WEBVTT Kind: captions Language: en 00:00:00.170 --> 00:00:03.830 align:start position:0% hey<00:00:01.170> everyone<00:00:01.580> I'm<00:00:02.580> Phil<00:00:02.850> Diane<00:00:03.179> and<00:00:03.449> I<00:00:03.689> am<00:00:03.810> a 00:00:03.830 --> 00:00:03.840 align:start position:0% hey everyone I'm Phil Diane and I am a 00:00:03.840 --> 00:00:06.200 align:start position:0% hey everyone I'm Phil Diane and I am a PhD<00:00:04.319> student<00:00:04.560> at<00:00:05.009> Cornell<00:00:05.130> Tech<00:00:05.490> and<00:00:05.730> I<00:00:06.000> see 00:00:06.200 --> 00:00:06.210 align:start position:0% PhD student at Cornell Tech and I see 00:00:06.210 --> 00:00:07.249 align:start position:0% PhD student at Cornell Tech and I see three<00:00:06.420> and<00:00:06.569> I'm<00:00:06.629> gonna<00:00:06.750> be<00:00:06.899> talking<00:00:07.200> about 00:00:07.249 --> 00:00:07.259 align:start position:0% three and I'm gonna be talking about 00:00:07.259 --> 00:00:08.990 align:start position:0% three and I'm gonna be talking about smart<00:00:07.649> contract<00:00:08.099> security<00:00:08.550> incentives 00:00:08.990 --> 00:00:09.000 align:start position:0% smart contract security incentives 00:00:09.000 --> 00:00:10.850 align:start position:0% smart contract security incentives beyond<00:00:09.210> the<00:00:09.300> launch<00:00:09.480> so<00:00:10.469> let's<00:00:10.650> just<00:00:10.769> get 00:00:10.850 --> 00:00:10.860 align:start position:0% beyond the launch so let's just get 00:00:10.860 --> 00:00:12.560 align:start position:0% beyond the launch so let's just get right<00:00:10.980> into<00:00:11.040> it<00:00:11.280> what<00:00:11.759> is<00:00:11.910> security 00:00:12.560 --> 00:00:12.570 align:start position:0% right into it what is security 00:00:12.570 --> 00:00:14.690 align:start position:0% right into it what is security recently<00:00:13.290> I<00:00:13.349> was<00:00:13.559> lucky<00:00:13.889> enough<00:00:13.920> to<00:00:14.130> attend 00:00:14.690 --> 00:00:14.700 align:start position:0% recently I was lucky enough to attend 00:00:14.700 --> 00:00:16.189 align:start position:0% recently I was lucky enough to attend this<00:00:14.790> fascinating<00:00:15.299> talk<00:00:15.570> at<00:00:15.750> the<00:00:15.870> USENIX 00:00:16.189 --> 00:00:16.199 align:start position:0% this fascinating talk at the USENIX 00:00:16.199 --> 00:00:17.750 align:start position:0% this fascinating talk at the USENIX Security<00:00:16.560> Summit<00:00:16.859> which<00:00:16.980> is<00:00:17.070> a<00:00:17.100> gathering<00:00:17.340> of 00:00:17.750 --> 00:00:17.760 align:start position:0% Security Summit which is a gathering of 00:00:17.760 --> 00:00:20.540 align:start position:0% Security Summit which is a gathering of professionals<00:00:18.390> and<00:00:18.510> academics<00:00:18.770> by<00:00:19.770> James 00:00:20.540 --> 00:00:20.550 align:start position:0% professionals and academics by James 00:00:20.550 --> 00:00:22.490 align:start position:0% professionals and academics by James Mickens<00:00:20.939> from<00:00:21.150> Harvard<00:00:21.480> University<00:00:21.570> so<00:00:22.470> I 00:00:22.490 --> 00:00:22.500 align:start position:0% Mickens from Harvard University so I 00:00:22.500 --> 00:00:23.810 align:start position:0% Mickens from Harvard University so I know<00:00:22.619> the<00:00:22.800> title<00:00:23.070> is<00:00:23.189> long<00:00:23.340> but<00:00:23.519> if<00:00:23.609> you<00:00:23.699> google 00:00:23.810 --> 00:00:23.820 align:start position:0% know the title is long but if you google 00:00:23.820 --> 00:00:25.700 align:start position:0% know the title is long but if you google James<00:00:24.180> Mickens<00:00:24.539> you<00:00:24.660> can<00:00:24.779> find<00:00:24.990> this<00:00:25.109> talk<00:00:25.350> and 00:00:25.700 --> 00:00:25.710 align:start position:0% James Mickens you can find this talk and 00:00:25.710 --> 00:00:27.080 align:start position:0% James Mickens you can find this talk and I'm<00:00:25.980> actually<00:00:26.070> gonna<00:00:26.279> steal<00:00:26.670> all<00:00:26.880> his 00:00:27.080 --> 00:00:27.090 align:start position:0% I'm actually gonna steal all his 00:00:27.090 --> 00:00:29.750 align:start position:0% I'm actually gonna steal all his philosophical<00:00:27.750> insights<00:00:28.170> for<00:00:28.380> my<00:00:28.500> talk<00:00:28.760> so 00:00:29.750 --> 00:00:29.760 align:start position:0% philosophical insights for my talk so 00:00:29.760 --> 00:00:31.130 align:start position:0% philosophical insights for my talk so sort<00:00:29.970> of<00:00:30.029> classically<00:00:30.599> when<00:00:30.689> we<00:00:30.840> define 00:00:31.130 --> 00:00:31.140 align:start position:0% sort of classically when we define 00:00:31.140 --> 00:00:33.680 align:start position:0% sort of classically when we define security<00:00:31.470> as<00:00:31.769> a<00:00:31.800> community<00:00:32.279> we've<00:00:33.149> looked<00:00:33.510> at 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wanting<00:00:40.980> to<00:00:41.250> make 00:00:41.360 --> 00:00:41.370 align:start position:0% originally motivated by wanting to make 00:00:41.370 --> 00:00:43.940 align:start position:0% originally motivated by wanting to make statements<00:00:41.879> like<00:00:42.260> coder<00:00:43.260> who<00:00:43.590> is<00:00:43.710> on<00:00:43.860> the 00:00:43.940 --> 00:00:43.950 align:start position:0% statements like coder who is on the 00:00:43.950 --> 00:00:45.229 align:start position:0% statements like coder who is on the other<00:00:44.010> side<00:00:44.309> of<00:00:44.399> the<00:00:44.520> Iron<00:00:44.730> Curtain<00:00:44.910> in<00:00:45.120> his 00:00:45.229 --> 00:00:45.239 align:start position:0% other side of the Iron Curtain in his 00:00:45.239 --> 00:00:47.330 align:start position:0% other side of the Iron Curtain in his bad<00:00:45.420> cannot<00:00:46.200> use<00:00:46.379> the<00:00:46.559> login<00:00:46.739> daemon<00:00:47.190> to 00:00:47.330 --> 00:00:47.340 align:start position:0% bad cannot use the login daemon to 00:00:47.340 --> 00:00:49.729 align:start position:0% bad cannot use the login daemon to access<00:00:47.700> the<00:00:47.879> US<00:00:48.120> government<00:00:48.539> ARPANET<00:00:48.930> and 00:00:49.729 --> 00:00:49.739 align:start position:0% access the US government ARPANET and 00:00:49.739 --> 00:00:51.500 align:start position:0% access the US government ARPANET and this<00:00:50.100> definition<00:00:50.460> sort<00:00:50.700> of<00:00:50.820> naturally<00:00:51.270> has 00:00:51.500 --> 00:00:51.510 align:start position:0% this definition sort of naturally has 00:00:51.510 --> 00:00:53.240 align:start position:0% this definition sort of naturally has been<00:00:51.719> adopted<00:00:52.170> by<00:00:52.320> the<00:00:52.350> the<00:00:52.860> block<00:00:53.070> chain 00:00:53.240 --> 00:00:53.250 align:start position:0% been adopted by the the block chain 00:00:53.250 --> 00:00:55.069 align:start position:0% been adopted by the the block chain space<00:00:53.550> and<00:00:53.579> extends<00:00:54.180> into<00:00:54.239> this<00:00:54.390> space<00:00:54.629> saying 00:00:55.069 --> 00:00:55.079 align:start position:0% space and extends into this space saying 00:00:55.079 --> 00:00:57.110 align:start position:0% space and extends into this space saying things<00:00:55.320> like<00:00:55.410> killer<00:00:56.280> who's<00:00:56.579> the<00:00:56.699> DAO<00:00:56.850> hacker 00:00:57.110 --> 00:00:57.120 align:start position:0% things like killer who's the DAO hacker 00:00:57.120 --> 00:00:59.450 align:start position:0% things like killer who's the DAO hacker cannot<00:00:57.930> use<00:00:58.079> reentrant<00:00:58.559> c<00:00:58.739> to<00:00:59.010> access<00:00:59.309> my 00:00:59.450 --> 00:00:59.460 align:start position:0% cannot use reentrant c to access my 00:00:59.460 --> 00:01:02.119 align:start position:0% cannot use reentrant c to access my tokens<00:00:59.879> or<00:01:00.120> can't<00:01:00.840> use<00:01:00.989> overflow<00:01:01.680> to<00:01:01.739> access 00:01:02.119 --> 00:01:02.129 align:start position:0% tokens or can't use overflow to access 00:01:02.129 --> 00:01:04.969 align:start position:0% tokens or can't use overflow to access my<00:01:02.250> tokens<00:01:02.640> or<00:01:02.789> self-destruct<00:01:03.769> so<00:01:04.769> in<00:01:04.890> the 00:01:04.969 --> 00:01:04.979 align:start position:0% my tokens or self-destruct so in the 00:01:04.979 --> 00:01:06.440 align:start position:0% my tokens or self-destruct so in the last<00:01:05.129> two<00:01:05.250> years<00:01:05.339> we've<00:01:05.760> gotten<00:01:06.030> a<00:01:06.090> lot<00:01:06.210> right 00:01:06.440 --> 00:01:06.450 align:start position:0% last two years we've gotten a lot right 00:01:06.450 --> 00:01:07.760 align:start position:0% last two years we've gotten a lot right with<00:01:06.630> regards<00:01:06.960> to<00:01:07.020> this<00:01:07.110> notion<00:01:07.439> of<00:01:07.530> security 00:01:07.760 --> 00:01:07.770 align:start position:0% with regards to this notion of security 00:01:07.770 --> 00:01:10.100 align:start position:0% with regards to this notion of security so<00:01:08.610> two<00:01:08.670> years<00:01:09.030> ago<00:01:09.420> was<00:01:09.600> sort<00:01:09.780> of<00:01:09.840> the<00:01:09.930> eve<00:01:10.080> of 00:01:10.100 --> 00:01:10.110 align:start position:0% so two years ago was sort of the eve of 00:01:10.110 --> 00:01:12.020 align:start position:0% so two years ago was sort of the eve of the<00:01:10.380> DAO<00:01:10.530> hack<00:01:10.799> and<00:01:11.100> it<00:01:11.250> still<00:01:11.490> wasn't<00:01:11.850> even 00:01:12.020 --> 00:01:12.030 align:start position:0% the DAO hack and it still wasn't even 00:01:12.030 --> 00:01:13.460 align:start position:0% the DAO hack and it still wasn't even clear<00:01:12.210> whether<00:01:12.420> we<00:01:12.630> would<00:01:12.750> be<00:01:12.869> able<00:01:13.020> to<00:01:13.200> build 00:01:13.460 --> 00:01:13.470 align:start position:0% clear whether we would be able to build 00:01:13.470 --> 00:01:15.950 align:start position:0% clear whether we would be able to build secure<00:01:13.799> smart<00:01:14.070> contracts<00:01:14.460> at<00:01:14.610> all<00:01:14.760> since<00:01:15.750> then 00:01:15.950 --> 00:01:15.960 align:start position:0% secure smart contracts at all since then 00:01:15.960 --> 00:01:17.450 align:start position:0% secure smart contracts at all since then we've<00:01:16.140> seen<00:01:16.350> sort<00:01:16.590> of<00:01:16.619> this<00:01:16.740> blossoming<00:01:17.310> of 00:01:17.450 --> 00:01:17.460 align:start position:0% we've seen sort of this blossoming of 00:01:17.460 --> 00:01:19.190 align:start position:0% we've seen sort of this blossoming of project<00:01:17.880> projects<00:01:18.299> many<00:01:18.840> of<00:01:18.960> whom<00:01:19.110> are 00:01:19.190 --> 00:01:19.200 align:start position:0% project projects many of whom are 00:01:19.200 --> 00:01:21.020 align:start position:0% project projects many of whom are talking<00:01:19.530> here<00:01:19.680> including<00:01:20.220> hydro<00:01:20.610> projects 00:01:21.020 --> 00:01:21.030 align:start position:0% talking here including hydro projects 00:01:21.030 --> 00:01:23.539 align:start position:0% talking here including hydro projects sakura<00:01:21.360> phi<00:01:21.540> mithril<00:01:22.290> new<00:01:22.920> languages<00:01:23.369> like 00:01:23.539 --> 00:01:23.549 align:start position:0% sakura phi mithril new languages like 00:01:23.549 --> 00:01:26.300 align:start position:0% sakura phi mithril new languages like VIPRE<00:01:23.820> the<00:01:24.509> Kay<00:01:24.689> framework<00:01:25.140> say<00:01:25.920> hi<00:01:26.070> to<00:01:26.130> the 00:01:26.300 --> 00:01:26.310 align:start position:0% VIPRE the Kay framework say hi to the 00:01:26.310 --> 00:01:28.460 align:start position:0% VIPRE the Kay framework say hi to the runtime<00:01:26.610> verification<00:01:27.240> booth<00:01:27.420> and<00:01:27.630> Manticore 00:01:28.460 --> 00:01:28.470 align:start position:0% runtime verification booth and Manticore 00:01:28.470 --> 00:01:31.760 align:start position:0% runtime verification booth and Manticore and<00:01:28.650> many<00:01:28.799> more<00:01:29.000> and<00:01:30.000> we've<00:01:30.329> also<00:01:30.540> seen<00:01:30.930> a<00:01:31.320> wide 00:01:31.760 --> 00:01:31.770 align:start position:0% and many more and we've also seen a wide 00:01:31.770 --> 00:01:34.219 align:start position:0% and many more and we've also seen a wide wide<00:01:32.009> variety<00:01:32.610> of<00:01:32.640> publications<00:01:33.360> about<00:01:33.689> smart 00:01:34.219 --> 00:01:34.229 align:start position:0% wide variety of publications about smart 00:01:34.229 --> 00:01:36.350 align:start position:0% wide variety of publications about smart contract<00:01:34.619> security<00:01:35.070> smart<00:01:35.729> contract<00:01:36.090> formal 00:01:36.350 --> 00:01:36.360 align:start position:0% contract security smart contract formal 00:01:36.360 --> 00:01:38.780 align:start position:0% contract security smart contract formal verification<00:01:36.540> and<00:01:37.140> more<00:01:37.500> so<00:01:38.250> unlike<00:01:38.579> two 00:01:38.780 --> 00:01:38.790 align:start position:0% verification and more so unlike two 00:01:38.790 --> 00:01:40.730 align:start position:0% verification and more so unlike two years<00:01:39.030> ago<00:01:39.270> we<00:01:39.450> have<00:01:39.570> a<00:01:39.600> range<00:01:39.930> of<00:01:40.140> tools<00:01:40.320> a 00:01:40.730 --> 00:01:40.740 align:start position:0% years ago we have a range of tools a 00:01:40.740 --> 00:01:42.770 align:start position:0% years ago we have a range of tools a robust<00:01:41.610> audit<00:01:41.970> community<00:01:42.360> in<00:01:42.450> a<00:01:42.509> robust 00:01:42.770 --> 00:01:42.780 align:start position:0% robust audit community in a robust 00:01:42.780 --> 00:01:45.319 align:start position:0% robust audit community in a robust culture<00:01:43.229> a<00:01:43.470> deep<00:01:44.130> toolkit<00:01:44.579> of<00:01:44.610> formal<00:01:45.030> methods 00:01:45.319 --> 00:01:45.329 align:start position:0% culture a deep toolkit of formal methods 00:01:45.329 --> 00:01:47.810 align:start position:0% culture a deep toolkit of formal methods much<00:01:46.049> better<00:01:46.320> testing<00:01:46.770> practices<00:01:47.340> and<00:01:47.549> higher 00:01:47.810 --> 00:01:47.820 align:start position:0% much better testing practices and higher 00:01:47.820 --> 00:01:49.700 align:start position:0% much better testing practices and higher standards<00:01:48.360> now<00:01:48.899> that's<00:01:49.079> not<00:01:49.229> to<00:01:49.350> say<00:01:49.380> we're 00:01:49.700 --> 00:01:49.710 align:start position:0% standards now that's not to say we're 00:01:49.710 --> 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and<00:01:56.850> give<00:01:57.210> ourselves<00:01:57.360> a<00:01:57.689> pat<00:01:57.719> on 00:01:57.889 --> 00:01:57.899 align:start position:0% keep calm and give ourselves a pat on 00:01:57.899 --> 00:01:58.459 align:start position:0% keep calm and give ourselves a pat on the<00:01:58.049> back 00:01:58.459 --> 00:01:58.469 align:start position:0% the back 00:01:58.469 --> 00:02:01.130 align:start position:0% the back all<00:01:59.310> right<00:01:59.640> great<00:01:59.850> and<00:02:00.060> that<00:02:00.689> concludes<00:02:01.020> the 00:02:01.130 --> 00:02:01.140 align:start position:0% all right great and that concludes the 00:02:01.140 --> 00:02:05.240 align:start position:0% all right great and that concludes the talk<00:02:01.320> thank<00:02:01.590> you<00:02:01.680> guys<00:02:01.799> very<00:02:01.920> much<00:02:03.979> I'm<00:02:04.979> just 00:02:05.240 --> 00:02:05.250 align:start position:0% talk thank you guys very much I'm just 00:02:05.250 --> 00:02:06.289 align:start position:0% talk thank you guys very much I'm just kidding<00:02:05.490> because<00:02:05.579> that<00:02:05.790> would<00:02:05.939> be<00:02:06.060> ignoring 00:02:06.289 --> 00:02:06.299 align:start position:0% kidding because that would be ignoring 00:02:06.299 --> 00:02:08.660 align:start position:0% kidding because that would be ignoring the<00:02:06.659> dumpster<00:02:06.990> fire<00:02:07.170> in<00:02:07.380> the<00:02:07.469> corner<00:02:07.829> and<00:02:08.039> that 00:02:08.660 --> 00:02:08.670 align:start position:0% the dumpster fire in the corner and that 00:02:08.670 --> 00:02:10.669 align:start position:0% the dumpster fire in the corner and that is<00:02:08.879> the<00:02:09.179> way<00:02:09.300> I<00:02:09.330> see<00:02:09.539> Oh<00:02:09.750> incentives<00:02:10.349> are<00:02:10.470> set 00:02:10.669 --> 00:02:10.679 align:start position:0% is the way I see Oh incentives are set 00:02:10.679 --> 00:02:12.619 align:start position:0% is the way I see Oh incentives are set up<00:02:10.860> to<00:02:11.099> create<00:02:11.550> a<00:02:11.670> security<00:02:12.060> culture<00:02:12.300> in<00:02:12.510> this 00:02:12.619 --> 00:02:12.629 align:start position:0% up to create a security culture in this 00:02:12.629 --> 00:02:13.670 align:start position:0% up to create a security culture in this space 00:02:13.670 --> 00:02:13.680 align:start position:0% space 00:02:13.680 --> 00:02:15.709 align:start position:0% space up<00:02:13.829> until<00:02:14.010> now<00:02:14.310> most<00:02:14.579> community<00:02:15.180> attention 00:02:15.709 --> 00:02:15.719 align:start position:0% up until now most community attention 00:02:15.719 --> 00:02:17.240 align:start position:0% up until now most community attention and<00:02:15.870> audit<00:02:16.140> attention<00:02:16.560> has<00:02:16.769> focused<00:02:17.159> on 00:02:17.240 --> 00:02:17.250 align:start position:0% and audit attention has focused on 00:02:17.250 --> 00:02:20.059 align:start position:0% and audit attention has focused on tokens<00:02:17.760> icos<00:02:18.689> and<00:02:19.049> other<00:02:19.200> form<00:02:19.560> of<00:02:19.709> launched 00:02:20.059 --> 00:02:20.069 align:start position:0% tokens icos and other form of launched 00:02:20.069 --> 00:02:22.580 align:start position:0% tokens icos and other form of launched once<00:02:20.459> walk<00:02:20.879> away<00:02:21.150> contracts<00:02:21.750> so<00:02:22.349> these<00:02:22.439> are 00:02:22.580 --> 00:02:22.590 align:start position:0% once walk away contracts so these are 00:02:22.590 --> 00:02:24.110 align:start position:0% once walk away contracts so these are contracts<00:02:22.950> that<00:02:23.010> you<00:02:23.159> stand<00:02:23.459> up<00:02:23.609> they<00:02:23.849> start 00:02:24.110 --> 00:02:24.120 align:start position:0% contracts that you stand up they start 00:02:24.120 --> 00:02:25.699 align:start position:0% contracts that you stand up they start running<00:02:24.269> and<00:02:24.659> then<00:02:24.840> they're<00:02:25.049> not<00:02:25.140> upgradeable 00:02:25.699 --> 00:02:25.709 align:start position:0% running and then they're not upgradeable 00:02:25.709 --> 00:02:27.259 align:start position:0% running and then they're not upgradeable so<00:02:25.859> you<00:02:25.950> kind<00:02:26.189> of<00:02:26.310> take<00:02:26.760> your<00:02:26.849> hands<00:02:27.120> off<00:02:27.239> and 00:02:27.259 --> 00:02:27.269 align:start position:0% so you kind of take your hands off and 00:02:27.269 --> 00:02:29.750 align:start position:0% so you kind of take your hands off and let<00:02:27.540> them<00:02:27.659> run<00:02:27.810> themselves<00:02:28.370> so<00:02:29.370> this<00:02:29.489> is<00:02:29.609> great 00:02:29.750 --> 00:02:29.760 align:start position:0% let them run themselves so this is great 00:02:29.760 --> 00:02:32.059 align:start position:0% let them run themselves so this is great for<00:02:29.790> some<00:02:30.120> sort<00:02:30.629> of<00:02:30.689> business<00:02:30.870> purposes<00:02:31.500> but 00:02:32.059 --> 00:02:32.069 align:start position:0% for some sort of business purposes but 00:02:32.069 --> 00:02:34.309 align:start position:0% for some sort of business purposes but unfortunately<00:02:32.879> it<00:02:33.629> creates<00:02:33.900> this<00:02:34.049> sort<00:02:34.260> of 00:02:34.309 --> 00:02:34.319 align:start position:0% unfortunately it creates this sort of 00:02:34.319 --> 00:02:36.440 align:start position:0% unfortunately it creates this sort of vicious<00:02:34.920> cycle<00:02:35.280> of<00:02:35.340> incentives<00:02:35.849> so<00:02:36.389> you 00:02:36.440 --> 00:02:36.450 align:start position:0% vicious cycle of incentives so you 00:02:36.450 --> 00:02:37.819 align:start position:0% vicious cycle of incentives so you launch<00:02:36.689> your<00:02:36.870> token<00:02:37.170> it<00:02:37.290> goes<00:02:37.409> to<00:02:37.560> the<00:02:37.650> moon 00:02:37.819 --> 00:02:37.829 align:start position:0% launch your token it goes to the moon 00:02:37.829 --> 00:02:40.160 align:start position:0% launch your token it goes to the moon you<00:02:38.159> pat<00:02:38.370> yourself<00:02:38.459> on<00:02:38.760> the<00:02:38.819> back<00:02:38.909> if<00:02:39.750> your<00:02:39.989> den 00:02:40.160 --> 00:02:40.170 align:start position:0% you pat yourself on the back if your den 00:02:40.170 --> 00:02:41.509 align:start position:0% you pat yourself on the back if your den Larimore<00:02:40.560> maybe<00:02:40.739> you<00:02:40.859> restart<00:02:41.280> that<00:02:41.370> whole 00:02:41.509 --> 00:02:41.519 align:start position:0% Larimore maybe you restart that whole 00:02:41.519 --> 00:02:44.839 align:start position:0% Larimore maybe you restart that whole process<00:02:41.879> a<00:02:41.909> few<00:02:42.030> times<00:02:42.180> and<00:02:43.730> what<00:02:44.730> does<00:02:44.819> that 00:02:44.839 --> 00:02:44.849 align:start position:0% process a few times and what does that 00:02:44.849 --> 00:02:46.819 align:start position:0% process a few times and what does that give<00:02:45.150> you<00:02:45.269> so<00:02:45.540> what<00:02:45.689> it<00:02:45.780> gives<00:02:45.810> you<00:02:46.109> is<00:02:46.139> lack<00:02:46.799> of 00:02:46.819 --> 00:02:46.829 align:start position:0% give you so what it gives you is lack of 00:02:46.829 --> 00:02:48.559 align:start position:0% give you so what it gives you is lack of in-house<00:02:47.280> security<00:02:47.760> experience<00:02:48.060> that<00:02:48.419> many 00:02:48.559 --> 00:02:48.569 align:start position:0% in-house security experience that many 00:02:48.569 --> 00:02:50.000 align:start position:0% in-house security experience that many of<00:02:48.689> these<00:02:48.780> projects<00:02:49.290> because<00:02:49.500> you<00:02:49.739> sort<00:02:49.919> of 00:02:50.000 --> 00:02:50.010 align:start position:0% of these projects because you sort of 00:02:50.010 --> 00:02:51.349 align:start position:0% of these projects because you sort of don't<00:02:50.220> need<00:02:50.370> to<00:02:50.519> engage<00:02:50.639> in<00:02:50.790> continual 00:02:51.349 --> 00:02:51.359 align:start position:0% don't need to engage in continual 00:02:51.359 --> 00:02:52.640 align:start position:0% don't need to engage in continual development<00:02:51.480> and<00:02:51.900> continual<00:02:52.260> security 00:02:52.640 --> 00:02:52.650 align:start position:0% development and continual security 00:02:52.650 --> 00:02:55.729 align:start position:0% development and continual security processes<00:02:53.120> it<00:02:54.120> gives<00:02:54.389> a<00:02:54.810> big<00:02:55.169> desire<00:02:55.470> for 00:02:55.729 --> 00:02:55.739 align:start position:0% processes it gives a big desire for 00:02:55.739 --> 00:02:57.409 align:start position:0% processes it gives a big desire for rubber-stamp<00:02:56.400> audits<00:02:56.669> to<00:02:56.730> sort<00:02:57.000> of<00:02:57.090> approve 00:02:57.409 --> 00:02:57.419 align:start position:0% rubber-stamp audits to sort of approve 00:02:57.419 --> 00:02:58.729 align:start position:0% rubber-stamp audits to sort of approve something<00:02:57.720> for<00:02:58.019> a<00:02:58.049> strict<00:02:58.379> production 00:02:58.729 --> 00:02:58.739 align:start position:0% something for a strict production 00:02:58.739 --> 00:03:00.920 align:start position:0% something for a strict production deadline<00:02:59.069> sign<00:02:59.730> off<00:02:59.909> on<00:02:59.939> it<00:03:00.150> and<00:03:00.359> defer<00:03:00.750> that 00:03:00.920 --> 00:03:00.930 align:start position:0% deadline sign off on it and defer that 00:03:00.930 --> 00:03:03.199 align:start position:0% deadline sign off on it and defer that risk<00:03:01.109> sort<00:03:01.379> of<00:03:01.439> on<00:03:01.590> to<00:03:01.739> someone<00:03:02.010> else<00:03:02.159> and<00:03:03.060> it 00:03:03.199 --> 00:03:03.209 align:start position:0% risk sort of on to someone else and it 00:03:03.209 --> 00:03:04.699 align:start position:0% risk sort of on to someone else and it gives<00:03:03.419> zero<00:03:03.689> incentive<00:03:04.139> to<00:03:04.230> set<00:03:04.379> up<00:03:04.469> the<00:03:04.560> kind 00:03:04.699 --> 00:03:04.709 align:start position:0% gives zero incentive to set up the kind 00:03:04.709 --> 00:03:06.170 align:start position:0% gives zero incentive to set up the kind of<00:03:04.769> security<00:03:05.010> life<00:03:05.280> cycle<00:03:05.609> processes<00:03:06.030> we<00:03:06.150> have 00:03:06.170 --> 00:03:06.180 align:start position:0% of security life cycle processes we have 00:03:06.180 --> 00:03:08.360 align:start position:0% of security life cycle processes we have in<00:03:06.389> the<00:03:06.480> space<00:03:06.709> so<00:03:07.709> I'm<00:03:07.829> gonna<00:03:07.919> go<00:03:08.069> back<00:03:08.099> to 00:03:08.360 --> 00:03:08.370 align:start position:0% in the space so I'm gonna go back to 00:03:08.370 --> 00:03:09.920 align:start position:0% in the space so I'm gonna go back to James<00:03:08.549> Mickens<00:03:08.969> who<00:03:09.150> argued<00:03:09.510> that<00:03:09.540> for<00:03:09.810> the 00:03:09.920 --> 00:03:09.930 align:start position:0% James Mickens who argued that for the 00:03:09.930 --> 00:03:12.530 align:start position:0% James Mickens who argued that for the broader<00:03:10.200> security<00:03:10.500> community<00:03:11.219> as<00:03:11.459> a<00:03:11.730> whole<00:03:12.120> we 00:03:12.530 --> 00:03:12.540 align:start position:0% broader security community as a whole we 00:03:12.540 --> 00:03:14.349 align:start position:0% broader security community as a whole we need<00:03:12.750> a<00:03:12.930> more<00:03:13.230> holistic<00:03:13.739> view<00:03:13.769> of<00:03:14.010> security 00:03:14.349 --> 00:03:14.359 align:start position:0% need a more holistic view of security 00:03:14.359 --> 00:03:16.699 align:start position:0% need a more holistic view of security and<00:03:15.359> that<00:03:15.480> really<00:03:15.719> the<00:03:15.870> high-level<00:03:16.169> goal<00:03:16.530> of 00:03:16.699 --> 00:03:16.709 align:start position:0% and that really the high-level goal of 00:03:16.709 --> 00:03:17.899 align:start position:0% and that really the high-level goal of computer<00:03:17.010> security<00:03:17.159> when<00:03:17.489> you<00:03:17.579> break<00:03:17.729> it<00:03:17.879> down 00:03:17.899 --> 00:03:17.909 align:start position:0% computer security when you break it down 00:03:17.909 --> 00:03:19.819 align:start position:0% computer security when you break it down is<00:03:18.269> to<00:03:18.659> ensure<00:03:18.959> that<00:03:18.989> the<00:03:19.290> systems<00:03:19.680> we're 00:03:19.819 --> 00:03:19.829 align:start position:0% is to ensure that the systems we're 00:03:19.829 --> 00:03:22.129 align:start position:0% is to ensure that the systems we're building<00:03:20.220> will<00:03:20.699> do<00:03:20.849> the<00:03:20.970> right<00:03:21.090> thing<00:03:21.389> even<00:03:22.019> in 00:03:22.129 --> 00:03:22.139 align:start position:0% building will do the right thing even in 00:03:22.139 --> 00:03:24.349 align:start position:0% building will do the right thing even in the<00:03:22.229> presence<00:03:22.349> of<00:03:22.680> malicious<00:03:23.069> inputs<00:03:23.489> now<00:03:24.299> you 00:03:24.349 --> 00:03:24.359 align:start position:0% the presence of malicious inputs now you 00:03:24.359 --> 00:03:26.780 align:start position:0% the presence of malicious inputs now you might<00:03:24.569> say<00:03:24.750> what<00:03:24.989> is<00:03:25.109> the<00:03:25.229> right<00:03:25.379> thing<00:03:25.639> is<00:03:26.639> the 00:03:26.780 --> 00:03:26.790 align:start position:0% might say what is the right thing is the 00:03:26.790 --> 00:03:28.069 align:start position:0% might say what is the right thing is the right<00:03:26.940> thing<00:03:27.120> that<00:03:27.150> what<00:03:27.389> these<00:03:27.569> Cartesian 00:03:28.069 --> 00:03:28.079 align:start position:0% right thing that what these Cartesian 00:03:28.079 --> 00:03:29.030 align:start position:0% right thing that what these Cartesian things<00:03:28.229> we've<00:03:28.379> been<00:03:28.440> talking<00:03:28.590> about<00:03:28.889> before 00:03:29.030 --> 00:03:29.040 align:start position:0% things we've been talking about before 00:03:29.040 --> 00:03:31.280 align:start position:0% things we've been talking about before and<00:03:29.370> actually<00:03:30.030> these<00:03:30.599> are<00:03:30.780> these<00:03:30.989> are<00:03:31.019> too 00:03:31.280 --> 00:03:31.290 align:start position:0% and actually these are these are too 00:03:31.290 --> 00:03:32.539 align:start position:0% and actually these are these are too simple<00:03:31.709> in<00:03:31.889> the<00:03:32.010> world<00:03:32.189> where<00:03:32.400> technology 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position:0% sufficient to just ask can someone access<00:03:38.699> the<00:03:38.790> resource<00:03:39.120> can<00:03:39.359> someone<00:03:39.659> steal<00:03:39.870> my 00:03:39.979 --> 00:03:39.989 align:start position:0% access the resource can someone steal my 00:03:39.989 --> 00:03:42.110 align:start position:0% access the resource can someone steal my tokens<00:03:40.379> we<00:03:40.979> have<00:03:41.159> to<00:03:41.340> ask<00:03:41.489> as<00:03:41.760> a<00:03:41.790> security 00:03:42.110 --> 00:03:42.120 align:start position:0% tokens we have to ask as a security 00:03:42.120 --> 00:03:43.789 align:start position:0% tokens we have to ask as a security community<00:03:42.540> what<00:03:42.750> guarantees<00:03:43.290> do<00:03:43.500> we<00:03:43.620> want 00:03:43.789 --> 00:03:43.799 align:start position:0% community what guarantees do we want 00:03:43.799 --> 00:03:46.429 align:start position:0% community what guarantees do we want these<00:03:43.979> systems<00:03:44.370> to<00:03:44.519> provide<00:03:44.790> their<00:03:45.000> users<00:03:45.439> and 00:03:46.429 --> 00:03:46.439 align:start position:0% these systems to provide their users and 00:03:46.439 --> 00:03:48.199 align:start position:0% these systems to provide their users and we<00:03:46.739> have<00:03:46.889> to<00:03:47.009> reason<00:03:47.189> about<00:03:47.400> broader<00:03:47.819> and<00:03:48.090> more 00:03:48.199 --> 00:03:48.209 align:start position:0% we have to reason about broader and more 00:03:48.209 --> 00:03:50.629 align:start position:0% we have to reason about broader and more nebulous<00:03:48.389> moral<00:03:49.019> questions<00:03:49.409> so<00:03:50.069> for<00:03:50.220> example 00:03:50.629 --> 00:03:50.639 align:start position:0% nebulous moral questions so for example 00:03:50.639 --> 00:03:52.550 align:start position:0% nebulous moral questions so for example should<00:03:51.090> a<00:03:51.239> particular<00:03:51.659> action<00:03:51.840> be<00:03:52.109> possible 00:03:52.550 --> 00:03:52.560 align:start position:0% should a particular action be possible 00:03:52.560 --> 00:03:54.830 align:start position:0% should a particular action be possible from<00:03:52.769> a<00:03:52.889> moral<00:03:53.099> perspective<00:03:53.250> and<00:03:53.849> if<00:03:54.269> so<00:03:54.479> how 00:03:54.830 --> 00:03:54.840 align:start position:0% from a moral perspective and if so how 00:03:54.840 --> 00:03:56.420 align:start position:0% from a moral perspective and if so how do<00:03:54.900> we<00:03:55.019> get<00:03:55.199> socially<00:03:55.650> beneficial<00:03:55.739> outcomes 00:03:56.420 --> 00:03:56.430 align:start position:0% do we get socially beneficial outcomes 00:03:56.430 --> 00:03:58.969 align:start position:0% do we get socially beneficial outcomes out<00:03:56.639> of<00:03:56.759> our<00:03:56.849> systems<00:03:57.590> so<00:03:58.590> in<00:03:58.739> a<00:03:58.799> nutshell 00:03:58.969 --> 00:03:58.979 align:start position:0% out of our systems so in a nutshell 00:03:58.979 --> 00:04:01.640 align:start position:0% out of our systems so in a nutshell basically<00:03:59.509> the<00:04:00.509> role<00:04:00.629> of<00:04:00.689> security<00:04:01.259> is<00:04:01.439> to 00:04:01.640 --> 00:04:01.650 align:start position:0% basically the role of security is to 00:04:01.650 --> 00:04:04.089 align:start position:0% basically the role of security is to separate<00:04:02.009> the<00:04:02.280> good<00:04:02.400> from<00:04:02.459> the<00:04:02.970> inscrutable 