auctions</c>

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of auctioneers continuous-time auctions
 

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of auctioneers continuous-time auctions
these<00:02:27.620><c> are</c><00:02:27.830><c> matched</c><00:02:28.040><c> with</c><00:02:28.190><c> pay</c><00:02:28.550><c> s</c><00:02:28.640><c> bid</c><00:02:28.850><c> pricing</c>

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these are matched with pay s bid pricing
 

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these are matched with pay s bid pricing
and<00:02:29.480><c> discrete</c><00:02:30.050><c> time</c><00:02:30.080><c> auctions</c><00:02:30.770><c> also</c><00:02:31.130><c> known</c><00:02:31.280><c> as</c>

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and discrete time auctions also known as
 

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and discrete time auctions also known as
call<00:02:31.880><c> auctions</c><00:02:32.330><c> or</c><00:02:32.510><c> batch</c><00:02:32.840><c> auctions</c><00:02:33.970><c> these</c><00:02:34.970><c> by</c>

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call auctions or batch auctions these by
 

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call auctions or batch auctions these by
definition<00:02:36.020><c> use</c><00:02:36.680><c> single</c><00:02:37.310><c> price</c><00:02:37.490><c> clearing</c><00:02:37.940><c> if</c>

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definition use single price clearing if
 

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definition use single price clearing if
anyone<00:02:38.690><c> says</c><00:02:39.260><c> it's</c><00:02:39.500><c> a</c><00:02:39.560><c> batch</c><00:02:39.710><c> auction</c><00:02:40.250><c> but</c>

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anyone says it's a batch auction but
 

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anyone says it's a batch auction but
double<00:02:43.730><c> check</c><00:02:43.910><c> that</c><00:02:44.120><c> they're</c><00:02:44.240><c> using</c><00:02:44.390><c> uniform</c>

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double check that they're using uniform
 

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double check that they're using uniform
price<00:02:45.650><c> clearing</c><00:02:46.100><c> or</c><00:02:46.310><c> single</c><00:02:47.000><c> price</c><00:02:47.120><c> clearing</c>

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price clearing or single price clearing
 

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price clearing or single price clearing
because<00:02:49.280><c> by</c><00:02:50.060><c> almost</c><00:02:50.270><c> any</c><00:02:50.480><c> definition</c><00:02:51.580><c> it</c><00:02:52.580><c> has</c>

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because by almost any definition it has
 

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because by almost any definition it has
to<00:02:52.850><c> be</c><00:02:52.940><c> single</c><00:02:53.240><c> price</c><00:02:53.360><c> clearing</c><00:02:53.720><c> or</c><00:02:53.840><c> it's</c><00:02:53.990><c> not</c>

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to be single price clearing or it's not
 

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to be single price clearing or it's not
a<00:02:54.500><c> bad</c><00:02:55.010><c> judgment</c><00:02:57.760><c> I'm</c><00:02:58.760><c> concerned</c><00:02:59.209><c> with</c><00:02:59.420><c> this</c>

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a bad judgment I'm concerned with this
 

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a bad judgment I'm concerned with this
because<00:03:00.680><c> if</c><00:03:01.459><c> there's</c><00:03:02.120><c> going</c><00:03:02.240><c> to</c><00:03:02.300><c> be</c><00:03:02.390><c> a</c>

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because if there's going to be a
 

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because if there's going to be a
thousand<00:03:02.840><c> crypto</c><00:03:03.110><c> currencies</c><00:03:04.450><c> I</c><00:03:05.450><c> don't</c><00:03:05.840><c> want</c>

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thousand crypto currencies I don't want
 

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thousand crypto currencies I don't want
to<00:03:06.020><c> see</c><00:03:06.170><c> them</c><00:03:06.910><c> treated</c><00:03:07.910><c> well</c><00:03:08.180><c> I</c><00:03:08.209><c> don't</c><00:03:08.360><c> want</c><00:03:08.480><c> to</c>

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to see them treated well I don't want to
 

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to see them treated well I don't want to
personally<00:03:08.900><c> trade</c><00:03:09.140><c> them</c><00:03:09.320><c> like</c><00:03:09.800><c> all</c><00:03:10.040><c> coins</c><00:03:11.080><c> in</c>

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personally trade them like all coins in
 

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personally trade them like all coins in
efficient<00:03:12.500><c> markets</c><00:03:12.830><c> then</c><00:03:13.100><c> order</c><00:03:13.340><c> books</c><00:03:15.070><c> it's</c>

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efficient markets then order books it's
 

