WEBVTT Kind: captions Language: en 00:00:00.120 --> 00:00:13.810 align:start position:0% [Music] 00:00:13.810 --> 00:00:13.820 align:start position:0% 00:00:13.820 --> 00:00:17.750 align:start position:0% [Music] 00:00:17.750 --> 00:00:17.760 align:start position:0% 00:00:17.760 --> 00:00:21.150 align:start position:0% so<00:00:18.039> you<00:00:18.240> say<00:00:18.560> you<00:00:18.720> want<00:00:18.920> a<00:00:19.359> a<00:00:20.000> revolution<00:00:21.000> how 00:00:21.150 --> 00:00:21.160 align:start position:0% so you say you want a a revolution how 00:00:21.160 --> 00:00:23.670 align:start position:0% so you say you want a a revolution how about<00:00:21.320> a<00:00:21.439> mauve 00:00:23.670 --> 00:00:23.680 align:start position:0% about a mauve 00:00:23.680 --> 00:00:31.349 align:start position:0% about a mauve Revolution<00:00:24.760> metallic<00:00:26.080> cool<00:00:27.080> yay<00:00:27.640> okay 00:00:31.349 --> 00:00:31.359 align:start position:0% 00:00:31.359 --> 00:00:34.069 align:start position:0% um<00:00:31.759> where<00:00:31.880> is<00:00:32.040> the<00:00:32.239> clicky<00:00:32.680> thing<00:00:33.040> oh<00:00:33.200> there<00:00:33.320> it 00:00:34.069 --> 00:00:34.079 align:start position:0% um where is the clicky thing oh there it 00:00:34.079 --> 00:00:37.549 align:start position:0% um where is the clicky thing oh there it is<00:00:35.079> perfect<00:00:35.520> so<00:00:35.920> in<00:00:36.280> the<00:00:36.800> uh<00:00:37.200> wait<00:00:37.320> how<00:00:37.440> does 00:00:37.549 --> 00:00:37.559 align:start position:0% is perfect so in the uh wait how does 00:00:37.559 --> 00:00:40.350 align:start position:0% is perfect so in the uh wait how does this<00:00:37.680> even<00:00:38.160> work<00:00:39.079> in<00:00:39.200> the<00:00:39.360> interest<00:00:39.680> of<00:00:39.879> press 00:00:40.350 --> 00:00:40.360 align:start position:0% this even work in the interest of press 00:00:40.360 --> 00:00:43.430 align:start position:0% this even work in the interest of press I'll<00:00:40.559> get<00:00:40.719> right<00:00:40.840> to<00:00:41.000> the<00:00:41.280> point<00:00:42.280> so<00:00:43.120> well<00:00:43.320> okay 00:00:43.430 --> 00:00:43.440 align:start position:0% I'll get right to the point so well okay 00:00:43.440 --> 00:00:46.150 align:start position:0% I'll get right to the point so well okay maybe<00:00:43.600> I<00:00:43.680> won't<00:00:43.879> get<00:00:44.000> right<00:00:44.120> to<00:00:44.280> the 00:00:46.150 --> 00:00:46.160 align:start position:0% maybe I won't get right to the 00:00:46.160 --> 00:01:04.710 align:start position:0% maybe I won't get right to the point<00:00:47.160> where<00:00:47.280> is<00:00:47.440> the<00:00:47.600> clicker 00:01:04.710 --> 00:01:04.720 align:start position:0% 00:01:04.720 --> 00:01:08.109 align:start position:0% so<00:01:05.720> well<00:01:05.920> first<00:01:06.400> what<00:01:06.640> people<00:01:07.360> read<00:01:07.600> the<00:01:07.720> comic 00:01:08.109 --> 00:01:08.119 align:start position:0% so well first what people read the comic 00:01:08.119 --> 00:01:10.950 align:start position:0% so well first what people read the comic that<00:01:08.280> the<00:01:08.600> that<00:01:08.680> the<00:01:08.759> mo<00:01:09.080> paper<00:01:09.280> is<00:01:09.439> named 00:01:10.950 --> 00:01:10.960 align:start position:0% that the that the mo paper is named 00:01:10.960 --> 00:01:12.990 align:start position:0% that the that the mo paper is named after<00:01:11.960> although<00:01:12.200> I'm<00:01:12.280> sure<00:01:12.479> lots<00:01:12.640> of<00:01:12.759> you<00:01:12.840> have 00:01:12.990 --> 00:01:13.000 align:start position:0% after although I'm sure lots of you have 00:01:13.000 --> 00:01:14.550 align:start position:0% after although I'm sure lots of you have already<00:01:13.200> seen 00:01:14.550 --> 00:01:14.560 align:start position:0% already