WEBVTT Kind: captions Language: en 00:00:01.440 --> 00:00:04.480 align:start position:0% [Music] 00:00:04.480 --> 00:00:04.490 align:start position:0% [Music] 00:00:04.490 --> 00:00:07.940 align:start position:0% [Music] okay<00:00:05.490> hello<00:00:05.850> everybody<00:00:06.259> thank<00:00:07.259> you<00:00:07.350> to<00:00:07.770> Def 00:00:07.940 --> 00:00:07.950 align:start position:0% okay hello everybody thank you to Def 00:00:07.950 --> 00:00:10.129 align:start position:0% okay hello everybody thank you to Def Con<00:00:08.160> for<00:00:08.519> having<00:00:08.970> me<00:00:09.090> thank<00:00:09.450> you<00:00:09.570> to<00:00:09.780> Prague 00:00:10.129 --> 00:00:10.139 align:start position:0% Con for having me thank you to Prague 00:00:10.139 --> 00:00:12.740 align:start position:0% Con for having me thank you to Prague for<00:00:10.170> hosting<00:00:10.860> Devcon<00:00:11.280> the<00:00:12.179> Commons<00:00:12.509> off<00:00:12.599> to<00:00:12.690> a 00:00:12.740 --> 00:00:12.750 align:start position:0% for hosting Devcon the Commons off to a 00:00:12.750 --> 00:00:14.539 align:start position:0% for hosting Devcon the Commons off to a great<00:00:12.870> start<00:00:12.960> and<00:00:13.440> I<00:00:13.559> can't<00:00:13.799> wait<00:00:13.950> to<00:00:13.980> finish 00:00:14.539 --> 00:00:14.549 align:start position:0% great start and I can't wait to finish 00:00:14.549 --> 00:00:16.250 align:start position:0% great start and I can't wait to finish my<00:00:14.820> talk<00:00:15.089> so<00:00:15.120> I<00:00:15.330> can<00:00:15.480> watch<00:00:15.660> all<00:00:15.960> the<00:00:16.139> other 00:00:16.250 --> 00:00:16.260 align:start position:0% my talk so I can watch all the other 00:00:16.260 --> 00:00:20.980 align:start position:0% my talk so I can watch all the other ones<00:00:16.609> so<00:00:17.609> this<00:00:18.210> talk<00:00:18.570> is<00:00:19.260> about<00:00:19.680> layer<00:00:20.490> two 00:00:20.980 --> 00:00:20.990 align:start position:0% ones so this talk is about layer two 00:00:20.990 --> 00:00:23.630 align:start position:0% ones so this talk is about layer two we're<00:00:21.990> gonna<00:00:22.080> give<00:00:22.350> you<00:00:22.410> a<00:00:22.500> clear<00:00:22.980> conceptual 00:00:23.630 --> 00:00:23.640 align:start position:0% we're gonna give you a clear conceptual 00:00:23.640 --> 00:00:26.870 align:start position:0% we're gonna give you a clear conceptual description<00:00:24.350> so<00:00:25.350> first<00:00:25.590> of<00:00:25.710> all<00:00:25.769> Who<00:00:26.369> am<00:00:26.460> I 00:00:26.870 --> 00:00:26.880 align:start position:0% description so first of all Who am I 00:00:26.880 --> 00:00:29.060 align:start position:0% description so first of all Who am I my<00:00:27.449> name<00:00:27.570> is<00:00:27.660> Josh<00:00:27.900> I'm<00:00:28.260> a<00:00:28.349> co-founder<00:00:28.710> kinda 00:00:29.060 --> 00:00:29.070 align:start position:0% my name is Josh I'm a co-founder kinda 00:00:29.070 --> 00:00:31.429 align:start position:0% my name is Josh I'm a co-founder kinda called<00:00:29.189> elf<00:00:29.340> or<00:00:29.689> you<00:00:30.689> can<00:00:30.840> follow<00:00:31.199> me<00:00:31.410> on 00:00:31.429 --> 00:00:31.439 align:start position:0% called elf or you can follow me on 00:00:31.439 --> 00:00:34.819 align:start position:0% called elf or you can follow me on Twitter<00:00:31.859> if<00:00:32.850> you<00:00:32.910> would<00:00:33.180> like<00:00:33.329> to<00:00:33.540> and<00:00:34.380> at<00:00:34.530> l4 00:00:34.819 --> 00:00:34.829 align:start position:0% Twitter if you would like to and at l4 00:00:34.829 --> 00:00:36.860 align:start position:0% Twitter if you would like to and at l4 we're<00:00:35.160> building<00:00:35.610> a<00:00:35.790> project<00:00:36.360> called 00:00:36.860 --> 00:00:36.870 align:start position:0% we're building a project called 00:00:36.870 --> 00:00:38.389 align:start position:0% we're building a project called counterfactual<00:00:37.620> in<00:00:37.739> collaboration<00:00:38.370> with 00:00:38.389 --> 00:00:38.399 align:start position:0% counterfactual in collaboration with 00:00:38.399 --> 00:00:40.549 align:start position:0% counterfactual in collaboration with many<00:00:38.640> others<00:00:39.000> and<00:00:39.629> counterfactual<00:00:40.350> is<00:00:40.530> a 00:00:40.549 --> 00:00:40.559 align:start position:0% many others and counterfactual is a 00:00:40.559 --> 00:00:42.860 align:start position:0% many others and counterfactual is a framework<00:00:41.160> to<00:00:41.460> make<00:00:41.610> it<00:00:41.820> easy<00:00:42.120> for<00:00:42.510> people<00:00:42.660> to 00:00:42.860 --> 00:00:42.870 align:start position:0% framework to make it easy for people to 00:00:42.870 --> 00:00:45.529 align:start position:0% framework to make it easy for people to use<00:00:43.200> state<00:00:43.500> channels<00:00:43.920> in<00:00:44.640> their<00:00:44.940> applications 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with us so the goal of 00:00:52.410 --> 00:00:54.770 align:start position:0% around come chat with us so the goal of this<00:00:52.590> talk<00:00:52.829> is<00:00:53.190> to<00:00:53.550> leave<00:00:53.730> you<00:00:53.879> with<00:00:54.059> a<00:00:54.239> clear 00:00:54.770 --> 00:00:54.780 align:start position:0% this talk is to leave you with a clear 00:00:54.780 --> 00:00:57.350 align:start position:0% this talk is to leave you with a clear conceptual<00:00:55.680> understanding<00:00:56.370> of<00:00:56.969> what<00:00:57.180> layer 00:00:57.350 --> 00:00:57.360 align:start position:0% conceptual understanding of what layer 00:00:57.360 --> 00:00:59.990 align:start position:0% conceptual understanding of what layer two<00:00:57.660> means<00:00:57.930> if<00:00:58.859> you<00:00:59.100> are<00:00:59.250> not<00:00:59.430> a<00:00:59.460> developer 00:00:59.990 --> 00:01:00.000 align:start position:0% two means if you are not a developer 00:01:00.000 --> 00:01:01.639 align:start position:0% two means if you are not a developer this<00:01:00.510> should<00:01:00.690> be<00:01:00.809> a<00:01:00.840> kind<00:01:01.050> of<00:01:01.079> a<00:01:01.170> good<00:01:01.410> way<00:01:01.469> to 00:01:01.639 --> 00:01:01.649 align:start position:0% this should be a kind of a good way to 00:01:01.649 --> 00:01:03.290 align:start position:0% this should be a kind of a good way to understand<00:01:02.070> the<00:01:02.219> intuitions<00:01:02.760> behind<00:01:03.180> these 00:01:03.290 --> 00:01:03.300 align:start position:0% understand the intuitions behind these 00:01:03.300 --> 00:01:05.539 align:start position:0% understand the intuitions behind these techniques<00:01:03.719> and<00:01:03.989> why<00:01:04.350> we<00:01:04.530> need<00:01:04.559> them<00:01:04.739> if<00:01:05.400> you 00:01:05.539 --> 00:01:05.549 align:start position:0% techniques and why we need them if you 00:01:05.549 --> 00:01:07.160 align:start position:0% techniques and why we need them if you are<00:01:05.729> a<00:01:05.760> developer<00:01:06.060> this<00:01:06.659> will<00:01:06.810> hopefully<00:01:06.930> give 00:01:07.160 --> 00:01:07.170 align:start position:0% are a developer this will hopefully give 00:01:07.170 --> 00:01:09.620 align:start position:0% are a developer this will hopefully give you<00:01:07.320> a<00:01:07.590> kind<00:01:07.799> of<00:01:07.950> better<00:01:08.310> set<00:01:08.580> of<00:01:08.670> context<00:01:09.420> a 00:01:09.620 --> 00:01:09.630 align:start position:0% you a kind of better set of context a 00:01:09.630 --> 00:01:11.840 align:start position:0% you a kind of better set of context a higher<00:01:10.110> level<00:01:10.320> view<00:01:10.409> of<00:01:10.680> how<00:01:11.340> these<00:01:11.490> different 00:01:11.840 --> 00:01:11.850 align:start position:0% higher level view of how these different 00:01:11.850 --> 00:01:13.100 align:start position:0% higher level view of how these different technologies<00:01:12.270> relate<00:01:12.510> to<00:01:12.630> each<00:01:12.689> other<00:01:12.840> and 00:01:13.100 --> 00:01:13.110 align:start position:0% technologies relate to each other and 00:01:13.110 --> 00:01:16.550 align:start position:0% technologies relate to each other and why<00:01:13.830> they're<00:01:14.040> important<00:01:14.520> so<00:01:15.439> we're<00:01:16.439> you<00:01:16.500> know 00:01:16.550 --> 00:01:16.560 align:start position:0% why they're important so we're you know 00:01:16.560 --> 00:01:19.039 align:start position:0% why they're important so we're you know about<00:01:16.710> four<00:01:16.890> things<00:01:17.100> first<00:01:17.909> briefly<00:01:18.450> what<00:01:18.960> are 00:01:19.039 --> 00:01:19.049 align:start position:0% about four things first briefly what are 00:01:19.049 --> 00:01:21.050 align:start position:0% about four things first briefly what are the<00:01:19.200> kind<00:01:19.380> of<00:01:19.439> fundamental<00:01:20.100> limits<00:01:20.430> of<00:01:20.790> public 00:01:21.050 --> 00:01:21.060 align:start position:0% the kind of fundamental limits of public 00:01:21.060 --> 00:01:21.770 align:start position:0% the kind of fundamental limits of public blockchains 00:01:21.770 --> 00:01:21.780 align:start position:0% blockchains 00:01:21.780 --> 00:01:24.679 align:start position:0% blockchains that<00:01:22.080> require<00:01:22.500> scaling<00:01:23.009> solutions<00:01:23.689> secondly 00:01:24.679 --> 00:01:24.689 align:start position:0% that require scaling solutions secondly 00:01:24.689 --> 00:01:26.929 align:start position:0% that require scaling solutions secondly what<00:01:25.110> is<00:01:25.140> layer<00:01:25.710> two<00:01:25.830> and<00:01:26.250> what<00:01:26.400> are<00:01:26.490> layer<00:01:26.670> to 00:01:26.929 --> 00:01:26.939 align:start position:0% what is layer two and what are layer to 00:01:26.939 --> 00:01:28.760 align:start position:0% what is layer two and what are layer to scaling<00:01:27.240> solutions<00:01:27.750> and<00:01:27.990> then<00:01:28.530> we're<00:01:28.650> going 00:01:28.760 --> 00:01:28.770 align:start position:0% scaling solutions and then we're going 00:01:28.770 --> 00:01:30.890 align:start position:0% scaling solutions and then we're going to<00:01:28.860> talk<00:01:28.979> about<00:01:29.280> two<00:01:29.579> examples<00:01:29.900> state 00:01:30.890 --> 00:01:30.900 align:start position:0% to talk about two examples state 00:01:30.900 --> 00:01:35.960 align:start position:0% to talk about two examples state channels<00:01:31.290> and<00:01:31.530> Plasma<00:01:33.560> so<00:01:34.560> first<00:01:35.189> fundamental 00:01:35.960 --> 00:01:35.970 align:start position:0% channels and Plasma so first fundamental 00:01:35.970 --> 00:01:39.679 align:start position:0% channels and Plasma so first fundamental limits<00:01:37.759> blocks<00:01:38.759> means<00:01:38.909> like<00:01:39.030> aetherium<00:01:39.450> are 00:01:39.679 --> 00:01:39.689 align:start position:0% limits blocks means like aetherium are 00:01:39.689 --> 00:01:42.530 align:start position:0% limits blocks means like aetherium are expensive<00:01:40.619> and<00:01:40.860> they're<00:01:41.460> slow<00:01:41.670> they're 00:01:42.530 --> 00:01:42.540 align:start position:0% expensive and they're slow they're 00:01:42.540 --> 00:01:44.960 align:start position:0% expensive and they're slow they're expensive<00:01:42.869> because<00:01:43.380> we're<00:01:43.890> doing<00:01:44.579> things<00:01:44.790> on 00:01:44.960 --> 00:01:44.970 align:start position:0% expensive because we're doing things on 00:01:44.970 --> 00:01:47.120 align:start position:0% expensive because we're doing things on them<00:01:45.180> requires<00:01:45.600> fees<00:01:45.960> and<00:01:46.259> they're<00:01:46.829> slow 00:01:47.120 --> 00:01:47.130 align:start position:0% them requires fees and they're slow 00:01:47.130 --> 00:01:48.590 align:start position:0% them requires fees and they're slow because<00:01:47.460> you<00:01:47.700> have<00:01:47.820> to<00:01:47.970> send<00:01:48.240> something<00:01:48.479> to 00:01:48.590 --> 00:01:48.600 align:start position:0% because you have to send something to 00:01:48.600 --> 00:01:51.050 align:start position:0% because you have to send something to the<00:01:48.750> blockchain<00:01:49.280> wait<00:01:50.280> you<00:01:50.490> know<00:01:50.610> in<00:01:50.670> 15 00:01:51.050 --> 00:01:51.060 align:start position:0% the blockchain wait you know in 15 00:01:51.060 --> 00:01:53.330 align:start position:0% the blockchain wait you know in 15 seconds<00:01:51.630> for<00:01:51.869> a<00:01:51.899> confirmation<00:01:52.560> and<00:01:52.740> then<00:01:53.159> do 00:01:53.330 --> 00:01:53.340 align:start position:0% seconds for a confirmation and then do 00:01:53.340 --> 00:01:55.850 align:start position:0% seconds for a confirmation and then do something<00:01:53.579> else<00:01:54.020> anyone<00:01:55.020> that's<00:01:55.290> ever<00:01:55.409> you 00:01:55.850 --> 00:01:55.860 align:start position:0% something else anyone that's ever you 00:01:55.860 --> 00:01:57.319 align:start position:0% something else anyone that's ever you know<00:01:55.950> kind<00:01:56.280> of<00:01:56.340> dealt<00:01:56.579> with<00:01:56.700> this<00:01:56.820> or<00:01:57.030> or<00:01:57.149> try 00:01:57.319 --> 00:01:57.329 align:start position:0% know kind of dealt with this or or try 00:01:57.329 --> 00:01:58.670 align:start position:0% know kind of dealt with this or or try to<00:01:57.390> interact<00:01:57.750> with<00:01:57.990> the<00:01:58.049> blockchain<00:01:58.290> when 00:01:58.670 --> 00:01:58.680 align:start position:0% to interact with the blockchain when 00:01:58.680 --> 00:02:00.770 align:start position:0% to interact with the blockchain when there's<00:01:58.860> something<00:01:59.189> going<00:01:59.430> on<00:01:59.549> like<00:01:59.850> a<00:02:00.270> crypto 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of<00:02:08.819> scale<00:02:09.060> of<00:02:09.569> Hagah<00:02:09.869> how<00:02:10.050> aetherium 00:02:10.430 --> 00:02:10.440 align:start position:0% sense of scale of Hagah how aetherium 00:02:10.440 --> 00:02:12.589 align:start position:0% sense of scale of Hagah how aetherium today<00:02:10.739> compares<00:02:11.220> to<00:02:11.550> other<00:02:11.970> things<00:02:12.330> we<00:02:12.480> might 00:02:12.589 --> 00:02:12.599 align:start position:0% today compares to other things we might 00:02:12.599 --> 00:02:13.670 align:start position:0% today compares to other things we might compare<00:02:12.989> it<00:02:13.050> to 00:02:13.670 --> 00:02:13.680 align:start position:0% compare it to 00:02:13.680 --> 00:02:16.250 align:start position:0% compare it to it's<00:02:13.980> not<00:02:14.130> great<00:02:14.430> right<00:02:14.610> 20<00:02:15.570> transactions<00:02:16.080> per 00:02:16.250 --> 00:02:16.260 align:start position:0% it's not great right 20 transactions per 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look<00:02:22.500> to<00:02:22.580> non-financial<00:02:23.580> applications<00:02:24.330> the 00:02:25.190 --> 00:02:25.200 align:start position:0% look to non-financial applications the 00:02:25.200 --> 00:02:27.980 align:start position:0% look to non-financial applications the numbers<00:02:25.500> get<00:02:25.710> even<00:02:26.040> more<00:02:26.190> frustrating<00:02:26.990> so 00:02:27.980 --> 00:02:27.990 align:start position:0% numbers get even more frustrating so 00:02:27.990 --> 00:02:29.690 align:start position:0% numbers get even more frustrating so today<00:02:28.590> a<00:02:28.620> theorem<00:02:28.950> is<00:02:29.070> obviously<00:02:29.370> not<00:02:29.520> where 00:02:29.690 --> 00:02:29.700 align:start position:0% today a theorem is obviously not where 00:02:29.700 --> 00:02:31.280 align:start position:0% today a theorem is obviously not where it<00:02:29.790> needs<00:02:29.850> to<00:02:30.120> be<00:02:30.240> to<00:02:30.570> kind<00:02:30.720> of<00:02:30.750> satisfy<00:02:31.230> the 00:02:31.280 --> 00:02:31.290 align:start position:0% it needs to be to kind of satisfy the 00:02:31.290 --> 00:02:33.370 align:start position:0% it needs to be to kind of satisfy the ambitions<00:02:31.980> of<00:02:32.130> all<00:02:32.490> the<00:02:32.610> people<00:02:32.910> in<00:02:33.030> this<00:02:33.120> room 00:02:33.370 --> 00:02:33.380 align:start position:0% ambitions of all the people in this room 00:02:33.380 --> 00:02:38.150 align:start position:0% ambitions of all the people in this room so<00:02:34.380> why<00:02:35.040> is<00:02:35.100> that<00:02:35.960> this<00:02:36.960> purple<00:02:37.470> rectangle<00:02:38.010> is 00:02:38.150 --> 00:02:38.160 align:start position:0% so why is that this purple rectangle is 00:02:38.160 --> 00:02:40.520 align:start position:0% so why is that this purple rectangle is the<00:02:38.760> etherium<00:02:39.150> blockchain<00:02:39.630> for<00:02:40.050> the<00:02:40.140> purpose 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like<00:02:59.310> this<00:03:00.380> each<00:03:01.380> of 00:03:01.580 --> 00:03:01.590 align:start position:0% actually looks more like this each of 00:03:01.590 --> 00:03:04.790 align:start position:0% actually looks more like this each of these<00:03:01.710> nodes<00:03:01.980> is<00:03:02.760> separately<00:03:03.440> processing<00:03:04.440> all 00:03:04.790 --> 00:03:04.800 align:start position:0% these nodes is separately processing all 00:03:04.800 --> 00:03:06.890 align:start position:0% these nodes is separately processing all of<00:03:05.160> the<00:03:05.280> things<00:03:05.490> that<00:03:05.670> happen<00:03:05.910> on<00:03:06.000> ethereal<00:03:06.390> so 00:03:06.890 --> 00:03:06.900 align:start position:0% of the things that happen on ethereal so 00:03:06.900 --> 00:03:08.930 align:start position:0% of the things that happen on ethereal so if<00:03:07.170> you<00:03:07.380> Berthe<00:03:07.830> crypto<00:03:08.040> kitty<00:03:08.220> or<00:03:08.490> you<00:03:08.640> send<00:03:08.880> a 00:03:08.930 --> 00:03:08.940 align:start position:0% if you Berthe crypto kitty or you send a 00:03:08.940 --> 00:03:11.150 align:start position:0% if you Berthe crypto kitty or you send a transaction<00:03:09.540> or<00:03:09.720> an<00:03:10.170> e<00:03:10.260> or<00:03:10.350> C<00:03:10.500> 20<00:03:10.740> contract 00:03:11.150 --> 00:03:11.160 align:start position:0% transaction or an e or C 20 contract 00:03:11.160 --> 00:03:13.400 align:start position:0% transaction or an e or C 20 contract updates<00:03:11.520> it<00:03:11.640> balances<00:03:12.120> all<00:03:12.540> of<00:03:12.840> that<00:03:12.990> is<00:03:13.200> being 00:03:13.400 --> 00:03:13.410 align:start position:0% updates it balances all of that is being 00:03:13.410 --> 00:03:15.680 align:start position:0% updates it balances all of that is being separately<00:03:13.980> and<00:03:14.160> individually<00:03:14.370> processed<00:03:15.360> by 00:03:15.680 --> 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align:start position:0% trust other nodes they they figure out what<00:03:37.350> happened<00:03:37.709> for<00:03:37.890> themselves<00:03:38.340> without 00:03:38.960 --> 00:03:38.970 align:start position:0% what happened for themselves without 00:03:38.970 --> 00:03:40.460 align:start position:0% what happened for themselves without having<00:03:39.120> to<00:03:39.390> refer<00:03:39.690> back<00:03:39.840> to<00:03:39.900> some<00:03:40.230> sort<00:03:40.440> of 00:03:40.460 --> 00:03:40.470 align:start position:0% having to refer back to some sort of 00:03:40.470 --> 00:03:42.979 align:start position:0% having to refer back to some sort of master<00:03:40.980> node<00:03:41.190> so<00:03:42.090> there<00:03:42.209> is<00:03:42.300> a<00:03:42.330> naive<00:03:42.750> solution 00:03:42.979 --> 00:03:42.989 align:start position:0% master node so there is a naive solution 00:03:42.989 --> 00:03:45.229 align:start position:0% master node so there is a naive solution to<00:03:43.290> this<00:03:43.350> problem<00:03:43.530> which<00:03:44.190> is<00:03:44.370> that<00:03:44.400> well<00:03:44.760> let's 00:03:45.229 --> 00:03:45.239 align:start position:0% to this problem which is that well let's 00:03:45.239 --> 00:03:46.940 align:start position:0% to this problem which is that well let's just<00:03:45.480> require<00:03:45.840> individual<00:03:46.350> nodes<00:03:46.530> to<00:03:46.800> do<00:03:46.920> a 00:03:46.940 --> 00:03:46.950 align:start position:0% just require individual nodes to do a 00:03:46.950 --> 00:03:49.009 align:start position:0% just require individual nodes to do a lot<00:03:47.160> more<00:03:47.190> work<00:03:47.489> so<00:03:47.790> let's<00:03:48.239> say<00:03:48.420> now<00:03:48.630> you<00:03:48.750> have 00:03:49.009 --> 00:03:49.019 align:start position:0% lot more work so let's say now you have 00:03:49.019 --> 00:03:50.449 align:start position:0% lot more work so let's say now you have to<00:03:49.110> process<00:03:49.560> two<00:03:49.860> times<00:03:50.130> as<00:03:50.340> many 00:03:50.449 --> 00:03:50.459 align:start position:0% to process two times as many 00:03:50.459 --> 00:03:52.250 align:start position:0% to process two times as many transactions<00:03:51.180> and<00:03:51.420> so<00:03:51.810> the<00:03:51.930> whole<00:03:52.080> system 00:03:52.250 --> 00:03:52.260 align:start position:0% transactions and so the whole system 00:03:52.260 --> 00:03:54.380 align:start position:0% transactions and so the whole system will<00:03:52.560> be<00:03:52.620> able<00:03:52.709> to<00:03:52.800> do<00:03:52.920> more<00:03:53.130> and<00:03:53.940> now<00:03:54.269> our 00:03:54.380 --> 00:03:54.390 align:start position:0% will be able to do more and now our 00:03:54.390 --> 00:03:57.170 align:start position:0% will be able to do more and now our blockchain<00:03:54.780> can<00:03:54.810> do<00:03:55.080> more<00:03:55.230> stuff<00:03:56.030> now<00:03:57.030> that 00:03:57.170 --> 00:03:57.180 align:start position:0% blockchain can do more stuff now that 00:03:57.180 --> 00:03:59.660 align:start position:0% blockchain can do more stuff now that sounds<00:03:57.510> great<00:03:57.750> but<00:03:57.989> it<00:03:58.230> comes<00:03:58.440> at<00:03:58.620> a<00:03:58.680> cost<00:03:58.739> and 00:03:59.660 --> 00:03:59.670 align:start position:0% sounds great but it comes at a cost and 00:03:59.670 --> 00:04:01.370 align:start position:0% sounds great but it comes at a cost and the<00:03:59.700> cost<00:03:59.790> is<00:04:00.239> that<00:04:00.360> now<00:04:00.630> nodes<00:04:00.959> are<00:04:01.170> more 00:04:01.370 --> 00:04:01.380 align:start position:0% the cost is that now nodes are more 00:04:01.380 --> 00:04:03.320 align:start position:0% the cost is that now nodes are more expensive<00:04:01.709> to<00:04:02.070> run<00:04:02.220> and<00:04:02.459> so<00:04:03.000> there<00:04:03.209> will<00:04:03.300> be 00:04:03.320 --> 00:04:03.330 align:start position:0% expensive to run and so there will be 00:04:03.330 --> 00:04:04.850 align:start position:0% expensive to run and so there will be fewer<00:04:03.660> of<00:04:03.750> them<00:04:03.930> because<00:04:04.230> we've<00:04:04.350> raised<00:04:04.680> the 00:04:04.850 --> 00:04:04.860 align:start position:0% fewer of them because we've raised the 00:04:04.860 --> 00:04:07.550 align:start position:0% fewer of them because we've raised the price<00:04:05.070> to<00:04:05.100> do<00:04:05.430> that<00:04:05.610> and<00:04:05.910> now<00:04:06.450> instead<00:04:06.959> of<00:04:07.110> this 00:04:07.550 --> 00:04:07.560 align:start position:0% price to do that and now instead of this 00:04:07.560 --> 00:04:09.170 align:start position:0% price to do that and now instead of this blockchain<00:04:08.160> we<00:04:08.489> have<00:04:08.640> something<00:04:08.910> that<00:04:09.000> looks 00:04:09.170 --> 00:04:09.180 align:start position:0% blockchain we have something that looks 00:04:09.180 --> 00:04:11.750 align:start position:0% blockchain we have something that looks a<00:04:09.450> little<00:04:09.840> more<00:04:10.050> like<00:04:10.230> this<00:04:10.440> there<00:04:11.430> are<00:04:11.550> fewer 00:04:11.750 --> 00:04:11.760 align:start position:0% a little more like this there are fewer 00:04:11.760 --> 00:04:14.180 align:start position:0% a little more like this there are fewer nodes<00:04:12.000> it<00:04:12.630> is<00:04:12.780> less<00:04:12.959> decentralized<00:04:13.560> and<00:04:13.890> it's 00:04:14.180 --> 00:04:14.190 align:start position:0% nodes it is less decentralized and it's 00:04:14.190 --> 00:04:16.849 align:start position:0% nodes it is less decentralized and it's less<00:04:14.430> secure<00:04:15.140> those<00:04:16.140> of<00:04:16.290> you<00:04:16.410> kind<00:04:16.680> of<00:04:16.709> with 00:04:16.849 --> 00:04:16.859 align:start position:0% less secure those of you kind of with 00:04:16.859 --> 00:04:18.289 align:start position:0% less secure those of you kind of with more<00:04:17.010> context<00:04:17.489> might<00:04:17.640> remember<00:04:18.000> that<00:04:18.209> you 00:04:18.289 --> 00:04:18.299 align:start position:0% more context might remember that you 00:04:18.299 --> 00:04:21.050 align:start position:0% more context might remember that you know<00:04:18.419> the<00:04:18.570> Bitcoin<00:04:18.989> block<00:04:19.530> size<00:04:19.799> debate<00:04:20.730> was 00:04:21.050 --> 00:04:21.060 align:start position:0% know the Bitcoin block size debate was 00:04:21.060 --> 00:04:23.029 align:start position:0% know the Bitcoin block size debate was essentially<00:04:21.570> about<00:04:21.750> this<00:04:21.960> parameter<00:04:22.500> should 00:04:23.029 --> 00:04:23.039 align:start position:0% essentially about this parameter should 00:04:23.039 --> 00:04:24.650 align:start position:0% essentially about this parameter should we<00:04:23.160> raise<00:04:23.550> the<00:04:23.789> amount<00:04:23.910> of<00:04:24.060> work<00:04:24.240> that<00:04:24.270> nodes 00:04:24.650 --> 00:04:24.660 align:start position:0% we raise the amount of work that nodes 00:04:24.660 --> 00:04:26.000 align:start position:0% we raise the amount of work that nodes have<00:04:24.840> to<00:04:24.990> do<00:04:25.110> or<00:04:25.289> should<00:04:25.440> we<00:04:25.530> keep<00:04:25.650> it<00:04:25.770> where<00:04:25.919> it 00:04:26.000 --> 00:04:26.010 align:start position:0% have to do or should we keep it where it 00:04:26.010 --> 00:04:26.960 align:start position:0% have to do or should we keep it where it is 00:04:26.960 --> 00:04:26.970 align:start position:0% is 00:04:26.970 --> 00:04:28.730 align:start position:0% is and<00:04:27.150> it's<00:04:27.300> also<00:04:27.720> notably<00:04:28.259> kind<00:04:28.530> of<00:04:28.590> the 00:04:28.730 --> 00:04:28.740 align:start position:0% and it's also notably kind of the 00:04:28.740 --> 00:04:31.010 align:start position:0% and it's also notably kind of the technique<00:04:29.099> or<00:04:29.310> the<00:04:29.430> approach<00:04:29.759> used<00:04:30.060> by<00:04:30.210> many 00:04:31.010 --> 00:04:31.020 align:start position:0% technique or the approach used by many 00:04:31.020 --> 00:04:32.480 align:start position:0% technique or the approach used by many of<00:04:31.139> these<00:04:31.259> so-called<00:04:31.740> aetherium<00:04:32.130> killers 00:04:32.480 --> 00:04:32.490 align:start position:0% of these so-called aetherium killers 00:04:32.490 --> 00:04:34.610 align:start position:0% of these so-called aetherium killers where<00:04:33.090> they<00:04:33.660> are<00:04:33.840> claiming<00:04:34.110> massive 00:04:34.610 --> 00:04:34.620 align:start position:0% where they are claiming massive 00:04:34.620 --> 00:04:36.350 align:start position:0% where they are claiming massive scalability<00:04:34.860> benefits<00:04:35.520> and<00:04:35.759> the<00:04:36.060> way<00:04:36.180> they're 00:04:36.350 --> 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powerful and can process a lot 00:04:41.970 --> 00:04:44.600 align:start position:0% far more powerful and can process a lot more<00:04:42.150> stuff<00:04:42.680> but<00:04:43.680> the<00:04:43.830> in<00:04:44.130> the<00:04:44.250> etherium 00:04:44.600 --> 00:04:44.610 align:start position:0% more stuff but the in the etherium 00:04:44.610 --> 00:04:46.460 align:start position:0% more stuff but the in the etherium kettle<00:04:44.910> community<00:04:45.270> we<00:04:45.750> want<00:04:46.139> to<00:04:46.229> do<00:04:46.319> better 00:04:46.460 --> 00:04:46.470 align:start position:0% kettle community we want to do better 00:04:46.470 --> 00:04:48.379 align:start position:0% kettle community we want to do better than<00:04:46.710> that<00:04:46.740> we<00:04:47.099> don't<00:04:47.580> just<00:04:47.759> want<00:04:47.970> to<00:04:48.060> slide 00:04:48.379 --> 00:04:48.389 align:start position:0% than that we don't just want to slide 00:04:48.389 --> 00:04:50.240 align:start position:0% than that we don't just want to slide down<00:04:48.720> the<00:04:48.750> scale<00:04:49.259> away<00:04:49.949> from<00:04:50.160> the 00:04:50.240 --> 00:04:50.250 align:start position:0% down the scale away from the 00:04:50.250 --> 00:04:51.950 align:start position:0% down the scale away from the centralization<00:04:50.610> to<00:04:51.180> performance<00:04:51.660> because 00:04:51.950 --> 00:04:51.960 align:start position:0% centralization to performance because 00:04:51.960 --> 00:04:53.719 align:start position:0% centralization to performance because that's<00:04:52.380> how<00:04:52.650> it<00:04:53.099> seems<00:04:53.400> we<00:04:53.520> can<00:04:53.610> get 00:04:53.719 --> 00:04:53.729 align:start position:0% that's how it seems we can get 00:04:53.729 --> 00:04:55.969 align:start position:0% that's how it seems we can get performance<00:04:53.940> we<00:04:54.630> want<00:04:54.840> to<00:04:55.020> break<00:04:55.319> that<00:04:55.620> trade 00:04:55.969 --> 00:04:55.979 align:start position:0% performance we want to break that trade 00:04:55.979 --> 00:04:58.339 align:start position:0% performance we want to break that trade off<00:04:56.130> we<00:04:56.550> want<00:04:56.849> to<00:04:57.030> find<00:04:57.270> clever<00:04:57.660> ways<00:04:57.780> to<00:04:58.229> get 00:04:58.339 --> 00:04:58.349 align:start position:0% off we want to find clever ways to get 00:04:58.349 --> 00:04:59.930 align:start position:0% off we want