00:04:04.089 --> 00:04:04.099 align:start position:0% separate the good from the inscrutable 00:04:04.099 --> 00:04:07.069 align:start position:0% separate the good from the inscrutable so<00:04:05.099> a<00:04:05.129> good<00:04:05.310> system<00:04:05.699> it's<00:04:06.299> a<00:04:06.419> system<00:04:06.720> that<00:04:06.750> does 00:04:07.069 --> 00:04:07.079 align:start position:0% so a good system it's a system that does 00:04:07.079 --> 00:04:09.679 align:start position:0% so a good system it's a system that does what<00:04:07.319> users<00:04:07.650> expect<00:04:08.040> it<00:04:08.669> leads<00:04:08.970> to<00:04:09.060> socially 00:04:09.679 --> 00:04:09.689 align:start position:0% what users expect it leads to socially 00:04:09.689 --> 00:04:12.050 align:start position:0% what users expect it leads to socially good<00:04:09.840> outcomes<00:04:10.349> and<00:04:10.650> it<00:04:11.129> fails<00:04:11.340> in<00:04:11.579> known<00:04:11.790> and 00:04:12.050 --> 00:04:12.060 align:start position:0% good outcomes and it fails in known and 00:04:12.060 --> 00:04:13.819 align:start position:0% good outcomes and it fails in known and predictable<00:04:12.509> ways<00:04:12.720> that<00:04:13.079> the<00:04:13.199> user<00:04:13.349> is<00:04:13.560> aware 00:04:13.819 --> 00:04:13.829 align:start position:0% predictable ways that the user is aware 00:04:13.829 --> 00:04:16.490 align:start position:0% predictable ways that the user is aware of<00:04:13.859> before<00:04:14.400> they<00:04:14.519> engage<00:04:14.759> with<00:04:14.790> the<00:04:15.030> system<00:04:15.500> an 00:04:16.490 --> 00:04:16.500 align:start position:0% of before they engage with the system an 00:04:16.500 --> 00:04:18.949 align:start position:0% of before they engage with the system an inscrutable<00:04:17.220> system<00:04:17.820> our<00:04:18.299> systems<00:04:18.750> that 00:04:18.949 --> 00:04:18.959 align:start position:0% inscrutable system our systems that 00:04:18.959 --> 00:04:20.719 align:start position:0% inscrutable system our systems that often<00:04:19.259> violate<00:04:19.739> the<00:04:19.889> expectations<00:04:20.489> of<00:04:20.579> their 00:04:20.719 --> 00:04:20.729 align:start position:0% often violate the expectations of their 00:04:20.729 --> 00:04:22.940 align:start position:0% often violate the expectations of their users<00:04:21.060> they<00:04:21.719> lead<00:04:21.930> to<00:04:22.049> socially<00:04:22.469> negative<00:04:22.620> or 00:04:22.940 --> 00:04:22.950 align:start position:0% users they lead to socially negative or 00:04:22.950 --> 00:04:25.070 align:start position:0% users they lead to socially negative or socially<00:04:23.340> morally<00:04:23.520> bad<00:04:23.789> outcomes<00:04:24.300> and<00:04:24.599> they 00:04:25.070 --> 00:04:25.080 align:start position:0% socially morally bad outcomes and they 00:04:25.080 --> 00:04:26.959 align:start position:0% socially morally bad outcomes and they fail<00:04:25.289> in<00:04:25.500> unpredictable<00:04:26.159> and<00:04:26.279> surprising<00:04:26.820> and 00:04:26.959 --> 00:04:26.969 align:start position:0% fail in unpredictable and surprising and 00:04:26.969 --> 00:04:27.360 align:start position:0% fail in unpredictable and surprising and often 00:04:27.360 --> 00:04:27.370 align:start position:0% often 00:04:27.370 --> 00:04:29.760 align:start position:0% often catastrophic<00:04:27.610> ways<00:04:28.169> so<00:04:29.169> as<00:04:29.320> a<00:04:29.350> security 00:04:29.760 --> 00:04:29.770 align:start position:0% catastrophic ways so as a security 00:04:29.770 --> 00:04:31.500 align:start position:0% catastrophic ways so as a security community<00:04:30.220> how<00:04:30.370> do<00:04:30.430> we<00:04:30.610> separate<00:04:31.120> these<00:04:31.270> two 00:04:31.500 --> 00:04:31.510 align:start position:0% community how do we separate these two 00:04:31.510 --> 00:04:33.870 align:start position:0% community how do we separate these two kinds<00:04:31.840> of<00:04:31.930> systems<00:04:32.250> well<00:04:33.250> we<00:04:33.400> sort<00:04:33.610> of<00:04:33.639> lean<00:04:33.850> on 00:04:33.870 --> 00:04:33.880 align:start position:0% kinds of systems well we sort of lean on 00:04:33.880 --> 00:04:35.670 align:start position:0% kinds of systems well we sort of lean on this<00:04:34.120> rich<00:04:34.360> culture<00:04:34.840> in<00:04:34.930> this<00:04:35.050> rich<00:04:35.229> tradition 00:04:35.670 --> 00:04:35.680 align:start position:0% this rich culture in this rich tradition 00:04:35.680 --> 00:04:37.770 align:start position:0% this rich culture in this rich tradition in<00:04:35.740> this<00:04:35.889> rich<00:04:36.040> history<00:04:36.220> of<00:04:36.780> extensive 00:04:37.770 --> 00:04:37.780 align:start position:0% in this rich history of extensive 00:04:37.780 --> 00:04:39.830 align:start position:0% in this rich history of extensive modeling<00:04:38.229> formal<00:04:39.010> modeling<00:04:39.370> and<00:04:39.490> proofs 00:04:39.830 --> 00:04:39.840 align:start position:0% modeling formal modeling and proofs 00:04:39.840 --> 00:04:43.469 align:start position:0% modeling formal modeling and proofs field<00:04:40.840> data<00:04:41.729> philosophical<00:04:42.729> reflections<00:04:43.300> and 00:04:43.469 --> 00:04:43.479 align:start position:0% field data philosophical reflections and 00:04:43.479 --> 00:04:44.969 align:start position:0% field data philosophical reflections and reviews<00:04:43.780> on<00:04:43.930> the<00:04:44.020> type<00:04:44.260> of<00:04:44.440> modeling<00:04:44.800> and<00:04:44.919> the 00:04:44.969 --> 00:04:44.979 align:start position:0% reviews on the type of modeling and the 00:04:44.979 --> 00:04:46.290 align:start position:0% reviews on the type of modeling and the type<00:04:45.160> of<00:04:45.190> data<00:04:45.490> we're<00:04:45.729> using<00:04:45.910> and<00:04:46.180> whether 00:04:46.290 --> 00:04:46.300 align:start position:0% type of data we're using and whether 00:04:46.300 --> 00:04:47.700 align:start position:0% type of data we're using and whether that's<00:04:46.540> actually<00:04:46.870> getting<00:04:47.020> us<00:04:47.290> the<00:04:47.410> type<00:04:47.590> of 00:04:47.700 --> 00:04:47.710 align:start position:0% that's actually getting us the type of 00:04:47.710 --> 00:04:50.100 align:start position:0% that's actually getting us the type of security<00:04:48.130> we<00:04:48.220> really<00:04:48.430> want<00:04:48.639> and<00:04:49.110> experience 00:04:50.100 --> 00:04:50.110 align:start position:0% security we really want and experience 00:04:50.110 --> 00:04:51.960 align:start position:0% security we really want and experience from<00:04:50.380> all<00:04:50.590> of<00:04:50.740> you<00:04:50.830> guys<00:04:50.979> people<00:04:51.310> in<00:04:51.520> industry 00:04:51.960 --> 00:04:51.970 align:start position:0% from all of you guys people in industry 00:04:51.970 --> 00:04:53.219 align:start position:0% from all of you guys people in industry people<00:04:52.150> who<00:04:52.300> are<00:04:52.389> actually<00:04:52.660> building<00:04:52.720> things 00:04:53.219 --> 00:04:53.229 align:start position:0% people who are actually building things 00:04:53.229 --> 00:04:55.170 align:start position:0% people who are actually building things and<00:04:53.380> are<00:04:53.500> on<00:04:53.620> the<00:04:53.770> ground<00:04:53.979> every<00:04:54.250> day<00:04:54.280> talking 00:04:55.170 --> 00:04:55.180 align:start position:0% and are on the ground every day talking 00:04:55.180 --> 00:04:57.060 align:start position:0% and are on the ground every day talking to<00:04:55.210> users<00:04:55.600> and<00:04:55.930> putting<00:04:56.410> these<00:04:56.500> systems<00:04:56.860> into 00:04:57.060 --> 00:04:57.070 align:start position:0% to users and putting these systems into 00:04:57.070 --> 00:05:00.000 align:start position:0% to users and putting these systems into production<00:04:57.900> so<00:04:58.900> you<00:04:58.960> might<00:04:59.110> say<00:04:59.290> Phil<00:04:59.590> I<00:04:59.770> saw 00:05:00.000 --> 00:05:00.010 align:start position:0% production so you might say Phil I saw 00:05:00.010 --> 00:05:01.350 align:start position:0% production so you might say Phil I saw you<00:05:00.070> use<00:05:00.220> the<00:05:00.370> poo<00:05:00.520> emoji<00:05:00.820> instead<00:05:01.240> of 00:05:01.350 --> 00:05:01.360 align:start position:0% you use the poo emoji instead of 00:05:01.360 --> 00:05:04.529 align:start position:0% you use the poo emoji instead of inscrutable<00:05:02.110> and<00:05:02.430> I<00:05:03.430> actually<00:05:04.120> blame<00:05:04.270> Twitter 00:05:04.529 --> 00:05:04.539 align:start position:0% inscrutable and I actually blame Twitter 00:05:04.539 --> 00:05:06.629 align:start position:0% inscrutable and I actually blame Twitter for<00:05:04.750> everything<00:05:05.110> in<00:05:05.199> this<00:05:05.320> talk<00:05:05.560> so<00:05:05.860> I<00:05:06.250> ran<00:05:06.490> to 00:05:06.629 --> 00:05:06.639 align:start position:0% for everything in this talk so I ran to 00:05:06.639 --> 00:05:08.760 align:start position:0% for everything in this talk so I ran to polls<00:05:06.970> about<00:05:07.210> this<00:05:07.389> talk<00:05:07.630> if<00:05:08.320> you<00:05:08.470> hate<00:05:08.650> the 00:05:08.760 --> 00:05:08.770 align:start position:0% polls about this talk if you hate the 00:05:08.770 --> 00:05:10.200 align:start position:0% polls about this talk if you hate the talk<00:05:08.979> what<00:05:09.310> you<00:05:09.400> should<00:05:09.550> probably<00:05:09.729> do<00:05:10.060> is 00:05:10.200 --> 00:05:10.210 align:start position:0% talk what you should probably do is 00:05:10.210 --> 00:05:12.330 align:start position:0% talk what you should probably do is follow<00:05:10.479> me<00:05:10.660> on<00:05:10.780> Twitter<00:05:11.020> after<00:05:11.440> and<00:05:11.680> vote<00:05:12.220> in 00:05:12.330 --> 00:05:12.340 align:start position:0% follow me on Twitter after and vote in 00:05:12.340 --> 00:05:13.439 align:start position:0% follow me on Twitter after and vote in the<00:05:12.400> next<00:05:12.580> poll<00:05:12.760> and<00:05:12.910> maybe<00:05:13.090> you'll<00:05:13.210> like<00:05:13.330> the 00:05:13.439 --> 00:05:13.449 align:start position:0% the next poll and maybe you'll like the 00:05:13.449 --> 00:05:15.719 align:start position:0% the next poll and maybe you'll like the next<00:05:13.660> one<00:05:13.750> more<00:05:13.979> and<00:05:14.979> if<00:05:15.130> you<00:05:15.220> did<00:05:15.370> vote<00:05:15.520> in<00:05:15.669> the 00:05:15.719 --> 00:05:15.729 align:start position:0% next one more and if you did vote in the 00:05:15.729 --> 00:05:19.020 align:start position:0% next one more and if you did vote in the poll<00:05:15.910> then<00:05:16.240> it's<00:05:16.389> all<00:05:16.539> your<00:05:16.660> fault<00:05:16.780> I<00:05:16.990> guess<00:05:18.030> so 00:05:19.020 --> 00:05:19.030 align:start position:0% poll then it's all your fault I guess so 00:05:19.030 --> 00:05:21.029 align:start position:0% poll then it's all your fault I guess so this<00:05:19.539> is<00:05:19.690> the<00:05:19.810> main<00:05:19.930> thesis<00:05:20.139> of<00:05:20.380> my<00:05:20.410> talk<00:05:20.770> and 00:05:21.029 --> 00:05:21.039 align:start position:0% this is the main thesis of my talk and 00:05:21.039 --> 00:05:21.900 align:start position:0% this is the main thesis of my talk and this<00:05:21.190> is<00:05:21.310> sort<00:05:21.490> of<00:05:21.520> what<00:05:21.639> we're<00:05:21.729> gonna<00:05:21.789> be 00:05:21.900 --> 00:05:21.910 align:start position:0% this is sort of what we're gonna be 00:05:21.910 --> 00:05:23.640 align:start position:0% this is sort of what we're gonna be focusing<00:05:22.360> on<00:05:22.510> for<00:05:22.720> the<00:05:22.780> rest<00:05:22.930> of<00:05:23.080> the<00:05:23.169> talk<00:05:23.380> and 00:05:23.640 --> 00:05:23.650 align:start position:0% focusing on for the rest of the talk and 00:05:23.650 --> 00:05:25.529 align:start position:0% focusing on for the rest of the talk and that<00:05:24.100> is<00:05:24.220> the<00:05:24.340> idea<00:05:24.610> that<00:05:24.669> we<00:05:24.970> simply<00:05:25.389> don't 00:05:25.529 --> 00:05:25.539 align:start position:0% that is the idea that we simply don't 00:05:25.539 --> 00:05:27.659 align:start position:0% that is the idea that we simply don't understand<00:05:26.139> how<00:05:26.530> to<00:05:26.590> build<00:05:26.889> principled 00:05:27.659 --> 00:05:27.669 align:start position:0% understand how to build principled 00:05:27.669 --> 00:05:30.930 align:start position:0% understand how to build principled secure<00:05:28.090> smart<00:05:28.449> contract<00:05:28.900> systems<00:05:29.320> at<00:05:29.650> all<00:05:30.100> yet 00:05:30.930 --> 00:05:30.940 align:start position:0% secure smart contract systems at all yet 00:05:30.940 --> 00:05:33.450 align:start position:0% secure smart contract systems at all yet right<00:05:31.750> so<00:05:31.780> this<00:05:32.050> is<00:05:32.169> not<00:05:32.320> a<00:05:32.349> it's<00:05:33.160> a<00:05:33.250> little<00:05:33.340> bit 00:05:33.450 --> 00:05:33.460 align:start position:0% right so this is not a it's a little bit 00:05:33.460 --> 00:05:34.860 align:start position:0% right so this is not a it's a little bit of<00:05:33.669> a<00:05:33.729> dooming<00:05:33.970> loom<00:05:34.150> talk<00:05:34.419> but<00:05:34.630> it's<00:05:34.750> not 00:05:34.860 --> 00:05:34.870 align:start position:0% of a dooming loom talk but it's not 00:05:34.870 --> 00:05:36.629 align:start position:0% of a dooming loom talk but it's not completely<00:05:35.229> hopeless<00:05:35.440> we<00:05:36.130> are<00:05:36.250> sort<00:05:36.550> of 00:05:36.629 --> 00:05:36.639 align:start position:0% completely hopeless we are sort of 00:05:36.639 --> 00:05:38.159 align:start position:0% completely hopeless we are sort of moving<00:05:36.820> in<00:05:37.030> the<00:05:37.090> right<00:05:37.240> direction<00:05:37.270> and<00:05:37.900> there 00:05:38.159 --> 00:05:38.169 align:start position:0% moving in the right direction and there 00:05:38.169 --> 00:05:40.260 align:start position:0% moving in the right direction and there is<00:05:38.289> you<00:05:38.710> know<00:05:38.740> quite<00:05:39.340> a<00:05:39.370> chance<00:05:39.760> that<00:05:39.970> we<00:05:40.060> will 00:05:40.260 --> 00:05:40.270 align:start position:0% is you know quite a chance that we will 00:05:40.270 --> 00:05:42.240 align:start position:0% is you know quite a chance that we will be<00:05:40.750> able<00:05:40.900> to<00:05:41.169> eventually<00:05:41.620> understand<00:05:42.070> how<00:05:42.190> to 00:05:42.240 --> 00:05:42.250 align:start position:0% be able to eventually understand how to 00:05:42.250 --> 00:05:44.279 align:start position:0% be able to eventually understand how to build<00:05:42.460> these<00:05:42.550> systems<00:05:42.940> but<00:05:43.599> right<00:05:43.750> now<00:05:43.930> we<00:05:43.990> do 00:05:44.279 --> 00:05:44.289 align:start position:0% build these systems but right now we do 00:05:44.289 --> 00:05:46.140 align:start position:0% build these systems but right now we do not<00:05:44.320> so<00:05:45.190> I'm<00:05:45.280> gonna<00:05:45.400> say<00:05:45.580> that<00:05:45.729> again<00:05:45.849> we 00:05:46.140 --> 00:05:46.150 align:start position:0% not so I'm gonna say that again we 00:05:46.150 --> 00:05:47.640 align:start position:0% not so I'm gonna say that again we simply<00:05:46.479> don't<00:05:46.630> understand<00:05:47.260> how<00:05:47.410> to<00:05:47.470> build 00:05:47.640 --> 00:05:47.650 align:start position:0% simply don't understand how to build 00:05:47.650 --> 00:05:49.589 align:start position:0% simply don't understand how to build principled<00:05:48.280> and<00:05:48.460> secure<00:05:48.880> smart<00:05:49.180> contract 00:05:49.589 --> 00:05:49.599 align:start position:0% principled and secure smart contract 00:05:49.599 --> 00:05:51.990 align:start position:0% principled and secure smart contract systems<00:05:49.960> yet<00:05:50.200> and<00:05:50.470> I'm<00:05:51.310> gonna<00:05:51.400> prove<00:05:51.669> this<00:05:51.789> in 00:05:51.990 --> 00:05:52.000 align:start position:0% systems yet and I'm gonna prove this in 00:05:52.000 --> 00:05:54.029 align:start position:0% systems yet and I'm gonna prove this in three<00:05:52.180> lemmas<00:05:52.479> so<00:05:52.990> the<00:05:53.110> first<00:05:53.320> one<00:05:53.500> I'm<00:05:53.740> going 00:05:54.029 --> 00:05:54.039 align:start position:0% three lemmas so the first one I'm going 00:05:54.039 --> 00:05:55.620 align:start position:0% three lemmas so the first one I'm going to<00:05:54.280> show<00:05:54.460> that<00:05:54.669> many<00:05:54.849> Dex's<00:05:55.240> are<00:05:55.330> inscrutable 00:05:55.620 --> 00:05:55.630 align:start position:0% to show that many Dex's are inscrutable 00:05:55.630 --> 00:05:57.870 align:start position:0% to show that many Dex's are inscrutable we<00:05:56.380> do<00:05:56.530> not<00:05:56.650> understand<00:05:57.160> how<00:05:57.340> to<00:05:57.370> build<00:05:57.610> a 00:05:57.870 --> 00:05:57.880 align:start position:0% we do not understand how to build a 00:05:57.880 --> 00:05:59.850 align:start position:0% we do not understand how to build a secured<00:05:58.270> X<00:05:58.479> for<00:05:58.780> our<00:05:58.900> users<00:05:59.199> right<00:05:59.500> now<00:05:59.530> as<00:05:59.830> a 00:05:59.850 --> 00:05:59.860 align:start position:0% secured X for our users right now as a 00:05:59.860 --> 00:06:02.279 align:start position:0% secured X for our users right now as a community<00:06:00.070> from<00:06:00.910> sort<00:06:01.360> of<00:06:01.419> a<00:06:01.630> theoretically 00:06:02.279 --> 00:06:02.289 align:start position:0% community from sort of a theoretically 00:06:02.289 --> 00:06:04.950 align:start position:0% community from sort of a theoretically optimal<00:06:02.830> and<00:06:03.130> and<00:06:03.760> an<00:06:04.270> academic<00:06:04.780> standpoint 00:06:04.950 --> 00:06:04.960 align:start position:0% optimal and and an academic standpoint 00:06:04.960 --> 00:06:06.500 align:start position:0% optimal and and an academic standpoint as<00:06:05.289> well<00:06:05.320> as<00:06:05.560> from<00:06:05.710> a<00:06:05.740> practical<00:06:06.160> standpoint 00:06:06.500 --> 00:06:06.510 align:start position:0% as well as from a practical standpoint 00:06:06.510 --> 00:06:08.760 align:start position:0% as well as from a practical standpoint I'm<00:06:07.510> going<00:06:07.690> to<00:06:07.750> talk<00:06:07.900> about<00:06:07.930> why<00:06:08.289> on<00:06:08.500> chained 00:06:08.760 --> 00:06:08.770 align:start position:0% I'm going to talk about why on chained 00:06:08.770 --> 00:06:11.159 align:start position:0% I'm going to talk about why on chained voting<00:06:09.160> is<00:06:09.310> also<00:06:09.789> inscrutable<00:06:10.360> so<00:06:10.840> we<00:06:10.960> don't 00:06:11.159 --> 00:06:11.169 align:start position:0% voting is also inscrutable so we don't 00:06:11.169 --> 00:06:12.960 align:start position:0% voting is also inscrutable so we don't understand<00:06:11.650> how<00:06:11.830> to<00:06:11.860> build<00:06:12.099> a<00:06:12.340> good<00:06:12.460> on<00:06:12.699> chain 00:06:12.960 --> 00:06:12.970 align:start position:0% understand how to build a good on chain 00:06:12.970 --> 00:06:16.020 align:start position:0% understand how to build a good on chain voting<00:06:13.300> system<00:06:13.949> this<00:06:14.949> implies<00:06:15.400> that<00:06:15.430> building 00:06:16.020 --> 00:06:16.030 align:start position:0% voting system this implies that building 00:06:16.030 --> 00:06:17.760 align:start position:0% voting system this implies that building anything<00:06:16.210> more<00:06:16.479> complex<00:06:16.870> especially<00:06:17.650> when 00:06:17.760 --> 00:06:17.770 align:start position:0% anything more complex especially when 00:06:17.770 --> 00:06:18.990 align:start position:0% anything more complex especially when you're<00:06:17.889> using<00:06:18.099> one<00:06:18.370> of<00:06:18.460> these<00:06:18.610> two<00:06:18.789> pieces 00:06:18.990 --> 00:06:19.000 align:start position:0% you're using one of these two pieces 00:06:19.000 --> 00:06:21.060 align:start position:0% you're using one of these two pieces somewhere<00:06:19.510> in<00:06:19.570> your<00:06:19.690> system<00:06:20.050> is<00:06:20.260> also<00:06:20.919> going 00:06:21.060 --> 00:06:21.070 align:start position:0% somewhere in your system is also going 00:06:21.070 --> 00:06:22.439 align:start position:0% somewhere in your system is also going to<00:06:21.160> lead<00:06:21.370> to<00:06:21.400> something<00:06:21.669> that's<00:06:21.880> inscrutable 00:06:22.439 --> 00:06:22.449 align:start position:0% to lead to something that's inscrutable 00:06:22.449 --> 00:06:24.750 align:start position:0% to lead to something that's inscrutable and<00:06:22.740> so<00:06:23.740> these<00:06:23.889> three<00:06:24.070> levels<00:06:24.250> together<00:06:24.520> are 00:06:24.750 --> 00:06:24.760 align:start position:0% and so these three levels together are 00:06:24.760 --> 00:06:25.920 align:start position:0% and so these three levels together are gonna<00:06:24.849> prove<00:06:25.120> that<00:06:25.180> we<00:06:25.389> just<00:06:25.539> don't<00:06:25.630> know<00:06:25.750> how 00:06:25.920 --> 00:06:25.930 align:start position:0% gonna prove that we just don't know how 00:06:25.930 --> 00:06:27.330 align:start position:0% gonna prove that we just don't know how to<00:06:25.960> build<00:06:26.139> even<00:06:26.380> the<00:06:26.440> simplest<00:06:26.680> mechanisms 00:06:27.330 --> 00:06:27.340 align:start position:0% to build even the simplest mechanisms 00:06:27.340 --> 00:06:29.159 align:start position:0% to build even the simplest mechanisms and<00:06:28.240> then<00:06:28.389> I'm<00:06:28.479> going<00:06:28.570> to<00:06:28.630> talk<00:06:28.780> about<00:06:28.840> why 00:06:29.159 --> 00:06:29.169 align:start position:0% and then I'm going to talk about why 00:06:29.169 --> 00:06:31.290 align:start position:0% and then I'm going to talk about why this<00:06:29.229> is<00:06:29.380> sort<00:06:29.860> of<00:06:29.889> threatening<00:06:30.400> to<00:06:30.880> aetherium 00:06:31.290 --> 00:06:31.300 align:start position:0% this is sort of threatening to aetherium 00:06:31.300 --> 00:06:32.909 align:start position:0% this is sort of threatening to aetherium as<00:06:31.419> a<00:06:31.449> whole<00:06:31.750> and<00:06:32.050> the<00:06:32.199> security<00:06:32.590> of<00:06:32.650> a<00:06:32.680> theorem 00:06:32.909 --> 00:06:32.919 align:start position:0% as a whole and the security of a theorem 00:06:32.919 --> 00:06:34.589 align:start position:0% as a whole and the security of a theorem as<00:06:33.010> a<00:06:33.039> whole<00:06:33.280> as<00:06:33.460> well<00:06:33.910> as<00:06:34.000> what<00:06:34.330> we<00:06:34.389> can<00:06:34.510> do 00:06:34.589 --> 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--> 00:06:46.870 align:start position:0% latency people were using by a little 00:06:46.870 --> 00:06:48.780 align:start position:0% latency people were using by a little bit<00:06:46.990> and<00:06:47.140> getting<00:06:47.800> access<00:06:48.010> to<00:06:48.310> sort<00:06:48.490> of<00:06:48.610> very 00:06:48.780 --> 00:06:48.790 align:start position:0% bit and getting access to sort of very 00:06:48.790 --> 00:06:50.580 align:start position:0% bit and getting access to sort of very quick<00:06:49.180> market<00:06:49.720> inefficiencies<00:06:49.900> that<00:06:50.380> were 00:06:50.580 --> 00:06:50.590 align:start position:0% quick market inefficiencies that were 00:06:50.590 --> 00:06:53.010 align:start position:0% quick market inefficiencies that were momentary<00:06:51.100> in<00:06:51.700> a<00:06:51.880> continuous<00:06:52.420> market<00:06:52.660> you 00:06:53.010 --> 00:06:53.020 align:start position:0% momentary in a continuous market you 00:06:53.020 --> 00:06:55.200 align:start position:0% momentary in a continuous market you could<00:06:53.140> actually<00:06:53.560> profit<00:06:54.160> systematically<00:06:55.030> and 00:06:55.200 --> 00:06:55.210 align:start position:0% could actually profit systematically and 00:06:55.210 --> 00:06:57.300 align:start position:0% could actually profit systematically and extract<00:06:55.690> mechanical<00:06:56.260> rent<00:06:56.500> out<00:06:56.800> of<00:06:57.220> the 00:06:57.300 --> 00:06:57.310 align:start position:0% extract mechanical rent out of the 00:06:57.310 --> 00:06:59.340 align:start position:0% extract mechanical rent out of the market<00:06:57.640> itself<00:06:57.940> regardless<00:06:58.690> of<00:06:58.960> sort<00:06:59.170> of<00:06:59.200> how 00:06:59.340 --> 00:06:59.350 align:start position:0% market itself regardless of sort of how 00:06:59.350 --> 00:07:00.780 align:start position:0% market itself regardless of sort of how the<00:06:59.410> market<00:06:59.770> was<00:06:59.890> moving<00:07:00.250> or<00:07:00.370> what<00:07:00.520> users 00:07:00.780 --> 00:07:00.790 align:start position:0% the market was moving or what users 00:07:00.790 --> 00:07:02.400 align:start position:0% the market was moving or what users actually<00:07:01.120> wanted<00:07:01.360> to<00:07:01.390> trade<00:07:01.660> so<00:07:02.260> it's<00:07:02.380> a 00:07:02.400 --> 00:07:02.410 align:start position:0% actually wanted to trade so it's a 00:07:02.410 --> 00:07:04.440 align:start position:0% actually wanted to trade so it's a fascinating<00:07:02.620> book<00:07:02.950> and<00:07:03.280> I'm<00:07:04.000> gonna<00:07:04.150> tell<00:07:04.360> you 00:07:04.440 --> 00:07:04.450 align:start position:0% fascinating book and I'm gonna tell you 00:07:04.450 --> 00:07:06.780 align:start position:0% fascinating book and I'm gonna tell you the<00:07:04.540> story<00:07:04.780> of<00:07:04.840> flash<00:07:05.110> boys<00:07:05.380> 2.0<00:07:05.950> which<00:07:06.310> is<00:07:06.490> a 00:07:06.780 --> 00:07:06.790 align:start position:0% the story of flash boys 2.0 which is a 00:07:06.790 --> 00:07:09.270 align:start position:0% the story of flash boys 2.0 which is a very<00:07:07.390> similar<00:07:07.630> story<00:07:07.990> to<00:07:08.200> that<00:07:08.350> but<00:07:08.680> on<00:07:08.890> the 00:07:09.270 --> 00:07:09.280 align:start position:0% very similar story to that but on the 00:07:09.280 --> 00:07:11.610 align:start position:0% very similar story to that but on the etherium<00:07:09.670> network<00:07:09.940> so<00:07:10.900> who<00:07:11.050> are<00:07:11.230> the<00:07:11.440> flash 00:07:11.610 --> 00:07:11.620 align:start position:0% etherium network so who are the flash 00:07:11.620 --> 00:07:14.040 align:start position:0% etherium network so who are the flash boys<00:07:11.860> 2.0<00:07:12.460> well<00:07:13.150> it's<00:07:13.390> you<00:07:13.630> and<00:07:13.780> Schiele<00:07:14.020> and 00:07:14.040 --> 00:07:14.050 align:start position:0% boys 2.0 well it's you and Schiele and 00:07:14.050 --> 00:07:15.990 align:start position:0% boys 2.0 well it's you and Schiele and Xuan<00:07:14.560> Zhao<00:07:14.800> who<00:07:15.130> were<00:07:15.220> primarily<00:07:15.700> responsible 00:07:15.990 --> 00:07:16.000 align:start position:0% Xuan Zhao who were primarily responsible 00:07:16.000 --> 00:07:18.210 align:start position:0% Xuan Zhao who were primarily responsible for<00:07:16.600> the<00:07:16.660> initial<00:07:16.990> work<00:07:17.590> of<00:07:17.800> coding<00:07:18.100> and 00:07:18.210 --> 00:07:18.220 align:start position:0% for the initial work of coding and 00:07:18.220 --> 00:07:19.320 align:start position:0% for the initial work of coding and operating<00:07:18.580> the<00:07:18.670> trading<00:07:18.970> BOTS<00:07:19.090> that<00:07:19.270> I'm 00:07:19.320 --> 00:07:19.330 align:start position:0% operating the trading BOTS that I'm 00:07:19.330 --> 00:07:21.180 align:start position:0% operating the trading BOTS that I'm going<00:07:19.480> to<00:07:19.510> be<00:07:19.600> talking<00:07:19.780> about<00:07:19.990> as<00:07:20.860> well<00:07:21.070> as 00:07:21.180 --> 00:07:21.190 align:start position:0% going to be talking about as well as 00:07:21.190 --> 00:07:24.120 align:start position:0% going to be talking about as well as myself<00:07:21.370> Lorentz<00:07:22.120> Breidenbach<00:07:22.480> idle<00:07:23.200> Ito<00:07:23.950> ben 00:07:24.120 --> 00:07:24.130 align:start position:0% myself Lorentz Breidenbach idle Ito ben 00:07:24.130 --> 00:07:27.090 align:start position:0% myself Lorentz Breidenbach idle Ito ben tov<00:07:24.340> re<00:07:24.910> jules<00:07:25.390> tyler<00:07:25.960> kel<00:07:26.170> and<00:07:26.200> rafael<00:07:26.830> Paz 00:07:27.090 --> 00:07:27.100 align:start position:0% tov re jules tyler kel and rafael Paz 00:07:27.100 --> 00:07:29.280 align:start position:0% tov re jules tyler kel and rafael Paz and<00:07:27.940> these<00:07:28.360> are<00:07:28.480> all<00:07:28.630> affiliated<00:07:29.140> with 00:07:29.280 --> 00:07:29.290 align:start position:0% and these are all affiliated with 00:07:29.290 --> 00:07:33.240 align:start position:0% and these are all affiliated with Cornell<00:07:29.680> or<00:07:30.010> Cornell<00:07:30.370> Tech<00:07:31.140> so<00:07:32.250> Lorenzen 00:07:33.240 --> 00:07:33.250 align:start position:0% Cornell or Cornell Tech so Lorenzen 00:07:33.250 --> 00:07:35.220 align:start position:0% Cornell or Cornell Tech so Lorenzen Tyler<00:07:33.490> actually<00:07:33.700> here<00:07:34.300> at<00:07:34.480> this<00:07:34.630> conference<00:07:35.020> I 00:07:35.220 --> 00:07:35.230 align:start position:0% Tyler actually here at this conference I 00:07:35.230 --> 00:07:36.660 align:start position:0% Tyler actually here at this conference I highly<00:07:35.530> suggest<00:07:35.860> you<00:07:35.950> find<00:07:36.160> them<00:07:36.370> and<00:07:36.520> talk<00:07:36.640> to 00:07:36.660 --> 00:07:36.670 align:start position:0% highly suggest you find them and talk to 00:07:36.670 --> 00:07:38.280 align:start position:0% highly suggest you find them and talk to them<00:07:36.910> about<00:07:36.940> this<00:07:37.240> work<00:07:37.480> and<00:07:37.720> they're<00:07:38.140> also 00:07:38.280 --> 00:07:38.290 align:start position:0% them about this work and they're also 00:07:38.290 --> 00:07:40.170 align:start position:0% them about this work and they're also giving<00:07:38.590> a<00:07:38.650> talk<00:07:38.830> tomorrow<00:07:39.190> on<00:07:39.400> one<00:07:39.670> potential 00:07:40.170 --> 00:07:40.180 align:start position:0% giving a talk tomorrow on one potential 00:07:40.180 --> 00:07:42.030 align:start position:0% giving a talk tomorrow on one potential mitigating<00:07:40.720> solution<00:07:41.470> to<00:07:41.590> this<00:07:41.680> kind<00:07:41.890> of 00:07:42.030 --> 00:07:42.040 align:start position:0% mitigating solution to this kind of 00:07:42.040 --> 00:07:44.820 align:start position:0% mitigating solution to this kind of problem<00:07:42.600> so<00:07:43.600> this<00:07:43.720> story<00:07:43.930> starts<00:07:44.410> on<00:07:44.560> August 00:07:44.820 --> 00:07:44.830 align:start position:0% problem so this story starts on August 00:07:44.830 --> 00:07:47.250 align:start position:0% problem so this story starts on August 13th<00:07:45.460> 2017<00:07:46.180> when<00:07:46.420> we<00:07:46.540> published<00:07:46.900> this<00:07:47.020> blog 00:07:47.250 --> 00:07:47.260 align:start position:0% 13th 2017 when we published this blog 00:07:47.260 --> 00:07:49.170 align:start position:0% 13th 2017 when we published this blog post<00:07:47.290> about<00:07:47.860> the<00:07:48.010> cost<00:07:48.280> of<00:07:48.490> decentralization 00:07:49.170 --> 00:07:49.180 align:start position:0% post about the cost of decentralization 00:07:49.180 --> 00:07:51.390 align:start position:0% post about the cost of decentralization in<00:07:49.450> Xerox<00:07:49.690> and<00:07:49.990> ether<00:07:50.170> Delta<00:07:50.440> this<00:07:50.620> was<00:07:50.770> over<00:07:51.370> a 00:07:51.390 --> 00:07:51.400 align:start position:0% in Xerox and ether Delta this was over a 00:07:51.400 --> 00:07:53.610 align:start position:0% in Xerox and ether Delta this was over a year<00:07:51.490> ago<00:07:51.690> and<00:07:52.690> what<00:07:52.870> we<00:07:52.960> said<00:07:53.170> in<00:07:53.260> that<00:07:53.410> blog 00:07:53.610 --> 00:07:53.620 align:start position:0% year ago and what we said in that blog 00:07:53.620 --> 00:07:55.560 align:start position:0% year ago and what we said in that blog post<00:07:53.650> is<00:07:54.160> that<00:07:54.460> decentralized<00:07:55.420> exchange 00:07:55.560 --> 00:07:55.570 align:start position:0% post is that decentralized exchange 00:07:55.570 --> 00:07:57.570 align:start position:0% post is that decentralized exchange leaves<00:07:56.380> users<00:07:56.740> vulnerable<00:07:57.250> to<00:07:57.370> minor 00:07:57.570 --> 00:07:57.580 align:start position:0% leaves users vulnerable to minor 00:07:57.580 --> 00:07:59.550 align:start position:0% leaves users vulnerable to minor