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efficient markets then order books it's
just<00:03:16.400><c> not</c><00:03:16.940><c> much</c><00:03:17.120><c> fun</c><00:03:18.010><c> be</c><00:03:19.010><c> and</c><00:03:19.300><c> if</c><00:03:20.300><c> you're</c>

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just not much fun be and if you're
 

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just not much fun be and if you're
planning<00:03:20.690><c> to</c><00:03:20.900><c> use</c><00:03:21.080><c> the</c><00:03:21.440><c> past</c><00:03:21.709><c> bid</c><00:03:21.860><c> order</c>

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planning to use the past bid order
 

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planning to use the past bid order
matching<00:03:22.760><c> mechanism</c><00:03:24.310><c> then</c><00:03:28.450><c> you're</c><00:03:29.450><c> just</c>

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matching mechanism then you're just
 

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matching mechanism then you're just
you're<00:03:30.019><c> feeding</c><00:03:30.260><c> your</c><00:03:30.580><c> users</c><00:03:31.580><c> to</c><00:03:31.760><c> the</c><00:03:31.880><c> wolves</c>

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so<00:03:36.250><c> don't</c><00:03:37.250><c> do</c><00:03:37.370><c> it</c>

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why<00:03:40.580><c> is</c><00:03:40.640><c> it</c><00:03:40.730><c> a</c><00:03:40.820><c> problem</c><00:03:42.250><c> because</c><00:03:44.410><c> pays</c><00:03:45.410><c> bid</c>

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why is it a problem because pays bid
 

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why is it a problem because pays bid
pricing<00:03:46.160><c> is</c><00:03:46.310><c> a</c><00:03:47.209><c> primitive</c><00:03:47.630><c> role</c><00:03:48.019><c> it</c><00:03:48.350><c> creates</c><00:03:48.709><c> a</c>

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pricing is a primitive role it creates a
 

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pricing is a primitive role it creates a
primitive<00:03:49.160><c> game</c><00:03:49.870><c> because</c><00:03:50.870><c> limit</c><00:03:51.230><c> orders</c><00:03:51.530><c> are</c>

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primitive game because limit orders are
 

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primitive game because limit orders are
free<00:03:51.980><c> options</c><00:03:52.430><c> you</c><00:03:53.239><c> can</c><00:03:53.330><c> go</c><00:03:53.420><c> ahead</c><00:03:53.480><c> and</c><00:03:53.660><c> Google</c>

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free options you can go ahead and Google
 

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free options you can go ahead and Google
this<00:03:54.049><c> put</c><00:03:54.650><c> free</c><00:03:54.890><c> options</c><00:03:55.220><c> in</c><00:03:55.370><c> quotes</c><00:03:55.640><c> and</c>

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this put free options in quotes and
 

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this put free options in quotes and
you'll<00:03:57.080><c> get</c><00:03:57.200><c> a</c><00:03:57.260><c> bunch</c><00:03:57.440><c> of</c><00:03:57.530><c> results</c><00:03:59.110><c> it's</c><00:04:00.110><c> not</c>

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you'll get a bunch of results it's not
 

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you'll get a bunch of results it's not
incentive<00:04:00.620><c> compatible</c><00:04:01.180><c> you</c><00:04:02.180><c> get</c>

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incentive compatible you get
 

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incentive compatible you get
front-running<00:04:02.810><c> sniping</c><00:04:04.000><c> market</c><00:04:05.000><c> market</c>

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front-running sniping market market
 

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front-running sniping market market
orders<00:04:05.810><c> are</c><00:04:05.930><c> much</c><00:04:06.049><c> better</c><00:04:06.230><c> because</c><00:04:06.410><c> you</c><00:04:06.530><c> have</c>

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orders are much better because you have
 

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orders are much better because you have
to<00:04:06.709><c> pay</c><00:04:06.799><c> the</c><00:04:06.950><c> spread</c><00:04:07.250><c> and</c><00:04:09.610><c> your</c><00:04:10.610><c> users</c><00:04:10.910><c> will</c>

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to pay the spread and your users will
 

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to pay the spread and your users will
suffer<00:04:11.360><c> death</c><00:04:12.170><c> by</c><00:04:12.350><c> a</c><00:04:12.380><c> thousand</c><00:04:12.769><c> cuts</c><00:04:12.799><c> and</c>

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suffer death by a thousand cuts and
 

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suffer death by a thousand cuts and
their<00:04:14.720><c> wallets</c><00:04:14.989><c> will</c><00:04:15.200><c> eventually</c><00:04:15.680><c> be</c><00:04:15.799><c> empty</c>

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their wallets will eventually be empty
 