to find clever ways to get around<00:04:58.470> it<00:04:58.830> so<00:04:59.340> that<00:04:59.370> we<00:04:59.520> can<00:04:59.580> have<00:04:59.789> the 00:04:59.930 --> 00:04:59.940 align:start position:0% around it so that we can have the 00:04:59.940 --> 00:05:02.059 align:start position:0% around it so that we can have the benefits<00:05:00.330> of<00:05:00.509> scalability<00:05:00.930> while<00:05:01.830> still 00:05:02.059 --> 00:05:02.069 align:start position:0% benefits of scalability while still 00:05:02.069 --> 00:05:03.710 align:start position:0% benefits of scalability while still preserving<00:05:02.250> the<00:05:02.849> reason<00:05:03.120> we<00:05:03.240> have<00:05:03.419> block 00:05:03.710 --> 00:05:03.720 align:start position:0% preserving the reason we have block 00:05:03.720 --> 00:05:05.270 align:start position:0% preserving the reason we have block chains<00:05:03.930> like<00:05:04.080> aetherium<00:05:04.440> in<00:05:04.620> the<00:05:04.889> first<00:05:05.099> place 00:05:05.270 --> 00:05:05.280 align:start position:0% chains like aetherium in the first place 00:05:05.280 --> 00:05:08.029 align:start position:0% chains like aetherium in the first place so<00:05:06.270> there<00:05:06.720> are<00:05:06.810> two<00:05:06.960> real<00:05:07.199> solutions<00:05:07.710> to<00:05:07.979> this 00:05:08.029 --> 00:05:08.039 align:start position:0% so there are two real solutions to this 00:05:08.039 --> 00:05:11.570 align:start position:0% so there are two real solutions to this problem<00:05:08.400> being<00:05:08.729> pursued<00:05:09.889> one<00:05:10.889> of<00:05:11.039> them<00:05:11.190> the 00:05:11.570 --> 00:05:11.580 align:start position:0% problem being pursued one of them the 00:05:11.580 --> 00:05:13.399 align:start position:0% problem being pursued one of them the insight<00:05:11.849> is<00:05:12.000> like<00:05:12.210> well<00:05:12.539> what<00:05:13.020> if<00:05:13.110> we<00:05:13.199> just 00:05:13.399 --> 00:05:13.409 align:start position:0% insight is like well what if we just 00:05:13.409 --> 00:05:15.379 align:start position:0% insight is like well what if we just didn't<00:05:13.919> have<00:05:13.979> every<00:05:14.310> node<00:05:14.490> process<00:05:15.120> every 00:05:15.379 --> 00:05:15.389 align:start position:0% didn't have every node process every 00:05:15.389 --> 00:05:16.700 align:start position:0% didn't have every node process every transaction<00:05:15.750> well<00:05:16.080> what<00:05:16.229> if<00:05:16.319> there's<00:05:16.470> a<00:05:16.530> way 00:05:16.700 --> 00:05:16.710 align:start position:0% transaction well what if there's a way 00:05:16.710 --> 00:05:19.399 align:start position:0% transaction well what if there's a way to<00:05:16.740> not<00:05:17.159> do<00:05:17.400> that<00:05:17.599> what<00:05:18.599> if<00:05:18.690> we<00:05:18.720> split<00:05:19.080> all<00:05:19.349> the 00:05:19.399 --> 00:05:19.409 align:start position:0% to not do that what if we split all the 00:05:19.409 --> 00:05:21.520 align:start position:0% to not do that what if we split all the nodes<00:05:19.830> in<00:05:20.130> the<00:05:20.159> network<00:05:20.220> into<00:05:21.030> two<00:05:21.150> categories 00:05:21.520 --> 00:05:21.530 align:start position:0% nodes in the network into two categories 00:05:21.530 --> 00:05:24.830 align:start position:0% nodes in the network into two categories nodes<00:05:22.530> a<00:05:22.770> no<00:05:23.039> a<00:05:23.220> nodes<00:05:23.490> and<00:05:23.729> B<00:05:23.880> nodes<00:05:24.090> and<00:05:24.389> we 00:05:24.830 --> 00:05:24.840 align:start position:0% nodes a no a nodes and B nodes and we 00:05:24.840 --> 00:05:26.089 align:start position:0% nodes a no a nodes and B nodes and we had<00:05:25.020> them<00:05:25.169> separately<00:05:25.680> processed 00:05:26.089 --> 00:05:26.099 align:start position:0% had them separately processed 00:05:26.099 --> 00:05:27.950 align:start position:0% had them separately processed transactions<00:05:26.699> but<00:05:27.090> still<00:05:27.330> resolved<00:05:27.659> as<00:05:27.810> some 00:05:27.950 --> 00:05:27.960 align:start position:0% transactions but still resolved as some 00:05:27.960 --> 00:05:31.640 align:start position:0% transactions but still resolved as some common<00:05:28.289> state<00:05:28.530> on<00:05:28.680> some<00:05:29.039> schedule<00:05:30.349> if<00:05:31.349> we<00:05:31.500> can 00:05:31.640 --> 00:05:31.650 align:start position:0% common state on some schedule if we can 00:05:31.650 --> 00:05:33.200 align:start position:0% common state on some schedule if we can do<00:05:31.800> that<00:05:31.979> then<00:05:32.280> we've<00:05:32.430> effectively<00:05:32.789> doubled 00:05:33.200 --> 00:05:33.210 align:start position:0% do that then we've effectively doubled 00:05:33.210 --> 00:05:34.760 align:start position:0% do that then we've effectively doubled the<00:05:33.300> transaction<00:05:33.780> capacity<00:05:34.229> because<00:05:34.500> now<00:05:34.710> the 00:05:34.760 --> 00:05:34.770 align:start position:0% the transaction capacity because now the 00:05:34.770 --> 00:05:36.969 align:start position:0% the transaction capacity because now the limiting<00:05:35.130> factor<00:05:35.490> is<00:05:35.639> what<00:05:35.820> two<00:05:36.090> nodes<00:05:36.330> can<00:05:36.570> do 00:05:36.969 --> 00:05:36.979 align:start position:0% limiting factor is what two nodes can do 00:05:36.979 --> 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than<00:05:44.550> that<00:05:44.610> but<00:05:44.909> that's<00:05:45.300> the 00:05:45.469 --> 00:05:45.479 align:start position:0% more complex than that but that's the 00:05:45.479 --> 00:05:47.450 align:start position:0% more complex than that but that's the kind<00:05:45.570> of<00:05:45.690> the<00:05:45.780> core<00:05:45.990> idea<00:05:46.320> and<00:05:46.949> charting<00:05:47.310> is<00:05:47.430> a 00:05:47.450 --> 00:05:47.460 align:start position:0% kind of the core idea and charting is a 00:05:47.460 --> 00:05:49.610 align:start position:0% kind of the core idea and charting is a core<00:05:47.880> part<00:05:48.120> of<00:05:48.240> what<00:05:48.300> we<00:05:48.630> are<00:05:48.870> apparently<00:05:49.349> now 00:05:49.610 --> 00:05:49.620 align:start position:0% core part of what we are apparently now 00:05:49.620 --> 00:05:51.860 align:start position:0% core part of what we are apparently now back<00:05:50.070> to<00:05:50.099> calling<00:05:50.400> serenity<00:05:50.639> but<00:05:51.630> I<00:05:51.659> didn't 00:05:51.860 --> 00:05:51.870 align:start position:0% back to calling serenity but I didn't 00:05:51.870 --> 00:05:53.930 align:start position:0% back to calling serenity but I didn't get<00:05:51.960> the<00:05:52.050> memo<00:05:52.169> in<00:05:52.380> time<00:05:52.530> for<00:05:52.680> these<00:05:52.740> slides<00:05:53.039> so 00:05:53.930 --> 00:05:53.940 align:start position:0% get the memo in time for these slides so 00:05:53.940 --> 00:05:56.689 align:start position:0% get the memo in time for these slides so what<00:05:54.180> we're<00:05:54.300> calling<00:05:54.599> each<00:05:54.690> 2.0<00:05:55.340> you<00:05:56.340> can<00:05:56.520> hear 00:05:56.689 --> 00:05:56.699 align:start position:0% what we're calling each 2.0 you can hear 00:05:56.699 --> 00:05:58.129 align:start position:0% what we're calling each 2.0 you can hear a<00:05:56.729> lot<00:05:56.969> more<00:05:57.030> about<00:05:57.330> that<00:05:57.389> obviously<00:05:57.810> the 00:05:58.129 --> 00:05:58.139 align:start position:0% a lot more about that obviously the 00:05:58.139 --> 00:05:59.300 align:start position:0% a lot more about that obviously the talent<00:05:58.440> just<00:05:58.590> talked<00:05:58.800> about<00:05:59.009> on<00:05:59.069> the<00:05:59.130> bench 00:05:59.300 --> 00:05:59.310 align:start position:0% talent just talked about on the bench 00:05:59.310 --> 00:06:01.610 align:start position:0% talent just talked about on the bench and<00:05:59.550> there's<00:06:00.120> a<00:06:00.180> bunch<00:06:00.509> of<00:06:00.630> talks<00:06:00.930> all<00:06:01.289> week 00:06:01.610 --> 00:06:01.620 align:start position:0% and there's a bunch of talks all week 00:06:01.620 --> 00:06:03.860 align:start position:0% and there's a bunch of talks all week where<00:06:02.310> you<00:06:02.400> can<00:06:02.520> learn<00:06:02.639> more<00:06:02.909> about<00:06:03.210> sharding 00:06:03.860 --> 00:06:03.870 align:start position:0% where you can learn more about sharding 00:06:03.870 --> 00:06:05.240 align:start position:0% where you can learn more about sharding and<00:06:03.900> related<00:06:04.259> systems<00:06:04.620> I<00:06:04.860> think<00:06:05.009> they're 00:06:05.240 --> 00:06:05.250 align:start position:0% and related systems I think they're 00:06:05.250 --> 00:06:06.950 align:start position:0% and related systems I think they're probably<00:06:05.430> more<00:06:05.969> than<00:06:06.210> just<00:06:06.419> these<00:06:06.569> two 00:06:06.950 --> 00:06:06.960 align:start position:0% probably more than just these two 00:06:06.960 --> 00:06:08.540 align:start position:0% probably more than just these two they're<00:06:07.650> on<00:06:07.770> the<00:06:07.889> schedule<00:06:08.190> that<00:06:08.280> would<00:06:08.400> touch 00:06:08.540 --> 00:06:08.550 align:start position:0% they're on the schedule that would touch 00:06:08.550 --> 00:06:10.249 align:start position:0% they're on the schedule that would touch on<00:06:08.699> in<00:06:08.849> some<00:06:09.030> way<00:06:09.180> but<00:06:09.780> I<00:06:09.840> encourage<00:06:09.990> you<00:06:10.229> to 00:06:10.249 --> 00:06:10.259 align:start position:0% on in some way but I encourage you to 00:06:10.259 --> 00:06:12.469 align:start position:0% on in some way but I encourage you to check<00:06:10.409> them<00:06:10.620> out<00:06:10.789> but<00:06:11.789> that's<00:06:11.880> not<00:06:12.270> what<00:06:12.389> this 00:06:12.469 --> 00:06:12.479 align:start position:0% check them out but that's not what this 00:06:12.479 --> 00:06:13.370 align:start position:0% check them out but that's not what this talk<00:06:12.659> is<00:06:12.719> about 00:06:13.370 --> 00:06:13.380 align:start position:0% talk is about 00:06:13.380 --> 00:06:16.640 align:start position:0% talk is about so<00:06:14.310> there's<00:06:14.940> a<00:06:15.000> second<00:06:15.479> kind<00:06:15.930> of<00:06:15.990> approach<00:06:16.349> to 00:06:16.640 --> 00:06:16.650 align:start position:0% so there's a second kind of approach to 00:06:16.650 --> 00:06:18.830 align:start position:0% so there's a second kind of approach to solving<00:06:17.009> this<00:06:17.159> fundamental<00:06:17.759> problem<00:06:17.940> so 00:06:18.830 --> 00:06:18.840 align:start position:0% solving this fundamental problem so 00:06:18.840 --> 00:06:21.200 align:start position:0% solving this fundamental problem so instead<00:06:19.110> of<00:06:19.169> changing<00:06:19.680> layer<00:06:20.130> one<00:06:20.460> with 00:06:21.200 --> 00:06:21.210 align:start position:0% instead of changing layer one with 00:06:21.210 --> 00:06:23.600 align:start position:0% instead of changing layer one with sharding<00:06:21.659> what<00:06:22.259> if<00:06:22.349> we<00:06:22.469> found<00:06:22.590> ways<00:06:22.949> to<00:06:22.979> use<00:06:23.430> it 00:06:23.600 --> 00:06:23.610 align:start position:0% sharding what if we found ways to use it 00:06:23.610 --> 00:06:25.909 align:start position:0% sharding what if we found ways to use it radically<00:06:24.330> more<00:06:24.509> efficiently<00:06:24.990> so<00:06:25.229> we<00:06:25.740> could 00:06:25.909 --> 00:06:25.919 align:start position:0% radically more efficiently so we could 00:06:25.919 --> 00:06:27.499 align:start position:0% radically more efficiently so we could have<00:06:26.130> the<00:06:26.250> same<00:06:26.460> number<00:06:26.849> of<00:06:26.940> transactions 00:06:27.499 --> 00:06:27.509 align:start position:0% have the same number of transactions 00:06:27.509 --> 00:06:29.839 align:start position:0% have the same number of transactions actually<00:06:27.810> happening<00:06:28.319> on<00:06:28.409> layer<00:06:28.620> one<00:06:28.889> but<00:06:29.520> do 00:06:29.839 --> 00:06:29.849 align:start position:0% actually happening on layer one but do 00:06:29.849 --> 00:06:31.760 align:start position:0% actually happening on layer one but do way<00:06:30.150> more<00:06:30.180> useful<00:06:30.870> stuff<00:06:30.900> with<00:06:31.560> those 00:06:31.760 --> 00:06:31.770 align:start position:0% way more useful stuff with those 00:06:31.770 --> 00:06:35.029 align:start position:0% way more useful stuff with those transactions<00:06:32.780> so<00:06:33.780> layer<00:06:34.139> one<00:06:34.380> gives<00:06:34.680> us<00:06:34.860> this 00:06:35.029 --> 00:06:35.039 align:start position:0% transactions so layer one gives us this 00:06:35.039 --> 00:06:38.000 align:start position:0% transactions so layer one gives us this kind<00:06:35.250> of<00:06:35.339> hard<00:06:35.669> kernel<00:06:36.270> of<00:06:36.389> certainty<00:06:36.810> we<00:06:37.650> know 00:06:38.000 --> 00:06:38.010 align:start position:0% kind of hard kernel of certainty we know 00:06:38.010 --> 00:06:38.780 align:start position:0% kind of hard kernel of certainty we know code 00:06:38.780 --> 00:06:38.790 align:start position:0% code 00:06:38.790 --> 00:06:41.690 align:start position:0% code it<00:06:39.030> will<00:06:39.180> execute<00:06:39.540> as<00:06:39.900> written<00:06:40.610> instead<00:06:41.610> of 00:06:41.690 --> 00:06:41.700 align:start position:0% it will execute as written instead of 00:06:41.700 --> 00:06:44.180 align:start position:0% it will execute as written instead of using<00:06:41.880> it<00:06:42.120> just<00:06:42.150> for<00:06:42.390> everything<00:06:42.990> like<00:06:43.500> raw<00:06:43.800> on 00:06:44.180 --> 00:06:44.190 align:start position:0% using it just for everything like raw on 00:06:44.190 --> 00:06:46.340 align:start position:0% using it just for everything like raw on natural<00:06:44.760> layer<00:06:44.910> one<00:06:45.180> we<00:06:45.780> can<00:06:45.930> use<00:06:45.960> it<00:06:46.200> as<00:06:46.260> like 00:06:46.340 --> 00:06:46.350 align:start position:0% natural layer one we can use it as like 00:06:46.350 --> 00:06:48.380 align:start position:0% natural layer one we can use it as like a<00:06:46.410> foundation<00:06:46.890> for<00:06:47.430> other<00:06:47.610> technology<00:06:48.150> built 00:06:48.380 --> 00:06:48.390 align:start position:0% a foundation for other technology built 00:06:48.390 --> 00:06:50.600 align:start position:0% a foundation for other technology built on<00:06:48.570> top<00:06:48.960> of<00:06:49.020> it<00:06:49.230> and<00:06:49.410> if<00:06:49.950> we're<00:06:50.100> clever<00:06:50.370> about 00:06:50.600 --> 00:06:50.610 align:start position:0% on top of it and if we're clever about 00:06:50.610 --> 00:06:53.060 align:start position:0% on top of it and if we're clever about the<00:06:50.790> way<00:06:50.850> we<00:06:51.030> do<00:06:51.210> that<00:06:51.410> these<00:06:52.410> on<00:06:52.680> top 00:06:53.060 --> 00:06:53.070 align:start position:0% the way we do that these on top 00:06:53.070 --> 00:06:55.790 align:start position:0% the way we do that these on top technologies<00:06:53.790> layer<00:06:54.330> 2<00:06:54.660> can<00:06:55.200> have<00:06:55.380> very 00:06:55.790 --> 00:06:55.800 align:start position:0% technologies layer 2 can have very 00:06:55.800 --> 00:06:58.640 align:start position:0% technologies layer 2 can have very nearly<00:06:56.070> the<00:06:56.310> same<00:06:56.520> security<00:06:56.820> as<00:06:57.180> layer<00:06:57.480> 1<00:06:57.780> so 00:06:58.640 --> 00:06:58.650 align:start position:0% nearly the same security as layer 1 so 00:06:58.650 --> 00:07:00.320 align:start position:0% nearly the same security as layer 1 so again<00:06:58.680> back<00:06:59.310> to<00:06:59.370> our<00:06:59.520> purple<00:06:59.790> rectangle 00:07:00.320 --> 00:07:00.330 align:start position:0% again back to our purple rectangle 00:07:00.330 --> 00:07:02.390 align:start position:0% again back to our purple rectangle instead<00:07:00.960> of<00:07:01.110> changing<00:07:01.440> something<00:07:01.980> about<00:07:02.220> it 00:07:02.390 --> 00:07:02.400 align:start position:0% instead of changing something about it 00:07:02.400 --> 00:07:03.950 align:start position:0% instead of changing something about it we're<00:07:02.820> just<00:07:02.940> going<00:07:03.060> to<00:07:03.090> change<00:07:03.360> the<00:07:03.660> way<00:07:03.750> we 00:07:03.950 --> 00:07:03.960 align:start position:0% we're just going to change the way we 00:07:03.960 --> 00:07:05.870 align:start position:0% we're just going to change the way we use<00:07:03.990> it<00:07:04.410> we're<00:07:04.770> going<00:07:04.860> to<00:07:04.950> use<00:07:05.190> it<00:07:05.370> as<00:07:05.580> a 00:07:05.870 --> 00:07:05.880 align:start position:0% use it we're going to use it as a 00:07:05.880 --> 00:07:08.450 align:start position:0% use it we're going to use it as a foundation<00:07:06.510> as<00:07:06.690> this<00:07:06.960> base<00:07:07.320> layer<00:07:07.620> for<00:07:07.950> other 00:07:08.450 --> 00:07:08.460 align:start position:0% foundation as this base layer for other 00:07:08.460 --> 00:07:10.610 align:start position:0% foundation as this base layer for other stuff<00:07:08.910> that<00:07:08.940> we<00:07:09.240> do<00:07:09.450> that<00:07:09.990> remains<00:07:10.350> anchored 00:07:10.610 --> 00:07:10.620 align:start position:0% stuff that we do that remains anchored 00:07:10.620 --> 00:07:13.490 align:start position:0% stuff that we do that remains anchored to<00:07:11.160> layer<00:07:11.310> 1<00:07:11.580> and<00:07:11.820> retains<00:07:12.600> as<00:07:12.960> much<00:07:13.290> as 00:07:13.490 --> 00:07:13.500 align:start position:0% to layer 1 and retains as much as 00:07:13.500 --> 00:07:15.680 align:start position:0% to layer 1 and retains as much as possible<00:07:13.740> of<00:07:14.190> the<00:07:14.550> security<00:07:14.970> properties<00:07:15.180> of 00:07:15.680 --> 00:07:15.690 align:start position:0% possible of the security properties of 00:07:15.690 --> 00:07:18.140 align:start position:0% possible of the security properties of layer<00:07:16.350> 1<00:07:16.440> and<00:07:16.830> those<00:07:17.400> are<00:07:17.610> layer<00:07:17.790> 2 00:07:18.140 --> 00:07:18.150 align:start position:0% layer 1 and those are layer 2 00:07:18.150 --> 00:07:19.670 align:start position:0% layer 1 and those are layer 2 technologies<00:07:18.720> and<00:07:19.080> that's<00:07:19.170> what<00:07:19.410> this<00:07:19.500> talk 00:07:19.670 --> 00:07:19.680 align:start position:0% technologies and that's what this talk 00:07:19.680 --> 00:07:25.460 align:start position:0% technologies and that's what this talk is<00:07:19.710> about<00:07:20.780> ok<00:07:21.810> so<00:07:22.140> layer<00:07:22.890> 2<00:07:23.840> now<00:07:24.840> this<00:07:25.020> isn't<00:07:25.200> a 00:07:25.460 --> 00:07:25.470 align:start position:0% is about ok so layer 2 now this isn't a 00:07:25.470 --> 00:07:28.280 align:start position:0% is about ok so layer 2 now this isn't a kind<00:07:25.740> of<00:07:25.860> precise<00:07:26.580> tactical<00:07:27.270> definition<00:07:27.810> but 00:07:28.280 --> 00:07:28.290 align:start position:0% kind of precise tactical definition but 00:07:28.290 --> 00:07:30.050 align:start position:0% kind of precise tactical definition but it's<00:07:28.470> kind<00:07:28.650> of<00:07:28.680> the<00:07:28.740> three<00:07:29.070> like<00:07:29.340> main<00:07:29.670> things 00:07:30.050 --> 00:07:30.060 align:start position:0% it's kind of the three like main things 00:07:30.060 --> 00:07:32.090 align:start position:0% it's kind of the three like main things that<00:07:30.570> like<00:07:30.810> layer<00:07:31.140> two<00:07:31.410> technologies<00:07:31.860> share 00:07:32.090 --> 00:07:32.100 align:start position:0% that like layer two technologies share 00:07:32.100 --> 00:07:33.410 align:start position:0% that like layer two technologies share together<00:07:32.280> that<00:07:32.820> I<00:07:32.850> hope<00:07:33.030> will<00:07:33.180> give<00:07:33.270> you<00:07:33.390> a 00:07:33.410 --> 00:07:33.420 align:start position:0% together that I hope will give you a 00:07:33.420 --> 00:07:34.610 align:start position:0% together that I hope will give you a really<00:07:33.630> kind<00:07:33.750> of<00:07:33.780> clear<00:07:34.080> understanding<00:07:34.560> of 00:07:34.610 --> 00:07:34.620 align:start position:0% really kind of clear understanding of 00:07:34.620 --> 00:07:36.620 align:start position:0% really kind of clear understanding of what<00:07:34.950> we're<00:07:35.040> trying<00:07:35.160> to<00:07:35.280> do<00:07:35.400> so<00:07:35.940> the<00:07:36.390> first 00:07:36.620 --> 00:07:36.630 align:start position:0% what we're trying to do so the first 00:07:36.630 --> 00:07:38.600 align:start position:0% what we're trying to do so the first thing<00:07:36.990> here<00:07:37.260> is<00:07:37.380> that<00:07:37.560> with<00:07:37.710> layer<00:07:37.890> 2<00:07:38.160> we're 00:07:38.600 --> 00:07:38.610 align:start position:0% thing here is that with layer 2 we're 00:07:38.610 --> 00:07:40.430 align:start position:0% thing here is that with layer 2 we're building<00:07:38.850> applications<00:07:39.420> where<00:07:39.930> most<00:07:40.170> of<00:07:40.290> the 00:07:40.430 --> 00:07:40.440 align:start position:0% building applications where most of the 00:07:40.440 --> 00:07:42.950 align:start position:0% building applications where most of the work<00:07:40.740> is<00:07:40.980> done<00:07:41.250> off<00:07:41.760> change<00:07:42.240> so<00:07:42.600> instead<00:07:42.900> of 00:07:42.950 --> 00:07:42.960 align:start position:0% work is done off change so instead of 00:07:42.960 --> 00:07:45.080 align:start position:0% work is done off change so instead of asking<00:07:43.260> aetherium<00:07:43.920> to<00:07:44.250> you<00:07:44.580> know<00:07:44.670> do<00:07:44.880> some 00:07:45.080 --> 00:07:45.090 align:start position:0% asking aetherium to you know do some 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what<00:07:51.630> that<00:07:51.780> is<00:07:51.930> we'll<00:07:52.140> talk<00:07:52.320> about<00:07:52.500> it<00:07:52.740> a<00:07:52.770> bit 00:07:52.850 --> 00:07:52.860 align:start position:0% what that is we'll talk about it a bit 00:07:52.860 --> 00:07:55.910 align:start position:0% what that is we'll talk about it a bit later<00:07:53.690> secondly<00:07:54.690> we're<00:07:54.990> still<00:07:55.170> using<00:07:55.350> layer<00:07:55.680> 1 00:07:55.910 --> 00:07:55.920 align:start position:0% later secondly we're still using layer 1 00:07:55.920 --> 00:07:58.460 align:start position:0% later secondly we're still using layer 1 but<00:07:56.490> only<00:07:56.730> to<00:07:57.390> kind<00:07:57.660> of<00:07:57.690> create<00:07:57.990> what<00:07:58.380> I'm 00:07:58.460 --> 00:07:58.470 align:start position:0% but only to kind of create what I'm 00:07:58.470 --> 00:08:00.980 align:start position:0% but only to kind of create what I'm calling<00:07:58.740> anchors<00:07:59.280> the<00:07:59.970> kind<00:08:00.150> of<00:08:00.210> tie<00:08:00.480> this<00:08:00.540> off 00:08:00.980 --> 00:08:00.990 align:start position:0% calling anchors the kind of tie this off 00:08:00.990 --> 00:08:03.230 align:start position:0% calling anchors the kind of tie this off chain<00:08:01.260> environment<00:08:01.770> to<00:08:02.160> layer<00:08:02.520> 1<00:08:02.760> security 00:08:03.230 --> 00:08:03.240 align:start position:0% chain environment to layer 1 security 00:08:03.240 --> 00:08:06.230 align:start position:0% chain environment to layer 1 security and<00:08:03.720> thirdly<00:08:04.680> we<00:08:05.190> are<00:08:05.310> preserving<00:08:05.700> the<00:08:06.030> same 00:08:06.230 --> 00:08:06.240 align:start position:0% and thirdly we are preserving the same 00:08:06.240 --> 00:08:08.600 align:start position:0% and thirdly we are preserving the same risk<00:08:06.660> model<00:08:07.020> as<00:08:07.140> layer<00:08:07.290> 1<00:08:07.530> or<00:08:07.770> as<00:08:08.040> close<00:08:08.310> as 00:08:08.600 --> 00:08:08.610 align:start position:0% risk model as layer 1 or as close as 00:08:08.610 --> 00:08:10.850 align:start position:0% risk model as layer 1 or as close as possible<00:08:08.640> to<00:08:09.150> it<00:08:09.300> to<00:08:09.990> kind<00:08:10.140> of<00:08:10.200> maximize<00:08:10.410> the 00:08:10.850 --> 00:08:10.860 align:start position:0% possible to it to kind of maximize the 00:08:10.860 --> 00:08:13.310 align:start position:0% possible to it to kind of maximize the security<00:08:11.250> that<00:08:11.400> we<00:08:11.490> have<00:08:11.670> and<00:08:12.170> what's<00:08:13.170> really 00:08:13.310 --> 00:08:13.320 align:start position:0% security that we have and what's really 00:08:13.320 --> 00:08:15.290 align:start position:0% security that we have and what's really amazing<00:08:13.530> is<00:08:13.830> all<00:08:14.130> this<00:08:14.340> is<00:08:14.550> again<00:08:14.790> happening 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order to get access to these scaling 00:08:21.780 --> 00:08:23.750 align:start position:0% in order to get access to these scaling technologies<00:08:22.320> we<00:08:22.770> don't<00:08:22.950> have<00:08:23.130> to<00:08:23.280> go<00:08:23.550> through 00:08:23.750 --> 00:08:23.760 align:start position:0% technologies we don't have to go through 00:08:23.760 --> 00:08:26.060 align:start position:0% technologies we don't have to go through a<00:08:23.820> hard<00:08:24.060> fork<00:08:24.360> and<00:08:24.690> do<00:08:24.840> all<00:08:24.960> that<00:08:24.990> we<00:08:25.680> can<00:08:25.860> just 00:08:26.060 --> 00:08:26.070 align:start position:0% a hard fork and do all that we can just 00:08:26.070 --> 00:08:28.700 align:start position:0% a hard fork and do all that we can just write<00:08:26.460> software<00:08:26.820> that<00:08:27.660> runs<00:08:28.020> on<00:08:28.260> the<00:08:28.350> theorem 00:08:28.700 --> 00:08:28.710 align:start position:0% write software that runs on the theorem 00:08:28.710 --> 00:08:30.920 align:start position:0% write software that runs on the theorem these<00:08:28.890> anchors<00:08:29.280> and<00:08:29.520> then<00:08:29.850> also<00:08:30.030> write<00:08:30.420> client 00:08:30.920 --> 00:08:30.930 align:start position:0% these anchors and then also write client 00:08:30.930 --> 00:08:32.750 align:start position:0% these anchors and then also write client software<00:08:31.350> that<00:08:31.500> interacts<00:08:31.800> with<00:08:31.920> it<00:08:32.160> and<00:08:32.340> get 00:08:32.750 --> 00:08:32.760 align:start position:0% software that interacts with it and get 00:08:32.760 --> 00:08:34.370 align:start position:0% software that interacts with it and get these<00:08:32.910> things<00:08:33.120> today<00:08:33.300> and<00:08:33.630> it<00:08:33.900> also<00:08:34.050> means 00:08:34.370 --> 00:08:34.380 align:start position:0% these things today and it also means 00:08:34.380 --> 00:08:35.930 align:start position:0% these things today and it also means that<00:08:34.740> different<00:08:34.950> applications<00:08:35.700> with 00:08:35.930 --> 00:08:35.940 align:start position:0% that different applications with 00:08:35.940 --> 00:08:37.310 align:start position:0% that different applications with different<00:08:35.970> threat<00:08:36.510> models<00:08:36.840> and<00:08:37.020> different 00:08:37.310 --> 00:08:37.320 align:start position:0% different threat models and different 00:08:37.320 --> 00:08:38.990 align:start position:0% different threat models and different needs<00:08:37.410> can<00:08:37.950> use<00:08:38.099> a<00:08:38.130> different<00:08:38.640> layer<00:08:38.790> to 00:08:38.990 --> 00:08:39.000 align:start position:0% needs can use a different layer to 00:08:39.000 --> 00:08:40.850 align:start position:0% needs can use a different layer to scaling<00:08:39.270> solutions<00:08:39.720> to<00:08:40.140> find<00:08:40.410> something 00:08:40.850 --> 00:08:40.860 align:start position:0% scaling solutions to find something 00:08:40.860 --> 00:08:42.680 align:start position:0% scaling solutions to find something appropriate<00:08:40.979> for<00:08:41.340> them<00:08:41.580> instead<00:08:42.210> of<00:08:42.330> again 00:08:42.680 --> 00:08:42.690 align:start position:0% appropriate for them instead of again 00:08:42.690 --> 00:08:44.750 align:start position:0% appropriate for them instead of again changing<00:08:43.320> layer<00:08:43.470> 1<00:08:43.740> and<00:08:44.040> forcing<00:08:44.430> everyone<00:08:44.640> to 00:08:44.750 --> 00:08:44.760 align:start position:0% changing layer 1 and forcing everyone to 00:08:44.760 --> 00:08:48.710 align:start position:0% changing layer 1 and forcing everyone to make<00:08:45.030> the<00:08:45.150> same<00:08:45.330> compromises<00:08:45.960> so<00:08:47.570> it's<00:08:48.570> also 00:08:48.710 --> 00:08:48.720 align:start position:0% make the same compromises so it's also 00:08:48.720 --> 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align:start position:0% here that I want to like try and clarify 00:08:55.769 --> 00:08:56.660 align:start position:0% here that I want to like try and clarify as<00:08:56.100> best<00:08:56.279> I<00:08:56.370> can 00:08:56.660 --> 00:08:56.670 align:start position:0% as best I can 00:08:56.670 --> 00:09:00.530 align:start position:0% as best I can so<00:08:57.360> layer<00:08:58.019> two<00:08:58.320> is<00:08:58.529> not<00:08:59.130> just<00:08:59.670> any<00:08:59.850> technique 00:09:00.530 --> 00:09:00.540 align:start position:0% so layer two is not just any technique 00:09:00.540 --> 00:09:03.050 align:start position:0% so layer two is not just any technique that<00:09:01.260> moves<00:09:01.649> operations<00:09:02.250> to<00:09:02.490> an<00:09:02.580> off<00:09:02.790> chain 00:09:03.050 --> 00:09:03.060 align:start position:0% that moves operations to an off chain 00:09:03.060 --> 00:09:04.970 align:start position:0% that moves operations to an off chain environment<00:09:03.540> in<00:09:03.720> order<00:09:04.230> to<00:09:04.380> obtain 00:09:04.970 --> 00:09:04.980 