front-running<00:07:58.030> that<00:07:58.600> means<00:07:58.810> if<00:07:58.930> a<00:07:59.020> user<00:07:59.200> comes 00:07:59.550 --> 00:07:59.560 align:start position:0% front-running that means if a user comes 00:07:59.560 --> 00:08:00.600 align:start position:0% front-running that means if a user comes and<00:07:59.920> puts<00:08:00.070> them<00:08:00.160> in<00:08:00.220> order<00:08:00.490> on<00:08:00.580> a 00:08:00.600 --> 00:08:00.610 align:start position:0% and puts them in order on a 00:08:00.610 --> 00:08:02.700 align:start position:0% and puts them in order on a decentralized<00:08:01.180> exchange<00:08:01.300> a<00:08:01.810> minor<00:08:02.320> can<00:08:02.530> see 00:08:02.700 --> 00:08:02.710 align:start position:0% decentralized exchange a minor can see 00:08:02.710 --> 00:08:05.640 align:start position:0% decentralized exchange a minor can see that<00:08:02.890> and<00:08:03.100> can<00:08:03.790> with<00:08:04.330> guaranteed<00:08:05.230> profit 00:08:05.640 --> 00:08:05.650 align:start position:0% that and can with guaranteed profit 00:08:05.650 --> 00:08:06.990 align:start position:0% that and can with guaranteed profit essentially<00:08:06.100> insert<00:08:06.700> their<00:08:06.880> own 00:08:06.990 --> 00:08:07.000 align:start position:0% essentially insert their own 00:08:07.000 --> 00:08:08.280 align:start position:0% essentially insert their own transactions<00:08:07.600> on<00:08:07.720> either<00:08:07.840> side<00:08:08.140> of<00:08:08.170> that 00:08:08.280 --> 00:08:08.290 align:start position:0% transactions on either side of that 00:08:08.290 --> 00:08:10.680 align:start position:0% transactions on either side of that order<00:08:08.710> to<00:08:09.100> sandwich<00:08:09.400> that<00:08:09.640> order<00:08:09.910> this<00:08:10.540> is 00:08:10.680 --> 00:08:10.690 align:start position:0% order to sandwich that order this is 00:08:10.690 --> 00:08:11.940 align:start position:0% order to sandwich that order this is something<00:08:10.960> that's<00:08:11.020> frowned<00:08:11.380> on<00:08:11.500> in<00:08:11.650> regular 00:08:11.940 --> 00:08:11.950 align:start position:0% something that's frowned on in regular 00:08:11.950 --> 00:08:13.320 align:start position:0% something that's frowned on in regular markets<00:08:12.340> if<00:08:12.460> you're<00:08:12.610> if<00:08:13.000> you're<00:08:13.120> doing 00:08:13.320 --> 00:08:13.330 align:start position:0% markets if you're if you're doing 00:08:13.330 --> 00:08:15.300 align:start position:0% markets if you're if you're doing activity<00:08:13.900> like<00:08:14.050> this<00:08:14.260> either<00:08:14.800> the<00:08:15.040> market 00:08:15.300 --> 00:08:15.310 align:start position:0% activity like this either the market 00:08:15.310 --> 00:08:17.370 align:start position:0% activity like this either the market design<00:08:15.580> will<00:08:15.730> try<00:08:15.850> to<00:08:15.880> design<00:08:16.150> to<00:08:16.540> make<00:08:17.200> sure 00:08:17.370 --> 00:08:17.380 align:start position:0% design will try to design to make sure 00:08:17.380 --> 00:08:18.900 align:start position:0% design will try to design to make sure you<00:08:17.500> can't<00:08:17.740> do<00:08:17.860> that<00:08:17.980> or<00:08:18.430> you'll<00:08:18.610> get<00:08:18.730> banned 00:08:18.900 --> 00:08:18.910 align:start position:0% you can't do that or you'll get banned 00:08:18.910 --> 00:08:20.280 align:start position:0% you can't do that or you'll get banned from<00:08:19.090> whoever<00:08:19.420> whatever<00:08:19.750> broker<00:08:20.080> you're 00:08:20.280 --> 00:08:20.290 align:start position:0% from whoever whatever broker you're 00:08:20.290 --> 00:08:22.290 align:start position:0% from whoever whatever broker you're trading<00:08:20.560> through<00:08:20.680> or<00:08:20.920> whatever<00:08:21.190> but<00:08:21.760> in<00:08:22.150> on 00:08:22.290 --> 00:08:22.300 align:start position:0% trading through or whatever but in on 00:08:22.300 --> 00:08:23.880 align:start position:0% trading through or whatever but in on chain<00:08:22.570> systems<00:08:22.930> this<00:08:23.020> is<00:08:23.080> very<00:08:23.320> prevalent<00:08:23.560> and 00:08:23.880 --> 00:08:23.890 align:start position:0% chain systems this is very prevalent and 00:08:23.890 --> 00:08:25.500 align:start position:0% chain systems this is very prevalent and not<00:08:24.430> only<00:08:24.640> that<00:08:24.790> but<00:08:24.910> it<00:08:25.030> actually<00:08:25.060> gets<00:08:25.420> worse 00:08:25.500 --> 00:08:25.510 align:start position:0% not only that but it actually gets worse 00:08:25.510 --> 00:08:27.660 align:start position:0% not only that but it actually gets worse so<00:08:26.080> many<00:08:26.350> of<00:08:26.500> the<00:08:26.590> systems<00:08:26.920> we<00:08:27.040> built<00:08:27.070> now<00:08:27.430> have 00:08:27.660 --> 00:08:27.670 align:start position:0% so many of the systems we built now have 00:08:27.670 --> 00:08:29.490 align:start position:0% so many of the systems we built now have slow<00:08:27.910> cancellation<00:08:28.570> which<00:08:29.110> means<00:08:29.320> that 00:08:29.490 --> 00:08:29.500 align:start position:0% slow cancellation which means that 00:08:29.500 --> 00:08:30.780 align:start position:0% slow cancellation which means that because<00:08:29.830> an<00:08:29.980> order<00:08:30.220> is<00:08:30.340> sitting<00:08:30.610> on<00:08:30.700> the 00:08:30.780 --> 00:08:30.790 align:start position:0% because an order is sitting on the 00:08:30.790 --> 00:08:32.190 align:start position:0% because an order is sitting on the blockchain<00:08:30.970> and<00:08:31.240> you<00:08:31.510> have<00:08:31.660> to<00:08:31.810> bring<00:08:32.020> your 00:08:32.190 --> 00:08:32.200 align:start position:0% blockchain and you have to bring your 00:08:32.200 --> 00:08:34.469 align:start position:0% blockchain and you have to bring your cancellation<00:08:32.830> to<00:08:32.919> the<00:08:33.040> blockchain<00:08:33.419> by<00:08:34.419> the 00:08:34.469 --> 00:08:34.479 align:start position:0% cancellation to the blockchain by the 00:08:34.479 --> 00:08:36.270 align:start position:0% cancellation to the blockchain by the time<00:08:34.690> you<00:08:34.810> go<00:08:34.930> to<00:08:34.960> cancel<00:08:35.349> your<00:08:35.470> order<00:08:35.530> if<00:08:36.070> the 00:08:36.270 --> 00:08:36.280 align:start position:0% time you go to cancel your order if the 00:08:36.280 --> 00:08:37.980 align:start position:0% time you go to cancel your order if the price<00:08:36.490> has<00:08:36.669> changed<00:08:37.150> essentially<00:08:37.810> that's<00:08:37.900> a 00:08:37.980 --> 00:08:37.990 align:start position:0% price has changed essentially that's a 00:08:37.990 --> 00:08:39.990 align:start position:0% price has changed essentially that's a juicy<00:08:38.169> order<00:08:38.530> for<00:08:38.710> miners<00:08:39.010> to<00:08:39.040> come<00:08:39.729> take 00:08:39.990 --> 00:08:40.000 align:start position:0% juicy order for miners to come take 00:08:40.000 --> 00:08:41.490 align:start position:0% juicy order for miners to come take quickly<00:08:40.390> before<00:08:40.630> you're<00:08:40.780> able<00:08:40.990> to<00:08:41.020> cancel<00:08:41.260> it 00:08:41.490 --> 00:08:41.500 align:start position:0% quickly before you're able to cancel it 00:08:41.500 --> 00:08:42.630 align:start position:0% quickly before you're able to cancel it and<00:08:41.680> you're<00:08:41.890> just<00:08:41.979> gonna<00:08:42.070> waste<00:08:42.370> the<00:08:42.550> gas 00:08:42.630 --> 00:08:42.640 align:start position:0% and you're just gonna waste the gas 00:08:42.640 --> 00:08:45.150 align:start position:0% and you're just gonna waste the gas price<00:08:42.940> of<00:08:43.090> your<00:08:43.180> cancellation<00:08:44.040> there's<00:08:45.040> also 00:08:45.150 --> 00:08:45.160 align:start position:0% price of your cancellation there's also 00:08:45.160 --> 00:08:46.470 align:start position:0% price of your cancellation there's also an<00:08:45.280> issue<00:08:45.340> of<00:08:45.490> high<00:08:45.640> gas<00:08:45.850> cost<00:08:46.120> for<00:08:46.270> competing 00:08:46.470 --> 00:08:46.480 align:start position:0% an issue of high gas cost for competing 00:08:46.480 --> 00:08:48.630 align:start position:0% an issue of high gas cost for competing transactions<00:08:47.140> so<00:08:47.590> multiple<00:08:48.040> transactions 00:08:48.630 --> 00:08:48.640 align:start position:0% transactions so multiple transactions 00:08:48.640 --> 00:08:50.040 align:start position:0% transactions so multiple transactions trying<00:08:48.880> to<00:08:48.940> take<00:08:49.120> a<00:08:49.150> juicy<00:08:49.510> order<00:08:49.780> that's<00:08:49.960> on 00:08:50.040 --> 00:08:50.050 align:start position:0% trying to take a juicy order that's on 00:08:50.050 --> 00:08:51.720 align:start position:0% trying to take a juicy order that's on the<00:08:50.140> blockchain<00:08:50.410> essentially<00:08:51.370> engaged<00:08:51.610> in 00:08:51.720 --> 00:08:51.730 align:start position:0% the blockchain essentially engaged in 00:08:51.730 --> 00:08:53.760 align:start position:0% the blockchain essentially engaged in this<00:08:51.790> bidding<00:08:52.180> war<00:08:52.330> on<00:08:52.360> gas<00:08:52.690> to<00:08:53.020> see<00:08:53.470> who<00:08:53.620> can 00:08:53.760 --> 00:08:53.770 align:start position:0% this bidding war on gas to see who can 00:08:53.770 --> 00:08:55.200 align:start position:0% this bidding war on gas to see who can get<00:08:53.890> mine<00:08:54.100> first<00:08:54.340> by<00:08:54.580> the<00:08:54.640> miner 00:08:55.200 --> 00:08:55.210 align:start position:0% get mine first by the miner 00:08:55.210 --> 00:08:58.230 align:start position:0% get mine first by the miner and<00:08:55.300> who<00:08:55.630> can<00:08:55.750> get<00:08:55.870> that<00:08:56.050> transaction<00:08:57.010> so<00:08:57.790> 0x 00:08:58.230 --> 00:08:58.240 align:start position:0% and who can get that transaction so 0x 00:08:58.240 --> 00:09:00.150 align:start position:0% and who can get that transaction so 0x followed<00:08:58.540> this<00:08:58.630> up<00:08:58.810> later<00:08:59.410> with<00:08:59.650> with<00:08:59.950> a<00:08:59.980> nice 00:09:00.150 --> 00:09:00.160 align:start position:0% followed this up later with with a nice 00:09:00.160 --> 00:09:01.860 align:start position:0% followed this up later with with a nice article<00:09:00.490> about<00:09:00.700> front-running<00:09:01.270> griefing<00:09:01.690> and 00:09:01.860 --> 00:09:01.870 align:start position:0% article about front-running griefing and 00:09:01.870 --> 00:09:03.180 align:start position:0% article about front-running griefing and the<00:09:01.930> perils<00:09:02.290> of<00:09:02.410> virtual<00:09:02.710> sediment<00:09:03.070> on<00:09:03.160> the 00:09:03.180 --> 00:09:03.190 align:start position:0% the perils of virtual sediment on the 00:09:03.190 --> 00:09:04.950 align:start position:0% the perils of virtual sediment on the blockchain<00:09:03.490> where<00:09:04.240> they<00:09:04.360> sort<00:09:04.540> of<00:09:04.570> described 00:09:04.950 --> 00:09:04.960 align:start position:0% blockchain where they sort of described 00:09:04.960 --> 00:09:06.450 align:start position:0% blockchain where they sort of described this<00:09:05.110> process<00:09:05.320> of<00:09:05.589> minor<00:09:05.800> front<00:09:06.100> running<00:09:06.310> and 00:09:06.450 --> 00:09:06.460 align:start position:0% this process of minor front running and 00:09:06.460 --> 00:09:09.240 align:start position:0% this process of minor front running and how<00:09:06.550> miners<00:09:07.410> insert<00:09:08.410> their<00:09:08.560> own<00:09:08.680> transactions 00:09:09.240 --> 00:09:09.250 align:start position:0% how miners insert their own transactions 00:09:09.250 --> 00:09:12.240 align:start position:0% how miners insert their own transactions when<00:09:09.370> assembling<00:09:09.700> these<00:09:09.880> blocks<00:09:10.770> now<00:09:11.770> you 00:09:12.240 --> 00:09:12.250 align:start position:0% when assembling these blocks now you 00:09:12.250 --> 00:09:13.470 align:start position:0% when assembling these blocks now you might<00:09:12.400> say<00:09:12.580> Phil<00:09:12.790> you're<00:09:12.970> in<00:09:13.060> your<00:09:13.180> ivory 00:09:13.470 --> 00:09:13.480 align:start position:0% might say Phil you're in your ivory 00:09:13.480 --> 00:09:14.910 align:start position:0% might say Phil you're in your ivory tower<00:09:13.510> over<00:09:13.900> there<00:09:14.020> talking<00:09:14.380> about<00:09:14.560> this<00:09:14.710> but 00:09:14.910 --> 00:09:14.920 align:start position:0% tower over there talking about this but 00:09:14.920 --> 00:09:16.950 align:start position:0% tower over there talking about this but we're<00:09:15.040> building<00:09:15.220> real<00:09:15.520> systems<00:09:15.940> that's<00:09:16.750> not 00:09:16.950 --> 00:09:16.960 align:start position:0% we're building real systems that's not 00:09:16.960 --> 00:09:18.420 align:start position:0% we're building real systems that's not actually<00:09:17.110> the<00:09:17.320> case<00:09:17.350> so<00:09:17.740> we<00:09:17.860> practice<00:09:18.040> what<00:09:18.370> we 00:09:18.420 --> 00:09:18.430 align:start position:0% actually the case so we practice what we 00:09:18.430 --> 00:09:19.530 align:start position:0% actually the case so we practice what we preach 00:09:19.530 --> 00:09:19.540 align:start position:0% preach 00:09:19.540 --> 00:09:21.510 align:start position:0% preach so<00:09:19.839> we<00:09:20.410> actually<00:09:20.770> ran<00:09:20.890> the<00:09:21.010> numbers<00:09:21.250> on<00:09:21.370> this 00:09:21.510 --> 00:09:21.520 align:start position:0% so we actually ran the numbers on this 00:09:21.520 --> 00:09:25.650 align:start position:0% so we actually ran the numbers on this in<00:09:21.640> the<00:09:21.700> 24<00:09:22.060> hours<00:09:22.390> in<00:09:23.230> on<00:09:23.860> August<00:09:24.070> 11th<00:09:24.970> 2017 00:09:25.650 --> 00:09:25.660 align:start position:0% in the 24 hours in on August 11th 2017 00:09:25.660 --> 00:09:27.870 align:start position:0% in the 24 hours in on August 11th 2017 and<00:09:25.870> on<00:09:26.740> that<00:09:26.950> day<00:09:27.130> you<00:09:27.160> could<00:09:27.640> have<00:09:27.670> made 00:09:27.870 --> 00:09:27.880 align:start position:0% and on that day you could have made 00:09:27.880 --> 00:09:31.140 align:start position:0% and on that day you could have made approximately<00:09:28.620> $4,500<00:09:29.620> or<00:09:30.150> approximately 00:09:31.140 --> 00:09:31.150 align:start position:0% approximately $4,500 or approximately 00:09:31.150 --> 00:09:33.120 align:start position:0% approximately $4,500 or approximately 1.6<00:09:31.630> million<00:09:31.900> dollars<00:09:32.260> a<00:09:32.290> year<00:09:32.380> front-running 00:09:33.120 --> 00:09:33.130 align:start position:0% 1.6 million dollars a year front-running 00:09:33.130 --> 00:09:35.100 align:start position:0% 1.6 million dollars a year front-running ether<00:09:33.460> Delta<00:09:33.730> alone<00:09:34.029> so<00:09:34.450> remember<00:09:34.839> this<00:09:34.960> was 00:09:35.100 --> 00:09:35.110 align:start position:0% ether Delta alone so remember this was 00:09:35.110 --> 00:09:36.870 align:start position:0% ether Delta alone so remember this was before<00:09:35.260> sort<00:09:35.740> of<00:09:35.830> the<00:09:35.920> rise<00:09:36.070> of<00:09:36.250> many<00:09:36.460> Dex's 00:09:36.870 --> 00:09:36.880 align:start position:0% before sort of the rise of many Dex's 00:09:36.880 --> 00:09:39.329 align:start position:0% before sort of the rise of many Dex's that<00:09:37.060> came<00:09:37.240> out<00:09:37.390> shortly<00:09:37.660> after<00:09:38.140> this<00:09:38.260> work<00:09:38.440> as 00:09:39.329 --> 00:09:39.339 align:start position:0% that came out shortly after this work as 00:09:39.339 --> 00:09:41.610 align:start position:0% that came out shortly after this work as well<00:09:39.400> as<00:09:39.730> before<00:09:40.150> much<00:09:40.660> of<00:09:40.690> the<00:09:40.930> many<00:09:41.440> of<00:09:41.500> the 00:09:41.610 --> 00:09:41.620 align:start position:0% well as before much of the many of the 00:09:41.620 --> 00:09:42.990 align:start position:0% well as before much of the many of the users<00:09:41.770> started<00:09:42.220> using<00:09:42.460> these<00:09:42.520> Dex's<00:09:42.880> with 00:09:42.990 --> 00:09:43.000 align:start position:0% users started using these Dex's with 00:09:43.000 --> 00:09:44.519 align:start position:0% users started using these Dex's with better.you<00:09:43.270> eyes<00:09:43.510> so<00:09:44.050> it's<00:09:44.170> likely<00:09:44.320> these 00:09:44.519 --> 00:09:44.529 align:start position:0% better.you eyes so it's likely these 00:09:44.529 --> 00:09:46.620 align:start position:0% better.you eyes so it's likely these numbers<00:09:44.800> are<00:09:44.920> actually<00:09:45.010> much<00:09:45.310> worse<00:09:45.339> today<00:09:45.730> we 00:09:46.620 --> 00:09:46.630 align:start position:0% numbers are actually much worse today we 00:09:46.630 --> 00:09:48.390 align:start position:0% numbers are actually much worse today we also<00:09:46.750> ran<00:09:47.020> an<00:09:47.170> arbitrage<00:09:47.500> bot<00:09:47.800> and<00:09:48.010> observed 00:09:48.390 --> 00:09:48.400 align:start position:0% also ran an arbitrage bot and observed 00:09:48.400 --> 00:09:50.430 align:start position:0% also ran an arbitrage bot and observed our<00:09:48.550> own<00:09:48.700> success<00:09:48.940> rate<00:09:49.300> of<00:09:49.330> actually<00:09:50.140> taking 00:09:50.430 --> 00:09:50.440 align:start position:0% our own success rate of actually taking 00:09:50.440 --> 00:09:52.530 align:start position:0% our own success rate of actually taking these<00:09:50.560> opportunities<00:09:50.980> at<00:09:51.310> 58.3% 00:09:52.530 --> 00:09:52.540 align:start position:0% these opportunities at 58.3% 00:09:52.540 --> 00:09:55.530 align:start position:0% these opportunities at 58.3% which<00:09:52.960> applied<00:09:53.260> approximately<00:09:54.300> 2500<00:09:55.300> dollars 00:09:55.530 --> 00:09:55.540 align:start position:0% which applied approximately 2500 dollars 00:09:55.540 --> 00:09:58.980 align:start position:0% which applied approximately 2500 dollars a<00:09:55.630> day<00:09:55.839> in<00:09:56.080> profit<00:09:56.529> or<00:09:56.680> 8.32<00:09:57.220> if<00:09:57.490> a<00:09:57.610> day<00:09:57.760> in<00:09:58.029> 2017 00:09:58.980 --> 00:09:58.990 align:start position:0% a day in profit or 8.32 if a day in 2017 00:09:58.990 --> 00:10:01.650 align:start position:0% a day in profit or 8.32 if a day in 2017 and<00:09:59.170> of<00:10:00.100> course<00:10:00.279> the<00:10:00.430> reactions<00:10:00.820> we<00:10:00.940> got<00:10:01.089> looks 00:10:01.650 --> 00:10:01.660 align:start position:0% and of course the reactions we got looks 00:10:01.660 --> 00:10:04.320 align:start position:0% and of course the reactions we got looks something<00:10:01.839> like<00:10:01.959> this<00:10:02.700> well<00:10:03.700> spoiler<00:10:04.089> alert 00:10:04.320 --> 00:10:04.330 align:start position:0% something like this well spoiler alert 00:10:04.330 --> 00:10:07.140 align:start position:0% something like this well spoiler alert we<00:10:04.450> didn't<00:10:04.920> and<00:10:05.920> so<00:10:06.130> quick<00:10:06.640> warning<00:10:06.940> the<00:10:07.120> next 00:10:07.140 --> 00:10:07.150 align:start position:0% we didn't and so quick warning the next 00:10:07.150 --> 00:10:09.690 align:start position:0% we didn't and so quick warning the next few<00:10:07.450> slides<00:10:07.570> contain<00:10:08.140> preliminary<00:10:08.860> data<00:10:09.040> I'm 00:10:09.690 --> 00:10:09.700 align:start position:0% few slides contain preliminary data I'm 00:10:09.700 --> 00:10:11.370 align:start position:0% few slides contain preliminary data I'm a<00:10:09.760> big<00:10:10.029> believer<00:10:10.150> of<00:10:10.570> sort<00:10:10.779> of<00:10:10.810> doing<00:10:10.959> science 00:10:11.370 --> 00:10:11.380 align:start position:0% a big believer of sort of doing science 00:10:11.380 --> 00:10:12.780 align:start position:0% a big believer of sort of doing science in<00:10:11.470> the<00:10:11.560> open<00:10:11.830> and<00:10:11.980> showing<00:10:12.220> you<00:10:12.310> guys<00:10:12.459> what<00:10:12.670> we 00:10:12.780 --> 00:10:12.790 align:start position:0% in the open and showing you guys what we 00:10:12.790 --> 00:10:14.490 align:start position:0% in the open and showing you guys what we have<00:10:12.970> as<00:10:13.180> soon<00:10:13.360> as<00:10:13.480> we<00:10:13.630> have<00:10:13.810> a<00:10:13.839> form<00:10:14.230> that<00:10:14.290> we 00:10:14.490 --> 00:10:14.500 align:start position:0% have as soon as we have a form that we 00:10:14.500 --> 00:10:16.440 align:start position:0% have as soon as we have a form that we can<00:10:14.650> show<00:10:14.800> it<00:10:14.920> to<00:10:15.010> you<00:10:15.100> in<00:10:15.250> so<00:10:16.000> take<00:10:16.120> this<00:10:16.270> data 00:10:16.440 --> 00:10:16.450 align:start position:0% can show it to you in so take this data 00:10:16.450 --> 00:10:17.970 align:start position:0% can show it to you in so take this data with<00:10:16.630> a<00:10:16.660> grain<00:10:16.750> of<00:10:16.900> salt<00:10:17.170> and<00:10:17.470> sort<00:10:17.709> of<00:10:17.770> watch 00:10:17.970 --> 00:10:17.980 align:start position:0% with a grain of salt and sort of watch 00:10:17.980 --> 00:10:19.710 align:start position:0% with a grain of salt and sort of watch out<00:10:18.160> on<00:10:18.279> my<00:10:18.400> Twitter<00:10:18.670> for<00:10:18.970> when<00:10:19.120> I<00:10:19.150> when<00:10:19.420> I<00:10:19.450> sort 00:10:19.710 --> 00:10:19.720 align:start position:0% out on my Twitter for when I when I sort 00:10:19.720 --> 00:10:21.090 align:start position:0% out on my Twitter for when I when I sort of<00:10:19.750> tweet<00:10:19.990> that<00:10:20.080> this<00:10:20.230> is<00:10:20.350> finalized<00:10:20.860> and<00:10:21.040> you 00:10:21.090 --> 00:10:21.100 align:start position:0% of tweet that this is finalized and you 00:10:21.100 --> 00:10:22.380 align:start position:0% of tweet that this is finalized and you can<00:10:21.220> really<00:10:21.430> have<00:10:21.520> confidence<00:10:21.940> in<00:10:22.060> this<00:10:22.150> data 00:10:22.380 --> 00:10:22.390 align:start position:0% can really have confidence in this data 00:10:22.390 --> 00:10:24.269 align:start position:0% can really have confidence in this data and<00:10:22.690> we're<00:10:23.230> also<00:10:23.350> gonna<00:10:23.470> be<00:10:23.650> releasing<00:10:24.070> it<00:10:24.160> and 00:10:24.269 --> 00:10:24.279 align:start position:0% and we're also gonna be releasing it and 00:10:24.279 --> 00:10:25.740 align:start position:0% and we're also gonna be releasing it and open<00:10:24.490> sourcing<00:10:24.850> everything<00:10:24.940> I<00:10:25.330> talked<00:10:25.510> about 00:10:25.740 --> 00:10:25.750 align:start position:0% open sourcing everything I talked about 00:10:25.750 --> 00:10:27.720 align:start position:0% open sourcing everything I talked about today<00:10:26.020> for<00:10:26.080> peer<00:10:26.380> review<00:10:26.709> within<00:10:27.490> the<00:10:27.580> next 00:10:27.720 --> 00:10:27.730 align:start position:0% today for peer review within the next 00:10:27.730 --> 00:10:28.519 align:start position:0% today for peer review within the next month<00:10:27.940> or<00:10:28.120> so 00:10:28.519 --> 00:10:28.529 align:start position:0% month or so 00:10:28.529 --> 00:10:30.840 align:start position:0% month or so so<00:10:29.529> quantifying<00:10:30.010> the<00:10:30.100> front-running<00:10:30.459> problem 00:10:30.840 --> 00:10:30.850 align:start position:0% so quantifying the front-running problem 00:10:30.850 --> 00:10:32.579 align:start position:0% so quantifying the front-running problem so<00:10:31.150> between<00:10:31.510> around<00:10:31.839> blocks<00:10:32.170> three<00:10:32.410> point 00:10:32.579 --> 00:10:32.589 align:start position:0% so between around blocks three point 00:10:32.589 --> 00:10:34.079 align:start position:0% so between around blocks three point eight<00:10:32.680> seven<00:10:32.890> million<00:10:33.190> in<00:10:33.430> a<00:10:33.490> around<00:10:33.880> block 00:10:34.079 --> 00:10:34.089 align:start position:0% eight seven million in a around block 00:10:34.089 --> 00:10:35.760 align:start position:0% eight seven million in a around block six<00:10:34.390> point<00:10:34.600> six<00:10:34.810> million<00:10:35.020> which<00:10:35.260> was<00:10:35.410> I<00:10:35.650> think 00:10:35.760 --> 00:10:35.770 align:start position:0% six point six million which was I think 00:10:35.770 --> 00:10:38.190 align:start position:0% six point six million which was I think a<00:10:36.010> week<00:10:36.100> or<00:10:36.279> two<00:10:36.370> ago<00:10:36.400> we<00:10:37.390> saw<00:10:37.570> around<00:10:37.839> two 00:10:38.190 --> 00:10:38.200 align:start position:0% a week or two ago we saw around two 00:10:38.200 --> 00:10:39.630 align:start position:0% a week or two ago we saw around two million<00:10:38.380> five<00:10:38.680> hundred<00:10:38.709> thousand<00:10:39.310> of<00:10:39.490> these 00:10:39.630 --> 00:10:39.640 align:start position:0% million five hundred thousand of these 00:10:39.640 --> 00:10:41.870 align:start position:0% million five hundred thousand of these programmatic<00:10:40.270> arbitrage<00:10:40.720> bot<00:10:40.990> transactions 00:10:41.870 --> 00:10:41.880 align:start position:0% programmatic arbitrage bot transactions 00:10:41.880 --> 00:10:44.640 align:start position:0% programmatic arbitrage bot transactions which<00:10:42.880> is<00:10:43.000> about<00:10:43.180> 30%<00:10:43.510> of<00:10:43.900> all<00:10:44.020> blocks<00:10:44.290> on<00:10:44.529> the 00:10:44.640 --> 00:10:44.650 align:start position:0% which is about 30% of all blocks on the 00:10:44.650 --> 00:10:46.110 align:start position:0% which is about 30% of all blocks on the network<00:10:44.920> in<00:10:45.130> that<00:10:45.250> time<00:10:45.430> containing<00:10:45.880> such<00:10:46.029> a 00:10:46.110 --> 00:10:46.120 align:start position:0% network in that time containing such a 00:10:46.120 --> 00:10:48.660 align:start position:0% network in that time containing such a transaction<00:10:46.630> we<00:10:47.380> also<00:10:47.500> saw<00:10:47.709> 21<00:10:48.220> trillion 00:10:48.660 --> 00:10:48.670 align:start position:0% transaction we also saw 21 trillion 00:10:48.670 --> 00:10:50.760 align:start position:0% transaction we also saw 21 trillion total<00:10:48.910> guei<00:10:49.270> bid<00:10:49.750> in<00:10:49.930> the<00:10:50.020> network<00:10:50.290> for<00:10:50.709> the 00:10:50.760 --> 00:10:50.770 align:start position:0% total guei bid in the network for the 00:10:50.770 --> 00:10:53.040 align:start position:0% total guei bid in the network for the gas<00:10:51.070> to<00:10:51.370> pay<00:10:51.520> for<00:10:51.670> these<00:10:51.790> transactions<00:10:52.390> which 00:10:53.040 --> 00:10:53.050 align:start position:0% gas to pay for these transactions which 00:10:53.050 --> 00:10:54.269 align:start position:0% gas to pay for these transactions which paid<00:10:53.470> for<00:10:53.680> nine<00:10:53.800> hundred<00:10:54.070> eighty<00:10:54.130> nine 00:10:54.269 --> 00:10:54.279 align:start position:0% paid for nine hundred eighty nine 00:10:54.279 --> 00:10:56.699 align:start position:0% paid for nine hundred eighty nine billion<00:10:54.850> gas<00:10:55.060> or<00:10:55.420> sorry<00:10:55.690> bid<00:10:56.110> nine<00:10:56.440> hundred 00:10:56.699 --> 00:10:56.709 align:start position:0% billion gas or sorry bid nine hundred 00:10:56.709 --> 00:10:58.350 align:start position:0% billion gas or sorry bid nine hundred eighty<00:10:56.830> nine<00:10:56.860> billion<00:10:57.310> gas<00:10:57.490> the<00:10:57.820> transaction 00:10:58.350 --> 00:10:58.360 align:start position:0% eighty nine billion gas the transaction 00:10:58.360 --> 00:10:59.640 align:start position:0% eighty nine billion gas the transaction could<00:10:58.540> potentially<00:10:58.900> use<00:10:59.020> less<00:10:59.230> than<00:10:59.410> it<00:10:59.500> bid 00:10:59.640 --> 00:10:59.650 align:start position:0% could potentially use less than it bid 00:10:59.650 --> 00:11:01.560 align:start position:0% could potentially use less than it bid and<00:10:59.890> that's<00:11:00.520> equivalent<00:11:00.760> to<00:11:00.940> about<00:11:01.000> a<00:11:01.180> hundred 00:11:01.560 --> 00:11:01.570 align:start position:0% and that's equivalent to about a hundred 00:11:01.570 --> 00:11:03.540 align:start position:0% and that's equivalent to about a hundred twenty<00:11:01.630> thousand<00:11:02.170> full<00:11:02.290> blocks<00:11:02.500> of<00:11:02.680> gas<00:11:02.830> so 00:11:03.540 --> 00:11:03.550 align:start position:0% twenty thousand full blocks of gas so 00:11:03.550 --> 00:11:04.829 align:start position:0% twenty thousand full blocks of gas so you<00:11:03.610> can<00:11:03.760> see<00:11:03.910> this<00:11:04.030> is<00:11:04.180> already<00:11:04.360> happening 00:11:04.829 --> 00:11:04.839 align:start position:0% you can see this is already happening 00:11:04.839 --> 00:11:07.980 align:start position:0% you can see this is already happening actively<00:11:05.380> on<00:11:05.560> the<00:11:05.740> system<00:11:06.040> today<00:11:06.810> now<00:11:07.810> let's 00:11:07.980 --> 00:11:07.990 align:start position:0% actively on the system today now let's 00:11:07.990 --> 00:11:08.910 align:start position:0% actively on the system today now let's sort<00:11:08.140> of<00:11:08.230> zoom<00:11:08.410> in<00:11:08.500> a<00:11:08.589> little<00:11:08.680> bit 00:11:08.910 --> 00:11:08.920 align:start position:0% sort of zoom in a little bit 00:11:08.920 --> 00:11:10.560 align:start position:0% sort of zoom in a little bit and<00:11:09.100> look<00:11:09.310> at<00:11:09.459> the<00:11:09.700> the<00:11:09.850> graphical<00:11:10.269> data<00:11:10.389> of 00:11:10.560 --> 00:11:10.570 align:start position:0% and look at the the graphical data of 00:11:10.570 --> 00:11:12.120 align:start position:0% and look at the the graphical data of what<00:11:10.660> this<00:11:10.750> market<00:11:11.079> looks<00:11:11.260> like<00:11:11.470> so<00:11:11.980> that 00:11:12.120 --> 00:11:12.130 align:start position:0% what this market looks like so that 00:11:12.130 --> 00:11:13.470 align:start position:0% what this market looks like so that purple<00:11:12.339> line<00:11:12.579> over<00:11:12.850> there<00:11:12.940> is<00:11:13.089> the<00:11:13.209> date<00:11:13.360> we 00:11:13.470 --> 00:11:13.480 align:start position:0% purple line over there is the date we 00:11:13.480 --> 00:11:15.690 align:start position:0% purple line over there is the date we published<00:11:13.839> the<00:11:13.959> post<00:11:14.170> you<00:11:14.980> can<00:11:15.100> see<00:11:15.279> before 00:11:15.690 --> 00:11:15.700 align:start position:0% published the post you can see before 00:11:15.700 --> 00:11:17.610 align:start position:0% published the post you can see before that<00:11:15.730> it<00:11:16.209> was<00:11:16.329> maybe<00:11:16.510> us<00:11:16.750> trading<00:11:17.200> around<00:11:17.380> and 00:11:17.610 --> 00:11:17.620 align:start position:0% that it was maybe us trading around and 00:11:17.620 --> 00:11:19.680 align:start position:0% that it was maybe us trading around and experimenting<00:11:18.100> a<00:11:18.160> little<00:11:18.250> in<00:11:18.459> one<00:11:18.639> bot<00:11:18.850> and 00:11:19.680 --> 00:11:19.690 align:start position:0% experimenting a little in one bot and 00:11:19.690 --> 00:11:21.690 align:start position:0% experimenting a little in one bot and shortly<00:11:19.990> after<00:11:20.320> that<00:11:20.350> sort<00:11:20.950> of<00:11:21.040> this<00:11:21.220> rapid 00:11:21.690 --> 00:11:21.700 align:start position:0% shortly after that sort of this rapid 00:11:21.700 --> 00:11:24.389 align:start position:0% shortly after that sort of this rapid professionalized<00:11:22.329> economy<00:11:22.870> rose<00:11:23.709> up<00:11:23.950> taking 00:11:24.389 --> 00:11:24.399 align:start position:0% professionalized economy rose up taking 00:11:24.399 --> 00:11:25.860 align:start position:0% professionalized economy rose up taking these<00:11:24.490> arbitrage<00:11:24.970> opportunities<00:11:25.600> often 00:11:25.860 --> 00:11:25.870 align:start position:0% these arbitrage opportunities often 00:11:25.870 --> 00:11:28.110 align:start position:0% these arbitrage opportunities often competitively<00:11:26.589> so<00:11:27.519> the<00:11:27.639> way<00:11:27.730> you<00:11:27.790> should<00:11:27.880> read 00:11:28.110 --> 00:11:28.120 align:start position:0% competitively so the way you should read 00:11:28.120 --> 00:11:30.720 align:start position:0% competitively so the way you should read this<00:11:28.240> graph<00:11:28.480> is<00:11:28.750> the<00:11:28.810> top<00:11:29.350> line<00:11:29.589> is<00:11:29.980> that<00:11:30.639> is 00:11:30.720 --> 00:11:30.730 align:start position:0% this graph is