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their wallets will eventually be empty
and<00:04:17.260><c> if</c><00:04:18.260><c> you</c><00:04:18.440><c> don't</c><00:04:18.620><c> believe</c><00:04:18.680><c> me</c><00:04:18.830><c> then</c><00:04:18.950><c> I</c><00:04:19.580><c> mean</c>

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and if you don't believe me then I mean
 

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and if you don't believe me then I mean
this<00:04:20.599><c> is</c><00:04:20.780><c> a</c><00:04:20.810><c> high</c><00:04:20.959><c> frequency</c><00:04:21.109><c> trading</c>

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this is a high frequency trading
 

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this is a high frequency trading
strategy<00:04:22.870><c> so</c><00:04:23.870><c> you</c><00:04:23.930><c> just</c><00:04:24.110><c> identify</c><00:04:24.560><c> a</c><00:04:24.590><c> limit</c>

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strategy so you just identify a limit
 

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strategy so you just identify a limit
orders<00:04:25.099><c> placed</c><00:04:25.340><c> by</c><00:04:25.580><c> humans</c>

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orders placed by humans
 

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orders placed by humans
they're<00:04:27.380><c> stale</c><00:04:27.650><c> after</c><00:04:27.830><c> five</c><00:04:28.130><c> seconds</c><00:04:28.990><c> so</c>

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they're stale after five seconds so
 

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they're stale after five seconds so
what's<00:04:32.660><c> the</c><00:04:32.750><c> better</c><00:04:32.900><c> mechanism</c><00:04:33.350><c> single</c><00:04:34.220><c> price</c>

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what's the better mechanism single price
 

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what's the better mechanism single price
clearing<00:04:34.880><c> what</c><00:04:35.600><c> is</c><00:04:35.720><c> single</c><00:04:35.870><c> price</c><00:04:36.110><c> clearing</c>

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clearing what is single price clearing
 

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clearing what is single price clearing
all<00:04:39.050><c> these</c><00:04:41.620><c> you</c><00:04:42.620><c> just</c><00:04:42.740><c> match</c><00:04:43.010><c> the</c><00:04:43.340><c> supply</c><00:04:43.790><c> and</c>

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all these you just match the supply and
 

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all these you just match the supply and
demand<00:04:44.180><c> curve</c><00:04:44.450><c> and</c><00:04:46.420><c> all</c><00:04:47.420><c> the</c><00:04:47.660><c> trades</c><00:04:47.900><c> execute</c>

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demand curve and all the trades execute
 

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demand curve and all the trades execute
at<00:04:48.620><c> the</c><00:04:49.160><c> same</c><00:04:49.400><c> price</c><00:04:49.700><c> it</c><00:04:49.880><c> doesn't</c><00:04:50.150><c> matter</c><00:04:50.270><c> if</c>

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at the same price it doesn't matter if
 

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at the same price it doesn't matter if
you<00:04:50.510><c> over</c><00:04:50.750><c> bid</c><00:04:51.280><c> you</c><00:04:52.280><c> still</c><00:04:52.520><c> get</c><00:04:52.820><c> a</c><00:04:53.060><c> fair</c><00:04:53.960><c> price</c>

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you over bid you still get a fair price
 

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you over bid you still get a fair price
on<00:04:54.740><c> your</c><00:04:55.160><c> trade</c><00:04:55.840><c> these</c><00:04:56.840><c> are</c><00:04:56.960><c> actually</c><00:04:57.200><c> there</c>

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on your trade these are actually there
 

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on your trade these are actually there
already<00:04:57.620><c> use</c><00:04:57.830><c> they've</c><00:04:58.220><c> been</c><00:04:58.340><c> used</c><00:04:58.580><c> for</c><00:04:58.760><c> a</c><00:04:58.790><c> long</c>

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already use they've been used for a long
 

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already use they've been used for a long
time<00:04:59.570><c> they've</c><00:04:59.960><c> just</c><00:05:00.110><c> been</c><00:05:00.230><c> taken</c><00:05:00.530><c> for</c><00:05:00.680><c> granted</c>

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time they've just been taken for granted
 

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time they've just been taken for granted
because<00:05:02.650><c> probably</c><00:05:03.650><c> because</c><00:05:03.920><c> Bitcoin</c>

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because probably because Bitcoin
 

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because probably because Bitcoin
exchanges<00:05:04.820><c> operate</c><00:05:05.420><c> 24/7</c><00:05:06.020><c> so</c><00:05:06.350><c> they</c><00:05:06.470><c> don't</c>

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exchanges operate 24/7 so they don't
 

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exchanges operate 24/7 so they don't
have<00:05:06.890><c> opening</c><00:05:07.310><c> and</c><00:05:07.430><c> closing</c><00:05:07.760><c> sessions</c>