align:start position:0% environment in order to obtain 00:09:04.980 --> 00:09:07.699 align:start position:0% environment in order to obtain performance<00:09:05.880> enhancements<00:09:06.420> and<00:09:07.200> kind<00:09:07.470> of<00:09:07.529> to 00:09:07.699 --> 00:09:07.709 align:start position:0% performance enhancements and kind of to 00:09:07.709 --> 00:09:10.160 align:start position:0% performance enhancements and kind of to make<00:09:07.830> this<00:09:08.010> point<00:09:08.250> clearly<00:09:08.670> I'm<00:09:09.029> going<00:09:09.630> to<00:09:09.750> do 00:09:10.160 --> 00:09:10.170 align:start position:0% make this point clearly I'm going to do 00:09:10.170 --> 00:09:12.139 align:start position:0% make this point clearly I'm going to do a<00:09:10.200> little<00:09:10.500> live<00:09:10.680> demo<00:09:10.920> on<00:09:11.100> stage<00:09:11.399> here<00:09:11.730> and<00:09:11.850> I 00:09:12.139 --> 00:09:12.149 align:start position:0% a little live demo on stage here and I 00:09:12.149 --> 00:09:14.120 align:start position:0% a little live demo on stage here and I may<00:09:12.269> require<00:09:12.570> the<00:09:13.170> assistance<00:09:13.230> of<00:09:13.649> volunteer 00:09:14.120 --> 00:09:14.130 align:start position:0% may require the assistance of volunteer 00:09:14.130 --> 00:09:16.009 align:start position:0% may require the assistance of volunteer Mitch<00:09:14.490> kosowski<00:09:14.820> who<00:09:15.269> is<00:09:15.450> backstage 00:09:16.009 --> 00:09:16.019 align:start position:0% Mitch kosowski who is backstage 00:09:16.019 --> 00:09:17.210 align:start position:0% Mitch kosowski who is backstage somewhere<00:09:16.230> and<00:09:16.589> I'm<00:09:16.769> going<00:09:16.920> to<00:09:16.950> come<00:09:17.100> out 00:09:17.210 --> 00:09:17.220 align:start position:0% somewhere and I'm going to come out 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there he is okay so here's what we're gonna<00:09:30.029> do 00:09:30.380 --> 00:09:30.390 align:start position:0% gonna do 00:09:30.390 --> 00:09:31.970 align:start position:0% gonna do thank<00:09:30.630> you<00:09:30.750> a<00:09:30.779> big<00:09:31.079> hand<00:09:31.440> for<00:09:31.500> Mitch<00:09:31.740> who's 00:09:31.970 --> 00:09:31.980 align:start position:0% thank you a big hand for Mitch who's 00:09:31.980 --> 00:09:37.340 align:start position:0% thank you a big hand for Mitch who's doing<00:09:32.490> this<00:09:34.550> okay<00:09:35.550> so<00:09:36.110> hypothetically<00:09:37.110> let's 00:09:37.340 --> 00:09:37.350 align:start position:0% doing this okay so hypothetically let's 00:09:37.350 --> 00:09:40.579 align:start position:0% doing this okay so hypothetically let's say<00:09:37.800> that<00:09:38.250> I<00:09:38.490> have<00:09:38.880> locked<00:09:39.750> up<00:09:39.959> some<00:09:40.200> eath<00:09:40.410> on 00:09:40.579 --> 00:09:40.589 align:start position:0% say that I have locked up some eath on 00:09:40.589 --> 00:09:42.860 align:start position:0% say that I have locked up some eath on the<00:09:40.980> etherium<00:09:41.310> main<00:09:41.490> chain<00:09:41.760> into<00:09:42.480> an<00:09:42.570> account 00:09:42.860 --> 00:09:42.870 align:start position:0% the etherium main chain into an account 00:09:42.870 --> 00:09:44.720 align:start position:0% the etherium main chain into an account and<00:09:43.110> I've<00:09:43.380> written<00:09:43.620> the<00:09:43.769> private<00:09:44.130> key<00:09:44.339> for 00:09:44.720 --> 00:09:44.730 align:start position:0% and I've written the private key for 00:09:44.730 --> 00:09:47.300 align:start position:0% and I've written the private key for that<00:09:44.790> account<00:09:45.149> on<00:09:45.390> the<00:09:45.870> inside<00:09:46.260> of<00:09:46.560> this<00:09:46.800> fancy 00:09:47.300 --> 00:09:47.310 align:start position:0% that account on the inside of this fancy 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00:09:55.490 align:start position:0% together we both trust that this is the only<00:09:53.490> copy<00:09:53.820> of<00:09:54.000> that<00:09:54.120> private<00:09:54.510> key<00:09:54.690> and<00:09:55.440> I 00:09:55.490 --> 00:09:55.500 align:start position:0% only copy of that private key and I 00:09:55.500 --> 00:09:58.130 align:start position:0% only copy of that private key and I haven't<00:09:56.399> cheated<00:09:56.550> in<00:09:56.760> some<00:09:56.940> way<00:09:57.060> then<00:09:57.959> we're 00:09:58.130 --> 00:09:58.140 align:start position:0% haven't cheated in some way then we're 00:09:58.140 --> 00:10:00.470 align:start position:0% haven't cheated in some way then we're gonna<00:09:58.230> move<00:09:58.500> this<00:09:58.860> asset<00:09:59.430> to<00:09:59.730> a<00:09:59.760> high 00:10:00.470 --> 00:10:00.480 align:start position:0% gonna move this asset to a high 00:10:00.480 --> 00:10:02.329 align:start position:0% gonna move this asset to a high availability<00:10:00.770> carbon-based<00:10:01.770> often 00:10:02.329 --> 00:10:02.339 align:start position:0% availability carbon-based often 00:10:02.339 --> 00:10:04.190 align:start position:0% availability carbon-based often execution<00:10:02.730> environment<00:10:03.149> namely<00:10:03.720> this<00:10:03.899> stage 00:10:04.190 --> 00:10:04.200 align:start position:0% execution environment namely this stage 00:10:04.200 --> 00:10:06.380 align:start position:0% execution environment namely this stage and<00:10:04.529> us<00:10:04.680> and<00:10:04.890> all<00:10:05.010> of<00:10:05.040> you<00:10:05.220> and<00:10:06.060> then<00:10:06.270> we're 00:10:06.380 --> 00:10:06.390 align:start position:0% and us and all of you and then we're 00:10:06.390 --> 00:10:07.639 align:start position:0% and us and all of you and then we're gonna<00:10:06.480> pass<00:10:06.750> it<00:10:06.930> back<00:10:07.020> and<00:10:07.079> forth<00:10:07.260> really 00:10:07.639 --> 00:10:07.649 align:start position:0% gonna pass it back and forth really 00:10:07.649 --> 00:10:08.210 align:start position:0% gonna pass it back and forth really really<00:10:07.890> quickly 00:10:08.210 --> 00:10:08.220 align:start position:0% really quickly 00:10:08.220 --> 00:10:10.940 align:start position:0% really quickly does<00:10:08.910> anybody<00:10:09.120> have<00:10:09.450> each<00:10:09.870> stats<00:10:10.290> open<00:10:10.800> on 00:10:10.940 --> 00:10:10.950 align:start position:0% does anybody have each stats open on 00:10:10.950 --> 00:10:14.210 align:start position:0% does anybody have each stats open on their<00:10:11.070> laptop<00:10:11.459> right<00:10:11.610> now<00:10:11.670> by<00:10:11.970> any<00:10:12.060> chance<00:10:13.220> no 00:10:14.210 --> 00:10:14.220 align:start position:0% their laptop right now by any chance no 00:10:14.220 --> 00:10:15.380 align:start position:0% their laptop right now by any chance no okay<00:10:14.579> well<00:10:14.940> then<00:10:15.060> what<00:10:15.120> it's<00:10:15.240> going<00:10:15.329> to 00:10:15.380 --> 00:10:15.390 align:start position:0% okay well then what it's going to 00:10:15.390 --> 00:10:17.090 align:start position:0% okay well then what it's going to pretend<00:10:15.660> that<00:10:15.750> we're<00:10:15.899> doing<00:10:15.990> this<00:10:16.200> in<00:10:16.890> real 00:10:17.090 --> 00:10:17.100 align:start position:0% pretend that we're doing this in real 00:10:17.100 --> 00:10:19.790 align:start position:0% pretend that we're doing this in real time<00:10:17.160> with<00:10:17.490> a<00:10:17.520> block<00:10:17.760> okay<00:10:18.300> so<00:10:18.360> here<00:10:18.630> we<00:10:18.660> go<00:10:18.839> off 00:10:19.790 --> 00:10:19.800 align:start position:0% time with a block okay so here we go off 00:10:19.800 --> 00:10:27.240 align:start position:0% time with a block okay so here we go off gain<00:10:20.130> scaling 00:10:27.240 --> 00:10:27.250 align:start position:0% 00:10:27.250 --> 00:10:29.500 align:start position:0% okay<00:10:28.250> and<00:10:28.460> then<00:10:28.550> there's<00:10:28.610> another<00:10:28.730> block<00:10:29.030> so 00:10:29.500 --> 00:10:29.510 align:start position:0% okay and then there's another block so 00:10:29.510 --> 00:10:31.480 align:start position:0% okay and then there's another block so we<00:10:29.540> did<00:10:29.780> I<00:10:29.810> think<00:10:30.050> nine<00:10:30.410> transactions<00:10:31.220> in<00:10:31.370> that 00:10:31.480 --> 00:10:31.490 align:start position:0% we did I think nine transactions in that 00:10:31.490 --> 00:10:33.310 align:start position:0% we did I think nine transactions in that time<00:10:31.730> each<00:10:32.150> of<00:10:32.180> them<00:10:32.450> had<00:10:32.660> you<00:10:32.780> know<00:10:32.900> instant 00:10:33.310 --> 00:10:33.320 align:start position:0% time each of them had you know instant 00:10:33.320 --> 00:10:35.530 align:start position:0% time each of them had you know instant finality<00:10:33.650> I<00:10:33.860> had<00:10:34.070> possession<00:10:34.490> of<00:10:34.580> this<00:10:34.700> which 00:10:35.530 --> 00:10:35.540 align:start position:0% finality I had possession of this which 00:10:35.540 --> 00:10:36.850 align:start position:0% finality I had possession of this which is<00:10:35.690> much<00:10:35.840> faster<00:10:36.290> than<00:10:36.380> we<00:10:36.500> could<00:10:36.740> have<00:10:36.830> done 00:10:36.850 --> 00:10:36.860 align:start position:0% is much faster than we could have done 00:10:36.860 --> 00:10:39.310 align:start position:0% is much faster than we could have done if<00:10:37.760> we<00:10:37.970> had<00:10:38.000> been<00:10:38.330> waiting<00:10:38.690> for<00:10:38.870> blocks<00:10:39.080> I 00:10:39.310 --> 00:10:39.320 align:start position:0% if we had been waiting for blocks I 00:10:39.320 --> 00:10:40.330 align:start position:0% if we had been waiting for blocks I would<00:10:39.440> have<00:10:39.530> had<00:10:39.650> to<00:10:39.740> send<00:10:39.890> a<00:10:40.010> transaction 00:10:40.330 --> 00:10:40.340 align:start position:0% would have had to send a transaction 00:10:40.340 --> 00:10:42.340 align:start position:0% would have had to send a transaction wait<00:10:40.910> for<00:10:41.090> it<00:10:41.150> to<00:10:41.210> confirm<00:10:41.510> Mitch<00:10:42.020> would<00:10:42.140> see 00:10:42.340 --> 00:10:42.350 align:start position:0% wait for it to confirm Mitch would see 00:10:42.350 --> 00:10:44.110 align:start position:0% wait for it to confirm Mitch would see that<00:10:42.500> send<00:10:42.890> something<00:10:43.070> back<00:10:43.280> to<00:10:43.460> me<00:10:43.580> and<00:10:43.730> so 00:10:44.110 --> 00:10:44.120 align:start position:0% that send something back to me and so 00:10:44.120 --> 00:10:46.840 align:start position:0% that send something back to me and so forth<00:10:44.330> and<00:10:44.420> so<00:10:44.540> forth<00:10:44.570> so<00:10:45.500> here<00:10:45.710> we<00:10:45.800> go<00:10:45.920> off 00:10:46.840 --> 00:10:46.850 align:start position:0% forth and so forth so here we go off 00:10:46.850 --> 00:10:48.760 align:start position:0% forth and so forth so here we go off chain<00:10:47.150> scaling<00:10:47.570> Thank<00:10:48.170> You<00:10:48.290> Mitch<00:10:48.440> very<00:10:48.620> much 00:10:48.760 --> 00:10:48.770 align:start position:0% chain scaling Thank You Mitch very much 00:10:48.770 --> 00:10:49.390 align:start position:0% chain scaling Thank You Mitch very much for<00:10:48.920> your<00:10:48.980> help 00:10:49.390 --> 00:10:49.400 align:start position:0% for your help 00:10:49.400 --> 00:10:56.620 align:start position:0% for your help Oh<00:10:50.410> Mitch<00:10:51.760> keep<00:10:52.760> this<00:10:54.280> so<00:10:55.280> why<00:10:55.850> is<00:10:55.910> that<00:10:56.060> not 00:10:56.620 --> 00:10:56.630 align:start position:0% Oh Mitch keep this so why is that not 00:10:56.630 --> 00:10:58.570 align:start position:0% Oh Mitch keep this so why is that not layer<00:10:57.170> two<00:10:57.470> I<00:10:57.500> mean<00:10:57.770> aside<00:10:58.010> from<00:10:58.070> it<00:10:58.310> is<00:10:58.400> being 00:10:58.570 --> 00:10:58.580 align:start position:0% layer two I mean aside from it is being 00:10:58.580 --> 00:11:00.580 align:start position:0% layer two I mean aside from it is being kind<00:10:58.790> of<00:10:58.910> dumb<00:10:59.090> well<00:10:59.660> let's<00:11:00.140> kind<00:11:00.260> of<00:11:00.350> compare 00:11:00.580 --> 00:11:00.590 align:start position:0% kind of dumb well let's kind of compare 00:11:00.590 --> 00:11:02.230 align:start position:0% kind of dumb well let's kind of compare this<00:11:00.710> to<00:11:00.860> maybe<00:11:01.190> a<00:11:01.310> more<00:11:01.610> like<00:11:01.820> relevant 00:11:02.230 --> 00:11:02.240 align:start position:0% this to maybe a more like relevant 00:11:02.240 --> 00:11:04.570 align:start position:0% this to maybe a more like relevant example<00:11:02.630> right<00:11:02.810> so<00:11:03.080> let's<00:11:03.980> look<00:11:04.160> at<00:11:04.340> kind<00:11:04.550> of 00:11:04.570 --> 00:11:04.580 align:start position:0% example right so let's look at kind of 00:11:04.580 --> 00:11:06.580 align:start position:0% example right so let's look at kind of naive<00:11:05.000> side<00:11:05.480> chains<00:11:05.810> what<00:11:06.050> I'm<00:11:06.140> calling<00:11:06.440> them 00:11:06.580 --> 00:11:06.590 align:start position:0% naive side chains what I'm calling them 00:11:06.590 --> 00:11:08.740 align:start position:0% naive side chains what I'm calling them so<00:11:06.980> for<00:11:07.340> a<00:11:07.400> long<00:11:07.610> time<00:11:07.940> we've<00:11:08.210> you<00:11:08.390> know<00:11:08.420> known 00:11:08.740 --> 00:11:08.750 align:start position:0% so for a long time we've you know known 00:11:08.750 --> 00:11:10.840 align:start position:0% so for a long time we've you know known that<00:11:08.990> we<00:11:09.080> can<00:11:09.260> lock<00:11:09.620> up<00:11:09.800> an<00:11:09.920> asset<00:11:10.100> on<00:11:10.460> main 00:11:10.840 --> 00:11:10.850 align:start position:0% that we can lock up an asset on main 00:11:10.850 --> 00:11:12.520 align:start position:0% that we can lock up an asset on main chain<00:11:11.120> and<00:11:11.330> we<00:11:11.720> can<00:11:11.870> move<00:11:12.050> it<00:11:12.230> to<00:11:12.500> another 00:11:12.520 --> 00:11:12.530 align:start position:0% chain and we can move it to another 00:11:12.530 --> 00:11:14.620 align:start position:0% chain and we can move it to another execution<00:11:13.070> environment<00:11:13.760> like<00:11:14.060> a<00:11:14.090> side<00:11:14.360> chain 00:11:14.620 --> 00:11:14.630 align:start position:0% execution environment like a side chain 00:11:14.630 --> 00:11:16.600 align:start position:0% execution environment like a side chain which<00:11:15.080> is<00:11:15.110> just<00:11:15.410> another<00:11:15.800> block<00:11:16.070> chain<00:11:16.370> with<00:11:16.580> a 00:11:16.600 --> 00:11:16.610 align:start position:0% which is just another block chain with a 00:11:16.610 --> 00:11:18.850 align:start position:0% which is just another block chain with a different<00:11:16.970> set<00:11:17.090> of<00:11:17.120> consensus<00:11:17.600> rules<00:11:17.840> and<00:11:18.710> we 00:11:18.850 --> 00:11:18.860 align:start position:0% different set of consensus rules and we 00:11:18.860 --> 00:11:20.590 align:start position:0% different set of consensus rules and we can<00:11:18.980> do<00:11:19.100> stuff<00:11:19.160> there<00:11:19.580> with<00:11:20.090> it<00:11:20.240> much<00:11:20.390> faster 00:11:20.590 --> 00:11:20.600 align:start position:0% can do stuff there with it much faster 00:11:20.600 --> 00:11:23.230 align:start position:0% can do stuff there with it much faster because<00:11:21.260> we<00:11:21.920> have<00:11:22.040> kind<00:11:22.280> of<00:11:22.310> like<00:11:22.370> a<00:11:22.490> cheaper 00:11:23.230 --> 00:11:23.240 align:start position:0% because we have kind of like a cheaper 00:11:23.240 --> 00:11:24.520 align:start position:0% because we have kind of like a cheaper execution<00:11:23.720> environment<00:11:24.110> one<00:11:24.260> that<00:11:24.290> is 00:11:24.520 --> 00:11:24.530 align:start position:0% execution environment one that is 00:11:24.530 --> 00:11:25.960 align:start position:0% execution environment one that is simpler<00:11:24.890> that's<00:11:25.340> made<00:11:25.520> a<00:11:25.550> different<00:11:25.850> set<00:11:25.940> of 00:11:25.960 --> 00:11:25.970 align:start position:0% simpler that's made a different set of 00:11:25.970 --> 00:11:28.180 align:start position:0% simpler that's made a different set of compromises<00:11:26.360> and<00:11:26.870> this<00:11:27.380> can<00:11:27.560> like<00:11:27.740> have<00:11:27.950> many 00:11:28.180 --> 00:11:28.190 align:start position:0% compromises and this can like have many 00:11:28.190 --> 00:11:30.700 align:start position:0% compromises and this can like have many different<00:11:28.520> scales<00:11:28.730> ranging<00:11:29.090> from<00:11:29.570> a<00:11:29.840> kind<00:11:30.650> of 00:11:30.700 --> 00:11:30.710 align:start position:0% different scales ranging from a kind of 00:11:30.710 --> 00:11:32.230 align:start position:0% different scales ranging from a kind of proof<00:11:30.860> of<00:11:30.950> stake<00:11:31.190> side<00:11:31.430> chain<00:11:31.700> or<00:11:31.730> something 00:11:32.230 --> 00:11:32.240 align:start position:0% proof of stake side chain or something 00:11:32.240 --> 00:11:33.940 align:start position:0% proof of stake side chain or something else<00:11:32.390> it's<00:11:32.810> up<00:11:32.930> to<00:11:33.050> that<00:11:33.170> exact<00:11:33.500> side<00:11:33.710> chain 00:11:33.940 --> 00:11:33.950 align:start position:0% else it's up to that exact side chain 00:11:33.950 --> 00:11:36.460 align:start position:0% else it's up to that exact side chain and<00:11:34.480> then<00:11:35.480> once<00:11:35.780> you're<00:11:35.900> done<00:11:35.990> we<00:11:36.200> move<00:11:36.320> it 00:11:36.460 --> 00:11:36.470 align:start position:0% and then once you're done we move it 00:11:36.470 --> 00:11:39.250 align:start position:0% and then once you're done we move it back<00:11:36.650> to<00:11:36.680> a<00:11:36.890> theory<00:11:37.190> main<00:11:37.370> chain<00:11:37.610> and<00:11:38.260> you're 00:11:39.250 --> 00:11:39.260 align:start position:0% back to a theory main chain and you're 00:11:39.260 --> 00:11:39.790 align:start position:0% back to a theory main chain and you're good<00:11:39.410> to<00:11:39.440> go 00:11:39.790 --> 00:11:39.800 align:start position:0% good to go 00:11:39.800 --> 00:11:42.430 align:start position:0% good to go so<00:11:40.700> why<00:11:41.270> aren't<00:11:41.480> either<00:11:41.840> of<00:11:42.080> these<00:11:42.170> things 00:11:42.430 --> 00:11:42.440 align:start position:0% so why aren't either of these things 00:11:42.440 --> 00:11:44.440 align:start position:0% so why aren't either of these things kind<00:11:42.710> of<00:11:42.800> properly<00:11:43.250> layer<00:11:43.550> to<00:11:43.850> the<00:11:44.030> way<00:11:44.150> I<00:11:44.180> use 00:11:44.440 --> 00:11:44.450 align:start position:0% kind of properly layer to the way I use 00:11:44.450 --> 00:11:46.330 align:start position:0% kind of properly layer to the way I use the<00:11:44.630> term<00:11:44.870> well<00:11:45.470> remember<00:11:46.070> our<00:11:46.190> definition 00:11:46.330 --> 00:11:46.340 align:start position:0% the term well remember our definition 00:11:46.340 --> 00:11:48.250 align:start position:0% the term well remember our definition right<00:11:47.030> we<00:11:47.210> want<00:11:47.390> to<00:11:47.480> kind<00:11:47.600> of<00:11:47.630> take<00:11:47.870> advantage 00:11:48.250 --> 00:11:48.260 align:start position:0% right we want to kind of take advantage 00:11:48.260 --> 00:11:50.020 align:start position:0% right we want to kind of take advantage of<00:11:48.350> off<00:11:48.470> chain<00:11:48.680> environments<00:11:49.190> we<00:11:49.610> want<00:11:49.790> to<00:11:49.880> use 00:11:50.020 --> 00:11:50.030 align:start position:0% of off chain environments we want to use 00:11:50.030 --> 00:11:51.910 align:start position:0% of off chain environments we want to use layer<00:11:50.240> 1<00:11:50.390> to<00:11:50.510> build<00:11:50.660> anchors<00:11:51.080> that<00:11:51.350> tie<00:11:51.650> that 00:11:51.910 --> 00:11:51.920 align:start position:0% layer 1 to build anchors that tie that 00:11:51.920 --> 00:11:53.920 align:start position:0% layer 1 to build anchors that tie that environment<00:11:52.340> to<00:11:52.610> main<00:11:52.790> chain<00:11:53.090> and<00:11:53.330> we<00:11:53.690> want<00:11:53.870> to 00:11:53.920 --> 00:11:53.930 align:start position:0% environment to main chain and we want to 00:11:53.930 --> 00:11:56.170 align:start position:0% environment to main chain and we want to preserve<00:11:54.170> the<00:11:54.380> same<00:11:54.620> risk<00:11:54.920> model<00:11:55.280> as<00:11:55.460> layer<00:11:55.940> 1 00:11:56.170 --> 00:11:56.180 align:start position:0% preserve the same risk model as layer 1 00:11:56.180 --> 00:11:57.790 align:start position:0% preserve the same risk model as layer 1 or<00:11:56.360> at<00:11:56.540> least<00:11:56.690> as<00:11:56.810> close<00:11:56.840> as<00:11:57.230> possible<00:11:57.260> to<00:11:57.680> it 00:11:57.790 --> 00:11:57.800 align:start position:0% or at least as close as possible to it 00:11:57.800 --> 00:12:00.160 align:start position:0% or at least as close as possible to it well<00:11:58.520> neither<00:11:59.120> of<00:11:59.270> these<00:11:59.420> kind<00:11:59.720> of<00:11:59.780> do<00:11:59.960> the 00:12:00.160 --> 00:12:00.170 align:start position:0% well neither of these kind of do the 00:12:00.170 --> 00:12:02.320 align:start position:0% well neither of these kind of do the second<00:12:00.500> or<00:12:00.590> third<00:12:00.620> thing<00:12:01.160> as<00:12:01.520> I<00:12:01.730> describe<00:12:02.120> them 00:12:02.320 --> 00:12:02.330 align:start position:0% second or third thing as I describe them 00:12:02.330 --> 00:12:04.060 align:start position:0% second or third thing as I describe them right<00:12:02.600> they're<00:12:02.930> just<00:12:03.170> doing<00:12:03.500> the<00:12:03.620> off<00:12:03.740> chain 00:12:04.060 --> 00:12:04.070 align:start position:0% right they're just doing the off chain 00:12:04.070 --> 00:12:07.450 align:start position:0% right they're just doing the off chain thing<00:12:04.930> with<00:12:05.930> the<00:12:06.020> paper<00:12:06.140> example<00:12:06.710> like<00:12:07.250> Mitch 00:12:07.450 --> 00:12:07.460 align:start position:0% thing with the paper example like Mitch 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align:start position:0% someone is going to run up on stage and take<00:12:13.070> that<00:12:13.220> paper<00:12:13.490> from<00:12:13.760> us<00:12:13.940> because<00:12:14.390> then 00:12:14.890 --> 00:12:14.900 align:start position:0% take that paper from us because then 00:12:14.900 --> 00:12:16.630 align:start position:0% take that paper from us because then it's<00:12:15.020> gone<00:12:15.260> we<00:12:15.920> have<00:12:16.040> to<00:12:16.130> trust<00:12:16.400> that<00:12:16.490> we're 00:12:16.630 --> 00:12:16.640 align:start position:0% it's gone we have to trust that we're 00:12:16.640 --> 00:12:18.100 align:start position:0% it's gone we have to trust that we're going<00:12:16.730> to<00:12:16.790> be<00:12:16.940> able<00:12:17.090> to<00:12:17.240> get<00:12:17.570> with<00:12:17.810> the<00:12:17.900> paper 00:12:18.100 --> 00:12:18.110 align:start position:0% going to be able to get with the paper 00:12:18.110 --> 00:12:19.840 align:start position:0% going to be able to get with the paper to<00:12:18.440> a<00:12:18.470> computer<00:12:18.890> to<00:12:19.040> actually<00:12:19.190> kind<00:12:19.490> of<00:12:19.550> claim 00:12:19.840 --> 00:12:19.850 align:start position:0% to a computer to actually kind of claim 00:12:19.850 --> 00:12:21.520 align:start position:0% to a computer to actually kind of claim our<00:12:20.030> eath<00:12:20.210> and<00:12:20.450> all<00:12:20.840> the<00:12:20.930> other<00:12:21.050> assumptions 00:12:21.520 --> 00:12:21.530 align:start position:0% our eath and all the other assumptions 00:12:21.530 --> 00:12:23.290 align:start position:0% our eath and all the other assumptions you<00:12:21.650> make<00:12:21.830> about<00:12:21.860> this<00:12:22.400> security<00:12:22.820> environment 00:12:23.290 --> 00:12:23.300 align:start position:0% you make about this security environment 00:12:23.300 --> 00:12:24.940 align:start position:0% you make about this security environment with<00:12:23.870> a<00:12:23.900> side<00:12:24.140> chain<00:12:24.380> you<00:12:24.500> have<00:12:24.530> to<00:12:24.770> kind<00:12:24.920> of 00:12:24.940 --> 00:12:24.950 align:start position:0% with a side chain you have to kind of 00:12:24.950 --> 00:12:26.950 align:start position:0% with a side chain you have to kind of trust<00:12:25.220> however<00:12:25.640> that<00:12:25.880> side<00:12:26.090> chain<00:12:26.360> is<00:12:26.570> set<00:12:26.840> up 00:12:26.950 --> 00:12:26.960 align:start position:0% trust however that side chain is set up 00:12:26.960 --> 00:12:28.870 align:start position:0% trust however that side chain is set up and<00:12:27.200> it<00:12:27.500> might<00:12:27.650> be<00:12:27.710> very<00:12:27.890> secure<00:12:28.520> of<00:12:28.640> what<00:12:28.790> you 00:12:28.870 --> 00:12:28.880 align:start position:0% and it might be very secure of what you 00:12:28.880 --> 00:12:31.030 align:start position:0% and it might be very secure of what you need<00:12:29.060> for<00:12:29.090> it<00:12:29.420> but<00:12:29.990> it<00:12:30.080> may<00:12:30.170> also<00:12:30.350> not<00:12:30.740> the 00:12:31.030 --> 00:12:31.040 align:start position:0% need for it but it may also not the 00:12:31.040 --> 00:12:32.530 align:start position:0% need for it but it may also not the point<00:12:31.280> is<00:12:31.400> that<00:12:31.580> it's<00:12:31.760> an<00:12:31.940> adjacent 00:12:32.530 --> 00:12:32.540 align:start position:0% point is that it's an adjacent 00:12:32.540 --> 00:12:34.180 align:start position:0% point is that it's an adjacent environment<00:12:32.960> it's<00:12:33.320> not<00:12:33.440> they're<00:12:33.860> not<00:12:33.980> things 00:12:34.180 --> 00:12:34.190 align:start position:0% environment it's not they're not things 00:12:34.190 --> 00:12:36.370 align:start position:0% environment it's not they're not things built<00:12:34.460> on<00:12:34.670> top<00:12:34.970> of<00:12:35.180> layer<00:12:35.390> 1<00:12:35.420> they're<00:12:36.110> things 00:12:36.370 --> 00:12:36.380 align:start position:0% built on top of layer 1 they're things 00:12:36.380 --> 00:12:38.560 align:start position:0% built on top of layer 1 they're things built<00:12:36.620> to<00:12:36.920> the<00:12:37.040> side<00:12:37.280> of<00:12:37.430> it<00:12:37.550> that<00:12:38.210> you<00:12:38.510> can 00:12:38.560 --> 00:12:38.570 align:start position:0% built to the side of it that you can 00:12:38.570 --> 00:12:39.570 align:start position:0% built to the side of it that you can then<00:12:38.810> return<00:12:39.080> to 00:12:39.570 --> 00:12:39.580 align:start position:0% then return to 00:12:39.580 --> 00:12:41.100 align:start position:0% then return to and<00:12:39.670> that's<00:12:40.090> a<00:12:40.300> really<00:12:40.570> important<00:12:41.020> difference 00:12:41.100 --> 00:12:41.110 align:start position:0% and that's a really important difference 00:12:41.110 --> 00:12:42.420 align:start position:0% and that's a really important difference because<00:12:41.590> it's<00:12:41.710> a<00:12:41.770> difference<00:12:42.070> in<00:12:42.190> kind<00:12:42.280> of 00:12:42.420 --> 00:12:42.430 align:start position:0% because it's a difference in kind of 00:12:42.430 --> 00:12:46.230 align:start position:0% because it's a difference in kind of what<00:12:42.580> your<00:12:42.700> risk<00:12:42.880> model<00:12:43.180> is<00:12:43.380> and<00:12:45.060> yeah<00:12:46.060> so 00:12:46.230 --> 00:12:46.240 align:start position:0% what your risk model is and yeah so 00:12:46.240 --> 00:12:48.210 align:start position:0% what your risk model is and yeah so layer<00:12:46.390> two<00:12:46.630> are<00:12:47.230> you<00:12:47.680> know<00:12:47.770> often 00:12:48.210 --> 00:12:48.220 align:start position:0% layer two are you know often 00:12:48.220 --> 00:12:49.980 align:start position:0% layer two are you know often technologies<00:12:48.670> where<00:12:49.150> a<00:12:49.180> user<00:12:49.390> does<00:12:49.630> not<00:12:49.660> have 00:12:49.980 --> 00:12:49.990 align:start position:0% technologies where a user does not have 00:12:49.990 --> 00:12:52.290 align:start position:0% technologies where a user does not have to<00:12:50.470> trust<00:12:50.710> a<00:12:50.920> separate<00:12:51.220> environment<00:12:51.640> and<00:12:52.210> I 00:12:52.290 --> 00:12:52.300 align:start position:0% to trust a separate environment and I 00:12:52.300 --> 00:12:54.000 align:start position:0% to trust a separate environment and I should<00:12:52.480> also<00:12:52.570> be<00:12:52.690> clear<00:12:52.990> that<00:12:53.020> this<00:12:53.440> is<00:12:53.590> not<00:12:53.740> a 00:12:54.000 --> 00:12:54.010 align:start position:0% should also be clear that this is not a 00:12:54.010 --> 00:12:56.760 align:start position:0% should also be clear that this is not a criticism<00:12:54.700> of<00:12:55.090> sidechains<00:12:55.870> or<00:12:56.140> the<00:12:56.500> teams 00:12:56.760 --> 00:12:56.770 align:start position:0% criticism of sidechains or the teams 00:12:56.770 --> 00:12:58.140 align:start position:0% criticism of sidechains or the teams that<00:12:56.950> are<00:12:57.070> using<00:12:57.460> them<00:12:57.550> or<00:12:57.640> working<00:12:57.880> with<00:12:58.000> them 00:12:58.140 --> 00:12:58.150 align:start position:0% that are using them or working with them 00:12:58.150 --> 00:13:00.120 align:start position:0% that are using them or working with them there<00:12:59.050> are<00:12:59.170> really<00:12:59.290> important<00:12:59.890> kind<00:13:00.010> of 00:13:00.120 --> 00:13:00.130 align:start position:0% there are really important kind of 00:13:00.130 --> 00:13:02.370 align:start position:0% there are really important