the top line is that is 00:11:30.730 --> 00:11:33.329 align:start position:0% this graph is the top line is that is the<00:11:31.149> gray<00:11:31.500> top<00:11:32.500> line<00:11:32.680> of<00:11:32.709> the<00:11:32.800> top<00:11:32.980> graph<00:11:33.190> is 00:11:33.329 --> 00:11:33.339 align:start position:0% the gray top line of the top graph is 00:11:33.339 --> 00:11:35.000 align:start position:0% the gray top line of the top graph is the<00:11:33.459> Gawai<00:11:33.639> bid<00:11:33.880> including<00:11:34.329> failures<00:11:34.690> and 00:11:35.000 --> 00:11:35.010 align:start position:0% the Gawai bid including failures and 00:11:35.010 --> 00:11:37.110 align:start position:0% the Gawai bid including failures and what<00:11:36.010> that<00:11:36.160> means<00:11:36.310> is<00:11:36.610> we<00:11:36.850> include 00:11:37.110 --> 00:11:37.120 align:start position:0% what that means is we include 00:11:37.120 --> 00:11:38.220 align:start position:0% what that means is we include transactions<00:11:37.839> that<00:11:37.930> didn't<00:11:38.170> necessarily 00:11:38.220 --> 00:11:38.230 align:start position:0% transactions that didn't necessarily 00:11:38.230 --> 00:11:40.470 align:start position:0% transactions that didn't necessarily successfully<00:11:39.190> arbitrage<00:11:39.579> things<00:11:39.880> and<00:11:40.120> we're 00:11:40.470 --> 00:11:40.480 align:start position:0% successfully arbitrage things and we're 00:11:40.480 --> 00:11:41.879 align:start position:0% successfully arbitrage things and we're using<00:11:40.660> a<00:11:40.839> pretty<00:11:41.019> loose<00:11:41.260> heuristic<00:11:41.740> which 00:11:41.879 --> 00:11:41.889 align:start position:0% using a pretty loose heuristic which 00:11:41.889 --> 00:11:44.189 align:start position:0% using a pretty loose heuristic which might<00:11:42.130> accidentally<00:11:42.639> identify<00:11:43.240> transactions 00:11:44.189 --> 00:11:44.199 align:start position:0% might accidentally identify transactions 00:11:44.199 --> 00:11:45.600 align:start position:0% might accidentally identify transactions that<00:11:44.320> are<00:11:44.410> trading<00:11:45.070> programmatically 00:11:45.600 --> 00:11:45.610 align:start position:0% that are trading programmatically 00:11:45.610 --> 00:11:47.910 align:start position:0% that are trading programmatically through<00:11:45.699> Dex's<00:11:46.240> for<00:11:46.389> other<00:11:46.540> reasons<00:11:46.990> so<00:11:47.769> we're 00:11:47.910 --> 00:11:47.920 align:start position:0% through Dex's for other reasons so we're 00:11:47.920 --> 00:11:49.110 align:start position:0% through Dex's for other reasons so we're looking<00:11:48.160> through<00:11:48.310> that<00:11:48.399> data<00:11:48.550> manually<00:11:48.940> and 00:11:49.110 --> 00:11:49.120 align:start position:0% looking through that data manually and 00:11:49.120 --> 00:11:50.280 align:start position:0% looking through that data manually and just<00:11:49.240> validating<00:11:49.720> it<00:11:49.779> take<00:11:49.990> this<00:11:50.110> with<00:11:50.260> a 00:11:50.280 --> 00:11:50.290 align:start position:0% just validating it take this with a 00:11:50.290 --> 00:11:51.329 align:start position:0% just validating it take this with a grain<00:11:50.350> of<00:11:50.500> salt<00:11:50.709> right<00:11:50.920> now<00:11:51.040> but 00:11:51.329 --> 00:11:51.339 align:start position:0% grain of salt right now but 00:11:51.339 --> 00:11:53.220 align:start position:0% grain of salt right now but approximately<00:11:51.850> this<00:11:52.389> is<00:11:52.510> what<00:11:52.660> the<00:11:52.779> shape<00:11:53.110> of 00:11:53.220 --> 00:11:53.230 align:start position:0% approximately this is what the shape of 00:11:53.230 --> 00:11:55.379 align:start position:0% approximately this is what the shape of the<00:11:53.320> market<00:11:53.589> looks<00:11:53.769> like<00:11:53.949> and<00:11:54.910> the<00:11:55.240> way<00:11:55.329> you 00:11:55.379 --> 00:11:55.389 align:start position:0% the market looks like and the way you 00:11:55.389 --> 00:11:56.939 align:start position:0% the market looks like and the way you should<00:11:55.660> read<00:11:55.810> this<00:11:55.959> is<00:11:56.199> essentially<00:11:56.709> we 00:11:56.939 --> 00:11:56.949 align:start position:0% should read this is essentially we 00:11:56.949 --> 00:11:58.710 align:start position:0% should read this is essentially we chunked<00:11:57.250> up<00:11:57.339> time<00:11:57.880> into<00:11:58.120> 10,000<00:11:58.600> block 00:11:58.710 --> 00:11:58.720 align:start position:0% chunked up time into 10,000 block 00:11:58.720 --> 00:12:00.360 align:start position:0% chunked up time into 10,000 block intervals<00:11:59.170> and<00:11:59.440> just<00:11:59.920> looked<00:12:00.070> at<00:12:00.160> how<00:12:00.279> much 00:12:00.360 --> 00:12:00.370 align:start position:0% intervals and just looked at how much 00:12:00.370 --> 00:12:02.009 align:start position:0% intervals and just looked at how much gas<00:12:00.610> and<00:12:00.910> whey<00:12:01.120> was<00:12:01.300> being<00:12:01.510> used<00:12:01.690> in<00:12:01.779> each<00:12:01.899> of 00:12:02.009 --> 00:12:02.019 align:start position:0% gas and whey was being used in each of 00:12:02.019 --> 00:12:04.019 align:start position:0% gas and whey was being used in each of those<00:12:02.110> 10,000<00:12:02.649> block<00:12:02.740> unit<00:12:03.010> rules<00:12:03.190> so<00:12:03.910> it's 00:12:04.019 --> 00:12:04.029 align:start position:0% those 10,000 block unit rules so it's 00:12:04.029 --> 00:12:05.460 align:start position:0% those 10,000 block unit rules so it's not<00:12:04.120> actually<00:12:04.300> a<00:12:04.510> moving<00:12:04.750> average<00:12:04.870> sorry<00:12:05.290> for 00:12:05.460 --> 00:12:05.470 align:start position:0% not actually a moving average sorry for 00:12:05.470 --> 00:12:08.400 align:start position:0% not actually a moving average sorry for that<00:12:05.560> misleading<00:12:05.980> label<00:12:06.420> but<00:12:07.420> if<00:12:07.930> you<00:12:08.050> see<00:12:08.230> for 00:12:08.400 --> 00:12:08.410 align:start position:0% that misleading label but if you see for 00:12:08.410 --> 00:12:10.079 align:start position:0% that misleading label but if you see for example<00:12:08.440> the<00:12:08.800> bottom<00:12:09.040> line<00:12:09.220> 15<00:12:09.639> billion<00:12:09.940> gasps 00:12:10.079 --> 00:12:10.089 align:start position:0% example the bottom line 15 billion gasps 00:12:10.089 --> 00:12:11.759 align:start position:0% example the bottom line 15 billion gasps that<00:12:10.360> means<00:12:10.480> in<00:12:10.750> those<00:12:10.930> ten<00:12:11.139> thousand<00:12:11.560> blocks 00:12:11.759 --> 00:12:11.769 align:start position:0% that means in those ten thousand blocks 00:12:11.769 --> 00:12:14.730 align:start position:0% that means in those ten thousand blocks 15<00:12:12.220> billion<00:12:12.550> total<00:12:12.820> gas<00:12:12.940> was<00:12:13.240> was<00:12:13.899> sort<00:12:14.470> of<00:12:14.529> bid 00:12:14.730 --> 00:12:14.740 align:start position:0% 15 billion total gas was was sort of bid 00:12:14.740 --> 00:12:17.130 align:start position:0% 15 billion total gas was was sort of bid which<00:12:15.100> means<00:12:15.339> 1.5<00:12:16.060> million<00:12:16.300> gas<00:12:16.750> per<00:12:16.959> block 00:12:17.130 --> 00:12:17.140 align:start position:0% which means 1.5 million gas per block 00:12:17.140 --> 00:12:19.769 align:start position:0% which means 1.5 million gas per block was<00:12:17.320> demanded<00:12:17.709> by<00:12:17.800> these<00:12:17.949> arbitrage<00:12:18.370> errs<00:12:18.779> the 00:12:19.769 --> 00:12:19.779 align:start position:0% was demanded by these arbitrage errs the 00:12:19.779 --> 00:12:21.329 align:start position:0% was demanded by these arbitrage errs the law<00:12:19.930> world<00:12:20.079> two<00:12:20.320> lines<00:12:20.529> so<00:12:20.920> show<00:12:21.220> the 00:12:21.329 --> 00:12:21.339 align:start position:0% law world two lines so show the 00:12:21.339 --> 00:12:23.460 align:start position:0% law world two lines so show the successful<00:12:21.790> arbitrage<00:12:22.240> rates<00:12:22.570> and<00:12:23.199> these<00:12:23.350> are 00:12:23.460 --> 00:12:23.470 align:start position:0% successful arbitrage rates and these are 00:12:23.470 --> 00:12:24.689 align:start position:0% successful arbitrage rates and these are transactions<00:12:23.920> which<00:12:24.040> actually<00:12:24.339> managed<00:12:24.670> to 00:12:24.689 --> 00:12:24.699 align:start position:0% transactions which actually managed to 00:12:24.699 --> 00:12:26.400 align:start position:0% transactions which actually managed to execute<00:12:25.000> trades<00:12:25.300> on<00:12:25.510> index<00:12:25.779> programmatically 00:12:26.400 --> 00:12:26.410 align:start position:0% execute trades on index programmatically 00:12:26.410 --> 00:12:29.130 align:start position:0% execute trades on index programmatically through<00:12:26.529> other<00:12:26.800> smart<00:12:27.100> contracts<00:12:27.660> and<00:12:28.660> the 00:12:29.130 --> 00:12:29.140 align:start position:0% through other smart contracts and the 00:12:29.140 --> 00:12:33.269 align:start position:0% through other smart contracts and the bottom<00:12:29.410> red<00:12:29.620> line<00:12:29.800> is<00:12:29.949> the<00:12:30.070> fill<00:12:30.220> is<00:12:32.130> the<00:12:33.130> gas 00:12:33.269 --> 00:12:33.279 align:start position:0% bottom red line is the fill is the gas 00:12:33.279 --> 00:12:35.519 align:start position:0% bottom red line is the fill is the gas used<00:12:33.610> and<00:12:34.000> the<00:12:34.120> top<00:12:34.480> is<00:12:34.630> the<00:12:34.720> gas<00:12:34.839> bid<00:12:35.110> so<00:12:35.290> again 00:12:35.519 --> 00:12:35.529 align:start position:0% used and the top is the gas bid so again 00:12:35.529 --> 00:12:37.050 align:start position:0% used and the top is the gas bid so again the<00:12:35.680> gas<00:12:35.800> pit<00:12:36.070> is<00:12:36.220> the<00:12:36.430> price<00:12:36.640> you<00:12:36.760> offered<00:12:37.029> to 00:12:37.050 --> 00:12:37.060 align:start position:0% the gas pit is the price you offered to 00:12:37.060 --> 00:12:38.430 align:start position:0% the gas pit is the price you offered to pay<00:12:37.149> and<00:12:37.420> the<00:12:37.510> gas<00:12:37.630> use<00:12:37.839> is<00:12:37.990> the<00:12:38.110> price<00:12:38.290> you<00:12:38.320> pay 00:12:38.430 --> 00:12:38.440 align:start position:0% pay and the gas use is the price you pay 00:12:38.440 --> 00:12:40.530 align:start position:0% pay and the gas use is the price you pay so<00:12:39.279> you<00:12:39.370> can<00:12:39.519> see<00:12:39.670> this<00:12:39.820> market<00:12:40.180> has<00:12:40.269> sort<00:12:40.480> of 00:12:40.530 --> 00:12:40.540 align:start position:0% so you can see this market has sort of 00:12:40.540 --> 00:12:42.329 align:start position:0% so you can see this market has sort of been<00:12:40.720> steadily<00:12:40.930> increasing<00:12:41.170> slowly<00:12:41.829> in<00:12:42.130> gas 00:12:42.329 --> 00:12:42.339 align:start position:0% been steadily increasing slowly in gas 00:12:42.339 --> 00:12:44.280 align:start position:0% been steadily increasing slowly in gas but<00:12:43.029> decreasing<00:12:43.510> in<00:12:43.600> the<00:12:43.660> amount<00:12:43.839> of<00:12:43.899> gas<00:12:44.079> it's 00:12:44.280 --> 00:12:44.290 align:start position:0% but decreasing in the amount of gas it's 00:12:44.290 --> 00:12:46.410 align:start position:0% but decreasing in the amount of gas it's burning<00:12:44.620> for<00:12:44.920> two<00:12:45.040> reasons<00:12:45.399> number<00:12:45.670> one<00:12:46.089> the 00:12:46.410 --> 00:12:46.420 align:start position:0% burning for two reasons number one the 00:12:46.420 --> 00:12:47.790 align:start position:0% burning for two reasons number one the general<00:12:46.720> gas<00:12:46.899> market<00:12:47.290> has<00:12:47.380> cooled<00:12:47.620> off<00:12:47.769> a 00:12:47.790 --> 00:12:47.800 align:start position:0% general gas market has cooled off a 00:12:47.800 --> 00:12:49.800 align:start position:0% general gas market has cooled off a little<00:12:48.010> bit<00:12:48.220> since<00:12:49.000> that<00:12:49.240> sort<00:12:49.449> of<00:12:49.510> spike 00:12:49.800 --> 00:12:49.810 align:start position:0% little bit since that sort of spike 00:12:49.810 --> 00:12:51.720 align:start position:0% little bit since that sort of spike right<00:12:50.079> after<00:12:50.380> our<00:12:50.410> blog<00:12:50.709> post<00:12:51.010> and<00:12:51.279> another 00:12:51.720 --> 00:12:51.730 align:start position:0% right after our blog post and another 00:12:51.730 --> 00:12:53.100 align:start position:0% right after our blog post and another one<00:12:51.910> users<00:12:52.240> are<00:12:52.329> actually<00:12:52.449> making<00:12:52.750> smaller 00:12:53.100 --> 00:12:53.110 align:start position:0% one users are actually making smaller 00:12:53.110 --> 00:12:54.660 align:start position:0% one users are actually making smaller and<00:12:53.319> smaller<00:12:53.529> trades<00:12:53.829> on<00:12:53.980> these<00:12:54.100> Dex's<00:12:54.519> as 00:12:54.660 --> 00:12:54.670 align:start position:0% and smaller trades on these Dex's as 00:12:54.670 --> 00:12:56.550 align:start position:0% and smaller trades on these Dex's as they<00:12:54.910> hit<00:12:55.029> the<00:12:55.180> mainstream<00:12:55.360> which<00:12:56.140> means<00:12:56.350> the 00:12:56.550 --> 00:12:56.560 align:start position:0% they hit the mainstream which means the 00:12:56.560 --> 00:12:58.139 align:start position:0% they hit the mainstream which means the average<00:12:56.829> size<00:12:57.160> of<00:12:57.339> the<00:12:57.430> opportunity<00:12:57.910> is 00:12:58.139 --> 00:12:58.149 align:start position:0% average size of the opportunity is 00:12:58.149 --> 00:13:01.079 align:start position:0% average size of the opportunity is decreasing<00:12:58.779> over<00:12:59.050> time<00:12:59.399> so<00:13:00.399> we<00:13:00.699> went<00:13:00.940> and 00:13:01.079 --> 00:13:01.089 align:start position:0% decreasing over time so we went and 00:13:01.089 --> 00:13:02.819 align:start position:0% decreasing over time so we went and actually<00:13:01.180> measured<00:13:01.690> this<00:13:02.019> market<00:13:02.470> in<00:13:02.620> much 00:13:02.819 --> 00:13:02.829 align:start position:0% actually measured this market in much 00:13:02.829 --> 00:13:04.710 align:start position:0% actually measured this market in much more<00:13:03.069> detailed<00:13:03.610> because<00:13:04.120> we<00:13:04.329> wanted<00:13:04.540> to<00:13:04.600> know 00:13:04.710 --> 00:13:04.720 align:start position:0% more detailed because we wanted to know 00:13:04.720 --> 00:13:06.120 align:start position:0% more detailed because we wanted to know how<00:13:04.930> are<00:13:05.079> these<00:13:05.199> BOTS<00:13:05.470> that<00:13:05.709> are<00:13:05.829> doing<00:13:05.949> this 00:13:06.120 --> 00:13:06.130 align:start position:0% how are these BOTS that are doing this 00:13:06.130 --> 00:13:07.889 align:start position:0% how are these BOTS that are doing this actually<00:13:06.339> competing<00:13:06.940> what<00:13:07.389> does<00:13:07.510> it<00:13:07.600> take<00:13:07.750> to 00:13:07.889 --> 00:13:07.899 align:start position:0% actually competing what does it take to 00:13:07.899 --> 00:13:09.809 align:start position:0% actually competing what does it take to be<00:13:07.990> competitive<00:13:08.260> in<00:13:08.529> this<00:13:08.620> market<00:13:09.010> so<00:13:09.699> we 00:13:09.809 --> 00:13:09.819 align:start position:0% be competitive in this market so we 00:13:09.819 --> 00:13:12.059 align:start position:0% be competitive in this market so we deployed<00:13:10.120> eight<00:13:10.329> nodes<00:13:10.569> with<00:13:10.810> 256<00:13:11.529> peers<00:13:11.829> each 00:13:12.059 --> 00:13:12.069 align:start position:0% deployed eight nodes with 256 peers each 00:13:12.069 --> 00:13:13.559 align:start position:0% deployed eight nodes with 256 peers each deeply<00:13:12.550> paired<00:13:12.760> with<00:13:12.850> the<00:13:12.970> etherion<00:13:13.269> network 00:13:13.559 --> 00:13:13.569 align:start position:0% deeply paired with the etherion network 00:13:13.569 --> 00:13:15.480 align:start position:0% deeply paired with the etherion network geo<00:13:14.170> distributed<00:13:14.680> this<00:13:14.829> across<00:13:15.160> three 00:13:15.480 --> 00:13:15.490 align:start position:0% geo distributed this across three 00:13:15.490 --> 00:13:17.040 align:start position:0% geo distributed this across three different<00:13:15.519> server<00:13:15.940> providers<00:13:16.449> in<00:13:16.660> south<00:13:16.899> and 00:13:17.040 --> 00:13:17.050 align:start position:0% different server providers in south and 00:13:17.050 --> 00:13:18.480 align:start position:0% different server providers in south and north<00:13:17.140> america<00:13:17.620> europe<00:13:17.860> and<00:13:18.100> asia 00:13:18.480 --> 00:13:18.490 align:start position:0% north america europe and asia 00:13:18.490 --> 00:13:21.300 align:start position:0% north america europe and asia we<00:13:19.060> collected<00:13:19.420> 215<00:13:20.170> million<00:13:20.470> observations 00:13:21.300 --> 00:13:21.310 align:start position:0% we collected 215 million observations 00:13:21.310 --> 00:13:22.560 align:start position:0% we collected 215 million observations over<00:13:21.490> a<00:13:21.579> period<00:13:21.819> of<00:13:21.970> about 00:13:22.560 --> 00:13:22.570 align:start position:0% over a period of about 00:13:22.570 --> 00:13:24.360 align:start position:0% over a period of about a<00:13:22.600> month<00:13:22.780> and<00:13:22.900> a<00:13:22.930> half<00:13:23.130> and<00:13:24.130> what<00:13:24.280> an 00:13:24.360 --> 00:13:24.370 align:start position:0% a month and a half and what an 00:13:24.370 --> 00:13:26.070 align:start position:0% a month and a half and what an observation<00:13:24.880> is<00:13:25.030> is<00:13:25.270> essentially<00:13:25.690> every<00:13:25.900> time 00:13:26.070 --> 00:13:26.080 align:start position:0% observation is is essentially every time 00:13:26.080 --> 00:13:27.870 align:start position:0% observation is is essentially every time a<00:13:26.110> peer<00:13:26.380> sent<00:13:26.650> us<00:13:26.770> an<00:13:26.860> arbitrage<00:13:27.250> transaction 00:13:27.870 --> 00:13:27.880 align:start position:0% a peer sent us an arbitrage transaction 00:13:27.880 --> 00:13:30.090 align:start position:0% a peer sent us an arbitrage transaction we<00:13:28.450> record<00:13:28.810> the<00:13:28.960> precise<00:13:29.230> time<00:13:29.500> we<00:13:29.620> saw<00:13:29.800> it 00:13:30.090 --> 00:13:30.100 align:start position:0% we record the precise time we saw it 00:13:30.100 --> 00:13:33.420 align:start position:0% we record the precise time we saw it synchronized<00:13:30.550> to<00:13:30.670> the<00:13:30.700> microsecond<00:13:31.440> as<00:13:32.440> well 00:13:33.420 --> 00:13:33.430 align:start position:0% synchronized to the microsecond as well 00:13:33.430 --> 00:13:34.800 align:start position:0% synchronized to the microsecond as well as<00:13:33.550> which<00:13:33.730> peer<00:13:33.970> related<00:13:34.420> and<00:13:34.540> things<00:13:34.720> like 00:13:34.800 --> 00:13:34.810 align:start position:0% as which peer related and things like 00:13:34.810 --> 00:13:36.540 align:start position:0% as which peer related and things like that<00:13:34.870> and<00:13:35.200> the<00:13:35.500> goal<00:13:35.650> was<00:13:35.830> to<00:13:36.010> eventually<00:13:36.430> sort 00:13:36.540 --> 00:13:36.550 align:start position:0% that and the goal was to eventually sort 00:13:36.550 --> 00:13:38.400 align:start position:0% that and the goal was to eventually sort of<00:13:36.610> geo<00:13:36.850> locate<00:13:37.210> these<00:13:37.330> bots<00:13:37.600> ask<00:13:37.930> where<00:13:38.290> in 00:13:38.400 --> 00:13:38.410 align:start position:0% of geo locate these bots ask where in 00:13:38.410 --> 00:13:39.750 align:start position:0% of geo locate these bots ask where in the<00:13:38.500> world<00:13:38.680> are<00:13:38.890> the<00:13:39.010> latency<00:13:39.310> advantage<00:13:39.640> is 00:13:39.750 --> 00:13:39.760 align:start position:0% the world are the latency advantage is 00:13:39.760 --> 00:13:41.580 align:start position:0% the world are the latency advantage is strongest<00:13:40.210> as<00:13:40.720> well<00:13:40.900> as<00:13:40.990> understand<00:13:41.470> their 00:13:41.580 --> 00:13:41.590 align:start position:0% strongest as well as understand their 00:13:41.590 --> 00:13:43.140 align:start position:0% strongest as well as understand their operation<00:13:42.100> and<00:13:42.130> the<00:13:42.250> dynamics<00:13:42.700> between<00:13:42.820> them 00:13:43.140 --> 00:13:43.150 align:start position:0% operation and the dynamics between them 00:13:43.150 --> 00:13:45.090 align:start position:0% operation and the dynamics between them and<00:13:43.360> collect<00:13:43.930> precise<00:13:44.230> timing<00:13:44.620> data<00:13:44.770> on<00:13:44.980> these 00:13:45.090 --> 00:13:45.100 align:start position:0% and collect precise timing data on these 00:13:45.100 --> 00:13:46.950 align:start position:0% and collect precise timing data on these auctions<00:13:45.520> so<00:13:46.120> what<00:13:46.240> did<00:13:46.330> we<00:13:46.420> see<00:13:46.540> when<00:13:46.720> we<00:13:46.810> did 00:13:46.950 --> 00:13:46.960 align:start position:0% auctions so what did we see when we did 00:13:46.960 --> 00:13:49.200 align:start position:0% auctions so what did we see when we did that<00:13:47.110> this<00:13:47.980> is<00:13:48.160> what<00:13:48.280> a<00:13:48.310> typical<00:13:48.490> competition 00:13:49.200 --> 00:13:49.210 align:start position:0% that this is what a typical competition 00:13:49.210 --> 00:13:50.550 align:start position:0% that this is what a typical competition between<00:13:49.360> two<00:13:49.660> BOTS<00:13:49.870> trying<00:13:50.170> to<00:13:50.380> take<00:13:50.530> a 00:13:50.550 --> 00:13:50.560 align:start position:0% between two BOTS trying to take a 00:13:50.560 --> 00:13:52.920 align:start position:0% between two BOTS trying to take a profitable<00:13:51.130> opportunity<00:13:51.580> looks<00:13:51.790> like<00:13:51.970> the 00:13:52.920 --> 00:13:52.930 align:start position:0% profitable opportunity looks like the 00:13:52.930 --> 00:13:54.840 align:start position:0% profitable opportunity looks like the graph<00:13:53.110> is<00:13:53.320> showing<00:13:53.560> the<00:13:53.740> bids<00:13:53.920> over<00:13:54.250> time<00:13:54.490> so 00:13:54.840 --> 00:13:54.850 align:start position:0% graph is showing the bids over time so 00:13:54.850 --> 00:13:56.850 align:start position:0% graph is showing the bids over time so on<00:13:55.120> the<00:13:55.270> right<00:13:55.450> is<00:13:55.690> time<00:13:55.960> passing<00:13:56.380> you<00:13:56.560> can<00:13:56.710> see 00:13:56.850 --> 00:13:56.860 align:start position:0% on the right is time passing you can see 00:13:56.860 --> 00:13:58.050 align:start position:0% on the right is time passing you can see the<00:13:56.980> auction<00:13:57.310> ends<00:13:57.460> about<00:13:57.700> two<00:13:57.850> and<00:13:57.940> a<00:13:58.000> half 00:13:58.050 --> 00:13:58.060 align:start position:0% the auction ends about two and a half 00:13:58.060 --> 00:14:00.510 align:start position:0% the auction ends about two and a half seconds<00:13:58.570> after<00:13:58.810> it<00:13:58.930> starts<00:13:59.230> and<00:13:59.440> the<00:14:00.190> y-axis 00:14:00.510 --> 00:14:00.520 align:start position:0% seconds after it starts and the y-axis 00:14:00.520 --> 00:14:02.400 align:start position:0% seconds after it starts and the y-axis is<00:14:00.940> sort<00:14:01.210> of<00:14:01.270> the<00:14:01.360> gas<00:14:01.510> price<00:14:01.810> these<00:14:01.990> bots<00:14:02.260> are 00:14:02.400 --> 00:14:02.410 align:start position:0% is sort of the gas price these bots are 00:14:02.410 --> 00:14:04.530 align:start position:0% is sort of the gas price these bots are bidding<00:14:02.650> for<00:14:02.770> these<00:14:02.920> opportunities<00:14:03.310> so<00:14:03.730> you 00:14:04.530 --> 00:14:04.540 align:start position:0% bidding for these opportunities so you 00:14:04.540 --> 00:14:05.970 align:start position:0% bidding for these opportunities so you can<00:14:04.720> see<00:14:04.810> two<00:14:04.930> things<00:14:04.960> number<00:14:05.410> one<00:14:05.680> the<00:14:05.830> bids 00:14:05.970 --> 00:14:05.980 align:start position:0% can see two things number one the bids 00:14:05.980 --> 00:14:07.590 align:start position:0% can see two things number one the bids are<00:14:06.100> happening<00:14:06.400> very<00:14:06.490> fast<00:14:06.610> many<00:14:07.120> bids<00:14:07.330> in<00:14:07.480> two 00:14:07.590 --> 00:14:07.600 align:start position:0% are happening very fast many bids in two 00:14:07.600 --> 00:14:09.930 align:start position:0% are happening very fast many bids in two minutes<00:14:07.960> and<00:14:08.800> also<00:14:08.980> the<00:14:09.220> Green<00:14:09.400> Dot<00:14:09.550> is<00:14:09.730> that 00:14:09.930 --> 00:14:09.940 align:start position:0% minutes and also the Green Dot is that 00:14:09.940 --> 00:14:11.130 align:start position:0% minutes and also the Green Dot is that is<00:14:10.030> the<00:14:10.120> bots<00:14:10.270> that<00:14:10.300> eventually<00:14:10.750> won<00:14:10.900> and<00:14:11.080> the 00:14:11.130 --> 00:14:11.140 align:start position:0% is the bots that eventually won and the 00:14:11.140 --> 00:14:12.870 align:start position:0% is the bots that eventually won and the red<00:14:11.290> dot<00:14:11.440> is<00:14:11.590> the<00:14:11.770> one<00:14:12.130> that<00:14:12.250> got<00:14:12.400> mined<00:14:12.670> and 00:14:12.870 --> 00:14:12.880 align:start position:0% red dot is the one that got mined and 00:14:12.880 --> 00:14:13.860 align:start position:0% red dot is the one that got mined and paid<00:14:13.060> the<00:14:13.150> fees<00:14:13.300> but<00:14:13.540> didn't<00:14:13.750> get<00:14:13.810> the 00:14:13.860 --> 00:14:13.870 align:start position:0% paid the fees but didn't get the 00:14:13.870 --> 00:14:15.690 align:start position:0% paid the fees but didn't get the opportunity<00:14:14.160> so<00:14:15.160> how<00:14:15.280> does<00:14:15.340> this<00:14:15.460> game<00:14:15.640> work 00:14:15.690 --> 00:14:15.700 align:start position:0% opportunity so how does this game work 00:14:15.700 --> 00:14:17.820 align:start position:0% opportunity so how does this game work well<00:14:16.420> at<00:14:16.570> some<00:14:16.720> point<00:14:16.960> in<00:14:17.080> time<00:14:17.110> some<00:14:17.530> random 00:14:17.820 --> 00:14:17.830 align:start position:0% well at some point in time some random 00:14:17.830 --> 00:14:19.530 align:start position:0% well at some point in time some random orange<00:14:18.130> line<00:14:18.370> will<00:14:18.580> drop<00:14:18.790> on<00:14:18.940> this<00:14:19.030> graph<00:14:19.270> and 00:14:19.530 --> 00:14:19.540 align:start position:0% orange line will drop on this graph and 00:14:19.540 --> 00:14:20.820 align:start position:0% orange line will drop on this graph and that<00:14:19.720> orange<00:14:20.020> line<00:14:20.260> is<00:14:20.290> when<00:14:20.530> the<00:14:20.560> block 00:14:20.820 --> 00:14:20.830 align:start position:0% that orange line is when the block 00:14:20.830 --> 00:14:22.410 align:start position:0% that orange line is when the block template<00:14:21.280> was<00:14:21.370> formed<00:14:21.640> by<00:14:21.730> the<00:14:21.790> pool<00:14:22.060> mining 00:14:22.410 --> 00:14:22.420 align:start position:0% template was formed by the pool mining 00:14:22.420 --> 00:14:24.150 align:start position:0% template was formed by the pool mining the<00:14:22.480> block<00:14:22.690> and<00:14:22.930> when<00:14:23.650> the<00:14:23.800> pool<00:14:24.010> that 00:14:24.150 --> 00:14:24.160 align:start position:0% the block and when the pool that 00:14:24.160 --> 00:14:25.170 align:start position:0% the block and when the pool that eventually<00:14:24.580> is<00:14:24.670> going<00:14:24.820> to<00:14:24.880> mine<00:14:25.030> the 00:14:25.170 --> 00:14:25.180 align:start position:0% eventually is going to mine the 00:14:25.180 --> 00:14:26.760 align:start position:0% eventually is going to mine the successful<00:14:25.600> block<00:14:25.750> forms<00:14:26.110> that<00:14:26.200> template<00:14:26.590> and 00:14:26.760 --> 00:14:26.770 align:start position:0% successful block forms that template and 00:14:26.770 --> 00:14:28.440 align:start position:0% successful block forms that template and includes<00:14:27.070> those<00:14:27.220> transactions<00:14:27.820> the<00:14:28.270> two 00:14:28.440 --> 00:14:28.450 align:start position:0% includes those transactions the two 00:14:28.450 --> 00:14:29.760 align:start position:0% includes those transactions the two transactions<00:14:29.020> that<00:14:29.110> at<00:14:29.260> that<00:14:29.380> point<00:14:29.650> in<00:14:29.740> time 00:14:29.760 --> 00:14:29.770 align:start position:0% transactions that at that point in time 00:14:29.770 --> 00:14:31.140 align:start position:0% transactions that at that point in time have<00:14:30.100> paid<00:14:30.280> the<00:14:30.370> highest<00:14:30.490> price<00:14:30.670> will<00:14:31.060> be 00:14:31.140 --> 00:14:31.150 align:start position:0% have paid the highest price will be 00:14:31.150 --> 00:14:33.660 align:start position:0% have paid the highest price will be included<00:14:31.570> so<00:14:32.200> in<00:14:32.620> that<00:14:32.950> case<00:14:33.160> it's<00:14:33.340> those<00:14:33.430> two 00:14:33.660 --> 00:14:33.670 align:start position:0% included so in that case it's those two 00:14:33.670 --> 00:14:34.950 align:start position:0% included so in that case it's those two in<00:14:33.820> this<00:14:33.940> case<00:14:34.090> it<00:14:34.210> would<00:14:34.270> be<00:14:34.330> those<00:14:34.510> two<00:14:34.750> and 00:14:34.950 --> 00:14:34.960 align:start position:0% in this case it would be those two and 00:14:34.960 --> 00:14:36.000 align:start position:0% in this case it would be those two and the<00:14:35.020> guy<00:14:35.110> on<00:14:35.230> the<00:14:35.320> right<00:14:35.440> would<00:14:35.590> win<00:14:35.770> and<00:14:35.950> the 00:14:36.000 --> 00:14:36.010 align:start position:0% the guy on the right would win and the 00:14:36.010 --> 00:14:37.500 align:start position:0% the guy on the right would win and the guy<00:14:36.100> on<00:14:36.160> the<00:14:36.220> Left<00:14:36.460> would<00:14:36.550> lose<00:14:36.760> so<00:14:37.360> this 00:14:37.500 --> 00:14:37.510 align:start position:0% guy on the Left would lose so this 00:14:37.510 --> 00:14:39.150 align:start position:0% guy on the Left would lose so this actually<00:14:37.840> induces<00:14:38.200> a<00:14:38.230> latency<00:14:38.560> war<00:14:38.800> because 00:14:39.150 --> 00:14:39.160 align:start position:0% actually induces a latency war because 00:14:39.160 --> 00:14:40.740 align:start position:0% actually induces a latency war because whoever<00:14:39.400> sort<00:14:39.670> of<00:14:39.760> had<00:14:39.910> the<00:14:40.030> last<00:14:40.180> word<00:14:40.510> in 00:14:40.740 --> 00:14:40.750 align:start position:0% whoever sort of had the last word in 00:14:40.750 --> 00:14:42.270 align:start position:0% whoever sort of had the last word in this<00:14:40.840> back<00:14:41.050> and<00:14:41.200> forth<00:14:41.260> is<00:14:41.650> the<00:14:41.800> most<00:14:41.980> likely 00:14:42.270 --> 00:14:42.280 align:start position:0% this back and forth is the most likely 00:14:42.280 --> 00:14:44.430 align:start position:0% this back and forth is the most likely to<00:14:42.400> win<00:14:42.520> the<00:14:42.580> market<00:14:42.790> and<00:14:43.150> it<00:14:43.990> actually<00:14:44.140> gets 00:14:44.430 --> 00:14:44.440 align:start position:0% to win the market and it actually gets 00:14:44.440 --> 00:14:46.290 align:start position:0% to win the market and it actually gets even<00:14:44.530> weirder<00:14:44.770> than<00:14:45.010> that<00:14:45.070> so<00:14:45.520> here's<00:14:46.120> an 00:14:46.290 --> 00:14:46.300 align:start position:0% even weirder than that so here's an 00:14:46.300 --> 00:14:47.760 align:start position:0% even weirder than that so here's an example<00:14:46.390> of<00:14:46.660> an<00:14:46.780> auction<00:14:47.170> in<00:14:47.320> which<00:14:47.350> the 00:14:47.760 --> 00:14:47.770 align:start position:0% example of an auction in which the 00:14:47.770 --> 00:14:48.960 align:start position:0% example of an auction in which the winner<00:14:47.920> and<00:14:48.070> the<00:14:48.130> loser<00:14:48.160> happened<00:14:48.730> right<00:14:48.850> at 00:14:48.960 --> 00:14:48.970 align:start position:0% winner and the loser happened right at 00:14:48.970 --> 00:14:51.210 align:start position:0% winner and the loser happened right at the<00:14:49.060> start<00:14:49.300> of<00:14:49.360> the<00:14:49.510> auction<00:14:49.840> and<00:14:50.020> the<00:14:50.830> bots 