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have opening and closing sessions
 

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have opening and closing sessions
opening<00:05:10.760><c> closing</c><00:05:10.940><c> sessions</c><00:05:11.740><c> uniform</c><00:05:12.740><c> price</c>

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opening closing sessions uniform price
 

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opening closing sessions uniform price
clearing<00:05:13.250><c> is</c><00:05:13.370><c> used</c><00:05:13.580><c> on</c><00:05:13.790><c> the</c><00:05:13.940><c> NYC</c><00:05:14.210><c> and</c><00:05:14.540><c> Nasdaq</c>

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clearing is used on the NYC and Nasdaq
 

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clearing is used on the NYC and Nasdaq
already<00:05:15.560><c> it's</c><00:05:15.920><c> and</c><00:05:16.250><c> I</c><00:05:16.880><c> would</c><00:05:17.360><c> call</c><00:05:17.510><c> it</c><00:05:17.690><c> the</c>

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already it's and I would call it the
 

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already it's and I would call it the
near<00:05:18.350><c> indicative</c><00:05:18.860><c> clearing</c><00:05:19.460><c> price</c><00:05:20.080><c> so</c><00:05:21.080><c> it</c>

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near indicative clearing price so it
 

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near indicative clearing price so it
gets<00:05:21.920><c> kind</c><00:05:22.100><c> of</c><00:05:22.130><c> confusing</c><00:05:22.250><c> because</c><00:05:22.730><c> single</c>

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gets kind of confusing because single
 

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gets kind of confusing because single
price<00:05:23.720><c> clearing</c><00:05:24.050><c> the</c><00:05:24.110><c> uniform</c><00:05:24.410><c> price</c>

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price clearing the uniform price
 

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price clearing the uniform price
clearing<00:05:24.980><c> second</c><00:05:25.910><c> price</c><00:05:26.060><c> auction</c><00:05:26.890><c> there's</c><00:05:27.890><c> so</c>

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clearing second price auction there's so
 

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clearing second price auction there's so
many<00:05:28.130><c> different</c><00:05:28.490><c> names</c><00:05:28.670><c> for</c><00:05:28.790><c> the</c><00:05:29.150><c> same</c><00:05:29.330><c> basic</c>

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many different names for the same basic
 

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many different names for the same basic
idea<00:05:30.310><c> but</c><00:05:31.310><c> the</c><00:05:32.270><c> Vickrey</c><00:05:32.660><c> auction</c><00:05:32.690><c> victory</c><00:05:33.290><c> won</c>

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idea but the Vickrey auction victory won
 

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idea but the Vickrey auction victory won
the<00:05:33.800><c> Nobel</c><00:05:34.490><c> Prize</c><00:05:34.640><c> of</c><00:05:35.620><c> economics</c><00:05:36.620><c> and</c>

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variants<00:05:39.890><c> have</c><00:05:40.010><c> been</c><00:05:40.160><c> used</c><00:05:40.850><c> and</c><00:05:41.090><c> rebranded</c>

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variants have been used and rebranded
 

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variants have been used and rebranded
over<00:05:41.780><c> the</c><00:05:41.870><c> years</c><00:05:42.700><c> well</c><00:05:43.700><c> isn't</c><00:05:43.940><c> it</c><00:05:44.030><c> better</c><00:05:44.180><c> to</c>

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over the years well isn't it better to
 

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over the years well isn't it better to
batch<00:05:44.510><c> order</c><00:05:44.870><c> super</c><00:05:45.140><c> pass</c><00:05:45.320><c> no</c><00:05:46.510><c> read</c><00:05:47.510><c> this</c>

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batch order super pass no read this
 

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batch order super pass no read this
paper<00:05:47.930><c> it</c><00:05:48.380><c> is</c><00:05:48.440><c> not</c><00:05:48.680><c> better</c><00:05:48.860><c> or</c><00:05:49.520><c> just</c><00:05:49.820><c> look</c><00:05:49.940><c> at</c>

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paper it is not better or just look at
 

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paper it is not better or just look at
the<00:05:50.090><c> slice</c><00:05:50.620><c> it</c><00:05:51.620><c> intuitively</c><00:05:52.460><c> it</c><00:05:52.820><c> seems</c><00:05:53.390><c> like</c>

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the slice it intuitively it seems like
 

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the slice it intuitively it seems like
it's<00:05:53.870><c> better</c><00:05:54.020><c> because</c><00:05:54.910><c> continuous-time</c>

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it's better because continuous-time
 