kind of technique<00:13:00.490> right<00:13:00.700> now<00:13:00.910> because<00:13:01.210> plasma<00:13:02.170> which 00:13:02.370 --> 00:13:02.380 align:start position:0% technique right now because plasma which 00:13:02.380 --> 00:13:04.080 align:start position:0% technique right now because plasma which is<00:13:02.410> kind<00:13:02.740> of<00:13:02.770> a<00:13:02.860> layer<00:13:03.040> to<00:13:03.370> affine<00:13:03.610> sidechain 00:13:04.080 --> 00:13:04.090 align:start position:0% is kind of a layer to affine sidechain 00:13:04.090 --> 00:13:05.700 align:start position:0% is kind of a layer to affine sidechain we'll<00:13:04.210> talk<00:13:04.360> about<00:13:04.450> later<00:13:04.720> isn't<00:13:05.260> ready<00:13:05.620> for 00:13:05.700 --> 00:13:05.710 align:start position:0% we'll talk about later isn't ready for 00:13:05.710 --> 00:13:08.130 align:start position:0% we'll talk about later isn't ready for deployment<00:13:06.070> yet<00:13:06.520> and<00:13:07.390> also<00:13:07.660> that<00:13:07.780> many<00:13:07.960> of<00:13:08.050> the 00:13:08.130 --> 00:13:08.140 align:start position:0% deployment yet and also that many of the 00:13:08.140 --> 00:13:09.690 align:start position:0% deployment yet and also that many of the company<00:13:08.470> is<00:13:08.560> working<00:13:08.740> on<00:13:08.950> side<00:13:09.220> chains<00:13:09.490> are 00:13:09.690 --> 00:13:09.700 align:start position:0% company is working on side chains are 00:13:09.700 --> 00:13:11.760 align:start position:0% company is working on side chains are also<00:13:09.850> working<00:13:10.240> on<00:13:10.420> plasma<00:13:10.990> the<00:13:11.320> point<00:13:11.560> is<00:13:11.650> just 00:13:11.760 --> 00:13:11.770 align:start position:0% also working on plasma the point is just 00:13:11.770 --> 00:13:13.110 align:start position:0% also working on plasma the point is just that<00:13:11.980> these<00:13:12.100> are<00:13:12.160> technically<00:13:12.820> different 00:13:13.110 --> 00:13:13.120 align:start position:0% that these are technically different 00:13:13.120 --> 00:13:14.820 align:start position:0% that these are technically different things<00:13:13.480> and<00:13:13.720> you<00:13:13.810> should<00:13:13.960> understand<00:13:14.470> that 00:13:14.820 --> 00:13:14.830 align:start position:0% things and you should understand that 00:13:14.830 --> 00:13:18.990 align:start position:0% things and you should understand that distinction<00:13:16.440> so<00:13:17.440> just<00:13:18.160> one<00:13:18.520> last<00:13:18.730> thing 00:13:18.990 --> 00:13:19.000 align:start position:0% distinction so just one last thing 00:13:19.000 --> 00:13:20.190 align:start position:0% distinction so just one last thing before<00:13:19.090> we<00:13:19.300> jump<00:13:19.540> into<00:13:19.630> kind<00:13:19.870> of<00:13:19.930> state 00:13:20.190 --> 00:13:20.200 align:start position:0% before we jump into kind of state 00:13:20.200 --> 00:13:21.870 align:start position:0% before we jump into kind of state channels<00:13:20.530> in<00:13:20.620> plasma<00:13:21.010> what<00:13:21.550> do<00:13:21.610> we<00:13:21.700> mean<00:13:21.820> by 00:13:21.870 --> 00:13:21.880 align:start position:0% channels in plasma what do we mean by 00:13:21.880 --> 00:13:24.300 align:start position:0% channels in plasma what do we mean by anchors<00:13:22.630> on<00:13:22.810> layer<00:13:23.020> 1<00:13:23.260> that<00:13:23.620> words<00:13:23.860> been<00:13:24.070> doing 00:13:24.300 --> 00:13:24.310 align:start position:0% anchors on layer 1 that words been doing 00:13:24.310 --> 00:13:26.220 align:start position:0% anchors on layer 1 that words been doing kind<00:13:24.490> of<00:13:24.580> a<00:13:24.670> lot<00:13:24.850> of<00:13:25.000> work<00:13:25.180> in<00:13:25.780> what<00:13:25.960> we<00:13:25.990> spoke 00:13:26.220 --> 00:13:26.230 align:start position:0% kind of a lot of work in what we spoke 00:13:26.230 --> 00:13:27.900 align:start position:0% kind of a lot of work in what we spoke about<00:13:26.440> so<00:13:26.620> far<00:13:26.800> and<00:13:27.100> I'm<00:13:27.400> about<00:13:27.550> to<00:13:27.610> give<00:13:27.820> you 00:13:27.900 --> 00:13:27.910 align:start position:0% about so far and I'm about to give you 00:13:27.910 --> 00:13:30.270 align:start position:0% about so far and I'm about to give you kind<00:13:28.000> of<00:13:28.090> -<00:13:28.390> like<00:13:28.690> precise<00:13:29.280> technical 00:13:30.270 --> 00:13:30.280 align:start position:0% kind of - like precise technical 00:13:30.280 --> 00:13:32.640 align:start position:0% kind of - like precise technical examples<00:13:30.970> of<00:13:31.240> what<00:13:31.540> that<00:13:31.570> means<00:13:31.840> but<00:13:32.440> I<00:13:32.470> want 00:13:32.640 --> 00:13:32.650 align:start position:0% examples of what that means but I want 00:13:32.650 --> 00:13:34.260 align:start position:0% examples of what that means but I want you<00:13:32.710> understand<00:13:33.100> the<00:13:33.250> intuition<00:13:33.700> behind<00:13:33.730> it 00:13:34.260 --> 00:13:34.270 align:start position:0% you understand the intuition behind it 00:13:34.270 --> 00:13:36.120 align:start position:0% you understand the intuition behind it first<00:13:34.540> they're<00:13:35.230> not<00:13:35.380> anchors<00:13:35.740> in<00:13:35.860> the<00:13:35.950> sense 00:13:36.120 --> 00:13:36.130 align:start position:0% first they're not anchors in the sense 00:13:36.130 --> 00:13:36.960 align:start position:0% first they're not anchors in the sense that<00:13:36.190> there's<00:13:36.430> just<00:13:36.550> some<00:13:36.640> sort<00:13:36.760> of<00:13:36.820> like 00:13:36.960 --> 00:13:36.970 align:start position:0% that there's just some sort of like 00:13:36.970 --> 00:13:39.090 align:start position:0% that there's just some sort of like informational<00:13:37.720> relationship<00:13:38.440> between<00:13:38.680> layer 00:13:39.090 --> 00:13:39.100 align:start position:0% informational relationship between layer 00:13:39.100 --> 00:13:41.310 align:start position:0% informational relationship between layer 1<00:13:39.340> and<00:13:39.610> layer<00:13:39.670> 2<00:13:40.300> but<00:13:40.810> there's<00:13:41.020> like<00:13:41.170> an 00:13:41.310 --> 00:13:41.320 align:start position:0% 1 and layer 2 but there's like an 00:13:41.320 --> 00:13:43.320 align:start position:0% 1 and layer 2 but there's like an economic<00:13:42.040> or<00:13:42.250> an<00:13:42.340> incentive<00:13:42.850> relationship 00:13:43.320 --> 00:13:43.330 align:start position:0% economic or an incentive relationship 00:13:43.330 --> 00:13:45.180 align:start position:0% economic or an incentive relationship between<00:13:43.630> these<00:13:43.990> things<00:13:44.230> and<00:13:44.530> I<00:13:44.830> want<00:13:44.920> to<00:13:45.040> kind 00:13:45.180 --> 00:13:45.190 align:start position:0% between these things and I want to kind 00:13:45.190 --> 00:13:47.070 align:start position:0% between these things and I want to kind of<00:13:45.250> give<00:13:45.370> you<00:13:45.400> like<00:13:45.610> a<00:13:45.640> conceptual<00:13:46.600> intuition 00:13:47.070 --> 00:13:47.080 align:start position:0% of give you like a conceptual intuition 00:13:47.080 --> 00:13:48.900 align:start position:0% of give you like a conceptual intuition about<00:13:47.260> how<00:13:47.680> these<00:13:47.860> things<00:13:47.920> work<00:13:48.340> and<00:13:48.490> how<00:13:48.790> they 00:13:48.900 --> 00:13:48.910 align:start position:0% about how these things work and how they 00:13:48.910 --> 00:13:52.410 align:start position:0% about how these things work and how they can't<00:13:49.180> work<00:13:49.360> so<00:13:50.050> conceptually<00:13:51.010> this<00:13:51.790> is<00:13:52.030> kind 00:13:52.410 --> 00:13:52.420 align:start position:0% can't work so conceptually this is kind 00:13:52.420 --> 00:13:55.050 align:start position:0% can't work so conceptually this is kind of<00:13:52.540> like<00:13:52.750> how<00:13:52.990> we<00:13:53.050> use<00:13:53.590> quartz<00:13:54.190> and<00:13:54.490> just<00:13:54.790> bear 00:13:55.050 --> 00:13:55.060 align:start position:0% of like how we use quartz and just bear 00:13:55.060 --> 00:13:57.870 align:start position:0% of like how we use quartz and just bear with<00:13:55.090> me<00:13:55.360> here<00:13:55.390> you<00:13:56.290> know<00:13:56.830> people<00:13:57.160> use<00:13:57.490> legal 00:13:57.870 --> 00:13:57.880 align:start position:0% with me here you know people use legal 00:13:57.880 --> 00:13:59.760 align:start position:0% with me here you know people use legal systems<00:13:58.210> often<00:13:58.450> but<00:13:58.960> they<00:13:59.050> rarely<00:13:59.260> interact 00:13:59.760 --> 00:13:59.770 align:start position:0% systems often but they rarely interact 00:13:59.770 --> 00:14:01.380 align:start position:0% systems often but they rarely interact with<00:13:59.920> a<00:13:59.950> court<00:14:00.280> probably<00:14:00.640> most<00:14:01.060> of<00:14:01.180> the<00:14:01.240> people 00:14:01.380 --> 00:14:01.390 align:start position:0% with a court probably most of the people 00:14:01.390 --> 00:14:03.030 align:start position:0% with a court probably most of the people in<00:14:01.540> this<00:14:01.660> room<00:14:01.840> have<00:14:02.170> at<00:14:02.350> some<00:14:02.620> point<00:14:02.680> in<00:14:02.950> their 00:14:03.030 --> 00:14:03.040 align:start position:0% in this room have at some point in their 00:14:03.040 --> 00:14:05.220 align:start position:0% in this room have at some point in their life<00:14:03.220> signed<00:14:04.090> an<00:14:04.240> employment<00:14:04.690> agreement<00:14:04.780> or 00:14:05.220 --> 00:14:05.230 align:start position:0% life signed an employment agreement or 00:14:05.230 --> 00:14:07.380 align:start position:0% life signed an employment agreement or written<00:14:06.040> drafted<00:14:06.400> up<00:14:06.490> an<00:14:06.580> NDA<00:14:06.910> and<00:14:07.240> had 00:14:07.380 --> 00:14:07.390 align:start position:0% written drafted up an NDA and had 00:14:07.390 --> 00:14:09.180 align:start position:0% written drafted up an NDA and had someone<00:14:07.630> else<00:14:07.840> sign<00:14:08.080> it<00:14:08.260> or<00:14:08.590> any<00:14:08.770> other<00:14:08.890> number 00:14:09.180 --> 00:14:09.190 align:start position:0% someone else sign it or any other number 00:14:09.190 --> 00:14:10.890 align:start position:0% someone else sign it or any other number of<00:14:09.220> no<00:14:09.460> contractual<00:14:09.970> agreements<00:14:10.450> but 00:14:10.890 --> 00:14:10.900 align:start position:0% of no contractual agreements but 00:14:10.900 --> 00:14:12.390 align:start position:0% of no contractual agreements but probably<00:14:11.200> very<00:14:11.500> few<00:14:11.830> of<00:14:11.950> you<00:14:12.070> have<00:14:12.280> actually 00:14:12.390 --> 00:14:12.400 align:start position:0% probably very few of you have actually 00:14:12.400 --> 00:14:14.550 align:start position:0% probably very few of you have actually had<00:14:12.670> to<00:14:12.760> go<00:14:12.880> talk<00:14:13.210> to<00:14:13.420> a<00:14:13.450> court<00:14:13.870> to<00:14:14.290> get<00:14:14.380> that 00:14:14.550 --> 00:14:14.560 align:start position:0% had to go talk to a court to get that 00:14:14.560 --> 00:14:17.160 align:start position:0% had to go talk to a court to get that contract<00:14:14.950> enforced<00:14:15.730> right<00:14:16.450> court<00:14:17.050> is 00:14:17.160 --> 00:14:17.170 align:start position:0% contract enforced right court is 00:14:17.170 --> 00:14:19.020 align:start position:0% contract enforced right court is expensive<00:14:17.620> and<00:14:17.740> slow<00:14:17.860> but<00:14:18.370> it<00:14:18.490> is<00:14:18.610> reliable 00:14:19.020 --> 00:14:19.030 align:start position:0% expensive and slow but it is reliable 00:14:19.030 --> 00:14:21.300 align:start position:0% expensive and slow but it is reliable and<00:14:19.600> authoritative<00:14:20.050> depending<00:14:20.980> on<00:14:21.070> where<00:14:21.220> you 00:14:21.300 --> 00:14:21.310 align:start position:0% and authoritative depending on where you 00:14:21.310 --> 00:14:23.970 align:start position:0% and authoritative depending on where you live<00:14:21.490> and<00:14:22.180> the<00:14:22.420> fact<00:14:22.630> that<00:14:22.750> a<00:14:22.960> person<00:14:23.200> could<00:14:23.740> go 00:14:23.970 --> 00:14:23.980 align:start position:0% live and the fact that a person could go 00:14:23.980 --> 00:14:25.680 align:start position:0% live and the fact that a person could go to<00:14:24.040> court<00:14:24.280> to<00:14:24.580> enforce<00:14:24.910> a<00:14:25.000> contract<00:14:25.180> is 00:14:25.680 --> 00:14:25.690 align:start position:0% to court to enforce a contract is 00:14:25.690 --> 00:14:27.870 align:start position:0% to court to enforce a contract is usually<00:14:26.290> enough<00:14:26.560> for<00:14:26.860> that<00:14:26.980> contract<00:14:27.550> just<00:14:27.820> a 00:14:27.870 --> 00:14:27.880 align:start position:0% usually enough for that contract just a 00:14:27.880 --> 00:14:29.880 align:start position:0% usually enough for that contract just a piece<00:14:28.030> of<00:14:28.060> paper<00:14:28.330> to<00:14:28.840> actually<00:14:29.200> affect<00:14:29.530> people 00:14:29.880 --> 00:14:29.890 align:start position:0% piece of paper to actually affect people 00:14:29.890 --> 00:14:32.010 align:start position:0% piece of paper to actually affect people and<00:14:30.100> like<00:14:30.490> you<00:14:30.640> know<00:14:30.760> provide<00:14:31.150> enough<00:14:31.450> trust 00:14:32.010 --> 00:14:32.020 align:start position:0% and like you know provide enough trust 00:14:32.020 --> 00:14:34.350 align:start position:0% and like you know provide enough trust for<00:14:32.320> commerce<00:14:32.620> to<00:14:32.800> work<00:14:32.950> so<00:14:33.790> this<00:14:34.150> should 00:14:34.350 --> 00:14:34.360 align:start position:0% for commerce to work so this should 00:14:34.360 --> 00:14:36.030 align:start position:0% for commerce to work so this should sound<00:14:34.540> kind<00:14:34.960> of<00:14:35.020> familiar<00:14:35.200> right<00:14:35.770> it's<00:14:35.950> a 00:14:36.030 --> 00:14:36.040 align:start position:0% sound kind of familiar right it's a 00:14:36.040 --> 00:14:37.410 align:start position:0% sound kind of familiar right it's a little<00:14:36.370> bit<00:14:36.460> like<00:14:36.640> the<00:14:36.760> intuition<00:14:37.210> we<00:14:37.270> use 00:14:37.410 --> 00:14:37.420 align:start position:0% little bit like the intuition we use 00:14:37.420 --> 00:14:39.510 align:start position:0% little bit like the intuition we use with<00:14:37.570> layer<00:14:37.720> 2<00:14:37.990> where<00:14:38.620> apps<00:14:38.890> can<00:14:39.220> use 00:14:39.510 --> 00:14:39.520 align:start position:0% with layer 2 where apps can use 00:14:39.520 --> 00:14:41.070 align:start position:0% with layer 2 where apps can use aetherium<00:14:39.910> but<00:14:40.480> they<00:14:40.570> don't<00:14:40.750> have<00:14:40.960> to 00:14:41.070 --> 00:14:41.080 align:start position:0% aetherium but they don't have to 00:14:41.080 --> 00:14:43.590 align:start position:0% aetherium but they don't have to interact<00:14:41.530> with<00:14:41.650> it<00:14:41.890> all<00:14:42.040> that<00:14:42.100> much<00:14:42.550> layer<00:14:43.360> 1 00:14:43.590 --> 00:14:43.600 align:start position:0% interact with it all that much layer 1 00:14:43.600 --> 00:14:45.870 align:start position:0% interact with it all that much layer 1 is<00:14:43.630> expensive<00:14:44.260> and<00:14:44.410> slow<00:14:44.500> but<00:14:45.190> it<00:14:45.310> is<00:14:45.460> reliable 00:14:45.870 --> 00:14:45.880 align:start position:0% is expensive and slow but it is reliable 00:14:45.880 --> 00:14:48.120 align:start position:0% is expensive and slow but it is reliable and<00:14:46.390> authoritative<00:14:46.900> and<00:14:47.290> the<00:14:47.710> fact<00:14:47.920> that<00:14:47.980> you 00:14:48.120 --> 00:14:48.130 align:start position:0% and authoritative and the fact that you 00:14:48.130 --> 00:14:50.520 align:start position:0% and authoritative and the fact that you could<00:14:48.610> go<00:14:48.850> to<00:14:48.880> layer<00:14:49.120> one<00:14:49.450> using<00:14:50.020> this<00:14:50.110> anchor 00:14:50.520 --> 00:14:50.530 align:start position:0% could go to layer one using this anchor 00:14:50.530 --> 00:14:52.790 align:start position:0% could go to layer one using this anchor at<00:14:50.740> any<00:14:51.070> time<00:14:51.370> is<00:14:51.790> enough<00:14:52.210> to<00:14:52.510> kind<00:14:52.660> of 00:14:52.790 --> 00:14:52.800 align:start position:0% at any time is enough to kind of 00:14:52.800 --> 00:14:54.710 align:start position:0% at any time is enough to kind of let<00:14:52.950> layer<00:14:53.130> two<00:14:53.339> systems<00:14:53.700> be<00:14:54.209> extremely 00:14:54.710 --> 00:14:54.720 align:start position:0% let layer two systems be extremely 00:14:54.720 --> 00:14:56.930 align:start position:0% let layer two systems be extremely secure<00:14:55.050> and<00:14:55.260> extremely<00:14:55.649> trustworthy<00:14:55.890> and<00:14:56.519> I 00:14:56.930 --> 00:14:56.940 align:start position:0% secure and extremely trustworthy and I 00:14:56.940 --> 00:14:58.490 align:start position:0% secure and extremely trustworthy and I should<00:14:57.149> also<00:14:57.300> say<00:14:57.450> because<00:14:57.810> we<00:14:58.110> just<00:14:58.320> heard 00:14:58.490 --> 00:14:58.500 align:start position:0% should also say because we just heard 00:14:58.500 --> 00:15:00.470 align:start position:0% should also say because we just heard from<00:14:58.529> italic<00:14:58.980> earlier<00:14:59.220> about<00:14:59.399> what<00:15:00.029> you<00:15:00.330> know 00:15:00.470 --> 00:15:00.480 align:start position:0% from italic earlier about what you know 00:15:00.480 --> 00:15:01.910 align:start position:0% from italic earlier about what you know Saran<00:15:00.810> II<00:15:00.839> will<00:15:01.050> look<00:15:01.200> like<00:15:01.350> and<00:15:01.560> how<00:15:01.589> main 00:15:01.910 --> 00:15:01.920 align:start position:0% Saran II will look like and how main 00:15:01.920 --> 00:15:03.710 align:start position:0% Saran II will look like and how main channel<00:15:02.190> be<00:15:02.250> much<00:15:02.399> faster<00:15:02.580> even<00:15:03.000> in<00:15:03.450> the<00:15:03.540> world 00:15:03.710 --> 00:15:03.720 align:start position:0% channel be much faster even in the world 00:15:03.720 --> 00:15:05.420 align:start position:0% channel be much faster even in the world where<00:15:04.110> you<00:15:04.140> know<00:15:04.410> we<00:15:04.560> have<00:15:04.769> sharding<00:15:05.220> we<00:15:05.279> have 00:15:05.420 --> 00:15:05.430 align:start position:0% where you know we have sharding we have 00:15:05.430 --> 00:15:07.519 align:start position:0% where you know we have sharding we have serenity<00:15:05.880> we're<00:15:06.300> still<00:15:06.600> going<00:15:06.839> to<00:15:06.930> want<00:15:07.140> layer 00:15:07.519 --> 00:15:07.529 align:start position:0% serenity we're still going to want layer 00:15:07.529 --> 00:15:08.990 align:start position:0% serenity we're still going to want layer 2<00:15:07.740> solutions<00:15:08.190> because<00:15:08.490> they're<00:15:08.610> always<00:15:08.820> an 00:15:08.990 --> 00:15:09.000 align:start position:0% 2 solutions because they're always an 00:15:09.000 --> 00:15:10.940 align:start position:0% 2 solutions because they're always an improvement<00:15:09.329> on<00:15:09.600> whatever<00:15:10.050> layer<00:15:10.350> one<00:15:10.589> can<00:15:10.800> do 00:15:10.940 --> 00:15:10.950 align:start position:0% improvement on whatever layer one can do 00:15:10.950 --> 00:15:13.490 align:start position:0% improvement on whatever layer one can do and<00:15:11.160> instant<00:15:12.089> free<00:15:12.329> transactions<00:15:13.019> is<00:15:13.230> always 00:15:13.490 --> 00:15:13.500 align:start position:0% and instant free transactions is always 00:15:13.500 --> 00:15:15.110 align:start position:0% and instant free transactions is always better<00:15:13.649> than<00:15:13.890> paying<00:15:14.100> a<00:15:14.250> fee<00:15:14.430> no<00:15:14.820> matter<00:15:14.970> how 00:15:15.110 --> 00:15:15.120 align:start position:0% better than paying a fee no matter how 00:15:15.120 --> 00:15:18.650 align:start position:0% better than paying a fee no matter how small<00:15:16.130> so<00:15:17.130> keep<00:15:17.850> in<00:15:17.940> mind<00:15:17.970> also<00:15:18.240> that<00:15:18.390> this<00:15:18.600> is 00:15:18.650 --> 00:15:18.660 align:start position:0% small so keep in mind also that this is 00:15:18.660 --> 00:15:20.930 align:start position:0% small so keep in mind also that this is just<00:15:18.839> an<00:15:19.019> analogy<00:15:19.500> I'm<00:15:20.130> not<00:15:20.310> making<00:15:20.519> a<00:15:20.579> strong 00:15:20.930 --> 00:15:20.940 align:start position:0% just an analogy I'm not making a strong 00:15:20.940 --> 00:15:22.910 align:start position:0% just an analogy I'm not making a strong claim<00:15:21.269> about<00:15:21.570> legal<00:15:21.870> systems<00:15:22.230> and<00:15:22.380> block 00:15:22.910 --> 00:15:22.920 align:start position:0% claim about legal systems and block 00:15:22.920 --> 00:15:24.500 align:start position:0% claim about legal systems and block chains<00:15:23.220> that<00:15:23.430> they<00:15:23.490> were<00:15:23.579> somehow<00:15:23.790> identical 00:15:24.500 --> 00:15:24.510 align:start position:0% chains that they were somehow identical 00:15:24.510 --> 00:15:26.690 align:start position:0% chains that they were somehow identical the<00:15:25.290> point<00:15:25.560> is<00:15:25.649> just<00:15:25.680> that<00:15:25.920> future<00:15:26.370> pay<00:15:26.610> off 00:15:26.690 --> 00:15:26.700 align:start position:0% the point is just that future pay off 00:15:26.700 --> 00:15:29.720 align:start position:0% the point is just that future pay off some<00:15:26.910> penalties<00:15:27.329> shaped<00:15:28.110> behavior<00:15:28.730> if 00:15:29.720 --> 00:15:29.730 align:start position:0% some penalties shaped behavior if 00:15:29.730 --> 00:15:31.610 align:start position:0% some penalties shaped behavior if theorem<00:15:30.089> is<00:15:30.180> an<00:15:30.269> excellent<00:15:30.630> tool<00:15:31.019> kit<00:15:31.290> for 00:15:31.610 --> 00:15:31.620 align:start position:0% theorem is an excellent tool kit for 00:15:31.620 --> 00:15:33.980 align:start position:0% theorem is an excellent tool kit for creating<00:15:32.100> mechanisms<00:15:32.870> payoffs<00:15:33.870> and 00:15:33.980 --> 00:15:33.990 align:start position:0% creating mechanisms payoffs and 00:15:33.990 --> 00:15:35.990 align:start position:0% creating mechanisms payoffs and penalties<00:15:34.350> and<00:15:34.560> that<00:15:35.070> other<00:15:35.519> systems<00:15:35.910> have 00:15:35.990 --> 00:15:36.000 align:start position:0% penalties and that other systems have 00:15:36.000 --> 00:15:37.460 align:start position:0% penalties and that other systems have existed<00:15:36.300> in<00:15:36.390> the<00:15:36.450> past<00:15:36.600> that<00:15:37.019> do<00:15:37.140> this<00:15:37.260> in<00:15:37.410> a 00:15:37.460 --> 00:15:37.470 align:start position:0% existed in the past that do this in a 00:15:37.470 --> 00:15:38.960 align:start position:0% existed in the past that do this in a similar<00:15:37.680> way<00:15:37.800> and<00:15:38.160> we<00:15:38.459> can<00:15:38.579> kind<00:15:38.730> of<00:15:38.790> learn 00:15:38.960 --> 00:15:38.970 align:start position:0% similar way and we can kind of learn 00:15:38.970 --> 00:15:40.340 align:start position:0% similar way and we can kind of learn from<00:15:39.029> them<00:15:39.360> at<00:15:39.510> least<00:15:39.660> on<00:15:39.750> an<00:15:39.839> intuition<00:15:40.260> or 00:15:40.340 --> 00:15:40.350 align:start position:0% from them at least on an intuition or 00:15:40.350 --> 00:15:43.670 align:start position:0% from them at least on an intuition or conceptual<00:15:40.829> basis<00:15:41.450> all<00:15:42.450> right<00:15:42.600> so<00:15:43.350> now<00:15:43.529> we're 00:15:43.670 --> 00:15:43.680 align:start position:0% conceptual basis all right so now we're 00:15:43.680 --> 00:15:45.319 align:start position:0% conceptual basis all right so now we're gonna<00:15:43.740> jump<00:15:44.100> away<00:15:44.880> from<00:15:45.060> kind<00:15:45.209> of<00:15:45.269> the 00:15:45.319 --> 00:15:45.329 align:start position:0% gonna jump away from kind of the 00:15:45.329 --> 00:15:47.509 align:start position:0% gonna jump away from kind of the abstract<00:15:45.870> general<00:15:46.260> to<00:15:46.560> talking<00:15:46.860> about<00:15:46.920> two 00:15:47.509 --> 00:15:47.519 align:start position:0% abstract general to talking about two 00:15:47.519 --> 00:15:49.790 align:start position:0% abstract general to talking about two specific<00:15:48.149> layer<00:15:48.360> two<00:15:48.600> solutions<00:15:49.079> and<00:15:49.320> give 00:15:49.790 --> 00:15:49.800 align:start position:0% specific layer two solutions and give 00:15:49.800 --> 00:15:51.470 align:start position:0% specific layer two solutions and give you<00:15:49.860> an<00:15:49.950> idea<00:15:50.010> of<00:15:50.279> how<00:15:50.459> they<00:15:50.640> work<00:15:50.850> so<00:15:51.089> we're 00:15:51.470 --> 00:15:51.480 align:start position:0% you an idea of how they work so we're 00:15:51.480 --> 00:15:54.290 align:start position:0% you an idea of how they work so we're gonna<00:15:51.570> start<00:15:51.899> with<00:15:52.110> state<00:15:52.320> channels<00:15:53.300> state 00:15:54.290 --> 00:15:54.300 align:start position:0% gonna start with state channels state 00:15:54.300 --> 00:15:56.060 align:start position:0% gonna start with state channels state channels<00:15:54.630> are<00:15:54.839> the<00:15:55.019> kind<00:15:55.260> of<00:15:55.350> foundational 00:15:56.060 --> 00:15:56.070 align:start position:0% channels are the kind of foundational 00:15:56.070 --> 00:15:59.810 align:start position:0% channels are the kind of foundational layer<00:15:56.519> to<00:15:56.880> technique<00:15:57.589> and<00:15:58.589> the<00:15:59.279> way<00:15:59.430> it<00:15:59.520> works 00:15:59.810 --> 00:15:59.820 align:start position:0% layer to technique and the way it works 00:15:59.820 --> 00:16:01.819 align:start position:0% layer to technique and the way it works like<00:16:00.029> this<00:16:00.270> is<00:16:00.570> that<00:16:00.660> we<00:16:01.110> have<00:16:01.140> Alice<00:16:01.500> and<00:16:01.680> Bob 00:16:01.819 --> 00:16:01.829 align:start position:0% like this is that we have Alice and Bob 00:16:01.829 --> 00:16:03.260 align:start position:0% like this is that we have Alice and Bob and<00:16:02.190> Alice<00:16:02.459> and<00:16:02.700> Bob<00:16:02.820> wanted<00:16:03.089> to<00:16:03.180> make 00:16:03.260 --> 00:16:03.270 align:start position:0% and Alice and Bob wanted to make 00:16:03.270 --> 00:16:05.120 align:start position:0% and Alice and Bob wanted to make payments<00:16:03.630> to<00:16:03.690> each<00:16:03.779> other<00:16:03.990> now<00:16:04.500> if<00:16:04.649> they<00:16:04.770> do<00:16:04.829> it 00:16:05.120 --> 00:16:05.130 align:start position:0% payments to each other now if they do it 00:16:05.130 --> 00:16:07.639 align:start position:0% payments to each other now if they do it on<00:16:05.279> main<00:16:05.850> chain<00:16:06.149> kind<00:16:06.390> of<00:16:06.510> the<00:16:06.600> naive<00:16:06.750> way<00:16:07.110> then 00:16:07.639 --> 00:16:07.649 align:start position:0% on main chain kind of the naive way then 00:16:07.649 --> 00:16:09.470 align:start position:0% on main chain kind of the naive way then the<00:16:07.920> way<00:16:08.010> this<00:16:08.160> works<00:16:08.399> is<00:16:08.640> Alice<00:16:09.149> sends<00:16:09.450> a 00:16:09.470 --> 00:16:09.480 align:start position:0% the way this works is Alice sends a 00:16:09.480 --> 00:16:11.000 align:start position:0% the way this works is Alice sends a transaction<00:16:10.050> to<00:16:10.079> the<00:16:10.230> etherion<00:16:10.529> blockchain 00:16:11.000 --> 00:16:11.010 align:start position:0% transaction to the etherion blockchain 00:16:11.010 --> 00:16:14.690 align:start position:0% transaction to the etherion blockchain and<00:16:11.730> then<00:16:12.120> she<00:16:12.870> pay<00:16:12.990> some<00:16:13.200> fees<00:16:13.350> and<00:16:13.680> then<00:16:14.160> they 00:16:14.690 --> 00:16:14.700 align:start position:0% and then she pay some fees and then they 00:16:14.700 --> 00:16:16.370 align:start position:0% and then she pay some fees and then they wait<00:16:14.910> and<00:16:15.120> they<00:16:15.660> wait<00:16:15.690> and<00:16:15.990> they<00:16:16.110> wait<00:16:16.140> and 00:16:16.370 --> 00:16:16.380 align:start position:0% wait and they wait and they wait and 00:16:16.380 --> 00:16:17.960 align:start position:0% wait and they wait and they wait and they<00:16:16.470> wait<00:16:16.500> in<00:16:16.709> the<00:16:16.800> wait<00:16:16.950> and<00:16:17.130> then<00:16:17.550> 15 00:16:17.960 --> 00:16:17.970 align:start position:0% they wait in the wait and then 15 00:16:17.970 --> 00:16:20.060 align:start position:0% they wait in the wait and then 15 seconds<00:16:18.329> later<00:16:18.540> Bob<00:16:19.079> gets<00:16:19.380> a<00:16:19.470> confirmation 00:16:20.060 --> 00:16:20.070 align:start position:0% seconds later Bob gets a confirmation 00:16:20.070 --> 00:16:21.710 align:start position:0% seconds later Bob gets a confirmation and<00:16:20.250> they<00:16:20.670> can<00:16:20.820> move<00:16:20.970> on<00:16:21.089> and<00:16:21.329> do<00:16:21.390> something 00:16:21.710 --> 00:16:21.720 align:start position:0% and they can move on and do something 00:16:21.720 --> 00:16:25.760 align:start position:0% and they can move on and do something else<00:16:22.670> there<00:16:23.670> we<00:16:23.760> go<00:16:23.880> now<00:16:24.329> has<00:16:24.540> these<00:16:24.770> this 00:16:25.760 --> 00:16:25.770 align:start position:0% else there we go now has these this 00:16:25.770 --> 00:16:27.740 align:start position:0% else there we go now has these this sucks<00:16:26.250> right<00:16:26.730> I<00:16:26.940> mean<00:16:27.089> anyone<00:16:27.420> that's<00:16:27.600> ever 