00:14:51.210 --> 00:14:51.220 align:start position:0% the start of the auction and the bots 00:14:51.220 --> 00:14:52.620 align:start position:0% the start of the auction and the bots kept<00:14:51.490> bidding<00:14:51.640> afterwards<00:14:52.180> even<00:14:52.420> though<00:14:52.510> the 00:14:52.620 --> 00:14:52.630 align:start position:0% kept bidding afterwards even though the 00:14:52.630 --> 00:14:53.850 align:start position:0% kept bidding afterwards even though the winner<00:14:52.780> and<00:14:52.960> loser<00:14:53.110> were<00:14:53.260> already<00:14:53.470> locked<00:14:53.650> in 00:14:53.850 --> 00:14:53.860 align:start position:0% winner and loser were already locked in 00:14:53.860 --> 00:14:56.010 align:start position:0% winner and loser were already locked in so<00:14:54.670> why<00:14:54.760> did<00:14:54.910> this<00:14:54.970> happen<00:14:55.180> this<00:14:55.630> happened 00:14:56.010 --> 00:14:56.020 align:start position:0% so why did this happen this happened 00:14:56.020 --> 00:14:57.810 align:start position:0% so why did this happen this happened because<00:14:56.110> sort<00:14:56.500> of<00:14:56.590> in<00:14:57.130> the<00:14:57.250> network<00:14:57.550> there's 00:14:57.810 --> 00:14:57.820 align:start position:0% because sort of in the network there's 00:14:57.820 --> 00:14:59.250 align:start position:0% because sort of in the network there's this<00:14:57.940> difference<00:14:58.360> between<00:14:58.630> when<00:14:58.780> this<00:14:58.900> orange 00:14:59.250 --> 00:14:59.260 align:start position:0% this difference between when this orange 00:14:59.260 --> 00:15:00.900 align:start position:0% this difference between when this orange line<00:14:59.500> drops<00:14:59.800> that<00:15:00.070> sort<00:15:00.250> of<00:15:00.310> locks<00:15:00.580> in<00:15:00.790> the 00:15:00.900 --> 00:15:00.910 align:start position:0% line drops that sort of locks in the 00:15:00.910 --> 00:15:02.880 align:start position:0% line drops that sort of locks in the auction<00:15:01.090> results<00:15:01.660> and<00:15:01.870> when<00:15:02.350> this<00:15:02.470> red<00:15:02.680> line 00:15:02.880 --> 00:15:02.890 align:start position:0% auction results and when this red line 00:15:02.890 --> 00:15:05.220 align:start position:0% auction results and when this red line drops<00:15:03.220> that<00:15:03.460> actually<00:15:03.880> finds<00:15:04.630> the<00:15:04.810> solution 00:15:05.220 --> 00:15:05.230 align:start position:0% drops that actually finds the solution 00:15:05.230 --> 00:15:06.870 align:start position:0% drops that actually finds the solution to<00:15:05.320> them<00:15:05.440> to<00:15:05.710> the<00:15:05.980> block<00:15:06.190> on<00:15:06.370> an<00:15:06.460> ASIC<00:15:06.850> and 00:15:06.870 --> 00:15:06.880 align:start position:0% to them to the block on an ASIC and 00:15:06.880 --> 00:15:08.040 align:start position:0% to them to the block on an ASIC and distributes<00:15:07.480> it<00:15:07.570> to<00:15:07.600> the<00:15:07.750> rest<00:15:07.900> of<00:15:07.990> the 00:15:08.040 --> 00:15:08.050 align:start position:0% distributes it to the rest of the 00:15:08.050 --> 00:15:10.620 align:start position:0% distributes it to the rest of the network<00:15:08.320> so<00:15:09.130> by<00:15:09.700> making<00:15:09.910> the<00:15:10.180> distance 00:15:10.620 --> 00:15:10.630 align:start position:0% network so by making the distance 00:15:10.630 --> 00:15:11.760 align:start position:0% network so by making the distance between<00:15:10.780> these<00:15:10.960> orange<00:15:11.320> and<00:15:11.440> red<00:15:11.560> lines 00:15:11.760 --> 00:15:11.770 align:start position:0% between these orange and red lines 00:15:11.770 --> 00:15:13.440 align:start position:0% between these orange and red lines smaller<00:15:12.100> the<00:15:12.430> pool<00:15:12.640> could<00:15:12.910> have<00:15:13.030> taken<00:15:13.300> a 00:15:13.440 --> 00:15:13.450 align:start position:0% smaller the pool could have taken a 00:15:13.450 --> 00:15:15.210 align:start position:0% smaller the pool could have taken a later<00:15:13.690> bid<00:15:13.930> and<00:15:14.200> potentially<00:15:14.590> profited<00:15:15.010> a<00:15:15.070> lot 00:15:15.210 --> 00:15:15.220 align:start position:0% later bid and potentially profited a lot 00:15:15.220 --> 00:15:16.980 align:start position:0% later bid and potentially profited a lot more<00:15:15.400> from<00:15:15.520> this<00:15:15.700> auction<00:15:15.880> than<00:15:16.180> it<00:15:16.300> did<00:15:16.420> but 00:15:16.980 --> 00:15:16.990 align:start position:0% more from this auction than it did but 00:15:16.990 --> 00:15:18.150 align:start position:0% more from this auction than it did but instead<00:15:17.320> the<00:15:17.500> pool<00:15:17.680> was<00:15:17.830> a<00:15:17.860> little<00:15:18.070> bit 00:15:18.150 --> 00:15:18.160 align:start position:0% instead the pool was a little bit 00:15:18.160 --> 00:15:21.030 align:start position:0% instead the pool was a little bit inefficient<00:15:18.670> it<00:15:18.820> took<00:15:18.940> about<00:15:19.560> seven<00:15:20.560> seconds 00:15:21.030 --> 00:15:21.040 align:start position:0% inefficient it took about seven seconds 00:15:21.040 --> 00:15:22.890 align:start position:0% inefficient it took about seven seconds without<00:15:21.250> reflect<00:15:21.760> refreshing<00:15:22.270> its<00:15:22.360> block<00:15:22.630> and 00:15:22.890 --> 00:15:22.900 align:start position:0% without reflect refreshing its block and 00:15:22.900 --> 00:15:26.280 align:start position:0% without reflect refreshing its block and it<00:15:23.290> lost<00:15:23.470> out<00:15:23.710> on<00:15:23.740> a<00:15:24.070> few<00:15:24.250> fees<00:15:24.460> as<00:15:24.610> a<00:15:24.640> result<00:15:25.290> so 00:15:26.280 --> 00:15:26.290 align:start position:0% it lost out on a few fees as a result so 00:15:26.290 --> 00:15:28.320 align:start position:0% it lost out on a few fees as a result so I'm<00:15:26.890> gonna<00:15:27.100> claim<00:15:27.460> that<00:15:27.580> the<00:15:27.700> transparency<00:15:28.270> in 00:15:28.320 --> 00:15:28.330 align:start position:0% I'm gonna claim that the transparency in 00:15:28.330 --> 00:15:30.600 align:start position:0% I'm gonna claim that the transparency in this<00:15:28.450> mechanism<00:15:28.690> is<00:15:29.290> a<00:15:29.350> lie<00:15:29.620> because<00:15:30.280> when<00:15:30.460> you 00:15:30.600 --> 00:15:30.610 align:start position:0% this mechanism is a lie because when you 00:15:30.610 --> 00:15:32.250 align:start position:0% this mechanism is a lie because when you read<00:15:30.880> the<00:15:31.060> ether<00:15:31.330> Delta<00:15:31.600> smart<00:15:31.810> contractor 00:15:32.250 --> 00:15:32.260 align:start position:0% read the ether Delta smart contractor 00:15:32.260 --> 00:15:34.110 align:start position:0% read the ether Delta smart contractor the<00:15:32.380> zero<00:15:32.590> X<00:15:32.770> smart<00:15:33.040> contract<00:15:33.490> it<00:15:33.760> doesn't 00:15:34.110 --> 00:15:34.120 align:start position:0% the zero X smart contract it doesn't 00:15:34.120 --> 00:15:35.850 align:start position:0% the zero X smart contract it doesn't imply<00:15:34.390> this<00:15:34.600> game<00:15:34.780> at<00:15:34.900> all 00:15:35.850 --> 00:15:35.860 align:start position:0% imply this game at all 00:15:35.860 --> 00:15:37.230 align:start position:0% imply this game at all the<00:15:35.950> real<00:15:36.130> game<00:15:36.370> people<00:15:36.670> are<00:15:36.790> playing<00:15:37.090> on 00:15:37.230 --> 00:15:37.240 align:start position:0% the real game people are playing on 00:15:37.240 --> 00:15:38.580 align:start position:0% the real game people are playing on these<00:15:37.390> networks<00:15:37.750> from<00:15:38.050> a<00:15:38.140> game<00:15:38.350> theoretic 00:15:38.580 --> 00:15:38.590 align:start position:0% these networks from a game theoretic 00:15:38.590 --> 00:15:41.190 align:start position:0% these networks from a game theoretic perspective<00:15:38.830> is<00:15:39.540> continuous-time<00:15:40.540> it's 00:15:41.190 --> 00:15:41.200 align:start position:0% perspective is continuous-time it's 00:15:41.200 --> 00:15:42.870 align:start position:0% perspective is continuous-time it's imperfect<00:15:41.800> information<00:15:41.920> because<00:15:42.580> you<00:15:42.610> don't 00:15:42.870 --> 00:15:42.880 align:start position:0% imperfect information because you don't 00:15:42.880 --> 00:15:43.980 align:start position:0% imperfect information because you don't know<00:15:43.000> when<00:15:43.150> that<00:15:43.300> orange<00:15:43.540> line<00:15:43.720> is<00:15:43.750> going<00:15:43.930> to 00:15:43.980 --> 00:15:43.990 align:start position:0% know when that orange line is going to 00:15:43.990 --> 00:15:46.470 align:start position:0% know when that orange line is going to drop<00:15:44.170> it's<00:15:44.920> all<00:15:45.160> pay<00:15:45.400> because<00:15:45.730> even<00:15:46.150> losing 00:15:46.470 --> 00:15:46.480 align:start position:0% drop it's all pay because even losing 00:15:46.480 --> 00:15:49.080 align:start position:0% drop it's all pay because even losing BOTS<00:15:46.660> pay<00:15:46.930> gas<00:15:47.140> for<00:15:47.500> attempted<00:15:47.770> execution<00:15:48.430> its 00:15:49.080 --> 00:15:49.090 align:start position:0% BOTS pay gas for attempted execution its 00:15:49.090 --> 00:15:51.060 align:start position:0% BOTS pay gas for attempted execution its probabilistic<00:15:49.660> both<00:15:50.260> in<00:15:50.410> execution<00:15:50.950> and 00:15:51.060 --> 00:15:51.070 align:start position:0% probabilistic both in execution and 00:15:51.070 --> 00:15:52.860 align:start position:0% probabilistic both in execution and duration<00:15:51.490> and<00:15:51.700> it's<00:15:52.180> rate<00:15:52.390> limited<00:15:52.750> because 00:15:52.860 --> 00:15:52.870 align:start position:0% duration and it's rate limited because 00:15:52.870 --> 00:15:54.570 align:start position:0% duration and it's rate limited because you<00:15:53.080> can<00:15:53.200> only<00:15:53.350> send<00:15:53.650> out<00:15:53.770> transactions<00:15:54.340> so 00:15:54.570 --> 00:15:54.580 align:start position:0% you can only send out transactions so 00:15:54.580 --> 00:15:56.700 align:start position:0% you can only send out transactions so fast<00:15:54.880> on<00:15:55.150> the<00:15:55.240> etherium<00:15:55.570> network<00:15:55.840> so<00:15:56.530> this 00:15:56.700 --> 00:15:56.710 align:start position:0% fast on the etherium network so this 00:15:56.710 --> 00:15:59.370 align:start position:0% fast on the etherium network so this gives<00:15:56.950> these<00:15:57.160> BOTS<00:15:57.430> a<00:15:57.640> wide<00:15:57.910> range<00:15:58.390> of<00:15:58.660> sort<00:15:59.350> of 00:15:59.370 --> 00:15:59.380 align:start position:0% gives these BOTS a wide range of sort of 00:15:59.380 --> 00:16:01.050 align:start position:0% gives these BOTS a wide range of sort of angles<00:15:59.800> to<00:15:59.950> optimize<00:16:00.370> on<00:16:00.580> to<00:16:00.790> be<00:16:00.910> more 00:16:01.050 --> 00:16:01.060 align:start position:0% angles to optimize on to be more 00:16:01.060 --> 00:16:02.430 align:start position:0% angles to optimize on to be more profitable<00:16:01.270> at<00:16:01.660> taking<00:16:01.840> these<00:16:02.020> opportunities 00:16:02.430 --> 00:16:02.440 align:start position:0% profitable at taking these opportunities 00:16:02.440 --> 00:16:04.710 align:start position:0% profitable at taking these opportunities so<00:16:02.800> our<00:16:03.640> conclusion<00:16:04.060> in<00:16:04.150> the<00:16:04.240> blog<00:16:04.390> was<00:16:04.570> to 00:16:04.710 --> 00:16:04.720 align:start position:0% so our conclusion in the blog was to 00:16:04.720 --> 00:16:06.390 align:start position:0% so our conclusion in the blog was to recommend<00:16:05.200> a<00:16:05.380> centralized<00:16:05.800> order<00:16:06.070> book<00:16:06.220> and 00:16:06.390 --> 00:16:06.400 align:start position:0% recommend a centralized order book and 00:16:06.400 --> 00:16:08.010 align:start position:0% recommend a centralized order book and say<00:16:06.670> essentially<00:16:07.060> there's<00:16:07.330> a<00:16:07.390> fundamental 00:16:08.010 --> 00:16:08.020 align:start position:0% say essentially there's a fundamental 00:16:08.020 --> 00:16:09.450 align:start position:0% say essentially there's a fundamental trade-off<00:16:08.260> between<00:16:08.560> who<00:16:08.830> confront<00:16:09.190> run<00:16:09.310> you 00:16:09.450 --> 00:16:09.460 align:start position:0% trade-off between who confront run you 00:16:09.460 --> 00:16:12.030 align:start position:0% trade-off between who confront run you either<00:16:10.030> you<00:16:10.330> have<00:16:10.480> an<00:16:10.720> exchange<00:16:11.140> operator<00:16:11.680> who 00:16:12.030 --> 00:16:12.040 align:start position:0% either you have an exchange operator who 00:16:12.040 --> 00:16:13.860 align:start position:0% either you have an exchange operator who confronted<00:16:12.490> on<00:16:12.580> you<00:16:12.730> if<00:16:12.940> they<00:16:13.150> do<00:16:13.390> the<00:16:13.540> routing 00:16:13.860 --> 00:16:13.870 align:start position:0% confronted on you if they do the routing 00:16:13.870 --> 00:16:15.930 align:start position:0% confronted on you if they do the routing and<00:16:13.960> matching<00:16:14.290> for<00:16:14.440> your<00:16:14.560> orders<00:16:14.920> or<00:16:15.430> you<00:16:15.790> have 00:16:15.930 --> 00:16:15.940 align:start position:0% and matching for your orders or you have 00:16:15.940 --> 00:16:17.250 align:start position:0% and matching for your orders or you have some<00:16:16.090> sort<00:16:16.270> of<00:16:16.330> peer-to-peer<00:16:16.570> network<00:16:17.080> or 00:16:17.250 --> 00:16:17.260 align:start position:0% some sort of peer-to-peer network or 00:16:17.260 --> 00:16:18.870 align:start position:0% some sort of peer-to-peer network or blockchain<00:16:17.710> involved<00:16:18.250> in<00:16:18.370> your<00:16:18.460> routing<00:16:18.790> in 00:16:18.870 --> 00:16:18.880 align:start position:0% blockchain involved in your routing in 00:16:18.880 --> 00:16:20.730 align:start position:0% blockchain involved in your routing in your<00:16:18.970> orders<00:16:19.300> at<00:16:19.960> which<00:16:20.110> points<00:16:20.440> someone<00:16:20.650> in 00:16:20.730 --> 00:16:20.740 align:start position:0% your orders at which points someone in 00:16:20.740 --> 00:16:22.320 align:start position:0% your orders at which points someone in an<00:16:20.830> advantageous<00:16:21.220> position<00:16:21.400> on<00:16:21.820> that<00:16:21.970> network 00:16:22.320 --> 00:16:22.330 align:start position:0% an advantageous position on that network 00:16:22.330 --> 00:16:24.210 align:start position:0% an advantageous position on that network could<00:16:22.780> potentially<00:16:23.350> have<00:16:23.500> information 00:16:24.210 --> 00:16:24.220 align:start position:0% could potentially have information 00:16:24.220 --> 00:16:25.590 align:start position:0% could potentially have information asymmetry<00:16:24.700> advantages<00:16:25.120> that<00:16:25.330> lead<00:16:25.570> to 00:16:25.590 --> 00:16:25.600 align:start position:0% asymmetry advantages that lead to 00:16:25.600 --> 00:16:27.780 align:start position:0% asymmetry advantages that lead to mechanical<00:16:26.290> rent<00:16:26.470> and<00:16:26.710> we<00:16:27.280> prove<00:16:27.490> that<00:16:27.520> this 00:16:27.780 --> 00:16:27.790 align:start position:0% mechanical rent and we prove that this 00:16:27.790 --> 00:16:29.040 align:start position:0% mechanical rent and we prove that this is<00:16:27.910> sort<00:16:28.000> of<00:16:28.120> fundamental<00:16:28.570> no<00:16:28.720> matter<00:16:28.870> what 00:16:29.040 --> 00:16:29.050 align:start position:0% is sort of fundamental no matter what 00:16:29.050 --> 00:16:30.300 align:start position:0% is sort of fundamental no matter what kind<00:16:29.230> of<00:16:29.350> global<00:16:29.680> peer-to-peer<00:16:29.890> marketplace 00:16:30.300 --> 00:16:30.310 align:start position:0% kind of global peer-to-peer marketplace 00:16:30.310 --> 00:16:34.260 align:start position:0% kind of global peer-to-peer marketplace you<00:16:30.730> build<00:16:31.050> so<00:16:32.050> just<00:16:32.470> centralize<00:16:32.890> it<00:16:33.130> maybe<00:16:34.000> it 00:16:34.260 --> 00:16:34.270 align:start position:0% you build so just centralize it maybe it 00:16:34.270 --> 00:16:37.590 align:start position:0% you build so just centralize it maybe it will<00:16:34.360> fix<00:16:34.630> it<00:16:34.810> we<00:16:34.930> don't<00:16:35.080> know<00:16:35.730> all<00:16:36.730> right<00:16:36.790> so 00:16:37.590 --> 00:16:37.600 align:start position:0% will fix it we don't know all right so 00:16:37.600 --> 00:16:39.030 align:start position:0% will fix it we don't know all right so the<00:16:37.690> real<00:16:37.840> competition<00:16:38.170> here<00:16:38.530> again<00:16:38.770> is<00:16:38.920> on 00:16:39.030 --> 00:16:39.040 align:start position:0% the real competition here again is on 00:16:39.040 --> 00:16:41.310 align:start position:0% the real competition here again is on latency<00:16:39.460> connectivity<00:16:40.090> etc<00:16:40.630> just<00:16:41.110> like 00:16:41.310 --> 00:16:41.320 align:start position:0% latency connectivity etc just like 00:16:41.320 --> 00:16:43.830 align:start position:0% latency connectivity etc just like traditional<00:16:41.470> hft<00:16:42.130> just<00:16:42.400> like<00:16:42.520> flash<00:16:42.760> boys<00:16:43.030> etc 00:16:43.830 --> 00:16:43.840 align:start position:0% traditional hft just like flash boys etc 00:16:43.840 --> 00:16:46.530 align:start position:0% traditional hft just like flash boys etc and<00:16:44.050> the<00:16:45.040> transparency<00:16:45.580> is<00:16:45.760> a<00:16:45.790> lie<00:16:46.000> because 00:16:46.530 --> 00:16:46.540 align:start position:0% and the transparency is a lie because 00:16:46.540 --> 00:16:48.750 align:start position:0% and the transparency is a lie because what<00:16:47.020> we<00:16:47.140> have<00:16:47.320> on<00:16:47.620> chain<00:16:47.950> is<00:16:48.220> actually<00:16:48.610> not 00:16:48.750 --> 00:16:48.760 align:start position:0% what we have on chain is actually not 00:16:48.760 --> 00:16:50.640 align:start position:0% what we have on chain is actually not all<00:16:48.910> the<00:16:49.000> data<00:16:49.120> so<00:16:49.750> of<00:16:50.080> all<00:16:50.260> the<00:16:50.350> data<00:16:50.530> I<00:16:50.590> just 00:16:50.640 --> 00:16:50.650 align:start position:0% all the data so of all the data I just 00:16:50.650 --> 00:16:52.170 align:start position:0% all the data so of all the data I just showed<00:16:50.830> you<00:16:51.010> in<00:16:51.130> the<00:16:51.190> auctions<00:16:51.610> only<00:16:51.940> one<00:16:52.060> or 00:16:52.170 --> 00:16:52.180 align:start position:0% showed you in the auctions only one or 00:16:52.180 --> 00:16:53.490 align:start position:0% showed you in the auctions only one or two<00:16:52.210> of<00:16:52.300> those<00:16:52.480> transactions<00:16:53.050> even<00:16:53.260> makes<00:16:53.410> it 00:16:53.490 --> 00:16:53.500 align:start position:0% two of those transactions even makes it 00:16:53.500 --> 00:16:54.810 align:start position:0% two of those transactions even makes it to<00:16:53.590> the<00:16:53.680> chain<00:16:53.860> or<00:16:54.040> even<00:16:54.250> makes<00:16:54.400> it<00:16:54.490> to<00:16:54.580> ether 00:16:54.810 --> 00:16:54.820 align:start position:0% to the chain or even makes it to ether 00:16:54.820 --> 00:16:56.220 align:start position:0% to the chain or even makes it to ether scan<00:16:55.060> because<00:16:55.600> most<00:16:55.810> of<00:16:55.900> them<00:16:56.020> just<00:16:56.170> get 00:16:56.220 --> 00:16:56.230 align:start position:0% scan because most of them just get 00:16:56.230 --> 00:16:57.510 align:start position:0% scan because most of them just get replaced<00:16:56.560> so<00:16:56.680> quickly<00:16:56.980> that<00:16:57.070> no<00:16:57.130> one<00:16:57.280> in<00:16:57.460> the 00:16:57.510 --> 00:16:57.520 align:start position:0% replaced so quickly that no one in the 00:16:57.520 --> 00:17:00.120 align:start position:0% replaced so quickly that no one in the network<00:16:57.790> sees<00:16:57.970> them<00:16:58.230> so<00:16:59.230> sort<00:16:59.680> of<00:16:59.740> under<00:17:00.010> this 00:17:00.120 --> 00:17:00.130 align:start position:0% network sees them so sort of under this 00:17:00.130 --> 00:17:01.410 align:start position:0% network sees them so sort of under this surface<00:17:00.400> mechanism<00:17:01.090> that<00:17:01.210> we're<00:17:01.330> building 00:17:01.410 --> 00:17:01.420 align:start position:0% surface mechanism that we're building 00:17:01.420 --> 00:17:03.570 align:start position:0% surface mechanism that we're building that<00:17:01.720> looks<00:17:01.930> simple<00:17:02.140> we<00:17:02.710> have<00:17:02.860> this<00:17:03.010> iceberg 00:17:03.570 --> 00:17:03.580 align:start position:0% that looks simple we have this iceberg 00:17:03.580 --> 00:17:05.340 align:start position:0% that looks simple we have this iceberg of<00:17:03.850> sort<00:17:04.270> of<00:17:04.360> bot<00:17:04.570> strategies<00:17:05.140> and 00:17:05.340 --> 00:17:05.350 align:start position:0% of sort of bot strategies and 00:17:05.350 --> 00:17:07.110 align:start position:0% of sort of bot strategies and interacting<00:17:05.800> BOTS<00:17:06.010> and<00:17:06.310> weird<00:17:06.610> liquidity 00:17:07.110 --> 00:17:07.120 align:start position:0% interacting BOTS and weird liquidity 00:17:07.120 --> 00:17:09.540 align:start position:0% interacting BOTS and weird liquidity pools<00:17:07.410> backroom<00:17:08.410> channels<00:17:08.770> of<00:17:08.890> influence<00:17:09.100> and 00:17:09.540 --> 00:17:09.550 align:start position:0% pools backroom channels of influence and 00:17:09.550 --> 00:17:11.070 align:start position:0% pools backroom channels of influence and potential<00:17:10.030> Black<00:17:10.209> Swan<00:17:10.480> events<00:17:10.810> if<00:17:10.930> these 00:17:11.070 --> 00:17:11.080 align:start position:0% potential Black Swan events if these 00:17:11.080 --> 00:17:13.829 align:start position:0% potential Black Swan events if these things<00:17:11.320> behave<00:17:11.589> poorly<00:17:12.180> so<00:17:13.180> there's<00:17:13.690> actually 00:17:13.829 --> 00:17:13.839 align:start position:0% things behave poorly so there's actually 00:17:13.839 --> 00:17:15.510 align:start position:0% things behave poorly so there's actually a<00:17:14.050> lot<00:17:14.199> of<00:17:14.230> complexity<00:17:14.830> that<00:17:14.920> still<00:17:15.160> remains 00:17:15.510 --> 00:17:15.520 align:start position:0% a lot of complexity that still remains 00:17:15.520 --> 00:17:17.220 align:start position:0% a lot of complexity that still remains out<00:17:15.820> of<00:17:15.850> line<00:17:16.150> it's<00:17:16.449> not<00:17:16.600> enough<00:17:16.839> to<00:17:16.959> just<00:17:16.990> say 00:17:17.220 --> 00:17:17.230 align:start position:0% out of line it's not enough to just say 00:17:17.230 --> 00:17:18.420 align:start position:0% out of line it's not enough to just say oh<00:17:17.260> we're<00:17:17.620> making<00:17:17.890> the<00:17:17.980> trades<00:17:18.220> more 00:17:18.420 --> 00:17:18.430 align:start position:0% oh we're making the trades more 00:17:18.430 --> 00:17:20.130 align:start position:0% oh we're making the trades more transparent<00:17:19.000> and<00:17:19.060> therefore<00:17:19.390> we've<00:17:19.540> this<00:17:19.959> is 00:17:20.130 --> 00:17:20.140 align:start position:0% transparent and therefore we've this is 00:17:20.140 --> 00:17:21.960 align:start position:0% transparent and therefore we've this is bringing<00:17:20.410> our<00:17:20.530> users<00:17:20.800> more<00:17:20.980> security<00:17:21.310> that<00:17:21.820> is 00:17:21.960 --> 00:17:21.970 align:start position:0% bringing our users more security that is 00:17:21.970 --> 00:17:24.540 align:start position:0% bringing our users more security that is absolutely<00:17:22.390> not<00:17:22.510> necessarily<00:17:23.050> the<00:17:23.140> case<00:17:23.550> so 00:17:24.540 --> 00:17:24.550 align:start position:0% absolutely not necessarily the case so 00:17:24.550 --> 00:17:26.010 align:start position:0% absolutely not necessarily the case so now<00:17:24.670> you<00:17:24.730> might<00:17:24.910> be<00:17:24.940> saying<00:17:25.150> to<00:17:25.330> me<00:17:25.449> Phil<00:17:25.720> isn't 00:17:26.010 --> 00:17:26.020 align:start position:0% now you might be saying to me Phil isn't 00:17:26.020 --> 00:17:27.360 align:start position:0% now you might be saying to me Phil isn't that<00:17:26.110> just<00:17:26.230> an<00:17:26.380> efficient<00:17:26.709> market<00:17:26.830> isn't<00:17:27.190> that 00:17:27.360 --> 00:17:27.370 align:start position:0% that just an efficient market isn't that 00:17:27.370 --> 00:17:30.360 align:start position:0% that just an efficient market isn't that just<00:17:27.550> how<00:17:27.640> the<00:17:27.699> world<00:17:28.000> works<00:17:28.620> so<00:17:29.620> let's<00:17:30.190> talk 00:17:30.360 --> 00:17:30.370 align:start position:0% just how the world works so let's talk 00:17:30.370 --> 00:17:31.830 align:start position:0% just how the world works so let's talk about<00:17:30.430> user<00:17:30.760> experience<00:17:30.850> in<00:17:31.510> this<00:17:31.570> brave<00:17:31.810> new 00:17:31.830 --> 00:17:31.840 align:start position:0% about user experience in this brave new 00:17:31.840 --> 00:17:34.580 align:start position:0% about user experience in this brave new world<00:17:32.170> of<00:17:32.260> Dex's<00:17:32.650> so<00:17:33.280> here's<00:17:33.550> a<00:17:33.610> user<00:17:33.850> who<00:17:34.180> says 00:17:34.580 --> 00:17:34.590 align:start position:0% world of Dex's so here's a user who says 00:17:34.590 --> 00:17:37.140 align:start position:0% world of Dex's so here's a user who says would<00:17:35.590> you<00:17:35.710> have<00:17:35.890> the<00:17:36.070> heart<00:17:36.280> to<00:17:36.400> return<00:17:36.550> 24 00:17:37.140 --> 00:17:37.150 align:start position:0% would you have the heart to return 24 00:17:37.150 --> 00:17:39.000 align:start position:0% would you have the heart to return 24 east<00:17:37.360> of<00:17:37.510> my<00:17:37.600> address<00:17:37.810> I<00:17:38.140> am<00:17:38.560> a<00:17:38.650> stay<00:17:38.860> at<00:17:38.980> home 00:17:39.000 --> 00:17:39.010 align:start position:0% east of my address I am a stay at home 00:17:39.010 --> 00:17:40.860 align:start position:0% east of my address I am a stay at home parent<00:17:39.160> and<00:17:39.670> day<00:17:39.820> trade<00:17:40.090> to<00:17:40.210> keep<00:17:40.360> my<00:17:40.480> family 00:17:40.860 --> 00:17:40.870 align:start position:0% parent and day trade to keep my family 00:17:40.870 --> 00:17:42.840 align:start position:0% parent and day trade to keep my family above<00:17:41.080> water<00:17:41.320> in<00:17:41.740> your<00:17:42.130> heart<00:17:42.370> you<00:17:42.520> know<00:17:42.670> this 00:17:42.840 --> 00:17:42.850 align:start position:0% above water in your heart you know this 00:17:42.850 --> 00:17:47.820 align:start position:0% above water in your heart you know this isn't<00:17:43.090> right<00:17:44.940> here's<00:17:45.940> another<00:17:46.000> one<00:17:46.350> I<00:17:47.350> have 00:17:47.820 --> 00:17:47.830 align:start position:0% isn't right here's another one I have 00:17:47.830 --> 00:17:48.750 align:start position:0% isn't right here's another one I have faith<00:17:48.070> in<00:17:48.100> you<00:17:48.340> man 00:17:48.750 --> 00:17:48.760 align:start position:0% faith in you man 00:17:48.760 --> 00:17:49.860 align:start position:0% faith in you man faith<00:17:49.090> in<00:17:49.360> you<00:17:49.510> man 00:17:49.860 --> 00:17:49.870 align:start position:0% faith in you man 00:17:49.870 --> 00:17:52.769 align:start position:0% faith in you man please<00:17:50.549> send<00:17:51.549> my<00:17:51.640> money<00:17:51.820> back<00:17:52.029> so<00:17:52.510> these<00:17:52.630> are 00:17:52.769 --> 00:17:52.779 align:start position:0% please send my money back so these are 00:17:52.779 --> 00:17:54.240 align:start position:0% please send my money back so these are users<00:17:53.020> who<00:17:53.049> went<00:17:53.289> to<00:17:53.380> cancel<00:17:53.590> their<00:17:53.830> order<00:17:54.100> and 00:17:54.240 --> 00:17:54.250 align:start position:0% users who went to cancel their order and 00:17:54.250 --> 00:17:55.740 align:start position:0% users who went to cancel their order and were<00:17:54.340> immediately<00:17:54.820> front<00:17:55.090> run<00:17:55.210> by<00:17:55.330> these<00:17:55.510> bots 00:17:55.740 --> 00:17:55.750 align:start position:0% were immediately front run by these bots 00:17:55.750 --> 00:17:57.600 align:start position:0% were immediately front run by these bots who<00:17:56.020> sort<00:17:56.230> of<00:17:56.260> detected<00:17:56.770> a<00:17:56.830> fat<00:17:57.010> finger<00:17:57.370> and 00:17:57.600 --> 00:17:57.610 align:start position:0% who sort of detected a fat finger and 00:17:57.610 --> 00:18:00.419 align:start position:0% who sort of detected a fat finger and essentially<00:17:58.570> took<00:17:58.690> all<00:17:58.840> their<00:17:58.990> money<00:17:59.110> and<00:17:59.980> and 00:18:00.419 --> 00:18:00.429 align:start position:0% essentially took all their money and and 00:18:00.429 --> 00:18:02.430 align:start position:0% essentially took all their money and and here's<00:18:00.970> another<00:18:01.090> one<00:18:01.330> please<00:18:01.929> please<00:18:02.200> please 00:18:02.430 --> 00:18:02.440 align:start position:0% here's another one please please please 00:18:02.440 --> 00:18:04.049 align:start position:0% here's another one please please please this<00:18:02.590> was<00:18:02.740> an<00:18:02.830> accident<00:18:03.250> I<00:18:03.520> did<00:18:03.730> not<00:18:03.850> mean<00:18:04.029> to 00:18:04.049 --> 00:18:04.059 align:start position:0% this was an accident I did not mean to 00:18:04.059 --> 00:18:05.490 align:start position:0% this was an accident I did not mean to make<00:18:04.240> this<00:18:04.480> transaction<00:18:04.870> please<00:18:05.260> can<00:18:05.470> we 00:18:05.490 --> 00:18:05.500 align:start position:0% make this transaction please can we 00:18:05.500 --> 00:18:07.649 align:start position:0% make this transaction please can we reverse<00:18:05.799> this<00:18:06.039> please<00:18:06.760> be<00:18:06.789> kind<00:18:07.150> and<00:18:07.390> karma 00:18:07.649 --> 00:18:07.659 align:start position:0% reverse this please be kind and karma 00:18:07.659 --> 00:18:09.690 align:start position:0% reverse this please be kind and karma will<00:18:07.779> be<00:18:07.870> kind<00:18:08.140> for<00:18:08.260> you<00:18:08.470> too<00:18:08.679> I'm<00:18:09.309> a<00:18:09.429> single 00:18:09.690 --> 00:18:09.700 align:start position:0% will be kind for you too I'm a single 00:18:09.700 --> 00:18:11.220 align:start position:0% will be kind for you too I'm a single parent<00:18:09.970> trying<00:18:10.029> to<00:18:10.179> make<00:18:10.330> ends<00:18:10.630> meet<00:18:10.750> at<00:18:10.960> a<00:18:11.020> job 00:18:11.220 --> 00:18:11.230 align:start position:0% parent trying to make ends meet at a job 00:18:11.230 --> 00:18:13.140 align:start position:0% parent trying to make ends meet at a job I<00:18:11.380> hate<00:18:11.529> please<00:18:12.159> have<00:18:12.400> some<00:18:12.610> mercy<00:18:12.730> and 00:18:13.140 --> 00:18:13.150 align:start position:0% I hate please have some mercy and 00:18:13.150 --> 00:18:14.909 align:start position:0% I hate please have some mercy and Benjamin<00:18:13.900> Huffman<00:18:14.200> goes<00:18:14.350> on<00:18:14.500> to<00:18:14.620> write<00:18:14.740> again 00:18:14.909 --> 00:18:14.919 align:start position:0% Benjamin Huffman goes on to write again 00:18:14.919 --> 00:18:17.240 align:start position:0% Benjamin Huffman goes on to write again it's<00:18:15.130> all<00:18:15.340> I<00:18:15.370> have<00:18:15.700> please<00:18:16.150> have<00:18:16.299> some<00:18:16.480> mercy 00:18:17.240 --> 00:18:17.250 align:start position:0% it's all I have please have some mercy 00:18:17.250 --> 00:18:20.820 align:start position:0% it's all I have please have some mercy or<00:18:18.250> there's<00:18:18.429> alpha<00:18:18.580> here<00:18:18.970> who<00:18:19.510> says<00:18:19.830> please 00:18:20.820 --> 00:18:20.830 align:start position:0% or there's alpha here who says please 00:18:20.830 --> 00:18:22.860 align:start position:0% or there's alpha here who says please please<00:18:21.100> please<00:18:21.340> return<00:18:21.669> at<00:18:21.850> least<00:18:21.880> 1/8<00:18:22.510> I<00:18:22.690> give 00:18:22.860 --> 00:18:22.870 align:start position:0% please please return at least 1/8 I give 00:18:22.870 --> 00:18:24.510 align:start position:0% please please return at least 1/8 I give you<00:18:22.990> the<00:18:23.110> rest<00:18:23.260> willingly<00:18:23.559> if<00:18:23.770> God<00:18:23.980> ever<00:18:24.159> asked 