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it's better because continuous-time
markets<00:05:56.390><c> are</c><00:05:56.570><c> more</c><00:05:56.900><c> efficient</c><00:05:57.230><c> in</c><00:05:57.290><c> time</c><00:05:57.440><c> space</c>

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markets are more efficient in time space
 

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markets are more efficient in time space
but<00:05:57.920><c> they're</c><00:05:58.070><c> less</c><00:05:58.340><c> efficient</c><00:05:58.850><c> and</c><00:05:58.970><c> volume</c>

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but they're less efficient and volume
 

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but they're less efficient and volume
space<00:05:59.870><c> because</c><00:06:00.730><c> all</c><00:06:01.730><c> limit</c><00:06:02.090><c> orders</c><00:06:02.270><c> are</c><00:06:02.390><c> stale</c>

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space because all limit orders are stale
 

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space because all limit orders are stale
and<00:06:05.500><c> the</c><00:06:06.500><c> fastest</c><00:06:06.890><c> traders</c><00:06:07.190><c> get</c><00:06:07.340><c> to</c><00:06:07.400><c> charge</c>

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and the fastest traders get to charge
 

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and the fastest traders get to charge
arbitrage<00:06:08.090><c> rents</c><00:06:08.770><c> batch</c><00:06:09.770><c> auctions</c><00:06:10.400><c> solve</c>

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arbitrage rents batch auctions solve
 

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arbitrage rents batch auctions solve
this<00:06:11.600><c> problem</c><00:06:12.170><c> they</c><00:06:12.590><c> respect</c><00:06:13.010><c> the</c><00:06:13.100><c> reality</c><00:06:13.430><c> of</c>

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this problem they respect the reality of
 

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this problem they respect the reality of
computers<00:06:13.940><c> and</c><00:06:14.510><c> it's</c><00:06:14.720><c> a</c><00:06:14.810><c> excellent</c><00:06:15.350><c> fit</c><00:06:15.650><c> for</c>

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computers and it's a excellent fit for
 

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computers and it's a excellent fit for
blockchains

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blockchains
 

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blockchains
you<00:06:17.000><c> just</c><00:06:17.150><c> think</c><00:06:17.300><c> of</c><00:06:17.390><c> the</c><00:06:17.450><c> block</c><00:06:17.600><c> times</c><00:06:17.870><c> as</c><00:06:18.170><c> the</c>

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you just think of the block times as the
 

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you just think of the block times as the
batch<00:06:18.890><c> periods</c><00:06:21.700><c> the</c><00:06:22.700><c> spectrum</c><00:06:23.330><c> of</c><00:06:23.480><c> mechanism</c>

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batch periods the spectrum of mechanism
 

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batch periods the spectrum of mechanism
so<00:06:24.440><c> continuous</c><00:06:24.950><c> double</c><00:06:25.250><c> auction</c><00:06:25.550><c> is</c><00:06:25.730><c> a</c><00:06:25.790><c> simple</c>

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so continuous double auction is a simple
 

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so continuous double auction is a simple
sorting<00:06:26.870><c> process</c>

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sorting process
 

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sorting process
there's<00:06:29.300><c> no</c><00:06:29.450><c> optimization</c><00:06:29.810><c> it</c><00:06:30.470><c> once</c><00:06:31.010><c> you</c><00:06:31.100><c> go</c>

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there's no optimization it once you go
 

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there's no optimization it once you go
to<00:06:31.250><c> once</c><00:06:31.760><c> you</c><00:06:31.850><c> move</c><00:06:31.970><c> to</c><00:06:32.000><c> a</c><00:06:32.150><c> uniform</c><00:06:32.570><c> with</c><00:06:33.140><c> a</c>

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to once you move to a uniform with a
 

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to once you move to a uniform with a
single<00:06:33.500><c> price</c><00:06:33.680><c> clearing</c><00:06:35.050><c> batch</c><00:06:36.050><c> auction</c>

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single price clearing batch auction
 

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single price clearing batch auction
you're<00:06:36.950><c> doing</c><00:06:37.160><c> a</c><00:06:37.250><c> simple</c><00:06:37.550><c> batch</c><00:06:37.780><c> optimization</c>

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you're doing a simple batch optimization
 

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you're doing a simple batch optimization
and<00:06:39.320><c> once</c><00:06:40.310><c> you</c><00:06:40.400><c> go</c><00:06:40.520><c> further</c><00:06:40.730><c> down</c><00:06:40.910><c> the</c>

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and once you go further down the
 

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and once you go further down the
spectrum<00:06:41.540><c> the</c><00:06:41.870><c> spectrum</c><00:06:41.930><c> you</c><00:06:42.470><c> get</c><00:06:43.070><c> more</c><00:06:43.310><c> and</c>