00:16:27.740 --> 00:16:27.750 align:start position:0% sucks right I mean anyone that's ever 00:16:27.750 --> 00:16:29.329 align:start position:0% sucks right I mean anyone that's ever worked<00:16:27.899> on<00:16:28.079> a<00:16:28.140> wallet<00:16:28.560> or<00:16:28.709> talking<00:16:29.100> to<00:16:29.190> real 00:16:29.329 --> 00:16:29.339 align:start position:0% worked on a wallet or talking to real 00:16:29.339 --> 00:16:31.639 align:start position:0% worked on a wallet or talking to real users<00:16:29.370> the<00:16:30.240> idea<00:16:30.480> of<00:16:30.570> having<00:16:30.810> to<00:16:30.930> wait<00:16:31.110> 15 00:16:31.639 --> 00:16:31.649 align:start position:0% users the idea of having to wait 15 00:16:31.649 --> 00:16:33.590 align:start position:0% users the idea of having to wait 15 seconds<00:16:32.130> before<00:16:32.370> any<00:16:32.730> kind<00:16:32.970> of<00:16:33.029> state<00:16:33.300> change 00:16:33.590 --> 00:16:33.600 align:start position:0% seconds before any kind of state change 00:16:33.600 --> 00:16:35.300 align:start position:0% seconds before any kind of state change whether<00:16:34.260> that's<00:16:34.440> a<00:16:34.560> payment<00:16:34.920> or<00:16:35.010> something 00:16:35.300 --> 00:16:35.310 align:start position:0% whether that's a payment or something 00:16:35.310 --> 00:16:38.930 align:start position:0% whether that's a payment or something else<00:16:35.490> is<00:16:35.699> horrible<00:16:36.449> we<00:16:37.440> need<00:16:37.649> to<00:16:37.800> do<00:16:37.920> better<00:16:38.130> so 00:16:38.930 --> 00:16:38.940 align:start position:0% else is horrible we need to do better so 00:16:38.940 --> 00:16:40.760 align:start position:0% else is horrible we need to do better so let's<00:16:39.449> do<00:16:39.630> this<00:16:39.750> now<00:16:39.959> through<00:16:40.380> a<00:16:40.440> state 00:16:40.760 --> 00:16:40.770 align:start position:0% let's do this now through a state 00:16:40.770 --> 00:16:42.740 align:start position:0% let's do this now through a state channel<00:16:41.100> or<00:16:41.850> a<00:16:41.880> payment<00:16:42.209> channel<00:16:42.600> in<00:16:42.690> this 00:16:42.740 --> 00:16:42.750 align:start position:0% channel or a payment channel in this 00:16:42.750 --> 00:16:43.550 align:start position:0% channel or a payment channel in this specific<00:16:43.110> example 00:16:43.550 --> 00:16:43.560 align:start position:0% specific example 00:16:43.560 --> 00:16:46.010 align:start position:0% specific example so<00:16:43.980> this<00:16:44.699> contract<00:16:45.300> the<00:16:45.420> state<00:16:45.570> channel 00:16:46.010 --> 00:16:46.020 align:start position:0% so this contract the state channel 00:16:46.020 --> 00:16:48.650 align:start position:0% so this contract the state channel multi-sig<00:16:46.529> is<00:16:47.190> on<00:16:47.550> the<00:16:47.760> blockchain<00:16:48.000> it's<00:16:48.420> just 00:16:48.650 --> 00:16:48.660 align:start position:0% multi-sig is on the blockchain it's just 00:16:48.660 --> 00:16:51.170 align:start position:0% multi-sig is on the blockchain it's just an<00:16:48.810> account<00:16:49.170> and<00:16:50.010> it<00:16:50.190> has<00:16:50.339> Alice<00:16:50.790> and<00:16:51.029> Bob's 00:16:51.170 --> 00:16:51.180 align:start position:0% an account and it has Alice and Bob's 00:16:51.180 --> 00:16:53.689 align:start position:0% an account and it has Alice and Bob's money<00:16:51.660> inside<00:16:52.019> of<00:16:52.079> it<00:16:52.320> so<00:16:53.130> Alice<00:16:53.370> and<00:16:53.519> Bob<00:16:53.640> are 00:16:53.689 --> 00:16:53.699 align:start position:0% money inside of it so Alice and Bob are 00:16:53.699 --> 00:16:55.579 align:start position:0% money inside of it so Alice and Bob are both<00:16:53.850> deposited<00:16:54.510> some<00:16:54.720> amount<00:16:54.899> of<00:16:54.959> eath<00:16:55.199> into 00:16:55.579 --> 00:16:55.589 align:start position:0% both deposited some amount of eath into 00:16:55.589 --> 00:16:56.480 align:start position:0% both deposited some amount of eath into it<00:16:55.709> beforehand 00:16:56.480 --> 00:16:56.490 align:start position:0% it beforehand 00:16:56.490 --> 00:16:59.540 align:start position:0% it beforehand now<00:16:57.269> instead<00:16:58.019> of<00:16:58.170> sending<00:16:58.680> a<00:16:58.860> transaction<00:16:59.459> to 00:16:59.540 --> 00:16:59.550 align:start position:0% now instead of sending a transaction to 00:16:59.550 --> 00:17:01.760 align:start position:0% now instead of sending a transaction to the<00:16:59.579> blockchain<00:16:59.850> what<00:17:00.750> Alice<00:17:01.050> and<00:17:01.199> Bob<00:17:01.320> do<00:17:01.529> is 00:17:01.760 --> 00:17:01.770 align:start position:0% the blockchain what Alice and Bob do is 00:17:01.770 --> 00:17:03.740 align:start position:0% the blockchain what Alice and Bob do is they<00:17:01.949> exchange<00:17:02.430> messages<00:17:02.880> over<00:17:03.390> any 00:17:03.740 --> 00:17:03.750 align:start position:0% they exchange messages over any 00:17:03.750 --> 00:17:06.020 align:start position:0% they exchange messages over any communication<00:17:04.439> protocol<00:17:04.860> and<00:17:05.040> each<00:17:05.579> message 00:17:06.020 --> 00:17:06.030 align:start position:0% communication protocol and each message 00:17:06.030 --> 00:17:06.409 align:start position:0% communication protocol and each message is 00:17:06.409 --> 00:17:06.419 align:start position:0% is 00:17:06.419 --> 00:17:08.329 align:start position:0% is a<00:17:06.449> transaction<00:17:07.019> and<00:17:07.589> I<00:17:07.949> don't<00:17:08.009> mean<00:17:08.279> a 00:17:08.329 --> 00:17:08.339 align:start position:0% a transaction and I don't mean a 00:17:08.339 --> 00:17:10.039 align:start position:0% a transaction and I don't mean a transaction<00:17:08.999> as<00:17:09.179> in<00:17:09.329> like<00:17:09.509> one<00:17:09.839> that<00:17:09.989> is 00:17:10.039 --> 00:17:10.049 align:start position:0% transaction as in like one that is 00:17:10.049 --> 00:17:11.899 align:start position:0% transaction as in like one that is confirmed<00:17:10.529> by<00:17:10.649> the<00:17:10.709> blockchain<00:17:11.039> I<00:17:11.429> just<00:17:11.759> mean 00:17:11.899 --> 00:17:11.909 align:start position:0% confirmed by the blockchain I just mean 00:17:11.909 --> 00:17:13.549 align:start position:0% confirmed by the blockchain I just mean like<00:17:11.939> the<00:17:12.179> literal<00:17:12.509> data<00:17:12.779> structure<00:17:13.230> of<00:17:13.409> a 00:17:13.549 --> 00:17:13.559 align:start position:0% like the literal data structure of a 00:17:13.559 --> 00:17:16.220 align:start position:0% like the literal data structure of a valid<00:17:13.859> transaction<00:17:14.459> a<00:17:14.609> script<00:17:14.999> that<00:17:15.179> could<00:17:16.109> at 00:17:16.220 --> 00:17:16.230 align:start position:0% valid transaction a script that could at 00:17:16.230 --> 00:17:18.409 align:start position:0% valid transaction a script that could at any<00:17:16.379> moment<00:17:16.709> be<00:17:16.919> sent<00:17:17.279> to<00:17:17.579> the<00:17:17.730> blockchain<00:17:17.970> and 00:17:18.409 --> 00:17:18.419 align:start position:0% any moment be sent to the blockchain and 00:17:18.419 --> 00:17:19.819 align:start position:0% any moment be sent to the blockchain and it<00:17:18.629> will<00:17:18.749> be<00:17:18.839> accepted<00:17:19.230> it's<00:17:19.350> valid<00:17:19.589> and<00:17:19.649> so 00:17:19.819 --> 00:17:19.829 align:start position:0% it will be accepted it's valid and so 00:17:19.829 --> 00:17:22.279 align:start position:0% it will be accepted it's valid and so forth<00:17:20.039> Alice<00:17:20.999> and<00:17:21.149> Bob<00:17:21.269> both<00:17:21.569> keep<00:17:21.929> all<00:17:22.169> the 00:17:22.279 --> 00:17:22.289 align:start position:0% forth Alice and Bob both keep all the 00:17:22.289 --> 00:17:24.499 align:start position:0% forth Alice and Bob both keep all the copies<00:17:22.559> of<00:17:22.919> the<00:17:23.089> transactions<00:17:24.089> that<00:17:24.329> they've 00:17:24.499 --> 00:17:24.509 align:start position:0% copies of the transactions that they've 00:17:24.509 --> 00:17:26.389 align:start position:0% copies of the transactions that they've received<00:17:24.720> and<00:17:25.169> sent<00:17:25.470> and<00:17:25.739> they're<00:17:26.159> always 00:17:26.389 --> 00:17:26.399 align:start position:0% received and sent and they're always 00:17:26.399 --> 00:17:28.429 align:start position:0% received and sent and they're always signing<00:17:26.699> both<00:17:27.059> of<00:17:27.239> them<00:17:27.329> so<00:17:27.869> keep<00:17:28.169> in<00:17:28.259> mind 00:17:28.429 --> 00:17:28.439 align:start position:0% signing both of them so keep in mind 00:17:28.439 --> 00:17:29.810 align:start position:0% signing both of them so keep in mind these<00:17:28.590> three<00:17:28.859> things<00:17:29.100> right<00:17:29.369> so<00:17:29.580> each 00:17:29.810 --> 00:17:29.820 align:start position:0% these three things right so each 00:17:29.820 --> 00:17:31.129 align:start position:0% these three things right so each transaction<00:17:30.330> is<00:17:30.629> signed<00:17:30.840> by<00:17:30.960> both<00:17:30.989> parties 00:17:31.129 --> 00:17:31.139 align:start position:0% transaction is signed by both parties 00:17:31.139 --> 00:17:33.649 align:start position:0% transaction is signed by both parties they're<00:17:32.009> all<00:17:32.190> valid<00:17:32.639> at<00:17:32.909> any<00:17:33.090> point<00:17:33.359> you<00:17:33.450> could 00:17:33.649 --> 00:17:33.659 align:start position:0% they're all valid at any point you could 00:17:33.659 --> 00:17:35.119 align:start position:0% they're all valid at any point you could go<00:17:33.899> to<00:17:33.989> the<00:17:34.049> blockchain<00:17:34.259> and<00:17:34.470> say<00:17:34.679> hey<00:17:34.889> this<00:17:35.070> is 00:17:35.119 --> 00:17:35.129 align:start position:0% go to the blockchain and say hey this is 00:17:35.129 --> 00:17:36.979 align:start position:0% go to the blockchain and say hey this is a<00:17:35.220> real<00:17:35.429> transaction<00:17:35.999> and<00:17:36.179> everybody's 00:17:36.979 --> 00:17:36.989 align:start position:0% a real transaction and everybody's 00:17:36.989 --> 00:17:38.749 align:start position:0% a real transaction and everybody's keeping<00:17:37.139> copies<00:17:37.529> of<00:17:37.980> all<00:17:38.070> the<00:17:38.159> transactions 00:17:38.749 --> 00:17:38.759 align:start position:0% keeping copies of all the transactions 00:17:38.759 --> 00:17:40.310 align:start position:0% keeping copies of all the transactions that<00:17:38.970> they<00:17:39.359> have<00:17:39.450> received<00:17:39.690> and<00:17:39.899> signed<00:17:40.109> and 00:17:40.310 --> 00:17:40.320 align:start position:0% that they have received and signed and 00:17:40.320 --> 00:17:44.570 align:start position:0% that they have received and signed and sent<00:17:40.499> and<00:17:40.619> so<00:17:40.769> forth<00:17:41.629> so<00:17:42.629> then<00:17:43.499> Alice<00:17:44.369> says 00:17:44.570 --> 00:17:44.580 align:start position:0% sent and so forth so then Alice says 00:17:44.580 --> 00:17:46.639 align:start position:0% sent and so forth so then Alice says okay<00:17:44.909> this<00:17:45.119> has<00:17:45.239> been<00:17:45.359> great<00:17:45.600> let's<00:17:46.230> close<00:17:46.470> the 00:17:46.639 --> 00:17:46.649 align:start position:0% okay this has been great let's close the 00:17:46.649 --> 00:17:49.249 align:start position:0% okay this has been great let's close the channel<00:17:46.889> I'm<00:17:47.220> done<00:17:47.580> transacting<00:17:48.210> with<00:17:48.239> you 00:17:49.249 --> 00:17:49.259 align:start position:0% channel I'm done transacting with you 00:17:49.259 --> 00:17:52.190 align:start position:0% channel I'm done transacting with you and<00:17:49.529> they<00:17:50.190> both<00:17:50.519> you<00:17:50.850> know<00:17:50.970> kind<00:17:51.299> of<00:17:51.330> report<00:17:51.779> to 00:17:52.190 --> 00:17:52.200 align:start position:0% and they both you know kind of report to 00:17:52.200 --> 00:17:53.960 align:start position:0% and they both you know kind of report to the<00:17:52.379> state<00:17:52.590> channel<00:17:52.859> multi-sig<00:17:53.249> what<00:17:53.789> the 00:17:53.960 --> 00:17:53.970 align:start position:0% the state channel multi-sig what the 00:17:53.970 --> 00:17:55.249 align:start position:0% the state channel multi-sig what the latest<00:17:54.210> status<00:17:54.749> with<00:17:54.929> the<00:17:55.019> latest 00:17:55.249 --> 00:17:55.259 align:start position:0% latest status with the latest 00:17:55.259 --> 00:17:57.200 align:start position:0% latest status with the latest transaction<00:17:55.529> that<00:17:56.249> they<00:17:56.369> both<00:17:56.580> agreed<00:17:56.879> to<00:17:57.029> is 00:17:57.200 --> 00:17:57.210 align:start position:0% transaction that they both agreed to is 00:17:57.210 --> 00:17:59.149 align:start position:0% transaction that they both agreed to is and<00:17:57.840> they<00:17:57.929> both<00:17:58.109> say<00:17:58.289> its<00:17:58.440> transaction<00:17:58.919> number 00:17:59.149 --> 00:17:59.159 align:start position:0% and they both say its transaction number 00:17:59.159 --> 00:18:00.919 align:start position:0% and they both say its transaction number four<00:17:59.399> and<00:17:59.639> then<00:18:00.059> the<00:18:00.149> state<00:18:00.330> channel<00:18:00.600> multisig 00:18:00.919 --> 00:18:00.929 align:start position:0% four and then the state channel multisig 00:18:00.929 --> 00:18:02.810 align:start position:0% four and then the state channel multisig knows<00:18:01.200> to<00:18:01.379> pay<00:18:01.590> out<00:18:01.710> the<00:18:02.129> appropriate<00:18:02.580> amounts 00:18:02.810 --> 00:18:02.820 align:start position:0% knows to pay out the appropriate amounts 00:18:02.820 --> 00:18:04.609 align:start position:0% knows to pay out the appropriate amounts of<00:18:02.879> eve<00:18:03.059> based<00:18:03.659> on<00:18:03.899> what<00:18:04.259> that<00:18:04.409> last 00:18:04.609 --> 00:18:04.619 align:start position:0% of eve based on what that last 00:18:04.619 --> 00:18:06.470 align:start position:0% of eve based on what that last transaction<00:18:05.070> shows<00:18:05.549> their<00:18:05.789> balances<00:18:06.239> to<00:18:06.359> be 00:18:06.470 --> 00:18:06.480 align:start position:0% transaction shows their balances to be 00:18:06.480 --> 00:18:10.129 align:start position:0% transaction shows their balances to be great<00:18:07.759> now<00:18:08.759> this<00:18:09.119> is<00:18:09.299> the<00:18:09.419> optimistic<00:18:09.779> case 00:18:10.129 --> 00:18:10.139 align:start position:0% great now this is the optimistic case 00:18:10.139 --> 00:18:12.049 align:start position:0% great now this is the optimistic case we're<00:18:10.379> kind<00:18:10.499> of<00:18:10.559> everything<00:18:10.769> goes<00:18:11.100> well<00:18:11.369> but 00:18:12.049 --> 00:18:12.059 align:start position:0% we're kind of everything goes well but 00:18:12.059 --> 00:18:13.759 align:start position:0% we're kind of everything goes well but you<00:18:12.330> might<00:18:12.480> just<00:18:12.509> be<00:18:12.929> asking<00:18:13.019> well<00:18:13.409> what<00:18:13.649> if 00:18:13.759 --> 00:18:13.769 align:start position:0% you might just be asking well what if 00:18:13.769 --> 00:18:15.619 align:start position:0% you might just be asking well what if one<00:18:14.100> of<00:18:14.220> them<00:18:14.340> relies<00:18:14.669> what<00:18:15.059> if<00:18:15.179> what<00:18:15.359> if<00:18:15.389> Bob 00:18:15.619 --> 00:18:15.629 align:start position:0% one of them relies what if what if Bob 00:18:15.629 --> 00:18:17.210 align:start position:0% one of them relies what if what if Bob doesn't<00:18:15.989> tell<00:18:16.289> the<00:18:16.409> truth<00:18:16.619> about<00:18:16.830> what<00:18:17.100> the 00:18:17.210 --> 00:18:17.220 align:start position:0% doesn't tell the truth about what the 00:18:17.220 --> 00:18:19.460 align:start position:0% doesn't tell the truth about what the most<00:18:17.369> recent<00:18:17.519> state<00:18:17.879> is<00:18:18.029> well<00:18:18.749> let's<00:18:19.320> go<00:18:19.440> back 00:18:19.460 --> 00:18:19.470 align:start position:0% most recent state is well let's go back 00:18:19.470 --> 00:18:21.019 align:start position:0% most recent state is well let's go back to<00:18:19.710> the<00:18:19.799> step<00:18:20.039> where<00:18:20.249> Alice<00:18:20.519> wants<00:18:20.759> to<00:18:20.820> close 00:18:21.019 --> 00:18:21.029 align:start position:0% to the step where Alice wants to close 00:18:21.029 --> 00:18:24.379 align:start position:0% to the step where Alice wants to close the<00:18:21.149> channel<00:18:21.440> and<00:18:22.440> this<00:18:22.739> time<00:18:23.039> Bob<00:18:23.489> lies<00:18:23.789> Bob 00:18:24.379 --> 00:18:24.389 align:start position:0% the channel and this time Bob lies Bob 00:18:24.389 --> 00:18:26.419 align:start position:0% the channel and this time Bob lies Bob says<00:18:24.720> that<00:18:25.080> transaction<00:18:25.739> number<00:18:25.980> three<00:18:26.279> is 00:18:26.419 --> 00:18:26.429 align:start position:0% says that transaction number three is 00:18:26.429 --> 00:18:28.940 align:start position:0% says that transaction number three is the<00:18:26.580> most<00:18:26.700> recent<00:18:27.149> one<00:18:27.470> what<00:18:28.470> happens 00:18:28.940 --> 00:18:28.950 align:start position:0% the most recent one what happens 00:18:28.950 --> 00:18:31.249 align:start position:0% the most recent one what happens well<00:18:29.519> our<00:18:29.940> state<00:18:30.239> channel<00:18:30.539> multi-sig<00:18:31.019> and 00:18:31.249 --> 00:18:31.259 align:start position:0% well our state channel multi-sig and 00:18:31.259 --> 00:18:32.539 align:start position:0% well our state channel multi-sig and well<00:18:31.409> first<00:18:31.769> there's<00:18:32.009> a<00:18:32.070> bit<00:18:32.220> of<00:18:32.309> you<00:18:32.519> know 00:18:32.539 --> 00:18:32.549 align:start position:0% well first there's a bit of you know 00:18:32.549 --> 00:18:34.399 align:start position:0% well first there's a bit of you know choice<00:18:32.820> words<00:18:33.059> then<00:18:33.899> our<00:18:33.989> state<00:18:34.200> channel 00:18:34.399 --> 00:18:34.409 align:start position:0% choice words then our state channel 00:18:34.409 --> 00:18:36.289 align:start position:0% choice words then our state channel multi-sig<00:18:34.830> has<00:18:35.070> some<00:18:35.340> rules<00:18:35.549> built<00:18:35.879> into<00:18:36.179> it 00:18:36.289 --> 00:18:36.299 align:start position:0% multi-sig has some rules built into it 00:18:36.299 --> 00:18:38.119 align:start position:0% multi-sig has some rules built into it and<00:18:36.450> one<00:18:36.840> of<00:18:36.869> those<00:18:37.019> rules<00:18:37.320> is<00:18:37.649> that<00:18:37.830> the<00:18:37.950> more 00:18:38.119 --> 00:18:38.129 align:start position:0% and one of those rules is that the more 00:18:38.129 --> 00:18:41.180 align:start position:0% and one of those rules is that the more recent<00:18:38.609> update<00:18:39.059> is<00:18:39.419> the<00:18:39.840> true<00:18:40.139> one<00:18:40.320> and<00:18:40.559> that 00:18:41.180 --> 00:18:41.190 align:start position:0% recent update is the true one and that 00:18:41.190 --> 00:18:43.159 align:start position:0% recent update is the true one and that if<00:18:41.279> a<00:18:41.340> party<00:18:41.639> submits<00:18:41.940> old<00:18:42.119> state<00:18:42.419> we<00:18:42.840> punish 00:18:43.159 --> 00:18:43.169 align:start position:0% if a party submits old state we punish 00:18:43.169 --> 00:18:45.919 align:start position:0% if a party submits old state we punish them<00:18:43.320> in<00:18:43.440> some<00:18:43.590> way<00:18:43.739> so<00:18:44.399> it<00:18:44.700> can<00:18:45.059> tell<00:18:45.359> that 00:18:45.919 --> 00:18:45.929 align:start position:0% them in some way so it can tell that 00:18:45.929 --> 00:18:47.599 align:start position:0% them in some way so it can tell that there's<00:18:46.320> a<00:18:46.379> newer<00:18:46.799> transaction<00:18:47.460> between 00:18:47.599 --> 00:18:47.609 align:start position:0% there's a newer transaction between 00:18:47.609 --> 00:18:49.340 align:start position:0% there's a newer transaction between their<00:18:47.909> two<00:18:48.029> are<00:18:48.119> submitted<00:18:48.480> and<00:18:48.629> it<00:18:49.109> knows 00:18:49.340 --> 00:18:49.350 align:start position:0% their two are submitted and it knows 00:18:49.350 --> 00:18:51.680 align:start position:0% their two are submitted and it knows that<00:18:49.379> the<00:18:49.679> newer<00:18:49.889> one<00:18:50.159> is<00:18:50.369> the<00:18:50.580> real<00:18:50.730> one<00:18:50.759> and 00:18:51.680 --> 00:18:51.690 align:start position:0% that the newer one is the real one and 00:18:51.690 --> 00:18:52.970 align:start position:0% that the newer one is the real one and the<00:18:51.869> way<00:18:51.960> that<00:18:52.169> works<00:18:52.379> is<00:18:52.529> just<00:18:52.710> that<00:18:52.830> each 00:18:52.970 --> 00:18:52.980 align:start position:0% the way that works is just that each 00:18:52.980 --> 00:18:54.889 align:start position:0% the way that works is just that each transaction<00:18:53.369> has<00:18:53.700> a<00:18:53.730> nonce<00:18:54.059> and<00:18:54.389> it<00:18:54.720> updates 00:18:54.889 --> 00:18:54.899 align:start position:0% transaction has a nonce and it updates 00:18:54.899 --> 00:18:57.019 align:start position:0% transaction has a nonce and it updates each<00:18:55.350> time<00:18:55.619> as<00:18:55.739> a<00:18:55.799> new<00:18:55.980> thing<00:18:56.309> and<00:18:56.489> because 00:18:57.019 --> 00:18:57.029 align:start position:0% each time as a new thing and because 00:18:57.029 --> 00:18:58.279 align:start position:0% each time as a new thing and because both<00:18:57.239> parties<00:18:57.600> have<00:18:57.720> signed<00:18:57.960> it<00:18:58.109> they've 00:18:58.279 --> 00:18:58.289 align:start position:0% both parties have signed it they've 00:18:58.289 --> 00:18:59.599 align:start position:0% both parties have signed it they've already<00:18:58.440> agreed<00:18:58.619> to<00:18:58.859> that<00:18:59.070> being<00:18:59.309> the<00:18:59.460> most 00:18:59.599 --> 00:18:59.609 align:start position:0% already agreed to that being the most 00:18:59.609 --> 00:19:02.989 align:start position:0% already agreed to that being the most recent<00:18:59.820> state<00:19:00.889> so<00:19:01.889> what<00:19:02.489> is<00:19:02.609> using<00:19:02.909> state 00:19:02.989 --> 00:19:02.999 align:start position:0% recent state so what is using state 00:19:02.999 --> 00:19:05.840 align:start position:0% recent state so what is using state channels<00:19:03.450> get<00:19:04.049> us<00:19:04.200> well<00:19:04.769> Alice<00:19:05.190> and<00:19:05.340> Bob<00:19:05.460> were 00:19:05.840 --> 00:19:05.850 align:start position:0% channels get us well Alice and Bob were 00:19:05.850 --> 00:19:07.729 align:start position:0% channels get us well Alice and Bob were able<00:19:06.090> to<00:19:06.119> pay<00:19:06.419> each<00:19:06.509> other<00:19:06.690> four<00:19:07.139> times<00:19:07.379> but<00:19:07.619> it 00:19:07.729 --> 00:19:07.739 align:start position:0% able to pay each other four times but it 00:19:07.739 --> 00:19:09.039 align:start position:0% able to pay each other four times but it could<00:19:07.889> have<00:19:07.980> been<00:19:08.070> ten<00:19:08.369> thousand<00:19:08.789> times 00:19:09.039 --> 00:19:09.049 align:start position:0% could have been ten thousand times 00:19:09.049 --> 00:19:11.389 align:start position:0% could have been ten thousand times instantly<00:19:10.049> and<00:19:10.259> for<00:19:10.559> free<00:19:10.739> at<00:19:10.950> least<00:19:11.129> in<00:19:11.279> terms 00:19:11.389 --> 00:19:11.399 align:start position:0% instantly and for free at least in terms 00:19:11.399 --> 00:19:13.519 align:start position:0% instantly and for free at least in terms of<00:19:11.580> blockchain<00:19:11.999> cost<00:19:12.269> all<00:19:12.600> those<00:19:13.049> things<00:19:13.320> were 00:19:13.519 --> 00:19:13.529 align:start position:0% of blockchain cost all those things were 00:19:13.529 --> 00:19:15.680 align:start position:0% of blockchain cost all those things were were<00:19:13.859> messages<00:19:14.429> sent<00:19:14.909> over<00:19:15.119> the<00:19:15.210> Internet 00:19:15.680 --> 00:19:15.690 align:start position:0% were messages sent over the Internet 00:19:15.690 --> 00:19:17.450 align:start position:0% were messages sent over the Internet back<00:19:15.960> and<00:19:16.109> forth<00:19:16.379> and<00:19:16.590> as<00:19:16.950> soon<00:19:17.129> as<00:19:17.249> either 00:19:17.450 --> 00:19:17.460 align:start position:0% back and forth and as soon as either 00:19:17.460 --> 00:19:19.020 align:start position:0% back and forth and as soon as either Alice<00:19:17.849> or<00:19:17.970> Bob<00:19:17.999> had<00:19:18.509> that 00:19:19.020 --> 00:19:19.030 align:start position:0% Alice or Bob had that 00:19:19.030 --> 00:19:20.520 align:start position:0% Alice or Bob had that action<00:19:19.390> in<00:19:19.480> hand<00:19:19.690> that<00:19:19.990> both<00:19:20.110> parties<00:19:20.410> have 00:19:20.520 --> 00:19:20.530 align:start position:0% action in hand that both parties have 00:19:20.530 --> 00:19:22.650 align:start position:0% action in hand that both parties have signed<00:19:20.770> they<00:19:21.250> can<00:19:21.430> then<00:19:21.640> at<00:19:21.910> any<00:19:22.090> point<00:19:22.390> close 00:19:22.650 --> 00:19:22.660 align:start position:0% signed they can then at any point close 00:19:22.660 --> 00:19:24.960 align:start position:0% signed they can then at any point close at<00:19:22.780> the<00:19:22.870> channel<00:19:23.170> and<00:19:23.350> withdraw<00:19:23.790> the<00:19:24.790> worst 00:19:24.960 --> 00:19:24.970 align:start position:0% at the channel and withdraw the worst 00:19:24.970 --> 00:19:26.250 align:start position:0% at the channel and withdraw the worst case<00:19:25.180> for<00:19:25.210> both<00:19:25.450> parties<00:19:25.780> is<00:19:25.990> that<00:19:26.080> you<00:19:26.140> have 00:19:26.250 --> 00:19:26.260 align:start position:0% case for both parties is that you have 00:19:26.260 --> 00:19:27.960 align:start position:0% case for both parties is that you have to<00:19:26.350> submit<00:19:26.590> an<00:19:26.890> on<00:19:27.010> chain<00:19:27.250> transaction<00:19:27.790> to 00:19:27.960 --> 00:19:27.970 align:start position:0% to submit an on chain transaction to 00:19:27.970 --> 00:19:29.730 align:start position:0% to submit an on chain transaction to resolve<00:19:28.270> a<00:19:28.330> dispute<00:19:28.420> and<00:19:28.810> so<00:19:29.230> the<00:19:29.350> worst<00:19:29.530> case 00:19:29.730 --> 00:19:29.740 align:start position:0% resolve a dispute and so the worst case 00:19:29.740 --> 00:19:31.170 align:start position:0% resolve a dispute and so the worst case is<00:19:29.920> well<00:19:30.070> you're<00:19:30.190> just<00:19:30.220> back<00:19:30.550> to<00:19:30.730> using<00:19:30.880> layer 00:19:31.170 --> 00:19:31.180 align:start position:0% is well you're just back to using layer 00:19:31.180 --> 00:19:33.870 align:start position:0% is well you're just back to using layer 1<00:19:31.420> and<00:19:31.690> you<00:19:32.530> also<00:19:32.740> get<00:19:33.010> some<00:19:33.160> privacy<00:19:33.460> benefits 00:19:33.870 --> 00:19:33.880 align:start position:0% 1 and you also get some privacy benefits 00:19:33.880 --> 00:19:35.220 align:start position:0% 1 and you also get some privacy benefits one<00:19:34.570> of<00:19:34.630> the<00:19:34.690> really<00:19:34.840> cool<00:19:34.960> things<00:19:35.170> about 00:19:35.220 --> 00:19:35.230 align:start position:0% one of the really cool things about 00:19:35.230 --> 00:19:37.020 align:start position:0% one of the really cool things about state<00:19:35.590> channels<00:19:35.920> that<00:19:36.040> the<00:19:36.160> only<00:19:36.370> on<00:19:36.670> chain 00:19:37.020 --> 00:19:37.030 align:start position:0% state channels that the only on chain 00:19:37.030 --> 00:19:39.000 align:start position:0% state channels that the only on chain thing<00:19:37.360> that<00:19:37.570> someone<00:19:37.870> can<00:19:38.020> see<00:19:38.230> is<00:19:38.470> just<00:19:38.890> a 00:19:39.000 --> 00:19:39.010 align:start position:0% thing that someone can see is just a 00:19:39.010 --> 00:19:40.920 align:start position:0% thing that someone can see is just a generic<00:19:39.160> multi-sig<00:19:40.000> they<00:19:40.360> can't<00:19:40.600> tell<00:19:40.900> that 00:19:40.920 --> 00:19:40.930 align:start position:0% generic multi-sig they can't tell that 00:19:40.930 --> 00:19:42.540 align:start position:0% generic multi-sig they can't tell that it's<00:19:41.230> a<00:19:41.320> state<00:19:41.530> channel<00:19:41.860> and<00:19:42.010> they<00:19:42.280> certainly 00:19:42.540 --> 00:19:42.550 align:start position:0% it's a state channel and they certainly 00:19:42.550 --> 00:19:43.920 align:start position:0% it's a state channel and they certainly can't<00:19:42.820> tell<00:19:42.970> what's<00:19:43.180> going<00:19:43.330> on<00:19:43.450> inside<00:19:43.570> of<00:19:43.720> it 00:19:43.920 --> 00:19:43.930 align:start position:0% can't tell what's going on inside of it 00:19:43.930 --> 00:19:45.570 align:start position:0% can't tell what's going on inside of it because<00:19:44.380> that<00:19:44.560> state<00:19:44.860> is<00:19:45.070> just<00:19:45.220> like<00:19:45.370> kept 00:19:45.570 --> 00:19:45.580 align:start position:0% because that state is just like kept 00:19:45.580 --> 00:19:49.110 align:start position:0% because that state is just like kept between<00:19:45.730> the<00:19:45.970> parties<00:19:46.560> and<00:19:47.560> so<00:19:48.430> an<00:19:48.700> important 00:19:49.110 --> 00:19:49.120 align:start position:0% between the parties and so an important 00:19:49.120 --> 00:19:50.820 align:start position:0% between the parties and so an important