00:18:24.510 --> 00:18:24.520 align:start position:0% you the rest willingly if God ever asked 00:18:24.520 --> 00:18:26.519 align:start position:0% you the rest willingly if God ever asked you<00:18:24.640> I<00:18:24.880> really<00:18:25.690> needed<00:18:25.870> to<00:18:25.960> continue<00:18:26.260> my 00:18:26.519 --> 00:18:26.529 align:start position:0% you I really needed to continue my 00:18:26.529 --> 00:18:28.889 align:start position:0% you I really needed to continue my education<00:18:26.559> I<00:18:27.399> might<00:18:27.820> need<00:18:27.970> to<00:18:28.090> sell<00:18:28.270> my<00:18:28.419> car<00:18:28.659> to 00:18:28.889 --> 00:18:28.899 align:start position:0% education I might need to sell my car to 00:18:28.899 --> 00:18:31.260 align:start position:0% education I might need to sell my car to pay<00:18:29.080> and<00:18:29.640> last<00:18:30.640> but<00:18:30.820> not<00:18:30.909> least<00:18:31.120> you<00:18:31.240> have 00:18:31.260 --> 00:18:31.270 align:start position:0% pay and last but not least you have 00:18:31.270 --> 00:18:33.269 align:start position:0% pay and last but not least you have Rajesh<00:18:31.720> Kumar<00:18:31.899> here<00:18:32.320> who<00:18:32.500> says<00:18:32.710> sir<00:18:32.980> this<00:18:33.159> was 00:18:33.269 --> 00:18:33.279 align:start position:0% Rajesh Kumar here who says sir this was 00:18:33.279 --> 00:18:35.490 align:start position:0% Rajesh Kumar here who says sir this was an<00:18:33.370> error<00:18:33.580> order<00:18:33.940> this<00:18:34.450> is<00:18:34.630> all<00:18:34.809> of<00:18:34.960> my<00:18:35.110> village 00:18:35.490 --> 00:18:35.500 align:start position:0% an error order this is all of my village 00:18:35.500 --> 00:18:37.980 align:start position:0% an error order this is all of my village rupee<00:18:35.890> I<00:18:35.919> trade<00:18:36.370> for<00:18:36.580> them<00:18:36.700> if<00:18:37.390> I<00:18:37.630> do<00:18:37.690> not 00:18:37.980 --> 00:18:37.990 align:start position:0% rupee I trade for them if I do not 00:18:37.990 --> 00:18:40.230 align:start position:0% rupee I trade for them if I do not receive<00:18:38.289> back<00:18:38.529> 'if<00:18:38.770> I<00:18:38.980> will<00:18:39.250> be<00:18:39.399> in<00:18:39.669> the<00:18:39.970> in 00:18:40.230 --> 00:18:40.240 align:start position:0% receive back 'if I will be in the in 00:18:40.240 --> 00:18:43.950 align:start position:0% receive back 'if I will be in the in track<00:18:40.840> inscrutability<00:18:41.500> sir<00:18:41.950> please<00:18:42.870> so<00:18:43.870> you 00:18:43.950 --> 00:18:43.960 align:start position:0% track inscrutability sir please so you 00:18:43.960 --> 00:18:45.450 align:start position:0% track inscrutability sir please so you can<00:18:44.110> see<00:18:44.289> that<00:18:44.500> this<00:18:44.980> is<00:18:45.130> something<00:18:45.250> that's 00:18:45.450 --> 00:18:45.460 align:start position:0% can see that this is something that's 00:18:45.460 --> 00:18:47.130 align:start position:0% can see that this is something that's really<00:18:45.580> impacting<00:18:46.240> real<00:18:46.270> users<00:18:46.720> today<00:18:46.960> these 00:18:47.130 --> 00:18:47.140 align:start position:0% really impacting real users today these 00:18:47.140 --> 00:18:49.110 align:start position:0% really impacting real users today these issues<00:18:47.529> that<00:18:47.649> we<00:18:47.770> pointed<00:18:48.039> out<00:18:48.130> in<00:18:48.159> 2017<00:18:48.880> and 00:18:49.110 --> 00:18:49.120 align:start position:0% issues that we pointed out in 2017 and 00:18:49.120 --> 00:18:50.730 align:start position:0% issues that we pointed out in 2017 and that<00:18:49.570> most<00:18:49.809> of<00:18:49.929> the<00:18:50.020> projects<00:18:50.380> in<00:18:50.440> this<00:18:50.559> space 00:18:50.730 --> 00:18:50.740 align:start position:0% that most of the projects in this space 00:18:50.740 --> 00:18:51.840 align:start position:0% that most of the projects in this space just<00:18:50.919> went<00:18:51.070> on<00:18:51.130> to<00:18:51.279> ignore<00:18:51.549> and<00:18:51.700> launched 00:18:51.840 --> 00:18:51.850 align:start position:0% just went on to ignore and launched 00:18:51.850 --> 00:18:53.700 align:start position:0% just went on to ignore and launched anyway<00:18:52.210> and<00:18:52.480> there<00:18:53.140> are<00:18:53.230> hundreds<00:18:53.559> of<00:18:53.590> these 00:18:53.700 --> 00:18:53.710 align:start position:0% anyway and there are hundreds of these 00:18:53.710 --> 00:18:55.230 align:start position:0% anyway and there are hundreds of these comments<00:18:54.130> on<00:18:54.220> the<00:18:54.309> ether<00:18:54.549> scan<00:18:54.760> comments<00:18:55.179> of 00:18:55.230 --> 00:18:55.240 align:start position:0% comments on the ether scan comments of 00:18:55.240 --> 00:18:56.460 align:start position:0% comments on the ether scan comments of all<00:18:55.330> these<00:18:55.450> trading<00:18:55.809> bots<00:18:55.960> that<00:18:56.080> we've<00:18:56.289> sort 00:18:56.460 --> 00:18:56.470 align:start position:0% all these trading bots that we've sort 00:18:56.470 --> 00:18:58.110 align:start position:0% all these trading bots that we've sort of<00:18:56.559> found<00:18:56.770> so<00:18:57.039> I<00:18:57.220> encourage<00:18:57.610> you<00:18:57.789> to<00:18:57.850> go<00:18:58.000> look 00:18:58.110 --> 00:18:58.120 align:start position:0% of found so I encourage you to go look 00:18:58.120 --> 00:19:00.149 align:start position:0% of found so I encourage you to go look for<00:18:58.179> yourself<00:18:58.360> after<00:18:58.960> the<00:18:59.049> talk<00:18:59.230> and<00:18:59.559> of 00:19:00.149 --> 00:19:00.159 align:start position:0% for yourself after the talk and of 00:19:00.159 --> 00:19:03.409 align:start position:0% for yourself after the talk and of course<00:19:00.399> we<00:19:00.789> have<00:19:00.940> a<00:19:00.970> few<00:19:01.270> comments<00:19:01.750> like<00:19:02.169> this 00:19:03.409 --> 00:19:03.419 align:start position:0% course we have a few comments like this 00:19:03.419 --> 00:19:05.880 align:start position:0% course we have a few comments like this lol<00:19:04.419> making<00:19:04.840> people<00:19:05.110> pay<00:19:05.320> for<00:19:05.350> their<00:19:05.679> fat 00:19:05.880 --> 00:19:05.890 align:start position:0% lol making people pay for their fat 00:19:05.890 --> 00:19:08.190 align:start position:0% lol making people pay for their fat fingers<00:19:06.309> how<00:19:06.820> do<00:19:06.880> you<00:19:07.090> do<00:19:07.240> this<00:19:07.390> tell<00:19:07.659> me<00:19:07.809> your 00:19:08.190 --> 00:19:08.200 align:start position:0% fingers how do you do this tell me your 00:19:08.200 --> 00:19:11.490 align:start position:0% fingers how do you do this tell me your secret<00:19:08.770> sauce<00:19:09.840> so<00:19:10.840> the<00:19:10.960> conclusion<00:19:11.380> is<00:19:11.440> we 00:19:11.490 --> 00:19:11.500 align:start position:0% secret sauce so the conclusion is we 00:19:11.500 --> 00:19:13.470 align:start position:0% secret sauce so the conclusion is we don't<00:19:11.799> understand<00:19:12.220> existing<00:19:12.940> decks<00:19:13.149> designs 00:19:13.470 --> 00:19:13.480 align:start position:0% don't understand existing decks designs 00:19:13.480 --> 00:19:14.940 align:start position:0% don't understand existing decks designs or<00:19:13.690> sort<00:19:13.899> of<00:19:13.929> how<00:19:14.110> these<00:19:14.260> will<00:19:14.440> behave<00:19:14.679> in<00:19:14.860> the 00:19:14.940 --> 00:19:14.950 align:start position:0% or sort of how these will behave in the 00:19:14.950 --> 00:19:16.649 align:start position:0% or sort of how these will behave in the eventual<00:19:15.309> game<00:19:15.549> theoretic<00:19:15.760> equilibrium<00:19:16.539> of 00:19:16.649 --> 00:19:16.659 align:start position:0% eventual game theoretic equilibrium of 00:19:16.659 --> 00:19:18.510 align:start position:0% eventual game theoretic equilibrium of these<00:19:16.809> systems<00:19:17.200> and<00:19:17.470> while<00:19:18.190> we're<00:19:18.340> sitting 00:19:18.510 --> 00:19:18.520 align:start position:0% these systems and while we're sitting 00:19:18.520 --> 00:19:20.039 align:start position:0% these systems and while we're sitting here<00:19:18.640> in<00:19:18.820> in<00:19:19.270> decadence<00:19:19.779> that<00:19:19.929> these 00:19:20.039 --> 00:19:20.049 align:start position:0% here in in decadence that these 00:19:20.049 --> 00:19:21.870 align:start position:0% here in in decadence that these conferences<00:19:20.559> going<00:19:20.799> to<00:19:20.980> parties<00:19:21.370> enjoying 00:19:21.870 --> 00:19:21.880 align:start position:0% conferences going to parties enjoying 00:19:21.880 --> 00:19:23.970 align:start position:0% conferences going to parties enjoying popping<00:19:22.299> the<00:19:22.360> champagne<00:19:22.529> real<00:19:23.529> users<00:19:23.830> are 00:19:23.970 --> 00:19:23.980 align:start position:0% popping the champagne real users are 00:19:23.980 --> 00:19:25.529 align:start position:0% popping the champagne real users are losing<00:19:24.309> money<00:19:24.460> on<00:19:24.580> the<00:19:24.760> systems<00:19:25.120> we've<00:19:25.270> built 00:19:25.529 --> 00:19:25.539 align:start position:0% losing money on the systems we've built 00:19:25.539 --> 00:19:27.269 align:start position:0% losing money on the systems we've built and<00:19:25.779> it's<00:19:25.870> having<00:19:26.049> real<00:19:26.380> world<00:19:26.649> impact<00:19:27.070> on 00:19:27.269 --> 00:19:27.279 align:start position:0% and it's having real world impact on 00:19:27.279 --> 00:19:29.430 align:start position:0% and it's having real world impact on them<00:19:27.429> and<00:19:28.390> unfortunately<00:19:28.539> a<00:19:29.110> lot<00:19:29.260> of<00:19:29.350> the 00:19:29.430 --> 00:19:29.440 align:start position:0% them and unfortunately a lot of the 00:19:29.440 --> 00:19:30.720 align:start position:0% them and unfortunately a lot of the reaction<00:19:29.799> the<00:19:29.830> space<00:19:30.130> a<00:19:30.159> lot<00:19:30.370> of<00:19:30.490> the<00:19:30.549> time 00:19:30.720 --> 00:19:30.730 align:start position:0% reaction the space a lot of the time 00:19:30.730 --> 00:19:33.210 align:start position:0% reaction the space a lot of the time kind<00:19:31.029> of<00:19:31.120> looks<00:19:31.299> like<00:19:31.360> this<00:19:31.950> so<00:19:32.950> instead<00:19:33.070> let's 00:19:33.210 --> 00:19:33.220 align:start position:0% kind of looks like this so instead let's 00:19:33.220 --> 00:19:35.220 align:start position:0% kind of looks like this so instead let's learn<00:19:33.490> from<00:19:33.669> history<00:19:33.850> we<00:19:34.630> can<00:19:34.750> look<00:19:34.899> at<00:19:34.990> a<00:19:35.020> wide 00:19:35.220 --> 00:19:35.230 align:start position:0% learn from history we can look at a wide 00:19:35.230 --> 00:19:36.510 align:start position:0% learn from history we can look at a wide variety<00:19:35.470> of<00:19:35.679> work<00:19:35.830> on<00:19:36.010> this<00:19:36.130> kind<00:19:36.279> of<00:19:36.399> high 00:19:36.510 --> 00:19:36.520 align:start position:0% variety of work on this kind of high 00:19:36.520 --> 00:19:38.100 align:start position:0% variety of work on this kind of high frequency<00:19:36.940> trading<00:19:37.149> and<00:19:37.299> market<00:19:37.600> design<00:19:37.720> this 00:19:38.100 --> 00:19:38.110 align:start position:0% frequency trading and market design this 00:19:38.110 --> 00:19:39.720 align:start position:0% frequency trading and market design this is<00:19:38.200> a<00:19:38.230> recent<00:19:38.679> paper<00:19:38.710> I<00:19:38.980> highly<00:19:39.250> recommend<00:19:39.640> by 00:19:39.720 --> 00:19:39.730 align:start position:0% is a recent paper I highly recommend by 00:19:39.730 --> 00:19:41.639 align:start position:0% is a recent paper I highly recommend by Buddhist<00:19:40.090> Crampton<00:19:40.419> and<00:19:40.539> xem<00:19:40.720> which<00:19:41.350> sort<00:19:41.590> of 00:19:41.639 --> 00:19:41.649 align:start position:0% Buddhist Crampton and xem which sort of 00:19:41.649 --> 00:19:42.990 align:start position:0% Buddhist Crampton and xem which sort of says<00:19:41.830> that<00:19:42.010> these<00:19:42.100> opportunities<00:19:42.669> and 00:19:42.990 --> 00:19:43.000 align:start position:0% says that these opportunities and 00:19:43.000 --> 00:19:45.389 align:start position:0% says that these opportunities and mechanical<00:19:43.720> rents<00:19:43.929> are<00:19:44.049> fundamental<00:19:44.740> inside 00:19:45.389 --> 00:19:45.399 align:start position:0% mechanical rents are fundamental inside 00:19:45.399 --> 00:19:48.029 align:start position:0% mechanical rents are fundamental inside continuous<00:19:45.909> markets<00:19:46.390> and<00:19:47.380> it's<00:19:47.679> not<00:19:47.860> just 00:19:48.029 --> 00:19:48.039 align:start position:0% continuous markets and it's not just 00:19:48.039 --> 00:19:50.010 align:start position:0% continuous markets and it's not just healthy<00:19:48.370> competition<00:19:48.659> because<00:19:49.659> it<00:19:49.779> creates 00:19:50.010 --> 00:19:50.020 align:start position:0% healthy competition because it creates 00:19:50.020 --> 00:19:52.620 align:start position:0% healthy competition because it creates an<00:19:50.110> arms<00:19:50.409> race<00:19:50.500> that<00:19:50.980> induces<00:19:51.600> mechanically<00:19:52.600> a 00:19:52.620 --> 00:19:52.630 align:start position:0% an arms race that induces mechanically a 00:19:52.630 --> 00:19:54.840 align:start position:0% an arms race that induces mechanically a prisoner's<00:19:53.049> dilemma<00:19:53.260> and<00:19:53.760> charges<00:19:54.760> of 00:19:54.840 --> 00:19:54.850 align:start position:0% prisoner's dilemma and charges of 00:19:54.850 --> 00:19:56.490 align:start position:0% prisoner's dilemma and charges of liquidity<00:19:55.120> tax<00:19:55.539> on<00:19:55.720> the<00:19:55.809> system<00:19:56.110> that's<00:19:56.260> paid 00:19:56.490 --> 00:19:56.500 align:start position:0% liquidity tax on the system that's paid 00:19:56.500 --> 00:19:58.710 align:start position:0% liquidity tax on the system that's paid by<00:19:56.679> all<00:19:56.830> of<00:19:56.919> its<00:19:57.039> users<00:19:57.100> and<00:19:57.610> this<00:19:58.480> this 00:19:58.710 --> 00:19:58.720 align:start position:0% by all of its users and this this 00:19:58.720 --> 00:19:59.700 align:start position:0% by all of its users and this this actually<00:19:58.990> gets<00:19:59.110> worse<00:19:59.169> with<00:19:59.409> the<00:19:59.500> blockchain 00:19:59.700 --> 00:19:59.710 align:start position:0% actually gets worse with the blockchain 00:19:59.710 --> 00:20:01.649 align:start position:0% actually gets worse with the blockchain so<00:20:00.100> let's<00:20:00.309> let's<00:20:00.610> imagine<00:20:00.909> we're<00:20:01.179> a<00:20:01.210> miner<00:20:01.419> for 00:20:01.649 --> 00:20:01.659 align:start position:0% so let's let's imagine we're a miner for 00:20:01.659 --> 00:20:03.330 align:start position:0% so let's let's imagine we're a miner for a<00:20:01.720> second<00:20:02.080> we<00:20:02.470> have<00:20:02.559> these<00:20:02.679> transactions<00:20:03.220> on 00:20:03.330 --> 00:20:03.340 align:start position:0% a second we have these transactions on 00:20:03.340 --> 00:20:03.720 align:start position:0% a second we have these transactions on Nexus 00:20:03.720 --> 00:20:03.730 align:start position:0% Nexus 00:20:03.730 --> 00:20:06.419 align:start position:0% Nexus getting<00:20:03.970> fees<00:20:04.179> f1<00:20:04.630> f2<00:20:04.809> f3<00:20:04.929> if<00:20:05.529> we<00:20:06.039> insert<00:20:06.279> our 00:20:06.419 --> 00:20:06.429 align:start position:0% getting fees f1 f2 f3 if we insert our 00:20:06.429 --> 00:20:08.100 align:start position:0% getting fees f1 f2 f3 if we insert our own<00:20:06.519> transactions<00:20:07.179> here<00:20:07.360> suddenly<00:20:07.840> we<00:20:07.960> have 00:20:08.100 --> 00:20:08.110 align:start position:0% own transactions here suddenly we have 00:20:08.110 --> 00:20:10.740 align:start position:0% own transactions here suddenly we have fee<00:20:08.320> f1<00:20:08.740> f2<00:20:08.950> f3<00:20:09.130> +<00:20:09.909> the<00:20:10.059> profit<00:20:10.360> from<00:20:10.419> the<00:20:10.510> first 00:20:10.740 --> 00:20:10.750 align:start position:0% fee f1 f2 f3 + the profit from the first 00:20:10.750 --> 00:20:12.330 align:start position:0% fee f1 f2 f3 + the profit from the first transaction<00:20:11.080> +<00:20:11.440> the<00:20:11.559> profit<00:20:11.860> from<00:20:11.919> the<00:20:12.070> second 00:20:12.330 --> 00:20:12.340 align:start position:0% transaction + the profit from the second 00:20:12.340 --> 00:20:14.700 align:start position:0% transaction + the profit from the second transaction<00:20:12.639> or<00:20:13.299> maybe<00:20:13.570> we<00:20:13.779> can<00:20:13.929> switch<00:20:14.139> the 00:20:14.700 --> 00:20:14.710 align:start position:0% transaction or maybe we can switch the 00:20:14.710 --> 00:20:16.889 align:start position:0% transaction or maybe we can switch the order<00:20:14.889> of<00:20:15.159> transactions<00:20:15.730> 1<00:20:15.909> &<00:20:16.059> 2<00:20:16.210> and<00:20:16.510> then<00:20:16.809> we 00:20:16.889 --> 00:20:16.899 align:start position:0% order of transactions 1 & 2 and then we 00:20:16.899 --> 00:20:18.389 align:start position:0% order of transactions 1 & 2 and then we get<00:20:16.990> P<00:20:17.169> 3<00:20:17.380> and<00:20:17.409> P<00:20:17.529> 4<00:20:17.620> instead<00:20:18.100> and<00:20:18.279> that's 00:20:18.389 --> 00:20:18.399 align:start position:0% get P 3 and P 4 instead and that's 00:20:18.399 --> 00:20:20.399 align:start position:0% get P 3 and P 4 instead and that's actually<00:20:18.730> more<00:20:18.880> so<00:20:19.779> figuring<00:20:20.110> out<00:20:20.260> the 00:20:20.399 --> 00:20:20.409 align:start position:0% actually more so figuring out the 00:20:20.409 --> 00:20:22.080 align:start position:0% actually more so figuring out the optimal<00:20:20.769> ordering<00:20:21.130> and<00:20:21.250> insertions<00:20:21.700> here<00:20:21.909> is 00:20:22.080 --> 00:20:22.090 align:start position:0% optimal ordering and insertions here is 00:20:22.090 --> 00:20:23.700 align:start position:0% optimal ordering and insertions here is actually<00:20:22.450> an<00:20:22.600> optimization<00:20:23.260> problem<00:20:23.289> that's 00:20:23.700 --> 00:20:23.710 align:start position:0% actually an optimization problem that's 00:20:23.710 --> 00:20:25.590 align:start position:0% actually an optimization problem that's provably<00:20:24.130> undecidable<00:20:24.909> with<00:20:25.360> turning 00:20:25.590 --> 00:20:25.600 align:start position:0% provably undecidable with turning 00:20:25.600 --> 00:20:27.149 align:start position:0% provably undecidable with turning complete<00:20:25.840> transactions<00:20:26.350> in<00:20:26.440> np-hard<00:20:26.889> without 00:20:27.149 --> 00:20:27.159 align:start position:0% complete transactions in np-hard without 00:20:27.159 --> 00:20:28.980 align:start position:0% complete transactions in np-hard without which<00:20:27.669> makes<00:20:27.909> it<00:20:28.000> a<00:20:28.059> substantial<00:20:28.539> vector<00:20:28.809> for 00:20:28.980 --> 00:20:28.990 align:start position:0% which makes it a substantial vector for 00:20:28.990 --> 00:20:31.379 align:start position:0% which makes it a substantial vector for minor<00:20:29.139> competition<00:20:29.740> not<00:20:30.460> only<00:20:30.519> that<00:20:30.970> but<00:20:31.240> in 00:20:31.379 --> 00:20:31.389 align:start position:0% minor competition not only that but in 00:20:31.389 --> 00:20:33.330 align:start position:0% minor competition not only that but in the<00:20:31.510> long<00:20:31.720> term<00:20:31.960> iterated<00:20:32.559> game<00:20:32.740> equilibrium 00:20:33.330 --> 00:20:33.340 align:start position:0% the long term iterated game equilibrium 00:20:33.340 --> 00:20:35.789 align:start position:0% the long term iterated game equilibrium miners<00:20:34.149> can<00:20:34.630> out-compete<00:20:34.990> non<00:20:35.440> mining 00:20:35.789 --> 00:20:35.799 align:start position:0% miners can out-compete non mining 00:20:35.799 --> 00:20:37.049 align:start position:0% miners can out-compete non mining arbitrage<00:20:36.190> BOTS<00:20:36.460> for<00:20:36.639> these<00:20:36.760> ordering 00:20:37.049 --> 00:20:37.059 align:start position:0% arbitrage BOTS for these ordering 00:20:37.059 --> 00:20:39.120 align:start position:0% arbitrage BOTS for these ordering opportunities<00:20:37.659> and<00:20:37.929> are<00:20:38.289> incentivized<00:20:38.919> to 00:20:39.120 --> 00:20:39.130 align:start position:0% opportunities and are incentivized to 00:20:39.130 --> 00:20:40.620 align:start position:0% opportunities and are incentivized to sort<00:20:39.309> of<00:20:39.370> minimize<00:20:39.730> those<00:20:39.970> orange<00:20:40.389> and<00:20:40.510> red 00:20:40.620 --> 00:20:40.630 align:start position:0% sort of minimize those orange and red 00:20:40.630 --> 00:20:41.879 align:start position:0% sort of minimize those orange and red differences<00:20:41.380> we<00:20:41.440> were<00:20:41.559> talking<00:20:41.860> about 00:20:41.879 --> 00:20:41.889 align:start position:0% differences we were talking about 00:20:41.889 --> 00:20:43.950 align:start position:0% differences we were talking about earlier<00:20:42.340> in<00:20:42.669> absurd<00:20:43.090> levels<00:20:43.389> 2<00:20:43.480> milliseconds 00:20:43.950 --> 00:20:43.960 align:start position:0% earlier in absurd levels 2 milliseconds 00:20:43.960 --> 00:20:45.629 align:start position:0% earlier in absurd levels 2 milliseconds are<00:20:44.049> lower<00:20:44.230> if<00:20:44.799> they<00:20:45.010> don't<00:20:45.220> do<00:20:45.370> this<00:20:45.490> they 00:20:45.629 --> 00:20:45.639 align:start position:0% are lower if they don't do this they 00:20:45.639 --> 00:20:46.830 align:start position:0% are lower if they don't do this they just<00:20:45.669> won't<00:20:45.940> be<00:20:46.059> competitive<00:20:46.269> with<00:20:46.539> miners 00:20:46.830 --> 00:20:46.840 align:start position:0% just won't be competitive with miners 00:20:46.840 --> 00:20:47.850 align:start position:0% just won't be competitive with miners who<00:20:46.929> are<00:20:47.019> and<00:20:47.169> they'll<00:20:47.260> be<00:20:47.350> driven<00:20:47.529> out<00:20:47.679> of<00:20:47.740> the 00:20:47.850 --> 00:20:47.860 align:start position:0% who are and they'll be driven out of the 00:20:47.860 --> 00:20:50.340 align:start position:0% who are and they'll be driven out of the system<00:20:48.190> so<00:20:49.179> what<00:20:49.299> you<00:20:49.419> get<00:20:49.630> is<00:20:49.899> huge 00:20:50.340 --> 00:20:50.350 align:start position:0% system so what you get is huge 00:20:50.350 --> 00:20:51.870 align:start position:0% system so what you get is huge opportunities<00:20:50.980> that<00:20:51.130> lead<00:20:51.309> to<00:20:51.340> reorge 00:20:51.870 --> 00:20:51.880 align:start position:0% opportunities that lead to reorge 00:20:51.880 --> 00:20:54.450 align:start position:0% opportunities that lead to reorge Orphanage<00:20:52.389> selfish<00:20:52.779> mining<00:20:53.230> fee<00:20:54.039> estimator 00:20:54.450 --> 00:20:54.460 align:start position:0% Orphanage selfish mining fee estimator 00:20:54.460 --> 00:20:55.919 align:start position:0% Orphanage selfish mining fee estimator errors<00:20:54.820> we've<00:20:55.029> seen<00:20:55.299> this<00:20:55.419> already<00:20:55.570> with 00:20:55.919 --> 00:20:55.929 align:start position:0% errors we've seen this already with 00:20:55.929 --> 00:20:58.830 align:start position:0% errors we've seen this already with systems<00:20:56.260> like<00:20:56.320> pao<00:20:56.620> h<00:20:56.860> 3d<00:20:57.159> and<00:20:58.120> you<00:20:58.179> get<00:20:58.389> mining 00:20:58.830 --> 00:20:58.840 align:start position:0% systems like pao h 3d and you get mining 00:20:58.840 --> 00:21:00.210 align:start position:0% systems like pao h 3d and you get mining that's<00:20:58.990> dominated<00:20:59.350> by<00:20:59.590> a<00:20:59.620> small<00:20:59.830> set<00:21:00.190> of 00:21:00.210 --> 00:21:00.220 align:start position:0% that's dominated by a small set of 00:21:00.220 --> 00:21:02.009 align:start position:0% that's dominated by a small set of high-frequency<00:21:00.580> trading<00:21:01.029> firms<00:21:01.360> using 00:21:02.009 --> 00:21:02.019 align:start position:0% high-frequency trading firms using 00:21:02.019 --> 00:21:03.659 align:start position:0% high-frequency trading firms using proprietary<00:21:02.289> relay<00:21:02.950> and<00:21:03.100> optimization 00:21:03.659 --> 00:21:03.669 align:start position:0% proprietary relay and optimization 00:21:03.669 --> 00:21:05.250 align:start position:0% proprietary relay and optimization networks<00:21:04.000> just<00:21:04.539> like<00:21:04.659> we<00:21:04.779> have<00:21:04.929> on<00:21:04.960> Wall 00:21:05.250 --> 00:21:05.260 align:start position:0% networks just like we have on Wall 00:21:05.260 --> 00:21:07.289 align:start position:0% networks just like we have on Wall Street<00:21:05.500> but<00:21:06.340> not<00:21:06.460> only<00:21:06.549> that<00:21:06.639> these<00:21:06.909> guys<00:21:07.120> will 00:21:07.289 --> 00:21:07.299 align:start position:0% Street but not only that these guys will 00:21:07.299 --> 00:21:08.850 align:start position:0% Street but not only that these guys will also<00:21:07.539> be<00:21:07.659> powerful<00:21:08.049> players<00:21:08.230> and<00:21:08.470> governments 00:21:08.850 --> 00:21:08.860 align:start position:0% also be powerful players and governments 00:21:08.860 --> 00:21:10.860 align:start position:0% also be powerful players and governments so<00:21:09.340> you<00:21:09.399> can't<00:21:09.789> have<00:21:10.000> a<00:21:10.029> system<00:21:10.299> that's<00:21:10.690> full 00:21:10.860 --> 00:21:10.870 align:start position:0% so you can't have a system that's full 00:21:10.870 --> 00:21:12.180 align:start position:0% so you can't have a system that's full of<00:21:10.899> intractable<00:21:11.440> mechanisms<00:21:11.889> that<00:21:11.950> we<00:21:12.039> don't 00:21:12.180 --> 00:21:12.190 align:start position:0% of intractable mechanisms that we don't 00:21:12.190 --> 00:21:14.549 align:start position:0% of intractable mechanisms that we don't understand<00:21:12.549> that's<00:21:12.700> still<00:21:12.909> secure<00:21:13.409> all<00:21:14.409> right 00:21:14.549 --> 00:21:14.559 align:start position:0% understand that's still secure all right 00:21:14.559 --> 00:21:15.960 align:start position:0% understand that's still secure all right I'm<00:21:14.679> gonna<00:21:14.860> talk<00:21:15.039> about<00:21:15.100> another<00:21:15.549> simple 00:21:15.960 --> 00:21:15.970 align:start position:0% I'm gonna talk about another simple 00:21:15.970 --> 00:21:17.519 align:start position:0% I'm gonna talk about another simple mechanism<00:21:16.360> here<00:21:16.480> on<00:21:16.510> chain<00:21:16.870> voting<00:21:17.200> so<00:21:17.380> this 00:21:17.519 --> 00:21:17.529 align:start position:0% mechanism here on chain voting so this 00:21:17.529 --> 00:21:18.930 align:start position:0% mechanism here on chain voting so this is<00:21:17.620> the<00:21:17.710> one<00:21:17.830> used<00:21:17.980> in<00:21:18.100> the<00:21:18.220> etherium<00:21:18.580> example 00:21:18.930 --> 00:21:18.940 align:start position:0% is the one used in the etherium example 00:21:18.940 --> 00:21:21.360 align:start position:0% is the one used in the etherium example documentation<00:21:19.630> and<00:21:19.840> we<00:21:20.679> have<00:21:20.860> two<00:21:21.070> posts 00:21:21.360 --> 00:21:21.370 align:start position:0% documentation and we have two posts 00:21:21.370 --> 00:21:22.440 align:start position:0% documentation and we have two posts about<00:21:21.519> this<00:21:21.700> as<00:21:21.850> well<00:21:21.970> on<00:21:22.210> hacking 00:21:22.440 --> 00:21:22.450 align:start position:0% about this as well on hacking 00:21:22.450 --> 00:21:24.210 align:start position:0% about this as well on hacking distributed<00:21:23.049> and<00:21:23.320> also<00:21:23.590> my<00:21:23.710> personal<00:21:23.769> website 00:21:24.210 --> 00:21:24.220 align:start position:0% distributed and also my personal website 00:21:24.220 --> 00:21:26.370 align:start position:0% distributed and also my personal website talking<00:21:25.149> about<00:21:25.330> how<00:21:25.480> on<00:21:25.690> chain<00:21:25.929> voting<00:21:26.289> is 00:21:26.370 --> 00:21:26.380 align:start position:0% talking about how on chain voting is 00:21:26.380 --> 00:21:28.169 align:start position:0% talking about how on chain voting is open<00:21:26.710> to<00:21:26.799> trustless<00:21:27.190> frictionless<00:21:27.760> bribery 00:21:28.169 --> 00:21:28.179 align:start position:0% open to trustless frictionless bribery 00:21:28.179 --> 00:21:30.149 align:start position:0% open to trustless frictionless bribery it<00:21:28.870> does<00:21:29.049> not<00:21:29.169> satisfy<00:21:29.409> the<00:21:29.740> classic 00:21:30.149 --> 00:21:30.159 align:start position:0% it does not satisfy the classic 00:21:30.159 --> 00:21:31.710 align:start position:0% it does not satisfy the classic properties<00:21:30.580> and<00:21:30.730> security<00:21:31.120> literature<00:21:31.480> of 00:21:31.710 --> 00:21:31.720 align:start position:0% properties and security literature of 00:21:31.720 --> 00:21:34.049 align:start position:0% properties and security literature of coercion<00:21:32.110> resistance<00:21:32.679> receipt<00:21:33.340> freedom<00:21:33.669> all 00:21:34.049 --> 00:21:34.059 align:start position:0% coercion resistance receipt freedom all 00:21:34.059 --> 00:21:35.100 align:start position:0% coercion resistance receipt freedom all these<00:21:34.389> things<00:21:34.570> people<00:21:34.720> have<00:21:34.870> been<00:21:34.960> studying 00:21:35.100 --> 00:21:35.110 align:start position:0% these things people have been studying 00:21:35.110 --> 00:21:36.960 align:start position:0% these things people have been studying for<00:21:35.350> over<00:21:35.590> 30<00:21:35.799> years<00:21:35.860> now<00:21:36.190> for<00:21:36.399> real<00:21:36.519> elections 00:21:36.960 --> 00:21:36.970 align:start position:0% for over 30 years now for real elections 00:21:36.970 --> 00:21:39.629 align:start position:0% for over 30 years now for real elections we<00:21:37.630> also<00:21:37.779> released<00:21:38.139> a<00:21:38.260> vote<00:21:38.440> buying<00:21:38.639> mechanism 00:21:39.629 --> 00:21:39.639 align:start position:0% we also released a vote buying mechanism 00:21:39.639 --> 00:21:40.919 align:start position:0% we also released a vote buying mechanism for<00:21:39.789> carbon<00:21:40.120> vote<00:21:40.269> that<00:21:40.450> you<00:21:40.510> can<00:21:40.659> use<00:21:40.779> to 00:21:40.919 --> 00:21:40.929 align:start position:0% for carbon vote that you can use to 00:21:40.929 --> 00:21:42.149 align:start position:0% for carbon vote that you can use to publicly<00:21:41.260> by<00:21:41.440> people<00:21:41.740> who<00:21:41.799> votes<00:21:41.980> on<00:21:42.130> that 00:21:42.149 --> 00:21:42.159 align:start position:0% publicly by people who votes on that 00:21:42.159 --> 00:21:44.100 align:start position:0% publicly by people who votes on that platform<00:21:42.490> and<00:21:42.880> we<00:21:43.570> described<00:21:43.929> a<00:21:44.019> new 00:21:44.100 --> 00:21:44.110 align:start position:0% platform and we described a new 00:21:44.110 --> 00:21:46.049 align:start position:0% platform and we described a new construction<00:21:44.620> called<00:21:44.799> a<00:21:44.889> dark<00:21:45.100> Dao<00:21:45.279> which<00:21:45.909> is 00:21:46.049 --> 00:21:46.059 align:start position:0% construction called a dark Dao which is 00:21:46.059 --> 00:21:47.580 align:start position:0% construction called a dark Dao which is sort<00:21:46.269> of<00:21:46.299> this<00:21:46.419> trustless<00:21:46.840> hidden<00:21:47.169> cartel 00:21:47.580 --> 00:21:47.590 align:start position:0% sort of this trustless hidden cartel 00:21:47.590 --> 00:21:49.440 align:start position:0% sort of this trustless hidden cartel that<00:21:47.769> operates<00:21:48.100> in<00:21:48.190> trusted<00:21:48.519> Hardware<00:21:48.880> where 00:21:49.440 --> 00:21:49.450 align:start position:0% that operates in trusted Hardware where 00:21:49.450 --> 00:21:51.180 align:start position:0% that operates in trusted Hardware where I<00:21:49.480> can<00:21:49.809> buy<00:21:49.960> your<00:21:50.139> vote<00:21:50.350> you<00:21:50.740> don't<00:21:50.950> have<00:21:51.100> to 00:21:51.180 --> 00:21:51.190 align:start position:0% I can buy your vote you don't have to 00:21:51.190 --> 00:21:52.350 align:start position:0% I can buy your vote you don't have to give<00:21:51.309> me<00:21:51.429> control<00:21:51.760> of<00:21:51.789> your<00:21:51.970> funds<00:21:52.179> or 00:21:52.350 --> 00:21:52.360 align:start position:0% give