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spectrum the spectrum you get more and
 

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spectrum the spectrum you get more and
more<00:06:43.550><c> complex</c><00:06:44.300><c> optimizations</c><00:06:45.170><c> which</c><00:06:45.890><c> are</c>

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more complex optimizations which are
 

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more complex optimizations which are
better<00:06:46.910><c> for</c><00:06:47.090><c> your</c><00:06:47.210><c> users</c><00:06:47.570><c> like</c><00:06:47.600><c> having</c><00:06:48.140><c> your</c>

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better for your users like having your
 

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better for your users like having your
own<00:06:48.290><c> think</c><00:06:48.860><c> of</c><00:06:48.920><c> it</c><00:06:49.010><c> like</c><00:06:49.130><c> having</c><00:06:49.430><c> your</c><00:06:49.520><c> own</c>

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own think of it like having your own
 

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own think of it like having your own
trading<00:06:50.870><c> BOTS</c><00:06:52.210><c> directly</c><00:06:53.210><c> in</c><00:06:53.300><c> the</c><00:06:53.390><c> mechanism</c>

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trading BOTS directly in the mechanism
 

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trading BOTS directly in the mechanism
working<00:06:54.320><c> for</c><00:06:54.680><c> you</c><00:06:54.830><c> to</c><00:06:55.070><c> get</c><00:06:55.190><c> the</c><00:06:55.310><c> best</c><00:06:55.490><c> price</c><00:06:55.760><c> on</c>

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working for you to get the best price on
 

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working for you to get the best price on
your<00:06:56.180><c> order</c>

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these<00:07:00.350><c> are</c><00:07:00.470><c> Penix</c><00:07:00.830><c> phases</c><00:07:01.310><c> phase</c><00:07:01.970><c> zero</c><00:07:04.780><c> what</c><00:07:05.780><c> I</c>

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these are Penix phases phase zero what I
 

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these are Penix phases phase zero what I
call<00:07:06.020><c> pentek's</c><00:07:06.320><c> phases</c><00:07:06.680><c> phase</c><00:07:06.920><c> zero</c><00:07:07.250><c> is</c><00:07:07.580><c> the</c>

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call pentek's phases phase zero is the
 

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call pentek's phases phase zero is the
times<00:07:08.330><c> before</c><00:07:08.570><c> computers</c><00:07:09.380><c> phase</c><00:07:10.340><c> one</c><00:07:11.260><c> the</c>

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times before computers phase one the
 

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times before computers phase one the
computers<00:07:12.740><c> just</c><00:07:13.450><c> emulate</c><00:07:14.450><c> exactly</c><00:07:15.290><c> what</c>

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computers just emulate exactly what
 

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computers just emulate exactly what
humans<00:07:15.710><c> did</c><00:07:16.420><c> base</c><00:07:17.420><c> 1.5</c><00:07:18.020><c> now</c><00:07:18.890><c> that</c><00:07:19.100><c> this</c><00:07:19.370><c> is</c>

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humans did base 1.5 now that this is
 

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humans did base 1.5 now that this is
where<00:07:19.670><c> we</c><00:07:19.820><c> are</c><00:07:19.850><c> now</c><00:07:21.370><c> the</c><00:07:22.370><c> agents</c><00:07:22.820><c> on</c><00:07:22.910><c> the</c>

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where we are now the agents on the
 

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where we are now the agents on the
periphery<00:07:23.950><c> are</c><00:07:24.950><c> doing</c><00:07:25.700><c> more</c><00:07:26.380><c> statistical</c>

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periphery are doing more statistical
 

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periphery are doing more statistical
optimizations<00:07:28.670><c> for</c><00:07:29.360><c> their</c><00:07:29.480><c> own</c><00:07:29.570><c> profit</c>

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optimizations for their own profit
 

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optimizations for their own profit
they're<00:07:30.170><c> exploiting</c><00:07:30.800><c> the</c><00:07:31.280><c> core</c><00:07:31.520><c> mechanisms</c>

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they're exploiting the core mechanisms
 

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they're exploiting the core mechanisms
and<00:07:32.420><c> all</c><00:07:32.690><c> you</c><00:07:33.760><c> measly</c><00:07:34.760><c> humans</c><00:07:35.210><c> still</c><00:07:35.810><c> using</c>

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and all you measly humans still using
 

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and all you measly humans still using
steal<00:07:36.800><c> limit</c><00:07:37.100><c> orders</c><00:07:37.400><c> are</c><00:07:38.120><c> getting</c><00:07:39.280><c> exploited</c>

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steal limit orders are getting exploited
 