kind<00:19:49.240> of<00:19:49.300> like<00:19:49.450> Calif<00:19:49.720> occation<00:19:50.050> here<00:19:50.290> is<00:19:50.440> i've 00:19:50.820 --> 00:19:50.830 align:start position:0% kind of like Calif occation here is i've 00:19:50.830 --> 00:19:52.500 align:start position:0% kind of like Calif occation here is i've given<00:19:51.070> you<00:19:51.190> an<00:19:51.280> example<00:19:51.550> of<00:19:51.850> a<00:19:52.000> payment 00:19:52.500 --> 00:19:52.510 align:start position:0% given you an example of a payment 00:19:52.510 --> 00:19:53.850 align:start position:0% given you an example of a payment channel<00:19:52.840> because<00:19:53.110> the<00:19:53.290> simplest<00:19:53.680> one<00:19:53.830> to 00:19:53.850 --> 00:19:53.860 align:start position:0% channel because the simplest one to 00:19:53.860 --> 00:19:56.520 align:start position:0% channel because the simplest one to explain<00:19:54.340> for<00:19:54.550> this<00:19:54.700> talk<00:19:54.910> but<00:19:55.540> the<00:19:55.690> same<00:19:56.260> kind 00:19:56.520 --> 00:19:56.530 align:start position:0% explain for this talk but the same kind 00:19:56.530 --> 00:19:58.590 align:start position:0% explain for this talk but the same kind of<00:19:56.560> technique<00:19:56.980> can<00:19:57.520> be<00:19:57.550> used<00:19:57.820> for<00:19:58.120> kind<00:19:58.300> of<00:19:58.390> any 00:19:58.590 --> 00:19:58.600 align:start position:0% of technique can be used for kind of any 00:19:58.600 --> 00:20:01.020 align:start position:0% of technique can be used for kind of any kind<00:19:58.870> of<00:19:58.960> state<00:19:59.260> right<00:19:59.920> a<00:20:00.100> payment<00:20:00.610> channel<00:20:00.910> is 00:20:01.020 --> 00:20:01.030 align:start position:0% kind of state right a payment channel is 00:20:01.030 --> 00:20:03.030 align:start position:0% kind of state right a payment channel is just<00:20:01.180> one<00:20:01.360> application<00:20:01.510> inside<00:20:02.500> the<00:20:02.680> larger 00:20:03.030 --> 00:20:03.040 align:start position:0% just one application inside the larger 00:20:03.040 --> 00:20:05.760 align:start position:0% just one application inside the larger box<00:20:03.280> of<00:20:03.520> state<00:20:04.120> channels<00:20:04.510> people<00:20:05.380> are<00:20:05.470> using 00:20:05.760 --> 00:20:05.770 align:start position:0% box of state channels people are using 00:20:05.770 --> 00:20:07.560 align:start position:0% box of state channels people are using them<00:20:05.890> today<00:20:06.070> for<00:20:06.370> kind<00:20:06.580> of<00:20:06.610> games<00:20:06.910> gambling 00:20:07.560 --> 00:20:07.570 align:start position:0% them today for kind of games gambling 00:20:07.570 --> 00:20:09.330 align:start position:0% them today for kind of games gambling etc<00:20:08.020> that<00:20:08.410> can<00:20:08.560> be<00:20:08.650> used<00:20:08.770> for<00:20:08.920> any<00:20:09.070> kind<00:20:09.310> of 00:20:09.330 --> 00:20:09.340 align:start position:0% etc that can be used for any kind of 00:20:09.340 --> 00:20:11.190 align:start position:0% etc that can be used for any kind of complex<00:20:09.790> thing<00:20:10.120> complex<00:20:11.050> financial 00:20:11.190 --> 00:20:11.200 align:start position:0% complex thing complex financial 00:20:11.200 --> 00:20:13.710 align:start position:0% complex thing complex financial contracts<00:20:12.040> derivatives<00:20:12.550> etc<00:20:13.000> there<00:20:13.420> are<00:20:13.510> lots 00:20:13.710 --> 00:20:13.720 align:start position:0% contracts derivatives etc there are lots 00:20:13.720 --> 00:20:15.870 align:start position:0% contracts derivatives etc there are lots of<00:20:13.840> teams<00:20:14.080> finding<00:20:14.800> other<00:20:15.040> ways<00:20:15.310> to<00:20:15.520> use<00:20:15.550> this 00:20:15.870 --> 00:20:15.880 align:start position:0% of teams finding other ways to use this 00:20:15.880 --> 00:20:17.670 align:start position:0% of teams finding other ways to use this and<00:20:16.750> I<00:20:16.870> should<00:20:17.080> also<00:20:17.170> say<00:20:17.350> that<00:20:17.560> of<00:20:17.650> course 00:20:17.670 --> 00:20:17.680 align:start position:0% and I should also say that of course 00:20:17.680 --> 00:20:19.050 align:start position:0% and I should also say that of course this<00:20:18.100> is<00:20:18.190> kind<00:20:18.280> of<00:20:18.370> a<00:20:18.460> general<00:20:18.850> description 00:20:19.050 --> 00:20:19.060 align:start position:0% this is kind of a general description 00:20:19.060 --> 00:20:20.910 align:start position:0% this is kind of a general description there<00:20:19.660> are<00:20:19.690> many<00:20:19.960> other<00:20:20.170> things<00:20:20.260> that<00:20:20.560> could 00:20:20.910 --> 00:20:20.920 align:start position:0% there are many other things that could 00:20:20.920 --> 00:20:22.440 align:start position:0% there are many other things that could go<00:20:21.100> wrong<00:20:21.310> in<00:20:21.520> a<00:20:21.580> state<00:20:21.790> channel<00:20:22.120> and<00:20:22.270> there 00:20:22.440 --> 00:20:22.450 align:start position:0% go wrong in a state channel and there 00:20:22.450 --> 00:20:23.730 align:start position:0% go wrong in a state channel and there are<00:20:22.540> other<00:20:22.660> ways<00:20:22.840> responding<00:20:23.500> to<00:20:23.620> those 00:20:23.730 --> 00:20:23.740 align:start position:0% are other ways responding to those 00:20:23.740 --> 00:20:25.470 align:start position:0% are other ways responding to those problems<00:20:24.010> I<00:20:24.400> don't<00:20:24.850> have<00:20:25.000> time<00:20:25.150> getting<00:20:25.360> them 00:20:25.470 --> 00:20:25.480 align:start position:0% problems I don't have time getting them 00:20:25.480 --> 00:20:26.910 align:start position:0% problems I don't have time getting them now<00:20:25.630> but<00:20:25.900> I<00:20:25.960> hope<00:20:26.080> you'll<00:20:26.260> watch<00:20:26.410> other<00:20:26.650> talks 00:20:26.910 --> 00:20:26.920 align:start position:0% now but I hope you'll watch other talks 00:20:26.920 --> 00:20:28.410 align:start position:0% now but I hope you'll watch other talks this<00:20:27.100> week<00:20:27.280> about<00:20:27.460> say<00:20:27.730> channels<00:20:28.060> to<00:20:28.270> learn 00:20:28.410 --> 00:20:28.420 align:start position:0% this week about say channels to learn 00:20:28.420 --> 00:20:30.810 align:start position:0% this week about say channels to learn more<00:20:28.770> so<00:20:29.770> let's<00:20:30.250> kind<00:20:30.370> of<00:20:30.430> return<00:20:30.670> our 00:20:30.810 --> 00:20:30.820 align:start position:0% more so let's kind of return our 00:20:30.820 --> 00:20:32.430 align:start position:0% more so let's kind of return our definition<00:20:31.270> quickly<00:20:31.600> and<00:20:31.810> just<00:20:32.020> see<00:20:32.260> how<00:20:32.350> this 00:20:32.430 --> 00:20:32.440 align:start position:0% definition quickly and just see how this 00:20:32.440 --> 00:20:34.740 align:start position:0% definition quickly and just see how this applies<00:20:32.740> so<00:20:33.460> for<00:20:34.090> the<00:20:34.150> first<00:20:34.360> kind<00:20:34.690> of 00:20:34.740 --> 00:20:34.750 align:start position:0% applies so for the first kind of 00:20:34.750 --> 00:20:36.600 align:start position:0% applies so for the first kind of criteria<00:20:35.010> yes<00:20:36.010> because<00:20:36.310> you<00:20:36.520> know 00:20:36.600 --> 00:20:36.610 align:start position:0% criteria yes because you know 00:20:36.610 --> 00:20:38.250 align:start position:0% criteria yes because you know transactions<00:20:37.210> are<00:20:37.330> being<00:20:37.360> exchanged<00:20:37.810> just<00:20:38.170> an 00:20:38.250 --> 00:20:38.260 align:start position:0% transactions are being exchanged just an 00:20:38.260 --> 00:20:39.900 align:start position:0% transactions are being exchanged just an off<00:20:38.440> chain<00:20:38.740> messages<00:20:39.190> nothing<00:20:39.610> is<00:20:39.730> really 00:20:39.900 --> 00:20:39.910 align:start position:0% off chain messages nothing is really 00:20:39.910 --> 00:20:41.220 align:start position:0% off chain messages nothing is really happening<00:20:40.120> on<00:20:40.330> chain<00:20:40.630> except<00:20:41.020> for<00:20:41.140> what 00:20:41.220 --> 00:20:41.230 align:start position:0% happening on chain except for what 00:20:41.230 --> 00:20:43.290 align:start position:0% happening on chain except for what happens<00:20:41.530> to<00:20:41.710> our<00:20:41.830> state<00:20:42.610> channel<00:20:42.880> multi-sig 00:20:43.290 --> 00:20:43.300 align:start position:0% happens to our state channel multi-sig 00:20:43.300 --> 00:20:46.080 align:start position:0% happens to our state channel multi-sig and<00:20:44.170> then<00:20:44.680> the<00:20:44.770> only<00:20:44.920> on<00:20:45.130> chain<00:20:45.370> piece<00:20:45.550> is<00:20:45.790> that 00:20:46.080 --> 00:20:46.090 align:start position:0% and then the only on chain piece is that 00:20:46.090 --> 00:20:47.820 align:start position:0% and then the only on chain piece is that multi-sig<00:20:46.690> which<00:20:47.110> is<00:20:47.260> used<00:20:47.500> to<00:20:47.620> kind<00:20:47.740> of 00:20:47.820 --> 00:20:47.830 align:start position:0% multi-sig which is used to kind of 00:20:47.830 --> 00:20:49.680 align:start position:0% multi-sig which is used to kind of instantiate<00:20:48.250> channels<00:20:48.610> to<00:20:48.880> withdraw<00:20:49.270> to 00:20:49.680 --> 00:20:49.690 align:start position:0% instantiate channels to withdraw to 00:20:49.690 --> 00:20:51.600 align:start position:0% instantiate channels to withdraw to disputes<00:20:50.140> to<00:20:50.200> handle<00:20:50.500> the<00:20:50.620> like<00:20:50.800> the<00:20:50.920> on<00:20:51.250> chain 00:20:51.600 --> 00:20:51.610 align:start position:0% disputes to handle the like the on chain 00:20:51.610 --> 00:20:55.530 align:start position:0% disputes to handle the like the on chain bits<00:20:52.410> and<00:20:53.410> then<00:20:53.650> lastly<00:20:54.090> we<00:20:55.090> have<00:20:55.120> kind<00:20:55.420> of<00:20:55.480> the 00:20:55.530 --> 00:20:55.540 align:start position:0% bits and then lastly we have kind of the 00:20:55.540 --> 00:20:57.390 align:start position:0% bits and then lastly we have kind of the same<00:20:55.720> risk<00:20:56.020> models<00:20:56.380> layer<00:20:56.560> one<00:20:56.800> as<00:20:57.040> long<00:20:57.280> as 00:20:57.390 --> 00:20:57.400 align:start position:0% same risk models layer one as long as 00:20:57.400 --> 00:20:59.490 align:start position:0% same risk models layer one as long as users<00:20:57.640> are<00:20:57.760> following<00:20:58.300> the<00:20:58.450> protocol<00:20:58.930> and<00:20:59.140> as 00:20:59.490 --> 00:20:59.500 align:start position:0% users are following the protocol and as 00:20:59.500 --> 00:21:01.260 align:start position:0% users are following the protocol and as long<00:20:59.680> as<00:20:59.710> layer<00:21:00.100> one<00:21:00.310> is<00:21:00.400> available<00:21:00.640> meaning 00:21:01.260 --> 00:21:01.270 align:start position:0% long as layer one is available meaning 00:21:01.270 --> 00:21:02.940 align:start position:0% long as layer one is available meaning they<00:21:01.360> can<00:21:01.480> get<00:21:01.660> a<00:21:01.690> transaction<00:21:02.320> to<00:21:02.410> layer<00:21:02.710> one 00:21:02.940 --> 00:21:02.950 align:start position:0% they can get a transaction to layer one 00:21:02.950 --> 00:21:04.530 align:start position:0% they can get a transaction to layer one then<00:21:03.460> we're<00:21:03.640> not<00:21:03.760> introducing<00:21:04.300> additional 00:21:04.530 --> 00:21:04.540 align:start position:0% then we're not introducing additional 00:21:04.540 --> 00:21:07.020 align:start position:0% then we're not introducing additional risks<00:21:05.200> you<00:21:05.770> can<00:21:05.890> always<00:21:06.160> kind<00:21:06.340> of<00:21:06.430> submit<00:21:06.940> your 00:21:07.020 --> 00:21:07.030 align:start position:0% risks you can always kind of submit your 00:21:07.030 --> 00:21:08.520 align:start position:0% risks you can always kind of submit your transactions<00:21:07.600> to<00:21:07.690> main<00:21:07.840> chain<00:21:08.080> because<00:21:08.380> they 00:21:08.520 --> 00:21:08.530 align:start position:0% transactions to main chain because they 00:21:08.530 --> 00:21:10.350 align:start position:0% transactions to main chain because they are<00:21:08.620> valid<00:21:09.040> and<00:21:09.190> ready<00:21:09.340> you<00:21:09.820> just<00:21:09.850> have<00:21:10.120> to<00:21:10.240> go 00:21:10.350 --> 00:21:10.360 align:start position:0% are valid and ready you just have to go 00:21:10.360 --> 00:21:12.230 align:start position:0% are valid and ready you just have to go for<00:21:10.540> the<00:21:10.600> process<00:21:10.990> and<00:21:11.230> follow<00:21:11.380> the<00:21:11.560> protocol 00:21:12.230 --> 00:21:12.240 align:start position:0% for the process and follow the protocol 00:21:12.240 --> 00:21:14.700 align:start position:0% for the process and follow the protocol so<00:21:13.240> a<00:21:13.510> few<00:21:13.900> kind<00:21:14.050> of<00:21:14.080> it's<00:21:14.230> like<00:21:14.320> little 00:21:14.700 --> 00:21:14.710 align:start position:0% so a few kind of it's like little 00:21:14.710 --> 00:21:16.860 align:start position:0% so a few kind of it's like little advanced<00:21:15.100> topics<00:21:15.490> very<00:21:15.760> briefly<00:21:16.090> related<00:21:16.660> to 00:21:16.860 --> 00:21:16.870 align:start position:0% advanced topics very briefly related to 00:21:16.870 --> 00:21:19.290 align:start position:0% advanced topics very briefly related to state<00:21:17.050> channels<00:21:17.440> so<00:21:17.920> one<00:21:18.490> kind<00:21:18.850> of<00:21:18.940> really 00:21:19.290 --> 00:21:19.300 align:start position:0% state channels so one kind of really 00:21:19.300 --> 00:21:20.760 align:start position:0% state channels so one kind of really cool<00:21:19.420> innovation<00:21:19.870> that<00:21:20.140> we've<00:21:20.530> been<00:21:20.620> working 00:21:20.760 --> 00:21:20.770 align:start position:0% cool innovation that we've been working 00:21:20.770 --> 00:21:22.590 align:start position:0% cool innovation that we've been working on<00:21:20.980> law<00:21:21.100> l4r<00:21:21.520> what<00:21:21.850> are<00:21:21.940> called<00:21:22.090> generalized 00:21:22.590 --> 00:21:22.600 align:start position:0% on law l4r what are called generalized 00:21:22.600 --> 00:21:24.720 align:start position:0% on law l4r what are called generalized state<00:21:22.870> channels<00:21:23.200> and<00:21:23.440> the<00:21:23.860> idea<00:21:24.100> here<00:21:24.370> is<00:21:24.400> that 00:21:24.720 --> 00:21:24.730 align:start position:0% state channels and the idea here is that 00:21:24.730 --> 00:21:26.490 align:start position:0% state channels and the idea here is that while<00:21:24.940> in<00:21:25.210> the<00:21:25.390> example<00:21:25.780> I<00:21:25.870> gave<00:21:25.930> there<00:21:26.470> was 00:21:26.490 --> 00:21:26.500 align:start position:0% while in the example I gave there was 00:21:26.500 --> 00:21:28.740 align:start position:0% while in the example I gave there was kind<00:21:26.740> of<00:21:26.830> one<00:21:27.130> application<00:21:27.430> running<00:21:28.420> in<00:21:28.630> the 00:21:28.740 --> 00:21:28.750 align:start position:0% kind of one application running in the 00:21:28.750 --> 00:21:30.390 align:start position:0% kind of one application running in the channel<00:21:29.080> between<00:21:29.260> Alice<00:21:29.590> and<00:21:29.680> Bob<00:21:29.770> which<00:21:30.220> was 00:21:30.390 --> 00:21:30.400 align:start position:0% channel between Alice and Bob which was 00:21:30.400 --> 00:21:31.980 align:start position:0% channel between Alice and Bob which was a<00:21:30.430> payment<00:21:30.820> channel<00:21:31.060> but<00:21:31.600> you<00:21:31.630> can<00:21:31.840> actually 00:21:31.980 --> 00:21:31.990 align:start position:0% a payment channel but you can actually 00:21:31.990 --> 00:21:32.740 align:start position:0% a payment channel but you can actually have 00:21:32.740 --> 00:21:32.750 align:start position:0% have 00:21:32.750 --> 00:21:34.330 align:start position:0% have multiple<00:21:32.990> applications<00:21:33.590> in<00:21:33.860> the<00:21:34.100> same 00:21:34.330 --> 00:21:34.340 align:start position:0% multiple applications in the same 00:21:34.340 --> 00:21:36.700 align:start position:0% multiple applications in the same payment<00:21:34.820> channel<00:21:35.120> still<00:21:35.690> with<00:21:35.900> only<00:21:36.080> one<00:21:36.440> on 00:21:36.700 --> 00:21:36.710 align:start position:0% payment channel still with only one on 00:21:36.710 --> 00:21:38.710 align:start position:0% payment channel still with only one on chain<00:21:36.980> component<00:21:37.490> so<00:21:37.970> Alice<00:21:38.270> and<00:21:38.420> Bob<00:21:38.540> could 00:21:38.710 --> 00:21:38.720 align:start position:0% chain component so Alice and Bob could 00:21:38.720 --> 00:21:40.720 align:start position:0% chain component so Alice and Bob could have<00:21:38.870> an<00:21:39.140> eighth<00:21:39.320> payment<00:21:39.710> channel<00:21:40.010> chess 00:21:40.720 --> 00:21:40.730 align:start position:0% have an eighth payment channel chess 00:21:40.730 --> 00:21:41.200 align:start position:0% have an eighth payment channel chess game 00:21:41.200 --> 00:21:41.210 align:start position:0% game 00:21:41.210 --> 00:21:43.150 align:start position:0% game a<00:21:41.240> dive<00:21:41.600> payment<00:21:42.050> channel<00:21:42.380> a<00:21:42.500> financial 00:21:43.150 --> 00:21:43.160 align:start position:0% a dive payment channel a financial 00:21:43.160 --> 00:21:45.310 align:start position:0% a dive payment channel a financial contract<00:21:43.460> of<00:21:43.610> some<00:21:43.760> kind<00:21:44.030> all<00:21:44.240> just<00:21:45.110> with<00:21:45.290> that 00:21:45.310 --> 00:21:45.320 align:start position:0% contract of some kind all just with that 00:21:45.320 --> 00:21:47.800 align:start position:0% contract of some kind all just with that one<00:21:45.470> state<00:21:45.980> channel<00:21:46.280> multisig<00:21:46.730> this<00:21:47.510> is<00:21:47.630> kind 00:21:47.800 --> 00:21:47.810 align:start position:0% one state channel multisig this is kind 00:21:47.810 --> 00:21:48.850 align:start position:0% one state channel multisig this is kind of<00:21:47.840> a<00:21:47.930> big<00:21:48.080> improvement<00:21:48.500> on<00:21:48.530> like<00:21:48.740> the 00:21:48.850 --> 00:21:48.860 align:start position:0% of a big improvement on like the 00:21:48.860 --> 00:21:50.290 align:start position:0% of a big improvement on like the efficiency<00:21:49.400> of<00:21:49.430> how<00:21:49.610> we<00:21:49.670> can<00:21:49.850> use<00:21:50.060> state 00:21:50.290 --> 00:21:50.300 align:start position:0% efficiency of how we can use state 00:21:50.300 --> 00:21:51.580 align:start position:0% efficiency of how we can use state channels<00:21:50.660> as<00:21:50.810> well<00:21:51.080> as<00:21:51.320> the<00:21:51.410> kind<00:21:51.530> of 00:21:51.580 --> 00:21:51.590 align:start position:0% channels as well as the kind of 00:21:51.590 --> 00:21:52.960 align:start position:0% channels as well as the kind of usability<00:21:51.920> experience<00:21:52.550> because<00:21:52.760> you<00:21:52.820> don't 00:21:52.960 --> 00:21:52.970 align:start position:0% usability experience because you don't 00:21:52.970 --> 00:21:54.310 align:start position:0% usability experience because you don't have<00:21:53.060> to<00:21:53.120> open<00:21:53.270> up<00:21:53.450> new<00:21:53.690> ones<00:21:53.930> for<00:21:54.140> every 00:21:54.310 --> 00:21:54.320 align:start position:0% have to open up new ones for every 00:21:54.320 --> 00:21:56.590 align:start position:0% have to open up new ones for every application<00:21:54.740> and<00:21:55.040> you<00:21:55.700> can<00:21:55.730> install<00:21:55.970> these 00:21:56.590 --> 00:21:56.600 align:start position:0% application and you can install these 00:21:56.600 --> 00:21:58.390 align:start position:0% application and you can install these applications<00:21:56.810> in<00:21:57.320> the<00:21:57.410> channel<00:21:57.710> with<00:21:58.040> no<00:21:58.070> on 00:21:58.390 --> 00:21:58.400 align:start position:0% applications in the channel with no on 00:21:58.400 --> 00:22:01.720 align:start position:0% applications in the channel with no on chain<00:21:58.700> fees<00:21:59.590> another<00:22:00.590> side<00:22:00.860> topic<00:22:01.070> meta 00:22:01.720 --> 00:22:01.730 align:start position:0% chain fees another side topic meta 00:22:01.730 --> 00:22:04.120 align:start position:0% chain fees another side topic meta channels<00:22:02.120> the<00:22:02.870> idea<00:22:03.080> here<00:22:03.350> is<00:22:03.380> that<00:22:03.500> well<00:22:03.980> you 00:22:04.120 --> 00:22:04.130 align:start position:0% channels the idea here is that well you 00:22:04.130 --> 00:22:05.470 align:start position:0% channels the idea here is that well you can<00:22:04.280> kind<00:22:04.460> of<00:22:04.490> have<00:22:04.670> channels<00:22:05.090> that<00:22:05.210> route 00:22:05.470 --> 00:22:05.480 align:start position:0% can kind of have channels that route 00:22:05.480 --> 00:22:07.570 align:start position:0% can kind of have channels that route through<00:22:05.840> other<00:22:05.990> people<00:22:06.410> so<00:22:06.890> if<00:22:07.070> Allison 00:22:07.570 --> 00:22:07.580 align:start position:0% through other people so if Allison 00:22:07.580 --> 00:22:09.550 align:start position:0% through other people so if Allison Ingrid<00:22:07.940> the<00:22:08.150> intermediary<00:22:08.750> have<00:22:09.260> a<00:22:09.290> state 00:22:09.550 --> 00:22:09.560 align:start position:0% Ingrid the intermediary have a state 00:22:09.560 --> 00:22:11.290 align:start position:0% Ingrid the intermediary have a state channel<00:22:09.860> with<00:22:09.980> between<00:22:10.160> them<00:22:10.400> and<00:22:10.520> if<00:22:10.880> Ingrid 00:22:11.290 --> 00:22:11.300 align:start position:0% channel with between them and if Ingrid 00:22:11.300 --> 00:22:12.730 align:start position:0% channel with between them and if Ingrid and<00:22:11.420> Bob<00:22:11.630> have<00:22:11.960> a<00:22:11.990> state<00:22:12.200> channel<00:22:12.470> between 00:22:12.730 --> 00:22:12.740 align:start position:0% and Bob have a state channel between 00:22:12.740 --> 00:22:13.030 align:start position:0% and Bob have a state channel between them 00:22:13.030 --> 00:22:13.040 align:start position:0% them 00:22:13.040 --> 00:22:14.620 align:start position:0% them that<00:22:13.280> as<00:22:13.400> long<00:22:13.430> as<00:22:13.580> Alice<00:22:13.910> Ingrid<00:22:14.360> and<00:22:14.450> Bob 00:22:14.620 --> 00:22:14.630 align:start position:0% that as long as Alice Ingrid and Bob 00:22:14.630 --> 00:22:16.570 align:start position:0% that as long as Alice Ingrid and Bob sign<00:22:15.020> a<00:22:15.050> certain<00:22:15.530> set<00:22:15.680> of<00:22:15.710> commitments<00:22:16.250> you 00:22:16.570 --> 00:22:16.580 align:start position:0% sign a certain set of commitments you 00:22:16.580 --> 00:22:17.860 align:start position:0% sign a certain set of commitments you can<00:22:16.700> have<00:22:16.790> this<00:22:16.880> kind<00:22:17.030> of<00:22:17.180> meta<00:22:17.510> channel 00:22:17.860 --> 00:22:17.870 align:start position:0% can have this kind of meta channel 00:22:17.870 --> 00:22:19.270 align:start position:0% can have this kind of meta channel between<00:22:18.170> them<00:22:18.350> or<00:22:18.620> Alice<00:22:18.980> and<00:22:19.130> Bob 00:22:19.270 --> 00:22:19.280 align:start position:0% between them or Alice and Bob 00:22:19.280 --> 00:22:21.400 align:start position:0% between them or Alice and Bob effectively<00:22:20.030> have<00:22:20.390> a<00:22:20.420> state<00:22:20.690> channel<00:22:21.050> between 00:22:21.400 --> 00:22:21.410 align:start position:0% effectively have a state channel between 00:22:21.410 --> 00:22:23.410 align:start position:0% effectively have a state channel between them<00:22:21.770> and<00:22:21.950> Ingrid<00:22:22.580> routes<00:22:22.790> it<00:22:22.970> but<00:22:23.270> doesn't 00:22:23.410 --> 00:22:23.420 align:start position:0% them and Ingrid routes it but doesn't 00:22:23.420 --> 00:22:25.320 align:start position:0% them and Ingrid routes it but doesn't have<00:22:23.600> control<00:22:23.960> over<00:22:23.990> what<00:22:24.290> actually<00:22:24.650> happens 00:22:25.320 --> 00:22:25.330 align:start position:0% have control over what actually happens 00:22:25.330 --> 00:22:28.450 align:start position:0% have control over what actually happens third<00:22:26.330> subtopic<00:22:26.960> hubs<00:22:27.530> are<00:22:27.890> kind<00:22:28.250> of<00:22:28.340> an 00:22:28.450 --> 00:22:28.460 align:start position:0% third subtopic hubs are kind of an 00:22:28.460 --> 00:22:30.040 align:start position:0% third subtopic hubs are kind of an extension<00:22:29.000> of<00:22:29.210> the<00:22:29.300> middle<00:22:29.510> channel<00:22:29.780> idea 00:22:30.040 --> 00:22:30.050 align:start position:0% extension of the middle channel idea 00:22:30.050 --> 00:22:32.170 align:start position:0% extension of the middle channel idea that<00:22:30.590> if<00:22:30.680> we<00:22:30.710> had<00:22:30.980> a<00:22:31.220> hub<00:22:31.580> kind<00:22:31.850> of<00:22:31.940> in<00:22:32.060> the 00:22:32.170 --> 00:22:32.180 align:start position:0% that if we had a hub kind of in the 00:22:32.180 --> 00:22:34.030 align:start position:0% that if we had a hub kind of in the middle<00:22:32.360> that<00:22:32.570> has<00:22:32.930> state<00:22:33.320> channels<00:22:33.650> open<00:22:33.890> with 00:22:34.030 --> 00:22:34.040 align:start position:0% middle that has state channels open with 00:22:34.040 --> 00:22:35.920 align:start position:0% middle that has state channels open with many<00:22:34.250> different<00:22:34.490> people<00:22:34.880> then<00:22:35.420> as<00:22:35.570> long<00:22:35.750> as 00:22:35.920 --> 00:22:35.930 align:start position:0% many different people then as long as 00:22:35.930 --> 00:22:37.780 align:start position:0% many different people then as long as you<00:22:36.410> have<00:22:36.560> a<00:22:36.590> relationship<00:22:37.190> open<00:22:37.580> with<00:22:37.700> the 00:22:37.780 --> 00:22:37.790 align:start position:0% you have a relationship open with the 00:22:37.790 --> 00:22:39.910 align:start position:0% you have a relationship open with the hub<00:22:37.970> you<00:22:38.510> kind<00:22:38.870> of<00:22:38.960> can<00:22:39.140> get<00:22:39.260> a<00:22:39.290> meta<00:22:39.530> channel 00:22:39.910 --> 00:22:39.920 align:start position:0% hub you kind of can get a meta channel 00:22:39.920 --> 00:22:41.650 align:start position:0% hub you kind of can get a meta channel to<00:22:40.160> any<00:22:40.400> person<00:22:41.000> that<00:22:41.180> also<00:22:41.360> has<00:22:41.630> a 00:22:41.650 --> 00:22:41.660 align:start position:0% to any person that also has a 00:22:41.660 --> 00:22:44.620 align:start position:0% to any person that also has a relationship<00:22:42.170> with<00:22:42.620> that<00:22:42.650> hub<00:22:43.330> all<00:22:44.330> these 00:22:44.620 --> 00:22:44.630 align:start position:0% relationship with that hub all these 00:22:44.630 --> 00:22:46.420 align:start position:0% relationship with that hub all these topics<00:22:45.050> we're<00:22:45.590> gonna<00:22:45.680> hear<00:22:45.860> about<00:22:46.010> more<00:22:46.250> and 00:22:46.420 --> 00:22:46.430 align:start position:0% topics we're gonna hear about more and 00:22:46.430 --> 00:22:48.580 align:start position:0% topics we're gonna hear about more and other<00:22:46.550> talks<00:22:46.850> this<00:22:47.030> week<00:22:47.240> and<00:22:48.080> one<00:22:48.410> really 00:22:48.580 --> 00:22:48.590 align:start position:0% other talks this week and one really 00:22:48.590 --> 00:22:50.380 align:start position:0% other talks this week and one really cool<00:22:48.680> thing<00:22:49.040> about<00:22:49.130> all<00:22:49.220> this<00:22:49.400> is<00:22:49.580> that<00:22:49.640> most 00:22:50.380 --> 00:22:50.390 align:start position:0% cool thing about all this is that most 00:22:50.390 --> 00:22:52.090 align:start position:0% cool thing about all this is that most of<00:22:50.540> what<00:22:50.630> I'm<00:22:50.750> just<00:22:50.870> talking<00:22:51.230> about<00:22:51.320> is<00:22:51.620> being 00:22:52.090 --> 00:22:52.100 align:start position:0% of what I'm just talking about is being 00:22:52.100 --> 00:22:54.310 align:start position:0% of what I'm just talking about is being implemented<00:22:52.520> today<00:22:52.820> this<00:22:53.330> is<00:22:53.510> no<00:22:53.720> longer<00:22:53.930> just 00:22:54.310 --> 00:22:54.320 align:start position:0% implemented today this is no longer just 00:22:54.320 --> 00:22:56.620 align:start position:0% implemented today this is no longer just theory<00:22:54.740> this<00:22:55.040> is<00:22:55.190> real<00:22:55.490> stuff<00:22:55.820> running<00:22:56.420> on 00:22:56.620 --> 00:22:56.630 align:start position:0% theory this is real stuff running on 00:22:56.630 --> 00:22:58.750 align:start position:0% theory this is real stuff running on main<00:22:56.810> at<00:22:57.020> running<00:22:57.500> on<00:22:57.590> test<00:22:57.860> nets<00:22:58.070> very<00:22:58.520> close 00:22:58.750 --> 00:22:58.760 align:start position:0% main at running on test nets very close 00:22:58.760 --> 00:23:00.790 align:start position:0% main at running on test nets very close to<00:22:58.880> deployment<00:22:59.110> and<00:23:00.110> I<00:23:00.200> hope<00:23:00.410> that<00:23:00.620> you<00:23:00.680> will 00:23:00.790 --> 00:23:00.800 align:start position:0% to deployment and I hope that you will 00:23:00.800 --> 00:23:02.830 align:start position:0% to deployment and I hope that you will take<00:23:00.950> the<00:23:01.070> time<00:23:01.250> to<00:23:01.580> watch<00:23:02.090> some<00:23:02.330> talks<00:23:02.600> this 00:23:02.830 --> 00:23:02.840 align:start position:0% take the time to watch some talks this 00:23:02.840 --> 00:23:05.050 align:start position:0% take the time to watch some talks this