me control of your funds or 00:21:52.360 --> 00:21:53.820 align:start position:0% give me control of your funds or anything<00:21:52.510> like<00:21:52.720> that<00:21:52.779> I'm<00:21:53.080> only<00:21:53.289> buying<00:21:53.620> your 00:21:53.820 --> 00:21:53.830 align:start position:0% anything like that I'm only buying your 00:21:53.830 --> 00:21:55.950 align:start position:0% anything like that I'm only buying your vote<00:21:53.980> for<00:21:54.190> a<00:21:54.220> specific<00:21:54.600> vote<00:21:55.600> and<00:21:55.779> you<00:21:55.929> can 00:21:55.950 --> 00:21:55.960 align:start position:0% vote for a specific vote and you can 00:21:55.960 --> 00:21:57.990 align:start position:0% vote for a specific vote and you can tell<00:21:56.230> how<00:21:56.380> I'm<00:21:56.470> gonna<00:21:56.559> buy<00:21:56.769> it<00:21:56.799> and<00:21:57.100> nobody<00:21:57.850> in 00:21:57.990 --> 00:21:58.000 align:start position:0% tell how I'm gonna buy it and nobody in 00:21:58.000 --> 00:21:59.340 align:start position:0% tell how I'm gonna buy it and nobody in the<00:21:58.059> system<00:21:58.389> can<00:21:58.539> tell<00:21:58.690> whose<00:21:58.929> boats<00:21:59.169> are 00:21:59.340 --> 00:21:59.350 align:start position:0% the system can tell whose boats are 00:21:59.350 --> 00:22:00.870 align:start position:0% the system can tell whose boats are whose<00:21:59.649> votes<00:21:59.950> are<00:22:00.070> bought<00:22:00.220> whose<00:22:00.490> votes<00:22:00.730> are 00:22:00.870 --> 00:22:00.880 align:start position:0% whose votes are bought whose votes are 00:22:00.880 --> 00:22:02.850 align:start position:0% whose votes are bought whose votes are sold<00:22:01.120> or<00:22:01.570> how<00:22:01.720> much<00:22:01.870> money<00:22:02.080> is<00:22:02.289> even<00:22:02.559> bought<00:22:02.710> or 00:22:02.850 --> 00:22:02.860 align:start position:0% sold or how much money is even bought or 00:22:02.860 --> 00:22:04.620 align:start position:0% sold or how much money is even bought or sold<00:22:02.889> at<00:22:03.159> any<00:22:03.190> given<00:22:03.460> time<00:22:03.669> so<00:22:04.269> this<00:22:04.419> can 00:22:04.620 --> 00:22:04.630 align:start position:0% sold at any given time so this can 00:22:04.630 --> 00:22:06.419 align:start position:0% sold at any given time so this can undermine<00:22:05.019> the<00:22:05.260> legitimacy<00:22:05.500> of<00:22:05.950> the<00:22:06.070> process 00:22:06.419 --> 00:22:06.429 align:start position:0% undermine the legitimacy of the process 00:22:06.429 --> 00:22:07.830 align:start position:0% undermine the legitimacy of the process even<00:22:06.669> without<00:22:07.000> having<00:22:07.299> any<00:22:07.419> money<00:22:07.630> in<00:22:07.750> it 00:22:07.830 --> 00:22:07.840 align:start position:0% even without having any money in it 00:22:07.840 --> 00:22:09.210 align:start position:0% even without having any money in it because<00:22:08.049> it's<00:22:08.320> cryptographically<00:22:08.830> there's 00:22:09.210 --> 00:22:09.220 align:start position:0% because it's cryptographically there's 00:22:09.220 --> 00:22:11.220 align:start position:0% because it's cryptographically there's simply<00:22:09.429> no<00:22:09.970> way<00:22:10.210> to<00:22:10.240> know<00:22:10.570> how<00:22:10.809> far<00:22:11.049> this 00:22:11.220 --> 00:22:11.230 align:start position:0% simply no way to know how far this 00:22:11.230 --> 00:22:13.049 align:start position:0% simply no way to know how far this attack<00:22:11.470> has<00:22:11.620> advanced<00:22:12.070> so<00:22:12.580> I<00:22:12.639> encourage<00:22:12.970> you 00:22:13.049 --> 00:22:13.059 align:start position:0% attack has advanced so I encourage you 00:22:13.059 --> 00:22:14.340 align:start position:0% attack has advanced so I encourage you to<00:22:13.090> check<00:22:13.330> the<00:22:13.419> details<00:22:13.720> of<00:22:13.840> that<00:22:13.960> scheme<00:22:14.200> in 00:22:14.340 --> 00:22:14.350 align:start position:0% to check the details of that scheme in 00:22:14.350 --> 00:22:17.520 align:start position:0% to check the details of that scheme in our<00:22:14.440> post<00:22:15.629> the<00:22:16.629> conclusion<00:22:17.080> is<00:22:17.169> that<00:22:17.200> we<00:22:17.379> do 00:22:17.520 --> 00:22:17.530 align:start position:0% our post the conclusion is that we do 00:22:17.530 --> 00:22:19.710 align:start position:0% our post the conclusion is that we do actually<00:22:17.860> understand<00:22:18.220> voting<00:22:18.550> dark<00:22:19.540> downs 00:22:19.710 --> 00:22:19.720 align:start position:0% actually understand voting dark downs 00:22:19.720 --> 00:22:21.360 align:start position:0% actually understand voting dark downs can<00:22:19.900> also<00:22:20.020> be<00:22:20.200> used<00:22:20.350> in<00:22:20.500> other<00:22:20.620> mechanisms<00:22:21.250> in 00:22:21.360 --> 00:22:21.370 align:start position:0% can also be used in other mechanisms in 00:22:21.370 --> 00:22:22.890 align:start position:0% can also be used in other mechanisms in our<00:22:21.430> space<00:22:21.700> so<00:22:22.060> any<00:22:22.270> sort<00:22:22.480> of<00:22:22.630> Nash 00:22:22.890 --> 00:22:22.900 align:start position:0% our space so any sort of Nash 00:22:22.900 --> 00:22:24.600 align:start position:0% our space so any sort of Nash equilibrium<00:22:23.470> incentive<00:22:23.860> model<00:22:23.980> you<00:22:24.280> set<00:22:24.490> up 00:22:24.600 --> 00:22:24.610 align:start position:0% equilibrium incentive model you set up 00:22:24.610 --> 00:22:26.550 align:start position:0% equilibrium incentive model you set up you<00:22:25.060> can<00:22:25.210> modify<00:22:25.480> using<00:22:25.900> a<00:22:25.960> dark<00:22:26.170> dial<00:22:26.320> by 00:22:26.550 --> 00:22:26.560 align:start position:0% you can modify using a dark dial by 00:22:26.560 --> 00:22:28.380 align:start position:0% you can modify using a dark dial by paying<00:22:26.860> users<00:22:27.280> to<00:22:27.460> behave<00:22:27.700> in<00:22:27.880> a<00:22:27.940> conditional 00:22:28.380 --> 00:22:28.390 align:start position:0% paying users to behave in a conditional 00:22:28.390 --> 00:22:30.930 align:start position:0% paying users to behave in a conditional way<00:22:28.540> and<00:22:29.530> this<00:22:29.680> motivates<00:22:30.100> the<00:22:30.310> bribing 00:22:30.930 --> 00:22:30.940 align:start position:0% way and this motivates the bribing 00:22:30.940 --> 00:22:32.700 align:start position:0% way and this motivates the bribing attacker<00:22:31.210> model<00:22:31.630> it<00:22:31.780> motivates<00:22:32.200> cooperative 00:22:32.700 --> 00:22:32.710 align:start position:0% attacker model it motivates cooperative 00:22:32.710 --> 00:22:34.560 align:start position:0% attacker model it motivates cooperative game<00:22:32.890> theory<00:22:33.250> and<00:22:33.430> it<00:22:33.820> motivates<00:22:34.150> using<00:22:34.390> much 00:22:34.560 --> 00:22:34.570 align:start position:0% game theory and it motivates using much 00:22:34.570 --> 00:22:35.850 align:start position:0% game theory and it motivates using much stronger<00:22:34.870> models<00:22:35.290> than<00:22:35.470> we've<00:22:35.590> been<00:22:35.710> using 00:22:35.850 --> 00:22:35.860 align:start position:0% stronger models than we've been using 00:22:35.860 --> 00:22:38.310 align:start position:0% stronger models than we've been using for<00:22:36.130> security<00:22:36.520> in<00:22:36.610> the<00:22:36.700> blockchain<00:22:36.880> space<00:22:37.330> and 00:22:38.310 --> 00:22:38.320 align:start position:0% for security in the blockchain space and 00:22:38.320 --> 00:22:39.720 align:start position:0% for security in the blockchain space and actually<00:22:38.620> you<00:22:38.890> can<00:22:39.010> use<00:22:39.100> the<00:22:39.190> dark<00:22:39.310> now<00:22:39.460> even 00:22:39.720 --> 00:22:39.730 align:start position:0% actually you can use the dark now even 00:22:39.730 --> 00:22:41.670 align:start position:0% actually you can use the dark now even to<00:22:39.820> attack<00:22:40.000> consensus<00:22:40.480> itself<00:22:40.840> because<00:22:41.470> proof 00:22:41.670 --> 00:22:41.680 align:start position:0% to attack consensus itself because proof 00:22:41.680 --> 00:22:43.350 align:start position:0% to attack consensus itself because proof of<00:22:41.800> stake<00:22:41.980> and<00:22:42.130> proof<00:22:42.250> of<00:22:42.340> work<00:22:42.910> are<00:22:43.120> just<00:22:43.150> a 00:22:43.350 --> 00:22:43.360 align:start position:0% of stake and proof of work are just a 00:22:43.360 --> 00:22:44.790 align:start position:0% of stake and proof of work are just a form<00:22:43.540> of<00:22:43.630> voting<00:22:43.900> so<00:22:44.080> I<00:22:44.140> can<00:22:44.290> pay<00:22:44.470> you<00:22:44.530> to 00:22:44.790 --> 00:22:44.800 align:start position:0% form of voting so I can pay you to 00:22:44.800 --> 00:22:46.950 align:start position:0% form of voting so I can pay you to censor<00:22:45.070> someone<00:22:45.430> or<00:22:45.580> do<00:22:45.670> a<00:22:45.700> 51%<00:22:46.150> attack<00:22:46.540> or 00:22:46.950 --> 00:22:46.960 align:start position:0% censor someone or do a 51% attack or 00:22:46.960 --> 00:22:49.440 align:start position:0% censor someone or do a 51% attack or whatnot<00:22:47.580> so<00:22:48.580> the<00:22:48.670> conclusion<00:22:49.120> is<00:22:49.210> that<00:22:49.240> on 00:22:49.440 --> 00:22:49.450 align:start position:0% whatnot so the conclusion is that on 00:22:49.450 --> 00:22:52.110 align:start position:0% whatnot so the conclusion is that on chained<00:22:49.630> voting<00:22:49.990> is<00:22:50.170> inscrutable<00:22:51.030> so<00:22:52.030> what 00:22:52.110 --> 00:22:52.120 align:start position:0% chained voting is inscrutable so what 00:22:52.120 --> 00:22:54.030 align:start position:0% chained voting is inscrutable so what about<00:22:52.210> more<00:22:52.450> complex<00:22:52.810> mechanisms<00:22:53.350> this<00:22:53.860> is 00:22:54.030 --> 00:22:54.040 align:start position:0% about more complex mechanisms this is 00:22:54.040 --> 00:22:56.580 align:start position:0% about more complex mechanisms this is the<00:22:54.220> picture<00:22:54.700> from<00:22:55.110> documentation<00:22:56.110> a<00:22:56.260> little 00:22:56.580 --> 00:22:56.590 align:start position:0% the picture from documentation a little 00:22:56.590 --> 00:22:58.050 align:start position:0% the picture from documentation a little bit<00:22:56.680> old<00:22:56.860> a<00:22:57.040> little<00:22:57.190> bit<00:22:57.280> outdated<00:22:57.400> but<00:22:57.820> from<00:22:58.000> a 00:22:58.050 --> 00:22:58.060 align:start position:0% bit old a little bit outdated but from a 00:22:58.060 --> 00:22:59.940 align:start position:0% bit old a little bit outdated but from a real<00:22:58.210> project<00:22:58.450> in<00:22:58.750> the<00:22:58.810> space<00:22:59.050> and<00:22:59.320> this<00:22:59.800> is<00:22:59.920> a 00:22:59.940 --> 00:22:59.950 align:start position:0% real project in the space and this is a 00:22:59.950 --> 00:23:01.410 align:start position:0% real project in the space and this is a more<00:23:00.160> up-to-date<00:23:00.400> sort<00:23:00.850> of<00:23:00.940> version<00:23:01.090> of<00:23:01.270> that 00:23:01.410 --> 00:23:01.420 align:start position:0% more up-to-date sort of version of that 00:23:01.420 --> 00:23:03.180 align:start position:0% more up-to-date sort of version of that same<00:23:01.630> picture<00:23:01.810> so<00:23:02.500> as<00:23:02.620> you<00:23:02.710> can<00:23:02.830> see<00:23:02.890> we're 00:23:03.180 --> 00:23:03.190 align:start position:0% same picture so as you can see we're 00:23:03.190 --> 00:23:05.070 align:start position:0% same picture so as you can see we're building<00:23:03.310> incredibly<00:23:04.030> complex<00:23:04.390> interacting 00:23:05.070 --> 00:23:05.080 align:start position:0% building incredibly complex interacting 00:23:05.080 --> 00:23:06.420 align:start position:0% building incredibly complex interacting mechanisms<00:23:05.620> with<00:23:05.800> a<00:23:05.830> multitude<00:23:06.220> of 00:23:06.420 --> 00:23:06.430 align:start position:0% mechanisms with a multitude of 00:23:06.430 --> 00:23:08.340 align:start position:0% mechanisms with a multitude of components<00:23:06.970> and<00:23:07.180> we're<00:23:07.750> looking<00:23:08.020> at<00:23:08.080> it<00:23:08.140> and 00:23:08.340 --> 00:23:08.350 align:start position:0% components and we're looking at it and 00:23:08.350 --> 00:23:09.720 align:start position:0% components and we're looking at it and saying<00:23:08.530> well<00:23:08.770> it<00:23:08.980> works<00:23:09.130> because<00:23:09.310> it<00:23:09.580> works 00:23:09.720 --> 00:23:09.730 align:start position:0% saying well it works because it works 00:23:09.730 --> 00:23:11.790 align:start position:0% saying well it works because it works right<00:23:10.060> but<00:23:10.810> if<00:23:10.900> you<00:23:10.990> zoom<00:23:11.020> into<00:23:11.530> something 00:23:11.790 --> 00:23:11.800 align:start position:0% right but if you zoom into something 00:23:11.800 --> 00:23:13.980 align:start position:0% right but if you zoom into something like<00:23:11.920> this<00:23:12.070> you<00:23:12.280> see<00:23:12.460> that<00:23:12.510> but<00:23:13.510> one<00:23:13.720> small 00:23:13.980 --> 00:23:13.990 align:start position:0% like this you see that but one small 00:23:13.990 --> 00:23:16.020 align:start position:0% like this you see that but one small piece<00:23:14.200> of<00:23:14.410> this<00:23:14.560> sort<00:23:14.740> of<00:23:14.800> like<00:23:15.400> mess<00:23:15.850> of 00:23:16.020 --> 00:23:16.030 align:start position:0% piece of this sort of like mess of 00:23:16.030 --> 00:23:18.570 align:start position:0% piece of this sort of like mess of interactions<00:23:16.660> is<00:23:16.960> is<00:23:17.290> an<00:23:17.770> admin<00:23:18.130> multi-sig 00:23:18.570 --> 00:23:18.580 align:start position:0% interactions is is an admin multi-sig 00:23:18.580 --> 00:23:19.680 align:start position:0% interactions is is an admin multi-sig that's<00:23:18.760> eventually<00:23:19.120> going<00:23:19.210> to<00:23:19.270> be<00:23:19.390> replaced 00:23:19.680 --> 00:23:19.690 align:start position:0% that's eventually going to be replaced 00:23:19.690 --> 00:23:21.630 align:start position:0% that's eventually going to be replaced with<00:23:19.810> something<00:23:19.990> like<00:23:20.230> on<00:23:20.410> chain<00:23:20.650> voting<00:23:20.980> so 00:23:21.630 --> 00:23:21.640 align:start position:0% with something like on chain voting so 00:23:21.640 --> 00:23:23.340 align:start position:0% with something like on chain voting so again<00:23:21.850> here<00:23:22.210> because<00:23:22.450> this<00:23:22.600> on<00:23:22.750> chain<00:23:22.990> voting 00:23:23.340 --> 00:23:23.350 align:start position:0% again here because this on chain voting 00:23:23.350 --> 00:23:25.290 align:start position:0% again here because this on chain voting feeds<00:23:23.620> back<00:23:23.800> into<00:23:23.860> every<00:23:24.490> single<00:23:24.730> aspect<00:23:24.910> of 00:23:25.290 --> 00:23:25.300 align:start position:0% feeds back into every single aspect of 00:23:25.300 --> 00:23:27.180 align:start position:0% feeds back into every single aspect of the<00:23:25.390> security<00:23:25.840> of<00:23:25.870> these<00:23:26.020> systems<00:23:26.410> and<00:23:26.710> we 00:23:27.180 --> 00:23:27.190 align:start position:0% the security of these systems and we 00:23:27.190 --> 00:23:28.620 align:start position:0% the security of these systems and we simply<00:23:27.520> don't<00:23:27.640> even<00:23:27.880> know<00:23:28.000> how<00:23:28.150> to<00:23:28.210> build<00:23:28.480> on 00:23:28.620 --> 00:23:28.630 align:start position:0% simply don't even know how to build on 00:23:28.630 --> 00:23:30.180 align:start position:0% simply don't even know how to build on chain<00:23:28.840> voting<00:23:29.170> that's<00:23:29.320> secure<00:23:29.710> and<00:23:29.830> incentive 00:23:30.180 --> 00:23:30.190 align:start position:0% chain voting that's secure and incentive 00:23:30.190 --> 00:23:32.070 align:start position:0% chain voting that's secure and incentive compatible<00:23:30.700> how<00:23:31.150> can<00:23:31.390> we<00:23:31.480> possibly<00:23:31.660> build 00:23:32.070 --> 00:23:32.080 align:start position:0% compatible how can we possibly build 00:23:32.080 --> 00:23:33.120 align:start position:0% compatible how can we possibly build something<00:23:32.380> like<00:23:32.500> this<00:23:32.620> that's<00:23:32.860> incentive 00:23:33.120 --> 00:23:33.130 align:start position:0% something like this that's incentive 00:23:33.130 --> 00:23:35.250 align:start position:0% something like this that's incentive compatible<00:23:33.700> we<00:23:34.420> simply<00:23:34.690> don't<00:23:34.810> understand 00:23:35.250 --> 00:23:35.260 align:start position:0% compatible we simply don't understand 00:23:35.260 --> 00:23:39.420 align:start position:0% compatible we simply don't understand how<00:23:35.380> to<00:23:35.440> do<00:23:35.590> that<00:23:35.820> yet<00:23:37.110> so<00:23:38.110> the<00:23:38.830> conclusion<00:23:39.310> is 00:23:39.420 --> 00:23:39.430 align:start position:0% how to do that yet so the conclusion is 00:23:39.430 --> 00:23:41.700 align:start position:0% how to do that yet so the conclusion is that<00:23:39.670> any<00:23:39.880> more<00:23:40.150> complex<00:23:40.630> mechanisms<00:23:41.260> or<00:23:41.500> any 00:23:41.700 --> 00:23:41.710 align:start position:0% that any more complex mechanisms or any 00:23:41.710 --> 00:23:43.440 align:start position:0% that any more complex mechanisms or any form<00:23:42.070> of<00:23:42.160> sort<00:23:42.400> of<00:23:42.430> substantial<00:23:42.940> complexity 00:23:43.440 --> 00:23:43.450 align:start position:0% form of sort of substantial complexity 00:23:43.450 --> 00:23:46.260 align:start position:0% form of sort of substantial complexity is<00:23:43.630> inscrutable<00:23:44.620> and<00:23:45.400> a<00:23:45.520> corollary<00:23:45.910> there<00:23:46.180> is 00:23:46.260 --> 00:23:46.270 align:start position:0% is inscrutable and a corollary there is 00:23:46.270 --> 00:23:47.610 align:start position:0% is inscrutable and a corollary there is that<00:23:46.390> we<00:23:46.510> should<00:23:46.660> stop<00:23:46.870> hyping<00:23:47.290> these<00:23:47.410> things 00:23:47.610 --> 00:23:47.620 align:start position:0% that we should stop hyping these things 00:23:47.620 --> 00:23:48.960 align:start position:0% that we should stop hyping these things up<00:23:47.770> and<00:23:47.890> stop<00:23:48.130> selling<00:23:48.460> them<00:23:48.580> to<00:23:48.610> regular 00:23:48.960 --> 00:23:48.970 align:start position:0% up and stop selling them to regular 00:23:48.970 --> 00:23:51.120 align:start position:0% up and stop selling them to regular users<00:23:49.330> because<00:23:50.080> we<00:23:50.320> don't<00:23:50.500> understand<00:23:50.980> what 00:23:51.120 --> 00:23:51.130 align:start position:0% users because we don't understand what 00:23:51.130 --> 00:23:52.320 align:start position:0% users because we don't understand what they<00:23:51.220> are<00:23:51.250> we<00:23:51.550> don't<00:23:51.700> understand<00:23:52.180> how<00:23:52.300> to 00:23:52.320 --> 00:23:52.330 align:start position:0% they are we don't understand how to 00:23:52.330 --> 00:23:54.210 align:start position:0% they are we don't understand how to build<00:23:52.510> them<00:23:52.750> we<00:23:53.500> understand<00:23:53.890> that<00:23:53.950> they<00:23:54.070> work 00:23:54.210 --> 00:23:54.220 align:start position:0% build them we understand that they work 00:23:54.220 --> 00:23:56.190 align:start position:0% build them we understand that they work because<00:23:54.340> they<00:23:54.580> work<00:23:54.760> so<00:23:54.790> far<00:23:55.150> but<00:23:55.870> they're<00:23:56.050> not 00:23:56.190 --> 00:23:56.200 align:start position:0% because they work so far but they're not 00:23:56.200 --> 00:23:57.600 align:start position:0% because they work so far but they're not necessarily<00:23:56.770> more<00:23:56.890> transparent<00:23:57.430> and<00:23:57.460> they're 00:23:57.600 --> 00:23:57.610 align:start position:0% necessarily more transparent and they're 00:23:57.610 --> 00:23:59.430 align:start position:0% necessarily more transparent and they're not<00:23:57.760> necessarily<00:23:58.210> better<00:23:58.480> so<00:23:58.840> when<00:23:59.320> you're 00:23:59.430 --> 00:23:59.440 align:start position:0% not necessarily better so when you're 00:23:59.440 --> 00:24:00.840 align:start position:0% not necessarily better so when you're selling<00:23:59.740> this<00:23:59.830> to<00:23:59.950> normal<00:24:00.220> people<00:24:00.340> and<00:24:00.640> saying 00:24:00.840 --> 00:24:00.850 align:start position:0% selling this to normal people and saying 00:24:00.850 --> 00:24:02.580 align:start position:0% selling this to normal people and saying there's<00:24:01.060> no<00:24:01.180> risk<00:24:01.390> here<00:24:01.810> you're<00:24:02.200> doing<00:24:02.320> them<00:24:02.560> a 00:24:02.580 --> 00:24:02.590 align:start position:0% there's no risk here you're doing them a 00:24:02.590 --> 00:24:05.820 align:start position:0% there's no risk here you're doing them a great<00:24:02.770> disservice<00:24:04.290> alright<00:24:05.290> so<00:24:05.440> why<00:24:05.560> did<00:24:05.740> we 00:24:05.820 --> 00:24:05.830 align:start position:0% great disservice alright so why did we 00:24:05.830 --> 00:24:07.080 align:start position:0% great disservice alright so why did we get<00:24:05.920> here<00:24:06.130> I'm<00:24:06.250> gonna<00:24:06.340> kick<00:24:06.550> it<00:24:06.640> back<00:24:06.730> to<00:24:06.790> James 00:24:07.080 --> 00:24:07.090 align:start position:0% get here I'm gonna kick it back to James 00:24:07.090 --> 00:24:08.940 align:start position:0% get here I'm gonna kick it back to James Mickens<00:24:07.480> who<00:24:07.630> has<00:24:07.750> this<00:24:07.870> sort<00:24:08.050> of<00:24:08.140> scathing 00:24:08.940 --> 00:24:08.950 align:start position:0% Mickens who has this sort of scathing 00:24:08.950 --> 00:24:10.530 align:start position:0% Mickens who has this sort of scathing critique<00:24:09.100> of<00:24:09.430> the<00:24:09.550> the<00:24:09.970> technology<00:24:10.240> industry 00:24:10.530 --> 00:24:10.540 align:start position:0% critique of the the technology industry 00:24:10.540 --> 00:24:12.120 align:start position:0% critique of the the technology industry in<00:24:10.840> that<00:24:10.960> talk<00:24:11.170> that<00:24:11.350> I<00:24:11.410> suggest<00:24:11.740> that<00:24:11.830> you<00:24:11.950> all 00:24:12.120 --> 00:24:12.130 align:start position:0% in that talk that I suggest that you all 00:24:12.130 --> 00:24:14.730 align:start position:0% in that talk that I suggest that you all watch<00:24:12.480> and<00:24:13.480> we<00:24:13.840> got<00:24:13.990> here<00:24:14.170> because<00:24:14.290> often 00:24:14.730 --> 00:24:14.740 align:start position:0% watch and we got here because often 00:24:14.740 --> 00:24:16.530 align:start position:0% watch and we got here because often technology<00:24:15.250> is<00:24:15.340> soon<00:24:15.550> technologists<00:24:16.300> assume 00:24:16.530 --> 00:24:16.540 align:start position:0% technology is soon technologists assume 00:24:16.540 --> 00:24:18.540 align:start position:0% technology is soon technologists assume that<00:24:16.720> technology<00:24:17.170> is<00:24:17.290> value<00:24:17.620> neutral<00:24:17.770> so<00:24:18.520> that 00:24:18.540 --> 00:24:18.550 align:start position:0% that technology is value neutral so that 00:24:18.550 --> 00:24:20.280 align:start position:0% that technology is value neutral so that means<00:24:18.850> that<00:24:19.000> you<00:24:19.090> deploy<00:24:19.360> a<00:24:19.420> technology<00:24:20.020> and 00:24:20.280 --> 00:24:20.290 align:start position:0% means that you deploy a technology and 00:24:20.290 --> 00:24:21.360 align:start position:0% means that you deploy a technology and that<00:24:20.350> automatically<00:24:20.860> leads<00:24:21.130> to<00:24:21.250> good 00:24:21.360 --> 00:24:21.370 align:start position:0% that automatically leads to good 00:24:21.370 --> 00:24:23.400 align:start position:0% that automatically leads to good outcomes<00:24:21.400> for<00:24:21.880> everyone<00:24:22.240> so<00:24:22.870> new<00:24:23.050> kinds<00:24:23.380> of 00:24:23.400 --> 00:24:23.410 align:start position:0% outcomes for everyone so new kinds of 00:24:23.410 --> 00:24:24.720 align:start position:0% outcomes for everyone so new kinds of technology<00:24:23.890> should<00:24:23.950> just<00:24:24.190> be<00:24:24.280> developed<00:24:24.610> and 00:24:24.720 --> 00:24:24.730 align:start position:0% technology should just be developed and 00:24:24.730 --> 00:24:26.460 align:start position:0% technology should just be developed and deployed<00:24:24.820> as<00:24:25.060> quickly<00:24:25.300> as<00:24:25.480> possible<00:24:25.960> without 00:24:26.460 --> 00:24:26.470 align:start position:0% deployed as quickly as possible without 00:24:26.470 --> 00:24:28.320 align:start position:0% deployed as quickly as possible without taking<00:24:26.980> some<00:24:27.100> any<00:24:27.310> time<00:24:27.580> to<00:24:27.760> reflect<00:24:28.120> on<00:24:28.300> a 00:24:28.320 --> 00:24:28.330 align:start position:0% taking some any time to reflect on a 00:24:28.330 --> 00:24:29.910 align:start position:0% taking some any time to reflect on a general<00:24:28.720> idea<00:24:28.810> of<00:24:29.020> how<00:24:29.080> the<00:24:29.200> technology<00:24:29.410> works 00:24:29.910 --> 00:24:29.920 align:start position:0% general idea of how the technology works 00:24:29.920 --> 00:24:30.970 align:start position:0% general idea of how the technology works or<00:24:30.190> how<00:24:30.280> it<00:24:30.370> will<00:24:30.490> develop 00:24:30.970 --> 00:24:30.980 align:start position:0% or how it will develop 00:24:30.980 --> 00:24:33.010 align:start position:0% or how it will develop or<00:24:31.370> what<00:24:31.730> the<00:24:31.820> social<00:24:32.180> impact<00:24:32.510> of<00:24:32.660> deploying 00:24:33.010 --> 00:24:33.020 align:start position:0% or what the social impact of deploying 00:24:33.020 --> 00:24:34.330 align:start position:0% or what the social impact of deploying these<00:24:33.290> technologies<00:24:33.890> in<00:24:33.980> the<00:24:34.040> widespread 00:24:34.330 --> 00:24:34.340 align:start position:0% these technologies in the widespread 00:24:34.340 --> 00:24:36.730 align:start position:0% these technologies in the widespread fashion<00:24:34.820> will<00:24:35.000> be<00:24:35.150> and<00:24:35.420> this<00:24:36.140> belief<00:24:36.380> sort<00:24:36.680> of 00:24:36.730 --> 00:24:36.740 align:start position:0% fashion will be and this belief sort of 00:24:36.740 --> 00:24:37.930 align:start position:0% fashion will be and this belief sort of comes<00:24:36.950> with<00:24:37.070> the<00:24:37.160> idea<00:24:37.400> that<00:24:37.550> history<00:24:37.670> is 00:24:37.930 --> 00:24:37.940 align:start position:0% comes with the idea that history is 00:24:37.940 --> 00:24:39.400 align:start position:0% comes with the idea that history is uninteresting<00:24:38.630> because<00:24:38.900> the<00:24:39.050> past<00:24:39.230> has 00:24:39.400 --> 00:24:39.410 align:start position:0% uninteresting because the past has 00:24:39.410 --> 00:24:41.140 align:start position:0% uninteresting because the past has nothing<00:24:39.560> to<00:24:39.800> teach<00:24:39.920> us<00:24:40.130> so<00:24:40.700> because<00:24:41.000> we<00:24:41.120> are 00:24:41.140 --> 00:24:41.150 align:start position:0% nothing to teach us so because we are 00:24:41.150 --> 00:24:42.610 align:start position:0% nothing to teach us so because we are reinventing<00:24:41.600> everything<00:24:41.870> anyway<00:24:42.350> so<00:24:42.410> we 00:24:42.610 --> 00:24:42.620 align:start position:0% reinventing everything anyway so we 00:24:42.620 --> 00:24:43.720 align:start position:0% reinventing everything anyway so we might<00:24:42.770> as<00:24:42.860> well<00:24:42.890> not<00:24:43.130> look<00:24:43.310> back<00:24:43.490> at<00:24:43.700> old 00:24:43.720 --> 00:24:43.730 align:start position:0% might as well not look back at old 00:24:43.730 --> 00:24:45.670 align:start position:0% might as well not look back at old academic<00:24:44.510> work<00:24:44.630> from<00:24:44.810> 30<00:24:45.020> years<00:24:45.230> ago<00:24:45.380> or<00:24:45.470> any 00:24:45.670 --> 00:24:45.680 align:start position:0% academic work from 30 years ago or any 00:24:45.680 --> 00:24:47.830 align:start position:0% academic work from 30 years ago or any of<00:24:45.800> that<00:24:45.830> because<00:24:46.820> they<00:24:46.970> don't<00:24:47.090> understand<00:24:47.570> us 00:24:47.830 --> 00:24:47.840 align:start position:0% of that because they don't understand us 00:24:47.840 --> 00:24:50.320 align:start position:0% of that because they don't understand us today<00:24:48.170> and<00:24:49.130> this<00:24:49.310> is<00:24:49.430> a<00:24:49.460> very<00:24:49.760> very<00:24:49.940> flawed 00:24:50.320 --> 00:24:50.330 align:start position:0% today and this is a very very flawed 00:24:50.330 --> 00:24:51.940 align:start position:0% today and this is a very very flawed culture<00:24:50.750> that<00:24:50.930> cryptocurrency<00:24:51.410> is 00:24:51.940 --> 00:24:51.950 align:start position:0% culture that cryptocurrency is 00:24:51.950 --> 00:24:54.340 align:start position:0% culture that cryptocurrency is inheriting<00:24:52.700> while<00:24:53.300> existing<00:24:53.840> in<00:24:53.960> decadence 00:24:54.340 --> 00:24:54.350 align:start position:0% inheriting while existing in decadence 00:24:54.350 --> 00:24:56.680 align:start position:0% inheriting while existing in decadence so<00:24:55.190> we're<00:24:55.610> throwing<00:24:55.910> our<00:24:56.150> hands<00:24:56.420> up<00:24:56.540> and 00:24:56.680 --> 00:24:56.690 align:start position:0% so we're throwing our hands up and 00:24:56.690 --> 00:24:57.790 align:start position:0% so we're throwing our hands up and saying<00:24:56.840> these<00:24:57.050> mechanisms<00:24:57.410> are<00:24:57.650> more 00:24:57.790 --> 00:24:57.800 align:start position:0% saying these mechanisms are more 00:24:57.800 --> 00:24:59.380 align:start position:0% saying these mechanisms are more transparent<00:24:58.430> so<00:24:58.460> what<00:24:58.670> we've<00:24:58.820> built<00:24:58.970> is<00:24:59.150> sort 00:24:59.380 --> 00:24:59.390 align:start position:0% transparent so what we've built is sort 00:24:59.390 --> 00:25:01.360 align:start position:0% transparent so what we've built is sort of<00:24:59.480> enough<00:24:59.720> but<00:25:00.440> but<00:25:00.680> as<00:25:00.800> we<00:25:00.950> said<00:25:01.100> before 00:25:01.360 --> 00:25:01.370 align:start position:0% of enough but but as we said before 00:25:01.370 --> 00:25:02.770 align:start position:0% of enough but but as we said before that's<00:25:01.460> that<00:25:01.760> even<00:25:02.000> that<00:25:02.090> is<00:25:02.150> actually<00:25:02.570> a<00:25:02.600> lie 00:25:02.770 --> 00:25:02.780 align:start position:0% that's that even that is actually a lie 00:25:02.780 --> 00:25:05.080 align:start position:0% that's that even that is actually a lie and<00:25:03.650> we<00:25:03.800> can't<00:25:04.100> afford<00:25:04.250> to<00:25:04.580> become<00:25:04.910> detached 00:25:05.080 --> 00:25:05.090 align:start position:0% and we can't afford to become detached 00:25:05.090 --> 00:25:06.820 align:start position:0% and we can't afford to become detached as<00:25:05.480> a<00:25:05.570> community<00:25:05.930> from<00:25:06.230> these<00:25:06.380> security 00:25:06.820 --> 00:25:06.830 align:start position:0% as a community from these security 00:25:06.830 --> 00:25:08.770 align:start position:0% as a community from these security outcomes<00:25:06.950> in<00:25:07.280> this<00:25:07.370> fashion<00:25:07.790> because<00:25:08.420> if<00:25:08.660> we 00:25:08.770 --> 00:25:08.780 align:start position:0% outcomes in this fashion because if we 00:25:08.780 --> 00:25:10.420 align:start position:0% outcomes in this fashion because if we do<00:25:08.990> what's<00:25:09.470> gonna<00:25:09.590> happen<00:25:10.010> is<00:25:10.130> that<00:25:10.160> we're 00:25:10.420 --> 00:25:10.430 align:start position:0% do what's gonna happen is that we're 00:25:10.430 --> 00:25:12.160 align:start position:0% do what's gonna happen is that we're poised<00:25:10.670> to<00:25:10.700> just<00:25:11.060> reinvent<00:25:11.480> the<00:25:11.600> same<00:25:11.780> systems 00:25:12.160 --> 00:25:12.170 align:start position:0% poised to just reinvent the same systems 00:25:12.170 --> 00:25:13.450 align:start position:0% poised to just reinvent the same systems that<00:25:12.350> we're<00:25:12.500> telling<00:25:12.770> people<00:25:12.800> we're<00:25:13.130> going<00:25:13.340> to 00:25:13.450 --> 00:25:13.460 align:start position:0% that we're telling people we're going to 00:25:13.460 --> 00:25:15.670 align:start position:0% that we're