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steal limit orders are getting exploited
by<00:07:40.700><c> the</c><00:07:41.480><c> high-frequency</c><00:07:41.690><c> traders</c><00:07:42.310><c> face</c><00:07:43.310><c> 2.0</c>

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by the high-frequency traders face 2.0
 

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by the high-frequency traders face 2.0
that's<00:07:45.230><c> where</c><00:07:45.380><c> we</c><00:07:45.440><c> want</c><00:07:45.620><c> to</c><00:07:45.680><c> go</c><00:07:48.760><c> these</c><00:07:49.760><c> are</c><00:07:50.030><c> the</c>

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that's where we want to go these are the
 

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that's where we want to go these are the
two<00:07:50.420><c> basic</c><00:07:50.540><c> types</c><00:07:50.840><c> of</c><00:07:50.990><c> intelligent</c><00:07:51.470><c> agents</c>

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two basic types of intelligent agents
 

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two basic types of intelligent agents
this<00:07:52.250><c> simple</c><00:07:52.550><c> reflex</c><00:07:52.790><c> agent</c><00:07:53.330><c> is</c><00:07:53.510><c> a</c><00:07:54.610><c> good</c><00:07:55.610><c> model</c>

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this simple reflex agent is a good model
 

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this simple reflex agent is a good model
for<00:07:55.960><c> continuous</c><00:07:56.960><c> double</c><00:07:57.860><c> auction</c><00:07:59.020><c> batch</c>

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for continuous double auction batch
 

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for continuous double auction batch
auctions<00:08:00.500><c> or</c><00:08:00.650><c> even</c><00:08:00.920><c> more</c><00:08:01.640><c> obviously</c>

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auctions or even more obviously
 

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auctions or even more obviously
automated<00:08:03.410><c> market</c><00:08:03.710><c> makers</c><00:08:03.980><c> are</c><00:08:04.220><c> model-based</c>

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automated market makers are model-based
 

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automated market makers are model-based
agents<00:08:06.230><c> because</c><00:08:07.040><c> they</c><00:08:07.340><c> actually</c><00:08:07.460><c> have</c><00:08:07.610><c> States</c>

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agents because they actually have States
 

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agents because they actually have States
the<00:08:09.680><c> inventory</c><00:08:10.310><c> of</c><00:08:10.400><c> the</c><00:08:10.490><c> market</c><00:08:10.850><c> maker</c><00:08:11.000><c> is</c><00:08:11.300><c> the</c>

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the inventory of the market maker is the
 

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the inventory of the market maker is the
state<00:08:12.020><c> and</c><00:08:13.360><c> so</c><00:08:14.360><c> unless</c><00:08:15.260><c> you're</c><00:08:15.410><c> going</c><00:08:15.500><c> to</c><00:08:15.590><c> run</c>

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state and so unless you're going to run
 

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state and so unless you're going to run
your<00:08:15.800><c> own</c><00:08:15.860><c> trading</c><00:08:16.130><c> bot</c><00:08:17.170><c> then</c><00:08:19.030><c> use</c><00:08:20.030><c> a</c><00:08:20.060><c> more</c>

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your own trading bot then use a more
 

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your own trading bot then use a more
advanced<00:08:20.780><c> mechanism</c><00:08:21.910><c> recent</c><00:08:22.910><c> paper</c><00:08:23.060><c> in</c>

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advanced mechanism recent paper in
 

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advanced mechanism recent paper in
science<00:08:23.420><c> did</c><00:08:25.810><c> has</c><00:08:26.810><c> a</c><00:08:26.840><c> nice</c><00:08:27.050><c> description</c><00:08:27.440><c> of</c>

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science did has a nice description of
 

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science did has a nice description of
this<00:08:27.770><c> for</c><00:08:28.510><c> ad</c><00:08:29.510><c> auctions</c><00:08:30.340><c> the</c><00:08:31.340><c> first</c><00:08:31.610><c> designs</c>

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this for ad auctions the first designs
 

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this for ad auctions the first designs
were<00:08:32.240><c> first</c><00:08:32.510><c> price</c><00:08:32.750><c> auction</c><00:08:32.960><c> so</c><00:08:33.380><c> that's</c><00:08:33.650><c> your</c>

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were first price auction so that's your
 

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were first price auction so that's your
pay<00:08:34.460><c> as</c><00:08:34.580><c> bid</c><00:08:34.849><c> clearing</c><00:08:35.240><c> then</c><00:08:36.200><c> that</c><00:08:36.470><c> advanced</c>

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pay as bid clearing then that advanced
 