week<00:23:03.050> we<00:23:03.890> have<00:23:04.040> a<00:23:04.070> huge<00:23:04.550> number<00:23:04.670> of<00:23:04.880> talks 00:23:05.050 --> 00:23:05.060 align:start position:0% week we have a huge number of talks 00:23:05.060 --> 00:23:07.060 align:start position:0% week we have a huge number of talks about<00:23:05.300> state<00:23:05.750> channels<00:23:06.170> and<00:23:06.320> none<00:23:06.830> of<00:23:06.860> them 00:23:07.060 --> 00:23:07.070 align:start position:0% about state channels and none of them 00:23:07.070 --> 00:23:09.550 align:start position:0% about state channels and none of them overlap<00:23:07.310> so<00:23:07.940> if<00:23:08.090> you<00:23:08.210> want<00:23:08.420> to<00:23:08.510> spend<00:23:08.780> Devcon 00:23:09.550 --> 00:23:09.560 align:start position:0% overlap so if you want to spend Devcon 00:23:09.560 --> 00:23:11.140 align:start position:0% overlap so if you want to spend Devcon just<00:23:09.890> learning<00:23:10.280> about<00:23:10.310> state<00:23:10.640> channels<00:23:10.970> which 00:23:11.140 --> 00:23:11.150 align:start position:0% just learning about state channels which 00:23:11.150 --> 00:23:12.760 align:start position:0% just learning about state channels which i<00:23:11.270> really<00:23:11.510> encourage<00:23:11.630> you<00:23:11.900> to<00:23:11.930> do<00:23:12.140> you<00:23:12.590> can 00:23:12.760 --> 00:23:12.770 align:start position:0% i really encourage you to do you can 00:23:12.770 --> 00:23:14.200 align:start position:0% i really encourage you to do you can kind<00:23:12.950> of<00:23:12.980> get<00:23:13.190> up-to-date<00:23:13.430> with<00:23:13.670> everything 00:23:14.200 --> 00:23:14.210 align:start position:0% kind of get up-to-date with everything 00:23:14.210 --> 00:23:16.600 align:start position:0% kind of get up-to-date with everything and<00:23:14.360> none<00:23:14.840> of<00:23:14.870> these<00:23:14.990> conflict<00:23:15.470> so<00:23:16.340> please 00:23:16.600 --> 00:23:16.610 align:start position:0% and none of these conflict so please 00:23:16.610 --> 00:23:18.100 align:start position:0% and none of these conflict so please check<00:23:16.790> these<00:23:16.910> out<00:23:17.090> obviously<00:23:17.570> it's<00:23:17.750> all<00:23:17.930> new 00:23:18.100 --> 00:23:18.110 align:start position:0% check these out obviously it's all new 00:23:18.110 --> 00:23:20.320 align:start position:0% check these out obviously it's all new schedule<00:23:18.470> as<00:23:18.590> well<00:23:18.740> but<00:23:19.640> please<00:23:19.760> attend<00:23:20.210> these 00:23:20.320 --> 00:23:20.330 align:start position:0% schedule as well but please attend these 00:23:20.330 --> 00:23:23.200 align:start position:0% schedule as well but please attend these talks<00:23:20.570> they're<00:23:20.870> gonna<00:23:20.990> be<00:23:21.140> great<00:23:21.320> all<00:23:22.210> right 00:23:23.200 --> 00:23:23.210 align:start position:0% talks they're gonna be great all right 00:23:23.210 --> 00:23:27.130 align:start position:0% talks they're gonna be great all right next<00:23:23.990> thing<00:23:24.110> plasma<00:23:25.150> so<00:23:26.150> the<00:23:26.600> first<00:23:26.900> thing<00:23:27.110> to 00:23:27.130 --> 00:23:27.140 align:start position:0% next thing plasma so the first thing to 00:23:27.140 --> 00:23:29.530 align:start position:0% next thing plasma so the first thing to know<00:23:27.320> and<00:23:28.130> all<00:23:28.610> the<00:23:28.850> plasma<00:23:29.120> features<00:23:29.450> are 00:23:29.530 --> 00:23:29.540 align:start position:0% know and all the plasma features are 00:23:29.540 --> 00:23:32.440 align:start position:0% know and all the plasma features are always<00:23:29.930> telling<00:23:30.830> us<00:23:30.890> this<00:23:31.070> plasma<00:23:31.820> is<00:23:31.940> not<00:23:32.210> a 00:23:32.440 --> 00:23:32.450 align:start position:0% always telling us this plasma is not a 00:23:32.450 --> 00:23:34.030 align:start position:0% always telling us this plasma is not a single<00:23:32.930> project<00:23:33.170> there's<00:23:33.590> not<00:23:33.770> just<00:23:33.800> one 00:23:34.030 --> 00:23:34.040 align:start position:0% single project there's not just one 00:23:34.040 --> 00:23:36.940 align:start position:0% single project there's not just one thing<00:23:34.730> that<00:23:35.000> is<00:23:35.300> plasma<00:23:35.810> plasma<00:23:36.620> is<00:23:36.920> a 00:23:36.940 --> 00:23:36.950 align:start position:0% thing that is plasma plasma is a 00:23:36.950 --> 00:23:38.770 align:start position:0% thing that is plasma plasma is a framework<00:23:37.430> for<00:23:37.880> building<00:23:38.120> scalable 00:23:38.770 --> 00:23:38.780 align:start position:0% framework for building scalable 00:23:38.780 --> 00:23:40.420 align:start position:0% framework for building scalable applications<00:23:39.320> on<00:23:39.770> aetherium 00:23:40.420 --> 00:23:40.430 align:start position:0% applications on aetherium 00:23:40.430 --> 00:23:42.970 align:start position:0% applications on aetherium it<00:23:41.030> is<00:23:41.179> kind<00:23:41.420> of<00:23:41.480> a<00:23:41.630> family<00:23:42.470> of<00:23:42.500> techniques 00:23:42.970 --> 00:23:42.980 align:start position:0% it is kind of a family of techniques 00:23:42.980 --> 00:23:44.560 align:start position:0% it is kind of a family of techniques that<00:23:43.100> all<00:23:43.370> have<00:23:43.550> a<00:23:43.580> kind<00:23:43.850> of<00:23:43.970> similar<00:23:44.300> route 00:23:44.560 --> 00:23:44.570 align:start position:0% that all have a kind of similar route 00:23:44.570 --> 00:23:46.300 align:start position:0% that all have a kind of similar route but<00:23:45.050> like<00:23:45.350> are<00:23:45.500> being<00:23:45.890> done<00:23:46.070> in<00:23:46.100> different 00:23:46.300 --> 00:23:46.310 align:start position:0% but like are being done in different 00:23:46.310 --> 00:23:46.830 align:start position:0% but like are being done in different ways 00:23:46.830 --> 00:23:46.840 align:start position:0% ways 00:23:46.840 --> 00:23:50.049 align:start position:0% ways so<00:23:47.840> the<00:23:48.320> basic<00:23:48.739> intuition<00:23:48.950> behind<00:23:49.279> plasma<00:23:49.879> is 00:23:50.049 --> 00:23:50.059 align:start position:0% so the basic intuition behind plasma is 00:23:50.059 --> 00:23:53.349 align:start position:0% so the basic intuition behind plasma is that<00:23:50.470> side<00:23:51.470> tunes<00:23:51.710> are<00:23:51.799> really<00:23:51.980> cool<00:23:52.190> but<00:23:53.119> they 00:23:53.349 --> 00:23:53.359 align:start position:0% that side tunes are really cool but they 00:23:53.359 --> 00:23:54.820 align:start position:0% that side tunes are really cool but they require<00:23:53.720> these<00:23:53.960> kind<00:23:54.169> of<00:23:54.200> additional<00:23:54.559> trust 00:23:54.820 --> 00:23:54.830 align:start position:0% require these kind of additional trust 00:23:54.830 --> 00:23:56.139 align:start position:0% require these kind of additional trust assumptions<00:23:55.309> and<00:23:55.519> you<00:23:55.580> have<00:23:55.730> to<00:23:55.820> trust<00:23:55.999> the 00:23:56.139 --> 00:23:56.149 align:start position:0% assumptions and you have to trust the 00:23:56.149 --> 00:23:57.669 align:start position:0% assumptions and you have to trust the consensus<00:23:56.629> of<00:23:56.809> whatever<00:23:57.019> the<00:23:57.200> sidechain<00:23:57.409> is 00:23:57.669 --> 00:23:57.679 align:start position:0% consensus of whatever the sidechain is 00:23:57.679 --> 00:23:59.619 align:start position:0% consensus of whatever the sidechain is using<00:23:57.980> so<00:23:58.460> what<00:23:58.700> if<00:23:58.789> we<00:23:58.850> had<00:23:58.940> a<00:23:58.970> sidechain<00:23:59.419> that 00:23:59.619 --> 00:23:59.629 align:start position:0% using so what if we had a sidechain that 00:23:59.629 --> 00:24:01.779 align:start position:0% using so what if we had a sidechain that was<00:23:59.779> layer<00:24:00.109> two<00:24:00.440> if<00:24:00.559> I'd<00:24:00.739> one<00:24:01.340> where<00:24:01.489> users 00:24:01.779 --> 00:24:01.789 align:start position:0% was layer two if I'd one where users 00:24:01.789 --> 00:24:03.729 align:start position:0% was layer two if I'd one where users always<00:24:02.239> had<00:24:02.389> a<00:24:02.419> guarantee<00:24:02.899> that<00:24:03.109> if<00:24:03.470> something 00:24:03.729 --> 00:24:03.739 align:start position:0% always had a guarantee that if something 00:24:03.739 --> 00:24:05.529 align:start position:0% always had a guarantee that if something goes<00:24:03.889> wrong<00:24:03.980> they<00:24:04.730> can<00:24:04.789> withdraw<00:24:05.059> back<00:24:05.480> to 00:24:05.529 --> 00:24:05.539 align:start position:0% goes wrong they can withdraw back to 00:24:05.539 --> 00:24:07.269 align:start position:0% goes wrong they can withdraw back to main<00:24:05.809> chain<00:24:06.049> and<00:24:06.259> something<00:24:06.859> going<00:24:07.070> wrong 00:24:07.269 --> 00:24:07.279 align:start position:0% main chain and something going wrong 00:24:07.279 --> 00:24:09.099 align:start position:0% main chain and something going wrong means<00:24:07.639> something<00:24:07.999> like<00:24:08.029> all<00:24:08.419> the<00:24:08.629> validators 00:24:09.099 --> 00:24:09.109 align:start position:0% means something like all the validators 00:24:09.109 --> 00:24:11.049 align:start position:0% means something like all the validators on<00:24:09.259> the<00:24:09.350> sidechain<00:24:09.529> suddenly<00:24:10.369> turn<00:24:10.549> malicious 00:24:11.049 --> 00:24:11.059 align:start position:0% on the sidechain suddenly turn malicious 00:24:11.059 --> 00:24:13.060 align:start position:0% on the sidechain suddenly turn malicious and<00:24:11.239> try<00:24:11.419> and<00:24:11.539> steal<00:24:11.720> your<00:24:11.840> money<00:24:12.049> with<00:24:12.559> plasma 00:24:13.060 --> 00:24:13.070 align:start position:0% and try and steal your money with plasma 00:24:13.070 --> 00:24:14.649 align:start position:0% and try and steal your money with plasma the<00:24:13.309> ideas<00:24:13.669> you<00:24:13.999> should<00:24:14.029> be<00:24:14.269> able<00:24:14.450> to<00:24:14.539> withdraw 00:24:14.649 --> 00:24:14.659 align:start position:0% the ideas you should be able to withdraw 00:24:14.659 --> 00:24:18.700 align:start position:0% the ideas you should be able to withdraw even<00:24:15.470> if<00:24:15.649> that<00:24:15.799> happens<00:24:16.840> so<00:24:17.840> I'm<00:24:18.289> gonna<00:24:18.470> kind 00:24:18.700 --> 00:24:18.710 align:start position:0% even if that happens so I'm gonna kind 00:24:18.710 --> 00:24:20.049 align:start position:0% even if that happens so I'm gonna kind of<00:24:18.739> go<00:24:18.919> over<00:24:19.039> like<00:24:19.190> just<00:24:19.369> to<00:24:19.519> the<00:24:19.669> basic 00:24:20.049 --> 00:24:20.059 align:start position:0% of go over like just to the basic 00:24:20.059 --> 00:24:21.999 align:start position:0% of go over like just to the basic components<00:24:20.509> of<00:24:20.539> plasma<00:24:20.989> there<00:24:21.379> are<00:24:21.499> different 00:24:21.999 --> 00:24:22.009 align:start position:0% components of plasma there are different 00:24:22.009 --> 00:24:24.039 align:start position:0% components of plasma there are different implementations<00:24:22.700> like<00:24:22.850> I<00:24:23.059> said<00:24:23.330> that<00:24:23.929> are 00:24:24.039 --> 00:24:24.049 align:start position:0% implementations like I said that are 00:24:24.049 --> 00:24:25.690 align:start position:0% implementations like I said that are quite<00:24:24.289> different<00:24:24.529> and<00:24:24.859> so<00:24:25.159> it<00:24:25.369> doesn't<00:24:25.639> make 00:24:25.690 --> 00:24:25.700 align:start position:0% quite different and so it doesn't make 00:24:25.700 --> 00:24:27.279 align:start position:0% quite different and so it doesn't make sense<00:24:25.759> to<00:24:26.029> try<00:24:26.210> and<00:24:26.330> cover<00:24:26.450> them<00:24:26.659> all<00:24:26.779> I<00:24:26.989> hope 00:24:27.279 --> 00:24:27.289 align:start position:0% sense to try and cover them all I hope 00:24:27.289 --> 00:24:28.359 align:start position:0% sense to try and cover them all I hope it<00:24:27.409> does<00:24:27.499> give<00:24:27.830> you<00:24:27.919> this<00:24:28.039> like<00:24:28.129> a<00:24:28.159> bit<00:24:28.340> of 00:24:28.359 --> 00:24:28.369 align:start position:0% it does give you this like a bit of 00:24:28.369 --> 00:24:30.070 align:start position:0% it does give you this like a bit of insight<00:24:28.730> about<00:24:28.909> what's<00:24:29.450> going<00:24:29.749> on<00:24:29.869> here 00:24:30.070 --> 00:24:30.080 align:start position:0% insight about what's going on here 00:24:30.080 --> 00:24:33.099 align:start position:0% insight about what's going on here generally<00:24:30.499> so<00:24:31.659> first<00:24:32.659> just<00:24:32.809> kind<00:24:32.899> of<00:24:32.989> like 00:24:33.099 --> 00:24:33.109 align:start position:0% generally so first just kind of like 00:24:33.109 --> 00:24:35.349 align:start position:0% generally so first just kind of like what<00:24:33.289> is<00:24:33.409> the<00:24:33.529> basic<00:24:33.799> setup<00:24:34.039> we<00:24:34.940> have<00:24:35.119> what's 00:24:35.349 --> 00:24:35.359 align:start position:0% what is the basic setup we have what's 00:24:35.359 --> 00:24:37.210 align:start position:0% what is the basic setup we have what's called<00:24:35.539> the<00:24:35.629> plasma<00:24:35.840> route<00:24:36.200> which<00:24:36.499> again<00:24:36.739> is<00:24:37.009> a 00:24:37.210 --> 00:24:37.220 align:start position:0% called the plasma route which again is a 00:24:37.220 --> 00:24:38.919 align:start position:0% called the plasma route which again is a smart<00:24:37.549> contract<00:24:37.730> on<00:24:38.210> aetherium 00:24:38.919 --> 00:24:38.929 align:start position:0% smart contract on aetherium 00:24:38.929 --> 00:24:41.019 align:start position:0% smart contract on aetherium and<00:24:39.830> then<00:24:40.009> we<00:24:40.100> have<00:24:40.220> our<00:24:40.309> plasma<00:24:40.639> chain<00:24:40.820> which 00:24:41.019 --> 00:24:41.029 align:start position:0% and then we have our plasma chain which 00:24:41.029 --> 00:24:42.249 align:start position:0% and then we have our plasma chain which is<00:24:41.059> a<00:24:41.239> kind<00:24:41.419> of<00:24:41.450> like<00:24:41.629> very<00:24:41.779> similar<00:24:42.109> to<00:24:42.230> a 00:24:42.249 --> 00:24:42.259 align:start position:0% is a kind of like very similar to a 00:24:42.259 --> 00:24:44.440 align:start position:0% is a kind of like very similar to a sidechain<00:24:42.679> in<00:24:42.889> other<00:24:43.039> respects<00:24:43.399> it<00:24:44.090> is<00:24:44.210> a<00:24:44.299> kind 00:24:44.440 --> 00:24:44.450 align:start position:0% sidechain in other respects it is a kind 00:24:44.450 --> 00:24:45.999 align:start position:0% sidechain in other respects it is a kind of<00:24:44.480> a<00:24:44.570> separate<00:24:44.869> environment<00:24:45.289> and<00:24:45.470> the 00:24:45.999 --> 00:24:46.009 align:start position:0% of a separate environment and the 00:24:46.009 --> 00:24:47.799 align:start position:0% of a separate environment and the validators<00:24:46.519> the<00:24:46.700> sidechain<00:24:46.909> or<00:24:47.359> the<00:24:47.690> plasma 00:24:47.799 --> 00:24:47.809 align:start position:0% validators the sidechain or the plasma 00:24:47.809 --> 00:24:49.779 align:start position:0% validators the sidechain or the plasma chain<00:24:48.139> can<00:24:48.379> communicate<00:24:48.919> with<00:24:49.249> the<00:24:49.519> plasma 00:24:49.779 --> 00:24:49.789 align:start position:0% chain can communicate with the plasma 00:24:49.789 --> 00:24:52.029 align:start position:0% chain can communicate with the plasma route<00:24:50.119> and<00:24:50.359> then<00:24:50.899> we<00:24:50.989> have<00:24:51.109> our<00:24:51.230> users<00:24:51.529> Alice 00:24:52.029 --> 00:24:52.039 align:start position:0% route and then we have our users Alice 00:24:52.039 --> 00:24:53.499 align:start position:0% route and then we have our users Alice and<00:24:52.190> Bob<00:24:52.309> and<00:24:52.580> we<00:24:53.029> have<00:24:53.179> all<00:24:53.419> these 00:24:53.499 --> 00:24:53.509 align:start position:0% and Bob and we have all these 00:24:53.509 --> 00:24:55.210 align:start position:0% and Bob and we have all these applications<00:24:54.109> that<00:24:54.379> run<00:24:54.590> on<00:24:54.649> the<00:24:55.070> plasma 00:24:55.210 --> 00:24:55.220 align:start position:0% applications that run on the plasma 00:24:55.220 --> 00:24:57.460 align:start position:0% applications that run on the plasma chain<00:24:55.580> because<00:24:56.419> the<00:24:56.539> plasma<00:24:56.690> chain<00:24:57.019> is<00:24:57.169> making 00:24:57.460 --> 00:24:57.470 align:start position:0% chain because the plasma chain is making 00:24:57.470 --> 00:24:59.440 align:start position:0% chain because the plasma chain is making kind<00:24:57.649> of<00:24:57.739> a<00:24:57.799> different<00:24:58.129> set<00:24:58.369> of<00:24:58.429> choices<00:24:58.999> about 00:24:59.440 --> 00:24:59.450 align:start position:0% kind of a different set of choices about 00:24:59.450 --> 00:25:01.450 align:start position:0% kind of a different set of choices about how<00:24:59.629> the<00:24:59.690> consensus<00:25:00.169> works<00:25:00.350> it<00:25:00.710> can<00:25:00.980> be<00:25:01.129> much 00:25:01.450 --> 00:25:01.460 align:start position:0% how the consensus works it can be much 00:25:01.460 --> 00:25:03.460 align:start position:0% how the consensus works it can be much much<00:25:01.669> faster<00:25:02.179> and<00:25:02.330> how<00:25:02.570> it<00:25:02.690> reaches<00:25:02.960> consensus 00:25:03.460 --> 00:25:03.470 align:start position:0% much faster and how it reaches consensus 00:25:03.470 --> 00:25:05.769 align:start position:0% much faster and how it reaches consensus which<00:25:03.859> means<00:25:04.070> things<00:25:04.609> are<00:25:04.820> quicker<00:25:05.119> and<00:25:05.419> news 00:25:05.769 --> 00:25:05.779 align:start position:0% which means things are quicker and news 00:25:05.779 --> 00:25:07.989 align:start position:0% which means things are quicker and news are<00:25:05.989> paying<00:25:06.230> much<00:25:06.559> lower<00:25:06.769> fees<00:25:07.100> you<00:25:07.850> could 00:25:07.989 --> 00:25:07.999 align:start position:0% are paying much lower fees you could 00:25:07.999 --> 00:25:09.639 align:start position:0% are paying much lower fees you could have<00:25:08.149> games<00:25:08.509> on<00:25:08.779> plasma<00:25:09.049> chains<00:25:09.259> you<00:25:09.529> could 00:25:09.639 --> 00:25:09.649 align:start position:0% have games on plasma chains you could 00:25:09.649 --> 00:25:11.440 align:start position:0% have games on plasma chains you could have<00:25:09.769> exchanges<00:25:10.399> on<00:25:10.519> plasma<00:25:10.789> chains<00:25:10.999> you 00:25:11.440 --> 00:25:11.450 align:start position:0% have exchanges on plasma chains you 00:25:11.450 --> 00:25:14.799 align:start position:0% have exchanges on plasma chains you could<00:25:11.600> have<00:25:11.690> lots<00:25:11.929> of<00:25:12.080> other<00:25:12.169> stuff<00:25:13.119> so<00:25:14.119> first 00:25:14.799 --> 00:25:14.809 align:start position:0% could have lots of other stuff so first 00:25:14.809 --> 00:25:16.379 align:start position:0% could have lots of other stuff so first kind<00:25:15.019> of<00:25:15.080> basic<00:25:15.379> thing<00:25:15.499> about<00:25:15.679> plasma<00:25:15.919> our 00:25:16.379 --> 00:25:16.389 align:start position:0% kind of basic thing about plasma our 00:25:16.389 --> 00:25:18.820 align:start position:0% kind of basic thing about plasma our state<00:25:17.389> commitments<00:25:17.869> and<00:25:18.049> the<00:25:18.499> basic<00:25:18.769> idea 00:25:18.820 --> 00:25:18.830 align:start position:0% state commitments and the basic idea 00:25:18.830 --> 00:25:21.099 align:start position:0% state commitments and the basic idea here<00:25:19.279> is<00:25:19.429> that<00:25:19.639> we<00:25:20.059> need<00:25:20.210> a<00:25:20.239> way<00:25:20.450> for<00:25:20.480> the<00:25:20.929> kind 00:25:21.099 --> 00:25:21.109 align:start position:0% here is that we need a way for the kind 00:25:21.109 --> 00:25:23.349 align:start position:0% here is that we need a way for the kind of<00:25:21.139> plasma<00:25:21.350> route<00:25:21.679> to<00:25:21.950> know<00:25:22.519> what's<00:25:22.879> happening 00:25:23.349 --> 00:25:23.359 align:start position:0% of plasma route to know what's happening 00:25:23.359 --> 00:25:25.359 align:start position:0% of plasma route to know what's happening on<00:25:23.480> the<00:25:23.840> plasma<00:25:24.019> chain<00:25:24.409> so<00:25:24.859> there's<00:25:25.100> kind<00:25:25.249> of<00:25:25.279> a 00:25:25.359 --> 00:25:25.369 align:start position:0% on the plasma chain so there's kind of a 00:25:25.369 --> 00:25:26.769 align:start position:0% on the plasma chain so there's kind of a regular<00:25:25.700> schedule<00:25:25.940> through<00:25:26.450> which<00:25:26.629> the 00:25:26.769 --> 00:25:26.779 align:start position:0% regular schedule through which the 00:25:26.779 --> 00:25:29.289 align:start position:0% regular schedule through which the plasma<00:25:26.929> chain<00:25:27.379> reports<00:25:28.220> what<00:25:28.700> its<00:25:28.850> state<00:25:29.090> was 00:25:29.289 --> 00:25:29.299 align:start position:0% plasma chain reports what its state was 00:25:29.299 --> 00:25:31.659 align:start position:0% plasma chain reports what its state was at<00:25:30.019> a<00:25:30.080> certain<00:25:30.379> block<00:25:30.619> and<00:25:30.889> then<00:25:31.340> the<00:25:31.489> plasma 00:25:31.659 --> 00:25:31.669 align:start position:0% at a certain block and then the plasma 00:25:31.669 --> 00:25:34.479 align:start position:0% at a certain block and then the plasma route<00:25:31.970> keeps<00:25:32.359> a<00:25:32.539> concise<00:25:32.960> record<00:25:33.409> of<00:25:33.529> that<00:25:33.710> and 00:25:34.479 --> 00:25:34.489 align:start position:0% route keeps a concise record of that and 00:25:34.489 --> 00:25:36.009 align:start position:0% route keeps a concise record of that and then<00:25:34.669> we<00:25:34.879> do<00:25:35.059> this<00:25:35.179> over<00:25:35.539> over<00:25:35.659> and<00:25:35.779> over<00:25:35.899> again 00:25:36.009 --> 00:25:36.019 align:start position:0% then we do this over over and over again 00:25:36.019 --> 00:25:38.769 align:start position:0% then we do this over over and over again as<00:25:36.259> things<00:25:36.859> progress<00:25:37.210> this<00:25:38.210> is<00:25:38.330> important 00:25:38.769 --> 00:25:38.779 align:start position:0% as things progress this is important 00:25:38.779 --> 00:25:42.039 align:start position:0% as things progress this is important because<00:25:39.820> when<00:25:40.820> we<00:25:40.909> get<00:25:41.029> to<00:25:41.179> exits<00:25:41.629> we're<00:25:41.960> gonna 00:25:42.039 --> 00:25:42.049 align:start position:0% because when we get to exits we're gonna 00:25:42.049 --> 00:25:44.289 align:start position:0% because when we get to exits we're gonna need<00:25:42.320> that<00:25:42.440> information<00:25:43.009> so<00:25:43.639> the<00:25:43.820> basic<00:25:44.210> idea 00:25:44.289 --> 00:25:44.299 align:start position:0% need that information so the basic idea 00:25:44.299 --> 00:25:45.549 align:start position:0% need that information so the basic idea and<00:25:44.570> a<00:25:44.600> lot<00:25:44.720> of<00:25:44.749> the<00:25:44.989> heavy<00:25:45.139> lifting<00:25:45.230> with 00:25:45.549 --> 00:25:45.559 align:start position:0% and a lot of the heavy lifting with 00:25:45.559 --> 00:25:46.930 align:start position:0% and a lot of the heavy lifting with plasma<00:25:45.710> is<00:25:46.039> how<00:25:46.309> do<00:25:46.369> we<00:25:46.460> make<00:25:46.700> sure<00:25:46.730> that 00:25:46.930 --> 00:25:46.940 align:start position:0% plasma is how do we make sure that 00:25:46.940 --> 00:25:49.359 align:start position:0% plasma is how do we make sure that people<00:25:47.179> can<00:25:47.389> actually<00:25:47.720> exit<00:25:48.559> -<00:25:48.679> main<00:25:48.830> chain<00:25:49.100> if 00:25:49.359 --> 00:25:49.369 align:start position:0% people can actually exit - main chain if 00:25:49.369 --> 00:25:50.889 align:start position:0% people can actually exit - main chain if something<00:25:49.940> goes<00:25:50.090> wrong<00:25:50.210> in<00:25:50.629> all 00:25:50.889 --> 00:25:50.899 align:start position:0% something goes wrong in all 00:25:50.899 --> 00:25:53.080 align:start position:0% something goes wrong in all circumstances<00:25:51.249> the<00:25:52.249> basic<00:25:52.549> idea<00:25:52.820> is<00:25:52.999> that 00:25:53.080 --> 00:25:53.090 align:start position:0% circumstances the basic idea is that 00:25:53.090 --> 00:25:54.909 align:start position:0% circumstances the basic idea is that Alice<00:25:53.570> would<00:25:53.749> say<00:25:53.960> okay<00:25:54.320> I'm<00:25:54.529> done 00:25:54.909 --> 00:25:54.919 align:start position:0% Alice would say okay I'm done 00:25:54.919 --> 00:25:56.649 align:start position:0% Alice would say okay I'm done interacting<00:25:55.580> with<00:25:55.609> whatever<00:25:56.029> I<00:25:56.090> was<00:25:56.299> doing<00:25:56.539> on 00:25:56.649 --> 00:25:56.659 align:start position:0% interacting with whatever I was doing on 00:25:56.659 --> 00:25:57.970 align:start position:0% interacting with whatever I was doing on the<00:25:56.720> plasma<00:25:56.960> chain<00:25:57.289> I<00:25:57.470> want<00:25:57.799> to<00:25:57.859> move<00:25:57.950> my 00:25:57.970 --> 00:25:57.980 align:start position:0% the plasma chain I want to move my 00:25:57.980 --> 00:26:00.379 align:start position:0% the plasma chain I want to move my assets<00:25:58.489> back<00:25:58.879> to<00:25:59.149> me 00:26:00.379 --> 00:26:00.389 align:start position:0% assets back to me 00:26:00.389 --> 00:26:02.119 align:start position:0% assets back to me you<00:26:00.659> know<00:26:00.749> and<00:26:01.109> so<00:26:01.289> Alice<00:26:01.589> has<00:26:01.799> been<00:26:01.919> kind<00:26:02.099> of 00:26:02.119 --> 00:26:02.129 align:start position:0% you know and so Alice has been kind of 00:26:02.129 --> 00:26:04.700 align:start position:0% you know and so Alice has been kind of keeping<00:26:02.549> track<00:26:02.729> and<00:26:03.059> keeping<00:26:03.359> copies<00:26:03.779> of<00:26:03.989> the 00:26:04.700 --> 00:26:04.710 align:start position:0% keeping track and keeping copies of the 00:26:04.710 --> 00:26:06.019 align:start position:0% keeping track and keeping copies of the like<00:26:04.859> blocks<00:26:05.159> and<00:26:05.429> information<00:26:05.940> that's 00:26:06.019 --> 00:26:06.029 align:start position:0% like blocks and information that's 00:26:06.029 --> 00:26:07.759 align:start position:0% like blocks and information that's happening<00:26:06.419> on<00:26:06.450> plasma<00:26:06.749> chain<00:26:06.960> and<00:26:07.139> so<00:26:07.469> she<00:26:07.559> has 00:26:07.759 --> 00:26:07.769 align:start position:0% happening on plasma chain and so she has 00:26:07.769 --> 00:26:10.849 align:start position:0% happening on plasma chain and so she has a<00:26:07.799> proof<00:26:08.279> that<00:26:08.700> she<00:26:08.909> owned<00:26:09.149> some<00:26:09.629> asset<00:26:10.049> in<00:26:10.710> a 00:26:10.849 --> 00:26:10.859 align:start position:0% a proof that she owned some asset in a 00:26:10.859 --> 00:26:13.609 align:start position:0% a proof that she owned some asset in a certain<00:26:11.129> block<00:26:11.339> the<00:26:12.149> plasma<00:26:12.479> route<00:26:12.659> checks 00:26:13.609 --> 00:26:13.619 align:start position:0% certain block the plasma route checks 00:26:13.619 --> 00:26:15.320 align:start position:0% certain block the plasma route checks this<00:26:13.830> against<00:26:14.279> their<00:26:14.399> own<00:26:14.519> concise<00:26:14.969> record 00:26:15.320 --> 00:26:15.330 align:start position:0% this against their own concise record 00:26:15.330 --> 00:26:17.149 align:start position:0% this against their own concise record and<00:26:15.989> then<00:26:16.109> waits<00:26:16.349> to<00:26:16.529> see<00:26:16.559> if<00:26:16.739> someone 00:26:17.149 --> 00:26:17.159 align:start position:0% and then waits to see if someone 00:26:17.159 --> 00:26:19.009 align:start position:0% and then waits to see if someone challenges<00:26:17.460> Alice<00:26:18.059> right<00:26:18.299> because<00:26:18.839> maybe 00:26:19.009 --> 00:26:19.019 align:start position:0% challenges Alice right because maybe 00:26:19.019 --> 00:26:20.570 align:start position:0% challenges Alice right because maybe Alice<00:26:19.409> is<00:26:19.529> doing<00:26:19.769> what<00:26:19.979> Bob<00:26:20.219> did<00:26:20.429> in<00:26:20.519> the 00:26:20.570 --> 00:26:20.580 align:start position:0% Alice is doing what Bob did in the 00:26:20.580 --> 00:26:22.399 align:start position:0% Alice is doing what Bob did in the previous<00:26:20.729> example<00:26:21.269> in<00:26:21.419> trying<00:26:21.960> to<00:26:22.229> withdraw 00:26:22.399 --> 00:26:22.409 align:start position:0% previous example in trying to withdraw 00:26:22.409 --> 00:26:25.070 align:start position:0% previous example in trying to withdraw old<00:26:22.889> state<00:26:23.269> there's<00:26:24.269> an<00:26:24.359> appropriate<00:26:24.809> waiting 00:26:25.070 --> 00:26:25.080 align:start position:0% old state there's an appropriate waiting 00:26:25.080 --> 00:26:27.619 align:start position:0% old state there's an appropriate waiting period<00:26:25.440> and<00:26:25.830> then<00:26:26.279> if<00:26:26.399> nothing<00:26:26.519> happens<00:26:27.029> great 00:26:27.619 --> 00:26:27.629 align:start position:0% period and then if nothing happens great 00:26:27.629 --> 00:26:30.409 align:start position:0% period and then if nothing happens great Alice<00:26:28.139> can<00:26:28.289> withdraw<00:26:28.409> her<00:26:28.710> funds<00:26:29.210> plasma<00:26:30.210> in 00:26:30.409 --> 00:26:30.419 align:start position:0% Alice can withdraw her funds plasma in 00:26:30.419 --> 00:26:33.649 align:start position:0% Alice can withdraw her funds plasma in