telling people we're going to escape<00:25:13.640> and<00:25:14.000> we're<00:25:14.570> poised<00:25:14.810> to<00:25:15.020> reinforce<00:25:15.500> the 00:25:15.670 --> 00:25:15.680 align:start position:0% escape and we're poised to reinforce the 00:25:15.680 --> 00:25:17.530 align:start position:0% escape and we're poised to reinforce the same<00:25:15.860> power<00:25:16.100> corridors<00:25:16.700> that<00:25:16.910> exist<00:25:17.270> in<00:25:17.450> the 00:25:17.530 --> 00:25:17.540 align:start position:0% same power corridors that exist in the 00:25:17.540 --> 00:25:18.040 align:start position:0% same power corridors that exist in the world<00:25:17.690> today 00:25:18.040 --> 00:25:18.050 align:start position:0% world today 00:25:18.050 --> 00:25:20.350 align:start position:0% world today at<00:25:18.770> which<00:25:18.920> point<00:25:18.950> sort<00:25:19.460> of<00:25:19.580> all<00:25:19.730> of<00:25:19.880> this<00:25:20.030> that 00:25:20.350 --> 00:25:20.360 align:start position:0% at which point sort of all of this that 00:25:20.360 --> 00:25:22.150 align:start position:0% at which point sort of all of this that we've<00:25:20.480> done<00:25:20.660> here<00:25:21.080> has<00:25:21.530> just<00:25:21.770> been<00:25:21.890> a<00:25:21.920> way<00:25:22.100> to 00:25:22.150 --> 00:25:22.160 align:start position:0% we've done here has just been a way to 00:25:22.160 --> 00:25:24.000 align:start position:0% we've done here has just been a way to fund<00:25:22.460> some<00:25:22.700> like<00:25:22.850> Burning<00:25:23.150> Man<00:25:23.180> style<00:25:23.510> parties 00:25:24.000 --> 00:25:24.010 align:start position:0% fund some like Burning Man style parties 00:25:24.010 --> 00:25:26.830 align:start position:0% fund some like Burning Man style parties and<00:25:25.010> so<00:25:25.610> we're<00:25:25.880> really<00:25:26.000> really<00:25:26.300> just<00:25:26.750> not 00:25:26.830 --> 00:25:26.840 align:start position:0% and so we're really really just not 00:25:26.840 --> 00:25:28.120 align:start position:0% and so we're really really just not learning<00:25:27.170> enough<00:25:27.350> from<00:25:27.500> our<00:25:27.620> mistakes<00:25:27.950> in 00:25:28.120 --> 00:25:28.130 align:start position:0% learning enough from our mistakes in 00:25:28.130 --> 00:25:30.550 align:start position:0% learning enough from our mistakes in this<00:25:28.190> process<00:25:28.930> but<00:25:29.930> we<00:25:30.080> have<00:25:30.230> a<00:25:30.260> chance<00:25:30.500> to 00:25:30.550 --> 00:25:30.560 align:start position:0% this process but we have a chance to 00:25:30.560 --> 00:25:32.050 align:start position:0% this process but we have a chance to turn<00:25:30.710> it<00:25:30.800> around<00:25:30.890> so<00:25:31.310> here's<00:25:31.490> the<00:25:31.610> happy<00:25:31.730> part 00:25:32.050 --> 00:25:32.060 align:start position:0% turn it around so here's the happy part 00:25:32.060 --> 00:25:33.490 align:start position:0% turn it around so here's the happy part of<00:25:32.150> the<00:25:32.210> talk<00:25:32.390> let's<00:25:33.020> break<00:25:33.260> out<00:25:33.380> of 00:25:33.490 --> 00:25:33.500 align:start position:0% of the talk let's break out of 00:25:33.500 --> 00:25:35.050 align:start position:0% of the talk let's break out of technological<00:25:34.100> determinism<00:25:34.520> and<00:25:34.760> let's<00:25:34.910> be 00:25:35.050 --> 00:25:35.060 align:start position:0% technological determinism and let's be 00:25:35.060 --> 00:25:37.030 align:start position:0% technological determinism and let's be more<00:25:35.270> skeptical<00:25:35.750> let's<00:25:36.500> learn<00:25:36.680> from<00:25:36.890> history 00:25:37.030 --> 00:25:37.040 align:start position:0% more skeptical let's learn from history 00:25:37.040 --> 00:25:39.070 align:start position:0% more skeptical let's learn from history let's<00:25:37.520> do<00:25:37.730> our<00:25:37.760> homework<00:25:38.030> and<00:25:38.420> let's<00:25:38.660> listen 00:25:39.070 --> 00:25:39.080 align:start position:0% let's do our homework and let's listen 00:25:39.080 --> 00:25:40.600 align:start position:0% let's do our homework and let's listen to<00:25:39.170> people<00:25:39.410> who<00:25:39.440> criticize<00:25:39.890> our<00:25:40.070> systems<00:25:40.400> in 00:25:40.600 --> 00:25:40.610 align:start position:0% to people who criticize our systems in 00:25:40.610 --> 00:25:43.030 align:start position:0% to people who criticize our systems in principled<00:25:41.090> and<00:25:41.180> smart<00:25:41.450> ways<00:25:41.770> and<00:25:42.770> let's 00:25:43.030 --> 00:25:43.040 align:start position:0% principled and smart ways and let's 00:25:43.040 --> 00:25:45.100 align:start position:0% principled and smart ways and let's start<00:25:43.280> today<00:25:43.490> so<00:25:43.850> announcing<00:25:44.690> an<00:25:44.840> early 00:25:45.100 --> 00:25:45.110 align:start position:0% start today so announcing an early 00:25:45.110 --> 00:25:46.870 align:start position:0% start today so announcing an early preview<00:25:45.320> of<00:25:45.590> front<00:25:45.860> run<00:25:46.010> me<00:25:46.340> which<00:25:46.700> is<00:25:46.850> a 00:25:46.870 --> 00:25:46.880 align:start position:0% preview of front run me which is a 00:25:46.880 --> 00:25:48.730 align:start position:0% preview of front run me which is a little<00:25:47.120> dashboard<00:25:47.600> that<00:25:47.630> we've<00:25:47.900> built<00:25:48.080> where 00:25:48.730 --> 00:25:48.740 align:start position:0% little dashboard that we've built where 00:25:48.740 --> 00:25:50.470 align:start position:0% little dashboard that we've built where you<00:25:48.860> can<00:25:49.040> view<00:25:49.220> a<00:25:49.280> small<00:25:49.790> subset<00:25:50.210> of<00:25:50.240> the<00:25:50.390> data 00:25:50.470 --> 00:25:50.480 align:start position:0% you can view a small subset of the data 00:25:50.480 --> 00:25:52.060 align:start position:0% you can view a small subset of the data we've<00:25:50.720> talked<00:25:50.960> about<00:25:51.080> today<00:25:51.320> so<00:25:51.710> you<00:25:51.770> can<00:25:51.860> see 00:25:52.060 --> 00:25:52.070 align:start position:0% we've talked about today so you can see 00:25:52.070 --> 00:25:53.920 align:start position:0% we've talked about today so you can see sort<00:25:52.190> of<00:25:52.310> a<00:25:52.430> view<00:25:52.610> of<00:25:52.850> the<00:25:52.970> day's<00:25:53.180> auctions<00:25:53.720> and 00:25:53.920 --> 00:25:53.930 align:start position:0% sort of a view of the day's auctions and 00:25:53.930 --> 00:25:55.360 align:start position:0% sort of a view of the day's auctions and see<00:25:54.080> how<00:25:54.260> these<00:25:54.410> arbitrage<00:25:54.830> is<00:25:54.950> are<00:25:55.040> competing 00:25:55.360 --> 00:25:55.370 align:start position:0% see how these arbitrage is are competing 00:25:55.370 --> 00:25:56.950 align:start position:0% see how these arbitrage is are competing against<00:25:55.580> each<00:25:55.670> other<00:25:55.850> sort<00:25:56.540> of<00:25:56.630> have<00:25:56.780> some 00:25:56.950 --> 00:25:56.960 align:start position:0% against each other sort of have some 00:25:56.960 --> 00:25:58.810 align:start position:0% against each other sort of have some insight<00:25:57.230> into<00:25:57.350> their<00:25:57.500> dynamics<00:25:58.100> you<00:25:58.640> can 00:25:58.810 --> 00:25:58.820 align:start position:0% insight into their dynamics you can 00:25:58.820 --> 00:26:00.700 align:start position:0% insight into their dynamics you can drill<00:25:59.030> down<00:25:59.210> into<00:25:59.420> individual<00:25:59.900> auctions<00:26:00.410> and 00:26:00.700 --> 00:26:00.710 align:start position:0% drill down into individual auctions and 00:26:00.710 --> 00:26:02.710 align:start position:0% drill down into individual auctions and sort<00:26:01.280> of<00:26:01.340> see<00:26:01.520> data<00:26:01.730> about<00:26:02.030> them<00:26:02.240> including 00:26:02.710 --> 00:26:02.720 align:start position:0% sort of see data about them including 00:26:02.720 --> 00:26:04.540 align:start position:0% sort of see data about them including the<00:26:02.810> price<00:26:03.050> they've<00:26:03.320> they've<00:26:03.710> been<00:26:03.950> the 00:26:04.540 --> 00:26:04.550 align:start position:0% the price they've they've been the 00:26:04.550 --> 00:26:06.220 align:start position:0% the price they've they've been the bidder<00:26:04.730> you<00:26:05.120> know<00:26:05.270> what<00:26:05.600> the<00:26:05.690> gas<00:26:05.840> limit<00:26:06.140> is 00:26:06.220 --> 00:26:06.230 align:start position:0% bidder you know what the gas limit is 00:26:06.230 --> 00:26:09.370 align:start position:0% bidder you know what the gas limit is how<00:26:06.350> much<00:26:06.470> gas<00:26:06.650> to<00:26:06.680> actually<00:26:07.070> paid<00:26:07.360> etc<00:26:08.380> and 00:26:09.370 --> 00:26:09.380 align:start position:0% how much gas to actually paid etc and 00:26:09.380 --> 00:26:10.810 align:start position:0% how much gas to actually paid etc and you<00:26:09.470> can<00:26:09.620> also<00:26:09.740> go<00:26:10.100> to<00:26:10.130> a<00:26:10.310> sort<00:26:10.550> of<00:26:10.580> a<00:26:10.670> strategy 00:26:10.810 --> 00:26:10.820 align:start position:0% you can also go to a sort of a strategy 00:26:10.820 --> 00:26:12.520 align:start position:0% you can also go to a sort of a strategy breakdown<00:26:11.420> which<00:26:11.690> graphs<00:26:11.960> things<00:26:12.230> like<00:26:12.410> the 00:26:12.520 --> 00:26:12.530 align:start position:0% breakdown which graphs things like the 00:26:12.530 --> 00:26:14.230 align:start position:0% breakdown which graphs things like the bots<00:26:12.710> latency<00:26:13.280> against<00:26:13.640> themselves<00:26:13.790> and 00:26:14.230 --> 00:26:14.240 align:start position:0% bots latency against themselves and 00:26:14.240 --> 00:26:15.640 align:start position:0% bots latency against themselves and against<00:26:14.510> other<00:26:14.660> players<00:26:14.840> in<00:26:15.080> the<00:26:15.170> market<00:26:15.200> as 00:26:15.640 --> 00:26:15.650 align:start position:0% against other players in the market as 00:26:15.650 --> 00:26:17.470 align:start position:0% against other players in the market as well<00:26:16.190> as<00:26:16.310> what<00:26:16.460> strategies<00:26:16.910> are<00:26:16.940> using<00:26:17.300> this 00:26:17.470 --> 00:26:17.480 align:start position:0% well as what strategies are using this 00:26:17.480 --> 00:26:18.910 align:start position:0% well as what strategies are using this auction<00:26:17.810> in<00:26:17.960> terms<00:26:18.110> of<00:26:18.230> raises<00:26:18.590> and<00:26:18.770> things 00:26:18.910 --> 00:26:18.920 align:start position:0% auction in terms of raises and things 00:26:18.920 --> 00:26:21.520 align:start position:0% auction in terms of raises and things like<00:26:19.070> that<00:26:19.360> so<00:26:20.360> this<00:26:20.510> is<00:26:20.660> super<00:26:20.840> preliminary 00:26:21.520 --> 00:26:21.530 align:start position:0% like that so this is super preliminary 00:26:21.530 --> 00:26:23.830 align:start position:0% like that so this is super preliminary data<00:26:21.820> there<00:26:22.820> are<00:26:22.850> some<00:26:23.060> known<00:26:23.270> bugs<00:26:23.600> in<00:26:23.750> the 00:26:23.830 --> 00:26:23.840 align:start position:0% data there are some known bugs in the 00:26:23.840 --> 00:26:25.570 align:start position:0% data there are some known bugs in the software<00:26:24.080> but<00:26:24.800> I<00:26:24.860> just<00:26:25.100> want<00:26:25.250> to<00:26:25.280> release<00:26:25.550> it 00:26:25.570 --> 00:26:25.580 align:start position:0% software but I just want to release it 00:26:25.580 --> 00:26:27.070 align:start position:0% software but I just want to release it for<00:26:25.880> you<00:26:25.940> guys<00:26:25.970> to<00:26:26.270> sort<00:26:26.420> of<00:26:26.480> get<00:26:26.630> an<00:26:26.720> idea<00:26:26.810> of 00:26:27.070 --> 00:26:27.080 align:start position:0% for you guys to sort of get an idea of 00:26:27.080 --> 00:26:29.920 align:start position:0% for you guys to sort of get an idea of the<00:26:27.230> story<00:26:27.440> we're<00:26:27.590> gonna<00:26:27.650> tell<00:26:27.770> here<00:26:28.840> so<00:26:29.840> what 00:26:29.920 --> 00:26:29.930 align:start position:0% the story we're gonna tell here so what 00:26:29.930 --> 00:26:31.060 align:start position:0% the story we're gonna tell here so what are<00:26:30.020> we<00:26:30.080> gonna<00:26:30.170> do<00:26:30.350> next<00:26:30.500> we're<00:26:30.980> gonna 00:26:31.060 --> 00:26:31.070 align:start position:0% are we gonna do next we're gonna 00:26:31.070 --> 00:26:32.560 align:start position:0% are we gonna do next we're gonna integrate<00:26:31.340> much<00:26:31.640> more<00:26:31.880> data<00:26:32.060> into<00:26:32.330> front 00:26:32.560 --> 00:26:32.570 align:start position:0% integrate much more data into front 00:26:32.570 --> 00:26:34.510 align:start position:0% integrate much more data into front Ronnie<00:26:32.990> so<00:26:33.590> of<00:26:33.740> that<00:26:33.890> hundreds<00:26:34.310> of<00:26:34.340> gigabytes 00:26:34.510 --> 00:26:34.520 align:start position:0% Ronnie so of that hundreds of gigabytes 00:26:34.520 --> 00:26:36.400 align:start position:0% Ronnie so of that hundreds of gigabytes of<00:26:34.880> data<00:26:35.060> that<00:26:35.600> we've<00:26:35.750> talked<00:26:35.960> about<00:26:36.080> maybe 00:26:36.400 --> 00:26:36.410 align:start position:0% of data that we've talked about maybe 00:26:36.410 --> 00:26:38.410 align:start position:0% of data that we've talked about maybe only<00:26:36.650> 1%<00:26:37.070> is<00:26:37.400> currently<00:26:37.700> integrated<00:26:38.180> into 00:26:38.410 --> 00:26:38.420 align:start position:0% only 1% is currently integrated into 00:26:38.420 --> 00:26:40.420 align:start position:0% only 1% is currently integrated into that<00:26:38.450> dashboard<00:26:38.770> so<00:26:39.770> we<00:26:39.890> really<00:26:40.130> only<00:26:40.250> have 00:26:40.420 --> 00:26:40.430 align:start position:0% that dashboard so we really only have 00:26:40.430 --> 00:26:41.980 align:start position:0% that dashboard so we really only have the<00:26:40.550> tip<00:26:40.670> of<00:26:40.760> the<00:26:40.880> iceberg<00:26:41.270> we're<00:26:41.690> also<00:26:41.840> going 00:26:41.980 --> 00:26:41.990 align:start position:0% the tip of the iceberg we're also going 00:26:41.990 --> 00:26:43.390 align:start position:0% the tip of the iceberg we're also going to<00:26:42.050> do<00:26:42.170> things<00:26:42.380> like<00:26:42.500> geolocation<00:26:42.770> studies 00:26:43.390 --> 00:26:43.400 align:start position:0% to do things like geolocation studies 00:26:43.400 --> 00:26:44.210 align:start position:0% to do things like geolocation studies and<00:26:43.550> more 00:26:44.210 --> 00:26:44.220 align:start position:0% and more 00:26:44.220 --> 00:26:45.799 align:start position:0% and more we<00:26:44.340> also<00:26:44.460> have<00:26:44.669> robust<00:26:45.029> game<00:26:45.269> theory<00:26:45.600> that's 00:26:45.799 --> 00:26:45.809 align:start position:0% we also have robust game theory that's 00:26:45.809 --> 00:26:47.779 align:start position:0% we also have robust game theory that's currently<00:26:46.230> sort<00:26:46.950> of<00:26:47.039> being<00:26:47.190> formalized<00:26:47.639> and 00:26:47.779 --> 00:26:47.789 align:start position:0% currently sort of being formalized and 00:26:47.789 --> 00:26:49.940 align:start position:0% currently sort of being formalized and finalized<00:26:48.269> behind<00:26:49.049> how<00:26:49.320> these<00:26:49.559> markets 00:26:49.940 --> 00:26:49.950 align:start position:0% finalized behind how these markets 00:26:49.950 --> 00:26:51.350 align:start position:0% finalized behind how these markets actually<00:26:50.100> work<00:26:50.490> and<00:26:50.700> what<00:26:50.940> users<00:26:51.090> can 00:26:51.350 --> 00:26:51.360 align:start position:0% actually work and what users can 00:26:51.360 --> 00:26:52.749 align:start position:0% actually work and what users can actually<00:26:51.509> expect<00:26:52.019> from<00:26:52.169> these<00:26:52.320> systems 00:26:52.749 --> 00:26:52.759 align:start position:0% actually expect from these systems 00:26:52.759 --> 00:26:54.499 align:start position:0% actually expect from these systems validated<00:26:53.759> by<00:26:53.879> the<00:26:53.909> data<00:26:54.210> that<00:26:54.330> were 00:26:54.499 --> 00:26:54.509 align:start position:0% validated by the data that were 00:26:54.509 --> 00:26:55.940 align:start position:0% validated by the data that were experimentally<00:26:54.779> collecting<00:26:55.500> here<00:26:55.620> on<00:26:55.710> front 00:26:55.940 --> 00:26:55.950 align:start position:0% experimentally collecting here on front 00:26:55.950 --> 00:26:57.950 align:start position:0% experimentally collecting here on front run<00:26:56.070> dot<00:26:56.220> me<00:26:56.389> and<00:26:57.389> we're<00:26:57.480> gonna<00:26:57.539> do<00:26:57.750> the<00:26:57.840> same 00:26:57.950 --> 00:26:57.960 align:start position:0% run dot me and we're gonna do the same 00:26:57.960 --> 00:26:59.360 align:start position:0% run dot me and we're gonna do the same for<00:26:58.019> blockchain<00:26:58.470> voting<00:26:58.769> over<00:26:58.919> the<00:26:59.009> next<00:26:59.190> year 00:26:59.360 --> 00:26:59.370 align:start position:0% for blockchain voting over the next year 00:26:59.370 --> 00:27:00.980 align:start position:0% for blockchain voting over the next year so<00:26:59.549> we're<00:26:59.669> gonna<00:26:59.759> create<00:27:00.059> a<00:27:00.149> tax<00:27:00.419> on<00:27:00.600> existing 00:27:00.980 --> 00:27:00.990 align:start position:0% so we're gonna create a tax on existing 00:27:00.990 --> 00:27:02.299 align:start position:0% so we're gonna create a tax on existing protocols<00:27:01.440> that<00:27:01.649> were<00:27:01.710> actually<00:27:02.070> going<00:27:02.190> to 00:27:02.299 --> 00:27:02.309 align:start position:0% protocols that were actually going to 00:27:02.309 --> 00:27:03.980 align:start position:0% protocols that were actually going to implement<00:27:02.549> and<00:27:02.850> deploy<00:27:02.909> and<00:27:03.360> we're<00:27:03.840> also 00:27:03.980 --> 00:27:03.990 align:start position:0% implement and deploy and we're also 00:27:03.990 --> 00:27:05.029 align:start position:0% implement and deploy and we're also going<00:27:04.200> to<00:27:04.259> build<00:27:04.409> schemes<00:27:04.769> that<00:27:04.980> have 00:27:05.029 --> 00:27:05.039 align:start position:0% going to build schemes that have 00:27:05.039 --> 00:27:07.249 align:start position:0% going to build schemes that have rigorous<00:27:05.429> and<00:27:05.789> provable<00:27:06.179> security<00:27:06.690> and<00:27:06.870> sort 00:27:07.249 --> 00:27:07.259 align:start position:0% rigorous and provable security and sort 00:27:07.259 --> 00:27:08.840 align:start position:0% rigorous and provable security and sort of<00:27:07.289> outline<00:27:07.710> the<00:27:07.860> contours<00:27:08.009> of<00:27:08.370> when<00:27:08.669> these 00:27:08.840 --> 00:27:08.850 align:start position:0% of outline the contours of when these 00:27:08.850 --> 00:27:10.249 align:start position:0% of outline the contours of when these schemes<00:27:09.120> are<00:27:09.240> appropriate<00:27:09.750> to<00:27:09.779> be<00:27:09.960> deployed 00:27:10.249 --> 00:27:10.259 align:start position:0% schemes are appropriate to be deployed 00:27:10.259 --> 00:27:12.590 align:start position:0% schemes are appropriate to be deployed and<00:27:10.529> when<00:27:10.769> not<00:27:10.950> so<00:27:11.940> let<00:27:12.090> me<00:27:12.149> say<00:27:12.299> that<00:27:12.480> as<00:27:12.509> a 00:27:12.590 --> 00:27:12.600 align:start position:0% and when not so let me say that as a 00:27:12.600 --> 00:27:14.360 align:start position:0% and when not so let me say that as a community<00:27:12.870> we<00:27:13.139> have<00:27:13.409> a<00:27:13.440> chance<00:27:13.769> here<00:27:14.009> to<00:27:14.070> set<00:27:14.340> a 00:27:14.360 --> 00:27:14.370 align:start position:0% community we have a chance here to set a 00:27:14.370 --> 00:27:16.759 align:start position:0% community we have a chance here to set a positive<00:27:14.639> example<00:27:14.970> and<00:27:15.539> get<00:27:16.110> out<00:27:16.320> of<00:27:16.350> the<00:27:16.590> poop 00:27:16.759 --> 00:27:16.769 align:start position:0% positive example and get out of the poop 00:27:16.769 --> 00:27:18.529 align:start position:0% positive example and get out of the poop emoji<00:27:16.889> and<00:27:17.370> into<00:27:17.669> this<00:27:17.759> world<00:27:17.970> of<00:27:18.149> sunshine 00:27:18.529 --> 00:27:18.539 align:start position:0% emoji and into this world of sunshine 00:27:18.539 --> 00:27:19.940 align:start position:0% emoji and into this world of sunshine and<00:27:18.720> rainbows<00:27:18.870> that<00:27:19.049> we're<00:27:19.289> all<00:27:19.440> promising 00:27:19.940 --> 00:27:19.950 align:start position:0% and rainbows that we're all promising 00:27:19.950 --> 00:27:23.360 align:start position:0% and rainbows that we're all promising everyone<00:27:20.190> will<00:27:20.519> exist<00:27:20.909> someday<00:27:22.190> all<00:27:23.190> right 00:27:23.360 --> 00:27:23.370 align:start position:0% everyone will exist someday all right 00:27:23.370 --> 00:27:25.039 align:start position:0% everyone will exist someday all right that's<00:27:23.610> pretty<00:27:23.759> much<00:27:23.970> all<00:27:24.179> I<00:27:24.240> have<00:27:24.539> thank<00:27:24.929> you 00:27:25.039 --> 00:27:25.049 align:start position:0% that's pretty much all I have thank you 00:27:25.049 --> 00:27:27.169 align:start position:0% that's pretty much all I have thank you guys<00:27:25.200> so<00:27:25.500> much<00:27:25.559> for<00:27:25.710> coming<00:27:26.100> and<00:27:26.190> listening<00:27:26.309> if 00:27:27.169 --> 00:27:27.179 align:start position:0% guys so much for coming and listening if 00:27:27.179 --> 00:27:28.789 align:start position:0% guys so much for coming and listening if you're<00:27:27.330> interested<00:27:27.840> to<00:27:28.200> know<00:27:28.320> more<00:27:28.559> you<00:27:28.590> can 00:27:28.789 --> 00:27:28.799 align:start position:0% you're interested to know more you can 00:27:28.799 --> 00:27:31.460 align:start position:0% you're interested to know more you can visit<00:27:28.950> my<00:27:29.250> website<00:27:29.610> at<00:27:29.730> PD<00:27:30.000> on<00:27:30.149> comm<00:27:30.539> follow<00:27:31.259> me 00:27:31.460 --> 00:27:31.470 align:start position:0% visit my website at PD on comm follow me 00:27:31.470 --> 00:27:34.009 align:start position:0% visit my website at PD on comm follow me on<00:27:31.590> twitter<00:27:31.830> at<00:27:32.100> phil<00:27:32.429> diane<00:27:32.929> there's<00:27:33.929> also 00:27:34.009 --> 00:27:34.019 align:start position:0% on twitter at phil diane there's also 00:27:34.019 --> 00:27:36.649 align:start position:0% on twitter at phil diane there's also projects<00:27:34.529> to<00:27:34.590> cago<00:27:34.889> do<00:27:35.190> so<00:27:35.850> project<00:27:36.240> Chicago 00:27:36.649 --> 00:27:36.659 align:start position:0% projects to cago do so project Chicago 00:27:36.659 --> 00:27:38.960 align:start position:0% projects to cago do so project Chicago aims<00:27:36.840> to<00:27:37.049> study<00:27:37.200> resource<00:27:37.679> markets<00:27:38.159> in 00:27:38.960 --> 00:27:38.970 align:start position:0% aims to study resource markets in 00:27:38.970 --> 00:27:40.490 align:start position:0% aims to study resource markets in aetherium<00:27:39.480> and<00:27:39.659> things<00:27:39.809> like<00:27:39.899> fee<00:27:40.139> markets 00:27:40.490 --> 00:27:40.500 align:start position:0% aetherium and things like fee markets 00:27:40.500 --> 00:27:42.919 align:start position:0% aetherium and things like fee markets etc<00:27:40.980> and<00:27:41.190> actually<00:27:41.879> this<00:27:42.029> is<00:27:42.269> a<00:27:42.480> part<00:27:42.840> of 00:27:42.919 --> 00:27:42.929 align:start position:0% etc and actually this is a part of 00:27:42.929 --> 00:27:44.629 align:start position:0% etc and actually this is a part of project<00:27:43.289> Chicago<00:27:43.710> because<00:27:44.009> you<00:27:44.220> can't<00:27:44.460> really 00:27:44.629 --> 00:27:44.639 align:start position:0% project Chicago because you can't really 00:27:44.639 --> 00:27:46.789 align:start position:0% project Chicago because you can't really understand<00:27:45.240> fee<00:27:45.870> markets<00:27:46.230> at<00:27:46.350> all<00:27:46.529> without 00:27:46.789 --> 00:27:46.799 align:start position:0% understand fee markets at all without 00:27:46.799 --> 00:27:48.440 align:start position:0% understand fee markets at all without understanding<00:27:47.190> these<00:27:47.580> additional<00:27:47.970> ordering 00:27:48.440 --> 00:27:48.450 align:start position:0% understanding these additional ordering 00:27:48.450 --> 00:27:49.970 align:start position:0% understanding these additional ordering fees<00:27:48.690> that<00:27:49.049> are<00:27:49.169> introduced<00:27:49.559> by<00:27:49.620> smart 00:27:49.970 --> 00:27:49.980 align:start position:0% fees that are introduced by smart 00:27:49.980 --> 00:27:51.470 align:start position:0% fees that are introduced by smart contract<00:27:50.370> systems<00:27:50.669> like<00:27:50.820> aetherium<00:27:51.240> and 00:27:51.470 --> 00:27:51.480 align:start position:0% contract systems like aetherium and 00:27:51.480 --> 00:27:53.299 align:start position:0% contract systems like aetherium and these<00:27:51.929> arbitrage<00:27:52.470> auctions<00:27:52.889> that<00:27:53.009> we've<00:27:53.129> sort 00:27:53.299 --> 00:27:53.309 align:start position:0% these arbitrage auctions that we've sort 00:27:53.309 --> 00:27:55.399 align:start position:0% these arbitrage auctions that we've sort of<00:27:53.370> talked<00:27:53.580> about<00:27:53.700> today<00:27:54.059> I'm<00:27:54.960> also<00:27:55.110> part<00:27:55.379> of 00:27:55.399 --> 00:27:55.409 align:start position:0% of talked about today I'm also part of 00:27:55.409 --> 00:27:56.869 align:start position:0% of talked about today I'm also part of this<00:27:55.559> cryptocurrency<00:27:55.980> research<00:27:56.460> initiative 00:27:56.869 --> 00:27:56.879 align:start position:0% this cryptocurrency research initiative 00:27:56.879 --> 00:28:00.409 align:start position:0% this cryptocurrency research initiative called<00:27:57.149> IC<00:27:57.779> 3<00:27:57.960> at<00:27:58.350> in<00:27:58.769> its<00:27:58.950> e3<00:27:59.100> org<00:27:59.639> so<00:28:00.029> a<00:28:00.059> bunch 00:28:00.409 --> 00:28:00.419 align:start position:0% called IC 3 at in its e3 org so a bunch 00:28:00.419 --> 00:28:03.680 align:start position:0% called IC 3 at in its e3 org so a bunch of<00:28:00.539> us<00:28:00.659> are<00:28:00.809> here<00:28:00.929> come<00:28:01.139> say<00:28:01.350> hi<00:28:01.759> and<00:28:02.759> a<00:28:02.789> company 00:28:03.680 --> 00:28:03.690 align:start position:0% of us are here come say hi and a company 00:28:03.690 --> 00:28:05.360 align:start position:0% of us are here come say hi and a company for<00:28:03.960> formal<00:28:04.320> verification<00:28:04.470> called<00:28:05.009> run<00:28:05.220> time 00:28:05.360 --> 00:28:05.370 align:start position:0% for formal verification called run time 00:28:05.370 --> 00:28:07.940 align:start position:0% for formal verification called run time verification<00:28:06.000> they<00:28:06.539> are<00:28:06.929> in<00:28:07.259> my<00:28:07.500> opinion<00:28:07.769> the 00:28:07.940 --> 00:28:07.950 align:start position:0% verification they are in my opinion the 00:28:07.950 --> 00:28:09.799 align:start position:0% verification they are in my opinion the best<00:28:08.279> at<00:28:08.429> this<00:28:08.549> Cartesian<00:28:09.059> product<00:28:09.419> security 00:28:09.799 --> 00:28:09.809 align:start position:0% best at this Cartesian product security 00:28:09.809 --> 00:28:11.200 align:start position:0% best at this Cartesian product security we<00:28:09.899> talked<00:28:10.080> about<00:28:10.169> on<00:28:10.379> the<00:28:10.409> first<00:28:10.649> few<00:28:10.769> slides 00:28:11.200 --> 00:28:11.210 align:start position:0% we talked about on the first few slides 00:28:11.210 --> 00:28:13.970 align:start position:0% we talked about on the first few slides and<00:28:12.210> thank<00:28:13.019> you<00:28:13.139> to<00:28:13.259> the<00:28:13.350> etherium<00:28:13.649> community 00:28:13.970 --> 00:28:13.980 align:start position:0% and thank you to the etherium community 00:28:13.980 --> 00:28:15.590 align:start position:0% and thank you to the etherium community and<00:28:14.070> foundation<00:28:14.460> for<00:28:14.639> always<00:28:14.909> supporting<00:28:15.450> our 00:28:15.590 --> 00:28:15.600 align:start position:0% and foundation for always supporting our 00:28:15.600 --> 00:28:17.389 align:start position:0% and foundation for always supporting our independent<00:28:16.110> research<00:28:16.379> thank<00:28:17.100> you<00:28:17.190> to<00:28:17.309> the 00:28:17.389 --> 00:28:17.399 align:start position:0% independent research thank you to the 00:28:17.399 --> 00:28:20.210 align:start position:0% independent research thank you to the NSF<00:28:17.820> for<00:28:18.059> supporting<00:28:18.539> me<00:28:18.720> and<00:28:18.990> and<00:28:19.769> our<00:28:20.070> whole 00:28:20.210 --> 00:28:20.220 align:start position:0% NSF for supporting me and and our whole 00:28:20.220 --> 00:28:21.830 align:start position:0% NSF for supporting me and and our whole lab<00:28:20.399> through<00:28:20.639> grants<00:28:20.940> and<00:28:21.120> thank<00:28:21.570> you<00:28:21.690> to<00:28:21.809> all 00:28:21.830 --> 00:28:21.840 align:start position:0% lab through grants and thank you to all 00:28:21.840 --> 00:28:23.450 align:start position:0% lab through grants and thank you to all our<00:28:21.929> industry<00:28:22.320> partners<00:28:22.379> for<00:28:23.009> amazing 00:28:23.450 --> 00:28:23.460 align:start position:0% our industry partners for amazing 00:28:23.460 --> 00:28:26.210 align:start position:0% our industry partners for amazing conversations<00:28:24.200> support<00:28:25.200> insight<00:28:26.070> from 00:28:26.210 --> 00:28:26.220 align:start position:0% conversations support insight from 00:28:26.220 --> 00:28:28.820 align:start position:0% conversations support insight from events<00:28:26.639> and<00:28:26.820> more<00:28:27.000> and<00:28:27.240> of<00:28:27.629> course<00:28:27.899> you<00:28:28.710> know 00:28:28.820 --> 00:28:28.830 align:start position:0% events and more and of course you know 00:28:28.830 --> 00:28:30.560 align:start position:0% events and more and of course you know all<00:28:28.860> this<00:28:29.190> work<00:28:29.399> has<00:28:29.429> at<00:28:29.850> least<00:28:30.059> five<00:28:30.240> or<00:28:30.269> six 00:28:30.560 --> 00:28:30.570 align:start position:0% all this work has at least five or six 00:28:30.570 --> 00:28:31.940 align:start position:0% all this work has at least five or six co-authors<00:28:31.049> on<00:28:31.200> it<00:28:31.350> it<00:28:31.500> wouldn't<00:28:31.710> be<00:28:31.799> possible 00:28:31.940 --> 00:28:31.950 align:start position:0% co-authors on it it wouldn't be possible 00:28:31.950 --> 00:28:34.369 align:start position:0% co-authors on it it wouldn't be possible without<00:28:32.279> them<00:28:32.610> and<00:28:32.970> my<00:28:33.570> sincere<00:28:33.870> thanks<00:28:34.259> go 00:28:34.369 --> 00:28:34.379 align:start position:0% without them and my sincere thanks go 00:28:34.379 --> 00:28:36.950 align:start position:0% without them and my sincere thanks go out<00:28:34.409> to<00:28:34.500> them<00:28:34.820> unfortunately<00:28:35.820> I<00:28:36.419> don't<00:28:36.509> think 00:28:36.950 --> 00:28:36.960 align:start position:0% out to them unfortunately I don't think 00:28:36.960 --> 00:28:39.230 align:start position:0% out to them unfortunately I don't think I<00:28:37.139> have<00:28:37.320> time<00:28:37.559> to<00:28:37.620> take<00:28:37.860> questions<00:28:37.970> but<00:28:38.970> you 00:28:39.230 --> 00:28:39.240 align:start position:0% I have time to take questions but you 00:28:39.240 --> 00:28:42.019 align:start position:0% I have time to take questions but you can<00:28:39.419> find<00:28:39.720> me<00:28:39.840> on<00:28:40.049> Twitter<00:28:40.679> or<00:28:41.100> after<00:28:41.700> the<00:28:41.820> talk 00:28:42.019 --> 00:28:42.029 align:start position:0% can find me on Twitter or after the talk 00:28:42.029 --> 00:28:48.430 align:start position:0% can find me on Twitter or after the talk in<00:28:42.210> the<00:28:42.240> hallway<00:28:42.600> and<00:28:42.870> I'm<00:28:42.960> happy<00:28:43.230> to<00:28:43.259> do<00:28:43.409> that 00:28:48.430 --> 00:28:48.440 align:start position:0% 00:28:48.440 --> 00:29:00.050 align:start position:0% Thanks 00:29:00.050 --> 00:29:00.060 align:start position:0% 00:29:00.060 --> 00:29:02.120 align:start position:0% you