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pay as bid clearing then that advanced
to<00:08:37.010><c> second</c><00:08:37.400><c> price</c><00:08:37.580><c> auctions</c><00:08:38.120><c> that's</c><00:08:38.419><c> again</c>

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to second price auctions that's again
 

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to second price auctions that's again
your<00:08:39.020><c> uniform</c><00:08:39.530><c> price</c><00:08:39.740><c> clearing</c><00:08:40.190><c> and</c><00:08:40.570><c> then</c><00:08:41.740><c> and</c>

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your uniform price clearing and then and
 

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your uniform price clearing and then and
combining<00:08:43.760><c> those</c><00:08:43.880><c> with</c><00:08:43.960><c> proxy</c><00:08:44.960><c> agents</c><00:08:46.450><c> what</c>

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combining those with proxy agents what
 

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combining those with proxy agents what
so<00:08:48.560><c> when</c><00:08:48.710><c> we</c><00:08:48.800><c> go</c><00:08:48.920><c> back</c><00:08:49.130><c> to</c><00:08:49.360><c> phase</c><00:08:50.360><c> 2.0</c>

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so when we go back to phase 2.0
 

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so when we go back to phase 2.0
note<00:08:52.530><c> that</c><00:08:52.820><c> Google</c><00:08:53.820><c> and</c><00:08:53.910><c> Facebook</c><00:08:54.030><c> are</c>

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note that Google and Facebook are
 

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note that Google and Facebook are
already<00:08:54.720><c> using</c><00:08:55.610><c> advanced</c><00:08:57.110><c> mechanisms</c>

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already using advanced mechanisms
 

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already using advanced mechanisms
directly<00:08:59.670><c> in</c><00:08:59.820><c> the</c><00:09:00.500><c> for</c><00:09:01.500><c> the</c><00:09:01.560><c> trade</c><00:09:01.770><c> matching</c>

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directly in the for the trade matching
 

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directly in the for the trade matching
but<00:09:02.940><c> the</c><00:09:03.120><c> difference</c><00:09:03.450><c> is</c><00:09:03.600><c> that</c><00:09:03.930><c> they</c><00:09:04.380><c> are</c>

00:09:04.550 --> 00:09:04.560 align:start position:0%
but the difference is that they are
 

00:09:04.560 --> 00:09:06.710 align:start position:0%
but the difference is that they are
centralized<00:09:05.100><c> and</c><00:09:05.400><c> the</c><00:09:05.940><c> that</c><00:09:06.390><c> what</c><00:09:06.540><c> they're</c>

00:09:06.710 --> 00:09:06.720 align:start position:0%
centralized and the that what they're
 

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centralized and the that what they're
optimizing<00:09:07.320><c> is</c><00:09:07.440><c> the</c><00:09:07.680><c> auctioneer</c><00:09:08.190><c> revenue</c><00:09:10.760><c> on</c>

00:09:11.750 --> 00:09:11.760 align:start position:0%
optimizing is the auctioneer revenue on
 

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optimizing is the auctioneer revenue on
a<00:09:11.820><c> decentralized</c><00:09:12.710><c> mechanism</c><00:09:13.710><c> we</c><00:09:13.890><c> can</c>

00:09:14.060 --> 00:09:14.070 align:start position:0%
a decentralized mechanism we can
 

00:09:14.070 --> 00:09:17.420 align:start position:0%
a decentralized mechanism we can
optimize<00:09:14.370><c> instead</c><00:09:15.150><c> trader</c><00:09:15.570><c> welfare</c><00:09:16.430><c> this</c>

00:09:17.420 --> 00:09:17.430 align:start position:0%
optimize instead trader welfare this
 

00:09:17.430 --> 00:09:20.120 align:start position:0%
optimize instead trader welfare this
some<00:09:17.700><c> solidity</c><00:09:18.330><c> code</c><00:09:18.600><c> to</c><00:09:18.870><c> efficiently</c><00:09:19.650><c> verify</c>

00:09:20.120 --> 00:09:20.130 align:start position:0%
some solidity code to efficiently verify
 

00:09:20.130 --> 00:09:24.130 align:start position:0%
some solidity code to efficiently verify
the<00:09:20.850><c> solution</c><00:09:21.300><c> to</c><00:09:21.510><c> a</c><00:09:21.920><c> convex</c><00:09:22.920><c> optimization</c>

00:09:24.130 --> 00:09:24.140 align:start position:0%
the solution to a convex optimization
 

00:09:24.140 --> 00:09:30.440 align:start position:0%
the solution to a convex optimization
ask<00:09:25.140><c> me</c><00:09:25.320><c> about</c><00:09:25.440><c> this</c><00:09:25.620><c> later</c><00:09:27.440><c> Thanks</c>