the<00:26:30.869> simplest<00:26:31.320> possible<00:26:31.440> way<00:26:31.919> so<00:26:32.849> remember 00:26:33.649 --> 00:26:33.659 align:start position:0% the simplest possible way so remember 00:26:33.659 --> 00:26:35.299 align:start position:0% the simplest possible way so remember our<00:26:33.779> definition<00:26:33.899> again<00:26:34.440> we're<00:26:34.919> trying<00:26:35.249> to 00:26:35.299 --> 00:26:35.309 align:start position:0% our definition again we're trying to 00:26:35.309 --> 00:26:36.799 align:start position:0% our definition again we're trying to build<00:26:35.429> apps<00:26:35.700> where<00:26:35.999> most<00:26:36.239> of<00:26:36.330> the<00:26:36.419> work<00:26:36.599> is 00:26:36.799 --> 00:26:36.809 align:start position:0% build apps where most of the work is 00:26:36.809 --> 00:26:38.869 align:start position:0% build apps where most of the work is done<00:26:36.839> off<00:26:37.229> chain<00:26:37.619> and<00:26:37.830> here<00:26:38.219> that's<00:26:38.399> happening 00:26:38.869 --> 00:26:38.879 align:start position:0% done off chain and here that's happening 00:26:38.879 --> 00:26:40.369 align:start position:0% done off chain and here that's happening on<00:26:38.969> the<00:26:39.299> plasma<00:26:39.450> chain<00:26:39.779> instead<00:26:40.139> of<00:26:40.229> main 00:26:40.369 --> 00:26:40.379 align:start position:0% on the plasma chain instead of main 00:26:40.379 --> 00:26:42.859 align:start position:0% on the plasma chain instead of main chain<00:26:40.729> we're<00:26:41.729> only<00:26:41.909> using<00:26:42.089> layer<00:26:42.389> 1<00:26:42.599> to<00:26:42.629> build 00:26:42.859 --> 00:26:42.869 align:start position:0% chain we're only using layer 1 to build 00:26:42.869 --> 00:26:44.899 align:start position:0% chain we're only using layer 1 to build these<00:26:42.960> anchors<00:26:43.499> that<00:26:43.529> tie<00:26:44.009> off<00:26:44.219> chain<00:26:44.519> 2<00:26:44.759> layer 00:26:44.899 --> 00:26:44.909 align:start position:0% these anchors that tie off chain 2 layer 00:26:44.909 --> 00:26:47.899 align:start position:0% these anchors that tie off chain 2 layer 1<00:26:45.210> and<00:26:46.080> here<00:26:46.469> the<00:26:46.619> on<00:26:46.739> chain<00:26:47.039> root<00:26:47.309> contract 00:26:47.899 --> 00:26:47.909 align:start position:0% 1 and here the on chain root contract 00:26:47.909 --> 00:26:49.399 align:start position:0% 1 and here the on chain root contract ensures<00:26:48.299> that<00:26:48.389> users<00:26:48.570> can<00:26:48.929> always<00:26:49.289> withdraw 00:26:49.399 --> 00:26:49.409 align:start position:0% ensures that users can always withdraw 00:26:49.409 --> 00:26:51.709 align:start position:0% ensures that users can always withdraw if<00:26:49.859> something<00:26:50.279> goes<00:26:50.429> wrong<00:26:50.519> and<00:26:51.389> thirdly 00:26:51.709 --> 00:26:51.719 align:start position:0% if something goes wrong and thirdly 00:26:51.719 --> 00:26:53.029 align:start position:0% if something goes wrong and thirdly we're<00:26:52.049> trying<00:26:52.259> preserve<00:26:52.499> the<00:26:52.649> same<00:26:52.830> risk 00:26:53.029 --> 00:26:53.039 align:start position:0% we're trying preserve the same risk 00:26:53.039 --> 00:26:54.739 align:start position:0% we're trying preserve the same risk model<00:26:53.339> and<00:26:53.489> again<00:26:54.029> as<00:26:54.239> long<00:26:54.299> as<00:26:54.539> you<00:26:54.719> just 00:26:54.739 --> 00:26:54.749 align:start position:0% model and again as long as you just 00:26:54.749 --> 00:26:57.019 align:start position:0% model and again as long as you just follow<00:26:55.229> the<00:26:55.529> protocol<00:26:55.979> and<00:26:56.159> as<00:26:56.489> long<00:26:56.669> as<00:26:56.700> layer 00:26:57.019 --> 00:26:57.029 align:start position:0% follow the protocol and as long as layer 00:26:57.029 --> 00:26:58.549 align:start position:0% follow the protocol and as long as layer 1<00:26:57.239> is<00:26:57.330> available<00:26:57.809> we're<00:26:58.200> not<00:26:58.349> introducing 00:26:58.549 --> 00:26:58.559 align:start position:0% 1 is available we're not introducing 00:26:58.559 --> 00:27:00.200 align:start position:0% 1 is available we're not introducing additional<00:26:58.979> risks<00:26:59.519> you<00:26:59.639> can<00:26:59.669> always<00:27:00.089> withdraw 00:27:00.200 --> 00:27:00.210 align:start position:0% additional risks you can always withdraw 00:27:00.210 --> 00:27:02.269 align:start position:0% additional risks you can always withdraw to<00:27:00.509> main<00:27:00.659> chain<00:27:00.869> and<00:27:01.080> again<00:27:01.529> I<00:27:01.830> should<00:27:02.099> say 00:27:02.269 --> 00:27:02.279 align:start position:0% to main chain and again I should say 00:27:02.279 --> 00:27:03.619 align:start position:0% to main chain and again I should say that<00:27:02.429> this<00:27:02.489> is<00:27:02.549> obviously<00:27:02.940> a<00:27:02.999> very<00:27:03.059> general 00:27:03.619 --> 00:27:03.629 align:start position:0% that this is obviously a very general 00:27:03.629 --> 00:27:04.940 align:start position:0% that this is obviously a very general description<00:27:03.719> and<00:27:04.200> there<00:27:04.320> are<00:27:04.469> many<00:27:04.619> caveats 00:27:04.940 --> 00:27:04.950 align:start position:0% description and there are many caveats 00:27:04.950 --> 00:27:06.289 align:start position:0% description and there are many caveats to<00:27:05.309> basically<00:27:05.549> everything<00:27:05.820> that<00:27:05.969> I've<00:27:06.059> said 00:27:06.289 --> 00:27:06.299 align:start position:0% to basically everything that I've said 00:27:06.299 --> 00:27:07.940 align:start position:0% to basically everything that I've said because<00:27:06.629> this<00:27:06.779> stuff<00:27:07.019> is<00:27:07.139> complicated<00:27:07.799> and 00:27:07.940 --> 00:27:07.950 align:start position:0% because this stuff is complicated and 00:27:07.950 --> 00:27:10.190 align:start position:0% because this stuff is complicated and the<00:27:08.219> implement<00:27:08.519> details<00:27:09.029> are<00:27:09.210> complex<00:27:09.570> so<00:27:10.109> if 00:27:10.190 --> 00:27:10.200 align:start position:0% the implement details are complex so if 00:27:10.200 --> 00:27:11.779 align:start position:0% the implement details are complex so if you<00:27:10.289> want<00:27:10.499> to<00:27:10.559> learn<00:27:10.649> more<00:27:10.830> I<00:27:11.039> encourage<00:27:11.609> you 00:27:11.779 --> 00:27:11.789 align:start position:0% you want to learn more I encourage you 00:27:11.789 --> 00:27:14.989 align:start position:0% you want to learn more I encourage you to<00:27:11.999> go<00:27:12.869> watch<00:27:13.019> some<00:27:13.200> other<00:27:13.259> talks<00:27:13.849> now<00:27:14.849> they're 00:27:14.989 --> 00:27:14.999 align:start position:0% to go watch some other talks now they're 00:27:14.999 --> 00:27:16.579 align:start position:0% to go watch some other talks now they're kind<00:27:15.179> of<00:27:15.210> like<00:27:15.359> three<00:27:15.719> primary<00:27:16.169> there<00:27:16.349> there 00:27:16.579 --> 00:27:16.589 align:start position:0% kind of like three primary there there 00:27:16.589 --> 00:27:17.959 align:start position:0% kind of like three primary there there are<00:27:16.710> more<00:27:16.830> than<00:27:17.009> this<00:27:17.159> there's<00:27:17.429> seemingly<00:27:17.820> a 00:27:17.959 --> 00:27:17.969 align:start position:0% are more than this there's seemingly a 00:27:17.969 --> 00:27:19.609 align:start position:0% are more than this there's seemingly a new<00:27:18.210> one<00:27:18.359> every<00:27:18.509> week<00:27:18.599> but<00:27:19.349> there's<00:27:19.469> kind<00:27:19.529> of 00:27:19.609 --> 00:27:19.619 align:start position:0% new one every week but there's kind of 00:27:19.619 --> 00:27:21.619 align:start position:0% new one every week but there's kind of three<00:27:19.799> primary<00:27:20.009> like<00:27:20.549> versions<00:27:21.119> of<00:27:21.269> plasma 00:27:21.619 --> 00:27:21.629 align:start position:0% three primary like versions of plasma 00:27:21.629 --> 00:27:22.669 align:start position:0% three primary like versions of plasma that<00:27:21.659> are<00:27:21.839> being<00:27:21.989> worked<00:27:22.109> on<00:27:22.289> right<00:27:22.499> now 00:27:22.669 --> 00:27:22.679 align:start position:0% that are being worked on right now 00:27:22.679 --> 00:27:25.430 align:start position:0% that are being worked on right now there's<00:27:23.399> one<00:27:23.549> called<00:27:23.759> Plaza<00:27:23.969> MVP<00:27:24.509> which<00:27:24.989> only 00:27:25.430 --> 00:27:25.440 align:start position:0% there's one called Plaza MVP which only 00:27:25.440 --> 00:27:27.529 align:start position:0% there's one called Plaza MVP which only handles<00:27:25.769> payments<00:27:26.190> so<00:27:26.460> no<00:27:26.639> smart<00:27:27.119> contracts 00:27:27.529 --> 00:27:27.539 align:start position:0% handles payments so no smart contracts 00:27:27.539 --> 00:27:29.899 align:start position:0% handles payments so no smart contracts on<00:27:27.719> plasma<00:27:28.080> transfer<00:27:28.469> here<00:27:28.679> and<00:27:29.279> it<00:27:29.369> uses<00:27:29.580> a<00:27:29.609> UT 00:27:29.899 --> 00:27:29.909 align:start position:0% on plasma transfer here and it uses a UT 00:27:29.909 --> 00:27:32.419 align:start position:0% on plasma transfer here and it uses a UT EXO<00:27:30.149> model<00:27:30.509> similar<00:27:31.169> to<00:27:31.289> Bitcoin<00:27:31.529> and<00:27:32.249> the 00:27:32.419 --> 00:27:32.429 align:start position:0% EXO model similar to Bitcoin and the 00:27:32.429 --> 00:27:33.589 align:start position:0% EXO model similar to Bitcoin and the idea<00:27:32.639> is<00:27:32.759> like<00:27:32.879> to<00:27:33.059> get<00:27:33.179> something<00:27:33.389> pretty 00:27:33.589 --> 00:27:33.599 align:start position:0% idea is like to get something pretty 00:27:33.599 --> 00:27:35.719 align:start position:0% idea is like to get something pretty simple<00:27:33.899> that<00:27:34.169> can<00:27:34.259> be<00:27:34.349> implemented<00:27:34.729> rather 00:27:35.719 --> 00:27:35.729 align:start position:0% simple that can be implemented rather 00:27:35.729 --> 00:27:36.109 align:start position:0% simple that can be implemented rather easily 00:27:36.109 --> 00:27:36.119 align:start position:0% easily 00:27:36.119 --> 00:27:38.959 align:start position:0% easily there's<00:27:37.019> plasma<00:27:37.349> cash<00:27:37.589> where<00:27:38.129> the<00:27:38.399> assets<00:27:38.820> on 00:27:38.959 --> 00:27:38.969 align:start position:0% there's plasma cash where the assets on 00:27:38.969 --> 00:27:41.869 align:start position:0% there's plasma cash where the assets on the<00:27:39.059> plasma<00:27:39.239> chain<00:27:39.599> are<00:27:39.960> actually<00:27:40.589> unique<00:27:41.009> non 00:27:41.869 --> 00:27:41.879 align:start position:0% the plasma chain are actually unique non 00:27:41.879 --> 00:27:44.299 align:start position:0% the plasma chain are actually unique non fungible<00:27:42.389> tokens<00:27:42.779> so<00:27:43.710> you<00:27:43.769> would<00:27:43.979> just<00:27:44.129> get 00:27:44.299 --> 00:27:44.309 align:start position:0% fungible tokens so you would just get 00:27:44.309 --> 00:27:46.129 align:start position:0% fungible tokens so you would just get kind<00:27:44.639> of<00:27:44.729> like<00:27:44.879> a<00:27:45.089> crypto<00:27:45.509> Kitty<00:27:45.690> equivalent 00:27:46.129 --> 00:27:46.139 align:start position:0% kind of like a crypto Kitty equivalent 00:27:46.139 --> 00:27:49.609 align:start position:0% kind of like a crypto Kitty equivalent an<00:27:46.289> NF<00:27:46.499> T<00:27:46.679> that<00:27:47.099> says<00:27:47.369> I<00:27:47.639> own<00:27:48.330> ten<00:27:48.929> Eve<00:27:49.139> on<00:27:49.379> this 00:27:49.609 --> 00:27:49.619 align:start position:0% an NF T that says I own ten Eve on this 00:27:49.619 --> 00:27:51.079 align:start position:0% an NF T that says I own ten Eve on this path<00:27:49.799> of<00:27:49.950> chain<00:27:50.099> and<00:27:50.249> then<00:27:50.609> you<00:27:50.639> would<00:27:50.849> trade 00:27:51.079 --> 00:27:51.089 align:start position:0% path of chain and then you would trade 00:27:51.089 --> 00:27:53.389 align:start position:0% path of chain and then you would trade those<00:27:51.299> it's<00:27:52.080> a<00:27:52.139> lot<00:27:52.289> easier<00:27:52.619> for<00:27:52.649> users<00:27:53.009> or<00:27:53.309> use 00:27:53.389 --> 00:27:53.399 align:start position:0% those it's a lot easier for users or use 00:27:53.399 --> 00:27:55.489 align:start position:0% those it's a lot easier for users or use applications<00:27:53.940> to<00:27:54.089> track<00:27:54.299> their<00:27:54.509> balances<00:27:54.960> but 00:27:55.489 --> 00:27:55.499 align:start position:0% applications to track their balances but 00:27:55.499 --> 00:27:56.899 align:start position:0% applications to track their balances but it<00:27:55.679> does<00:27:55.830> introduce<00:27:56.039> the<00:27:56.309> problem<00:27:56.609> of<00:27:56.729> how<00:27:56.849> do 00:27:56.899 --> 00:27:56.909 align:start position:0% it does introduce the problem of how do 00:27:56.909 --> 00:27:59.509 align:start position:0% it does introduce the problem of how do we<00:27:56.969> actually<00:27:57.239> split<00:27:57.779> an<00:27:58.049> NFTE<00:27:58.440> worth<00:27:58.679> ten<00:27:58.979> into 00:27:59.509 --> 00:27:59.519 align:start position:0% we actually split an NFTE worth ten into 00:27:59.519 --> 00:28:01.820 align:start position:0% we actually split an NFTE worth ten into five<00:27:59.729> and<00:27:59.969> five<00:28:00.450> there's<00:28:01.139> not<00:28:01.289> curly<00:28:01.619> an<00:28:01.679> easy 00:28:01.820 --> 00:28:01.830 align:start position:0% five and five there's not curly an easy 00:28:01.830 --> 00:28:03.560 align:start position:0% five and five there's not curly an easy way<00:28:01.979> to<00:28:02.009> do<00:28:02.219> that<00:28:02.249> and<00:28:02.729> then<00:28:03.089> there's<00:28:03.239> plasma 00:28:03.560 --> 00:28:03.570 align:start position:0% way to do that and then there's plasma 00:28:03.570 --> 00:28:05.719 align:start position:0% way to do that and then there's plasma debit<00:28:03.929> where<00:28:04.139> things<00:28:04.320> get<00:28:04.499> really<00:28:04.559> weird<00:28:05.009> and 00:28:05.719 --> 00:28:05.729 align:start position:0% debit where things get really weird and 00:28:05.729 --> 00:28:08.089 align:start position:0% debit where things get really weird and here<00:28:06.149> like<00:28:06.450> plasma<00:28:06.659> cash<00:28:06.989> the<00:28:07.229> assets<00:28:07.619> are<00:28:07.829> NF 00:28:08.089 --> 00:28:08.099 align:start position:0% here like plasma cash the assets are NF 00:28:08.099 --> 00:28:10.279 align:start position:0% here like plasma cash the assets are NF TS<00:28:08.339> but<00:28:08.729> assets<00:28:09.059> are<00:28:09.149> also<00:28:09.269> payment<00:28:09.899> channels 00:28:10.279 --> 00:28:10.289 align:start position:0% TS but assets are also payment channels 00:28:10.289 --> 00:28:12.499 align:start position:0% TS but assets are also payment channels that<00:28:10.710> exchange<00:28:11.099> between<00:28:11.159> users<00:28:11.729> and<00:28:11.969> in 00:28:12.499 --> 00:28:12.509 align:start position:0% that exchange between users and in 00:28:12.509 --> 00:28:13.680 align:start position:0% that exchange between users and in between<00:28:12.809> users<00:28:13.139> and<00:28:13.169> one 00:28:13.680 --> 00:28:13.690 align:start position:0% between users and one 00:28:13.690 --> 00:28:16.799 align:start position:0% between users and one -<00:28:13.840> validator<00:28:14.309> this<00:28:15.309> is<00:28:15.490> very<00:28:15.669> complicated<00:28:15.970> and 00:28:16.799 --> 00:28:16.809 align:start position:0% - validator this is very complicated and 00:28:16.809 --> 00:28:18.119 align:start position:0% - validator this is very complicated and there's<00:28:16.960> a<00:28:17.049> lot<00:28:17.230> of<00:28:17.320> active<00:28:17.649> work<00:28:17.799> being<00:28:18.039> done 00:28:18.119 --> 00:28:18.129 align:start position:0% there's a lot of active work being done 00:28:18.129 --> 00:28:20.039 align:start position:0% there's a lot of active work being done on<00:28:18.490> kind<00:28:18.820> of<00:28:18.909> like<00:28:19.059> refining<00:28:19.659> these<00:28:19.750> different 00:28:20.039 --> 00:28:20.049 align:start position:0% on kind of like refining these different 00:28:20.049 --> 00:28:22.200 align:start position:0% on kind of like refining these different designs<00:28:20.320> trying<00:28:20.799> out<00:28:20.950> new<00:28:20.980> ones<00:28:21.340> figuring<00:28:22.090> out 00:28:22.200 --> 00:28:22.210 align:start position:0% designs trying out new ones figuring out 00:28:22.210 --> 00:28:23.490 align:start position:0% designs trying out new ones figuring out kind<00:28:22.330> of<00:28:22.419> like<00:28:22.570> we're<00:28:22.750> in<00:28:22.870> the<00:28:22.960> full<00:28:23.169> spectrum 00:28:23.490 --> 00:28:23.500 align:start position:0% kind of like we're in the full spectrum 00:28:23.500 --> 00:28:25.529 align:start position:0% kind of like we're in the full spectrum of<00:28:23.710> plasma<00:28:24.190> there's<00:28:24.759> something<00:28:25.120> that<00:28:25.149> makes 00:28:25.529 --> 00:28:25.539 align:start position:0% of plasma there's something that makes 00:28:25.539 --> 00:28:28.200 align:start position:0% of plasma there's something that makes sense<00:28:25.750> for<00:28:25.809> different<00:28:26.110> applications<00:28:27.210> there 00:28:28.200 --> 00:28:28.210 align:start position:0% sense for different applications there 00:28:28.210 --> 00:28:30.539 align:start position:0% sense for different applications there are<00:28:28.240> four<00:28:28.570> talks<00:28:28.840> at<00:28:29.139> least<00:28:29.559> about<00:28:29.919> plasma<00:28:30.129> at 00:28:30.539 --> 00:28:30.549 align:start position:0% are four talks at least about plasma at 00:28:30.549 --> 00:28:33.060 align:start position:0% are four talks at least about plasma at Def<00:28:31.059> Con<00:28:31.090> this<00:28:31.419> year<00:28:31.690> again<00:28:32.500> none<00:28:32.950> of<00:28:32.980> these 00:28:33.060 --> 00:28:33.070 align:start position:0% Def Con this year again none of these 00:28:33.070 --> 00:28:34.710 align:start position:0% Def Con this year again none of these overlap<00:28:33.429> and<00:28:33.669> none<00:28:33.879> of<00:28:33.909> them<00:28:34.090> overlap<00:28:34.389> with 00:28:34.710 --> 00:28:34.720 align:start position:0% overlap and none of them overlap with 00:28:34.720 --> 00:28:36.330 align:start position:0% overlap and none of them overlap with the<00:28:34.779> state<00:28:34.960> channel<00:28:35.259> stuff<00:28:35.470> either<00:28:35.830> so<00:28:36.159> if<00:28:36.250> you 00:28:36.330 --> 00:28:36.340 align:start position:0% the state channel stuff either so if you 00:28:36.340 --> 00:28:38.310 align:start position:0% the state channel stuff either so if you just<00:28:36.490> want<00:28:36.700> to<00:28:36.759> spend<00:28:37.029> a<00:28:37.269> week<00:28:37.720> learning<00:28:38.049> layer 00:28:38.310 --> 00:28:38.320 align:start position:0% just want to spend a week learning layer 00:28:38.320 --> 00:28:40.799 align:start position:0% just want to spend a week learning layer two<00:28:38.620> I<00:28:38.919> encourage<00:28:39.669> you<00:28:39.730> to<00:28:39.820> do<00:28:39.940> that 00:28:40.799 --> 00:28:40.809 align:start position:0% two I encourage you to do that 00:28:40.809 --> 00:28:42.060 align:start position:0% two I encourage you to do that and<00:28:41.019> I<00:28:41.259> encourage<00:28:41.529> you<00:28:41.559> to<00:28:41.649> check<00:28:41.740> these<00:28:41.919> out 00:28:42.060 --> 00:28:42.070 align:start position:0% and I encourage you to check these out 00:28:42.070 --> 00:28:45.240 align:start position:0% and I encourage you to check these out all<00:28:42.370> of<00:28:42.429> these<00:28:42.669> talks<00:28:42.940> are<00:28:43.210> on<00:28:43.419> Friday<00:28:44.250> so 00:28:45.240 --> 00:28:45.250 align:start position:0% all of these talks are on Friday so 00:28:45.250 --> 00:28:47.009 align:start position:0% all of these talks are on Friday so let's<00:28:45.789> wrap<00:28:45.940> it<00:28:46.000> up<00:28:46.210> with<00:28:46.419> just<00:28:46.539> kind<00:28:46.690> of<00:28:46.779> what 00:28:47.009 --> 00:28:47.019 align:start position:0% let's wrap it up with just kind of what 00:28:47.019 --> 00:28:49.230 align:start position:0% let's wrap it up with just kind of what is<00:28:47.110> the<00:28:47.139> big<00:28:47.350> picture<00:28:47.529> here<00:28:47.950> what<00:28:48.909> I<00:28:48.940> want<00:28:49.090> you 00:28:49.230 --> 00:28:49.240 align:start position:0% is the big picture here what I want you 00:28:49.240 --> 00:28:50.700 align:start position:0% is the big picture here what I want you to<00:28:49.330> take<00:28:49.450> away<00:28:49.659> from<00:28:49.720> this<00:28:49.960> is<00:28:50.200> that<00:28:50.259> if 00:28:50.700 --> 00:28:50.710 align:start position:0% to take away from this is that if 00:28:50.710 --> 00:28:53.159 align:start position:0% to take away from this is that if theorems<00:28:51.159> programmable<00:28:52.000> blockchain<00:28:52.480> is<00:28:52.659> not 00:28:53.159 --> 00:28:53.169 align:start position:0% theorems programmable blockchain is not 00:28:53.169 --> 00:28:55.590 align:start position:0% theorems programmable blockchain is not just<00:28:53.409> useful<00:28:53.620> for<00:28:53.980> running<00:28:54.190> gaps<00:28:54.429> it<00:28:55.419> also 00:28:55.590 --> 00:28:55.600 align:start position:0% just useful for running gaps it also 00:28:55.600 --> 00:28:57.509 align:start position:0% just useful for running gaps it also gives<00:28:55.929> us<00:28:56.049> this<00:28:56.200> incredible<00:28:56.830> performance 00:28:57.509 --> 00:28:57.519 align:start position:0% gives us this incredible performance 00:28:57.519 --> 00:28:59.940 align:start position:0% gives us this incredible performance toolkit<00:28:58.120> the<00:28:58.480> fact<00:28:58.690> that<00:28:58.779> we<00:28:58.960> can<00:28:59.259> create<00:28:59.679> any 00:28:59.940 --> 00:28:59.950 align:start position:0% toolkit the fact that we can create any 00:28:59.950 --> 00:29:01.850 align:start position:0% toolkit the fact that we can create any sort<00:29:00.190> of<00:29:00.279> mechanism<00:29:00.429> you<00:29:00.789> want<00:29:01.000> on<00:29:01.210> aetherium 00:29:01.850 --> 00:29:01.860 align:start position:0% sort of mechanism you want on aetherium 00:29:01.860 --> 00:29:04.320 align:start position:0% sort of mechanism you want on aetherium because<00:29:02.860> the<00:29:03.009> theorem<00:29:03.279> is<00:29:03.399> programmable<00:29:03.850> we 00:29:04.320 --> 00:29:04.330 align:start position:0% because the theorem is programmable we 00:29:04.330 --> 00:29:06.269 align:start position:0% because the theorem is programmable we can<00:29:04.539> write<00:29:04.750> software<00:29:05.080> that<00:29:05.679> enforces 00:29:06.269 --> 00:29:06.279 align:start position:0% can write software that enforces 00:29:06.279 --> 00:29:08.759 align:start position:0% can write software that enforces economic<00:29:06.940> payoffs<00:29:07.299> and<00:29:07.600> penalties<00:29:08.019> and<00:29:08.230> we've 00:29:08.759 --> 00:29:08.769 align:start position:0% economic payoffs and penalties and we've 00:29:08.769 --> 00:29:10.740 align:start position:0% economic payoffs and penalties and we've learned<00:29:09.100> now<00:29:09.309> that<00:29:09.639> these<00:29:09.759> mechanisms<00:29:10.269> can 00:29:10.740 --> 00:29:10.750 align:start position:0% learned now that these mechanisms can 00:29:10.750 --> 00:29:14.009 align:start position:0% learned now that these mechanisms can let<00:29:10.990> applications<00:29:12.090> retain<00:29:13.090> the<00:29:13.269> security<00:29:13.809> and 00:29:14.009 --> 00:29:14.019 align:start position:0% let applications retain the security and 00:29:14.019 --> 00:29:16.049 align:start position:0% let applications retain the security and authoritative<00:29:14.830> nough<00:29:15.129> subdomain<00:29:15.669> chain 00:29:16.049 --> 00:29:16.059 align:start position:0% authoritative nough subdomain chain 00:29:16.059 --> 00:29:17.970 align:start position:0% authoritative nough subdomain chain while<00:29:16.509> still<00:29:16.779> achieving<00:29:16.960> the<00:29:17.409> benefits<00:29:17.799> of 00:29:17.970 --> 00:29:17.980 align:start position:0% while still achieving the benefits of 00:29:17.980 --> 00:29:21.240 align:start position:0% while still achieving the benefits of off<00:29:18.190> chain<00:29:18.370> execution<00:29:18.970> that's<00:29:19.809> amazing<00:29:20.529> and 00:29:21.240 --> 00:29:21.250 align:start position:0% off chain execution that's amazing and 00:29:21.250 --> 00:29:23.519 align:start position:0% off chain execution that's amazing and it's<00:29:21.460> also<00:29:21.669> only<00:29:22.000> the<00:29:22.330> start<00:29:22.659> state<00:29:23.230> channels 00:29:23.519 --> 00:29:23.529 align:start position:0% it's also only the start state channels 00:29:23.529 --> 00:29:25.080 align:start position:0% it's also only the start state channels and<00:29:23.679> Plasma<00:29:24.039> are<00:29:24.250> probably<00:29:24.519> best<00:29:24.730> understood 00:29:25.080 --> 00:29:25.090 align:start position:0% and Plasma are probably best understood 00:29:25.090 --> 00:29:26.879 align:start position:0% and Plasma are probably best understood as<00:29:25.149> different<00:29:25.809> points<00:29:26.110> on<00:29:26.169> a<00:29:26.230> spectrum<00:29:26.649> of 00:29:26.879 --> 00:29:26.889 align:start position:0% as different points on a spectrum of 00:29:26.889 --> 00:29:28.889 align:start position:0% as different points on a spectrum of using<00:29:27.429> this<00:29:27.519> general<00:29:27.970> technique<00:29:28.360> of<00:29:28.509> using 00:29:28.889 --> 00:29:28.899 align:start position:0% using this general technique of using 00:29:28.899 --> 00:29:30.930 align:start position:0% using this general technique of using crypto<00:29:29.200> economics<00:29:29.649> to<00:29:29.980> ground<00:29:30.309> off<00:29:30.669> chain 00:29:30.930 --> 00:29:30.940 align:start position:0% crypto economics to ground off chain 00:29:30.940 --> 00:29:33.480 align:start position:0% crypto economics to ground off chain processes<00:29:31.419> in<00:29:31.870> the<00:29:32.139> security<00:29:32.620> of<00:29:32.649> layer<00:29:32.950> 1<00:29:33.070> and 00:29:33.480 --> 00:29:33.490 align:start position:0% processes in the security of layer 1 and 00:29:33.490 --> 00:29:35.999 align:start position:0% processes in the security of layer 1 and all<00:29:34.299> the<00:29:34.629> time<00:29:34.870> work<00:29:35.169> time<00:29:35.320> developing<00:29:35.799> new 00:29:35.999 --> 00:29:36.009 align:start position:0% all the time work time developing new 00:29:36.009 --> 00:29:38.070 align:start position:0% all the time work time developing new ways<00:29:36.129> to<00:29:36.370> do<00:29:36.490> this<00:29:36.669> all<00:29:36.940> the<00:29:37.269> time<00:29:37.480> people<00:29:37.840> are 00:29:38.070 --> 00:29:38.080 align:start position:0% ways to do this all the time people are 00:29:38.080 --> 00:29:39.450 align:start position:0% ways to do this all the time people are looking<00:29:38.470> at<00:29:38.590> state<00:29:38.769> channels<00:29:39.100> and<00:29:39.190> looking<00:29:39.370> at 00:29:39.450 --> 00:29:39.460 align:start position:0% looking at state channels and looking at 00:29:39.460 --> 00:29:41.190 align:start position:0% looking at state channels and looking at plasma<00:29:39.850> and<00:29:40.029> finding<00:29:40.539> refinements<00:29:41.080> the 00:29:41.190 --> 00:29:41.200 align:start position:0% plasma and finding refinements the 00:29:41.200 --> 00:29:42.899 align:start position:0% plasma and finding refinements the design<00:29:41.470> finding<00:29:42.070> points<00:29:42.370> between<00:29:42.549> them 00:29:42.899 --> 00:29:42.909 align:start position:0% design finding points between them 00:29:42.909 --> 00:29:44.190 align:start position:0% design finding points between them finding<00:29:43.450> points<00:29:43.809> where<00:29:43.899> they<00:29:43.990> can<00:29:44.110> work 00:29:44.190 --> 00:29:44.200 align:start position:0% finding points where they can work 00:29:44.200 --> 00:29:46.350 align:start position:0% finding points where they can work together<00:29:44.440> so<00:29:45.429> I<00:29:45.460> think<00:29:45.549> there's<00:29:45.759> a<00:29:45.820> lot<00:29:46.029> more 00:29:46.350 --> 00:29:46.360 align:start position:0% together so I think there's a lot more 00:29:46.360 --> 00:29:48.090 align:start position:0% together so I think there's a lot more in<00:29:46.600> this<00:29:46.750> new<00:29:46.809> design<00:29:47.169> space<00:29:47.440> and<00:29:47.740> I<00:29:47.799> think<00:29:47.980> the 00:29:48.090 --> 00:29:48.100 align:start position:0% in this new design space and I think the 00:29:48.100 --> 00:29:50.279 align:start position:0% in this new design space and I think the future<00:29:48.340> is<00:29:48.460> very<00:29:48.490> bright<00:29:48.700> for<00:29:49.029> later<00:29:49.210> -<00:29:49.450> thank 00:29:50.279 --> 00:29:50.289 align:start position:0% future is very bright for later - thank 00:29:50.289 --> 00:29:51.749 align:start position:0% future is very bright for later - thank you<00:29:50.379> for<00:29:50.529> coming<00:29:50.740> to<00:29:50.799> this<00:29:50.889> talk<00:29:51.100> I<00:29:51.399> hope<00:29:51.639> it 00:29:51.749 --> 00:29:51.759 align:start position:0% you for coming to this talk I hope it 00:29:51.759 --> 00:29:56.530 align:start position:0% you for coming to this talk I hope it was<00:29:51.879> useful<00:29:51.909> and<00:29:52.450> enjoy<00:29:52.720> the<00:29:52.840> rest<00:29:52.929> of<00:29:53.049> DEFCON 00:29:56.530 --> 00:29:56.540 align:start position:0% 00:29:56.540 --> 00:30:07.940 align:start position:0% you 00:30:07.940 --> 00:30:07.950 align:start position:0% 00:30:07.950 --> 00:30:10.010 align:start position:0% you