seen 00:01:14.560 --> 00:01:17.030 align:start position:0% already seen it<00:01:15.560> which<00:01:15.720> color<00:01:16.080> you<00:01:16.159> want<00:01:16.320> the<00:01:16.439> blockchain<00:01:16.960> I 00:01:17.030 --> 00:01:17.040 align:start position:0% it which color you want the blockchain I 00:01:17.040 --> 00:01:19.550 align:start position:0% it which color you want the blockchain I think<00:01:17.240> move<00:01:17.600> has<00:01:17.759> the<00:01:17.880> most<00:01:18.240> Ram<00:01:19.200> so<00:01:19.360> let's 00:01:19.550 --> 00:01:19.560 align:start position:0% think move has the most Ram so let's 00:01:19.560 --> 00:01:21.149 align:start position:0% think move has the most Ram so let's scale<00:01:19.840> the<00:01:19.960> blockchain<00:01:20.439> let's<00:01:20.640> add<00:01:20.759> some<00:01:20.920> more 00:01:21.149 --> 00:01:21.159 align:start position:0% scale the blockchain let's add some more 00:01:21.159 --> 00:01:24.429 align:start position:0% scale the blockchain let's add some more RAM<00:01:21.720> let's<00:01:21.920> make<00:01:22.079> the<00:01:22.200> blockchain 00:01:24.429 --> 00:01:24.439 align:start position:0% RAM let's make the blockchain 00:01:24.439 --> 00:01:27.950 align:start position:0% RAM let's make the blockchain mo<00:01:25.439> so<00:01:26.200> ethereum<00:01:26.720> is<00:01:26.840> obviously<00:01:27.159> a<00:01:27.280> complet<00:01:27.840> a 00:01:27.950 --> 00:01:27.960 align:start position:0% mo so ethereum is obviously a complet a 00:01:27.960 --> 00:01:31.190 align:start position:0% mo so ethereum is obviously a complet a table<00:01:28.479> system<00:01:29.079> it's<00:01:29.520> uh<00:01:30.079> as<00:01:30.439> uh<00:01:30.560> Jeff<00:01:30.840> Coleman 00:01:31.190 --> 00:01:31.200 align:start position:0% table system it's uh as uh Jeff Coleman 00:01:31.200 --> 00:01:34.190 align:start position:0% table system it's uh as uh Jeff Coleman said<00:01:31.360> it's<00:01:31.479> a<00:01:31.640> smartphone<00:01:32.119> from<00:01:32.880> 1999<00:01:33.880> world 00:01:34.190 --> 00:01:34.200 align:start position:0% said it's a smartphone from 1999 world 00:01:34.200 --> 00:01:35.510 align:start position:0% said it's a smartphone from 1999 world is<00:01:34.360> trying<00:01:34.600> to<00:01:34.759> process<00:01:35.079> hundreds<00:01:35.360> of 00:01:35.510 --> 00:01:35.520 align:start position:0% is trying to process hundreds of 00:01:35.520 --> 00:01:38.310 align:start position:0% is trying to process hundreds of thousands<00:01:35.759> of<00:01:35.920> transactions<00:01:36.479> a<00:01:36.680> day<00:01:37.520> and<00:01:38.159> for 00:01:38.310 --> 00:01:38.320 align:start position:0% thousands of transactions a day and for 00:01:38.320 --> 00:01:39.950 align:start position:0% thousands of transactions a day and for some<00:01:38.759> reason<00:01:39.079> we're<00:01:39.240> trying<00:01:39.479> to<00:01:39.600> convince 00:01:39.950 --> 00:01:39.960 align:start position:0% some reason we're trying to convince 00:01:39.960 --> 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only process 15<00:01:48.240> transactions<00:01:48.880> take<00:01:49.079> 14<00:01:49.520> seconds<00:01:49.840> to<00:01:49.960> get 00:01:50.069 --> 00:01:50.079 align:start position:0% 15 transactions take 14 seconds to get 00:01:50.079 --> 00:01:52.789 align:start position:0% 15 transactions take 14 seconds to get into<00:01:50.360> one<00:01:50.600> block<00:01:51.000> and<00:01:51.200> minutes<00:01:51.520> to<00:01:51.799> finalize 00:01:52.789 --> 00:01:52.799 align:start position:0% into one block and minutes to finalize 00:01:52.799 --> 00:01:58.270 align:start position:0% into one block and minutes to finalize so<00:01:53.600> when<00:01:54.159> uh<00:01:54.680> a<00:01:55.280> uh<00:01:56.280> payment<00:01:56.719> is<00:01:57.119> uh<00:01:58.000> when<00:01:58.119> a 00:01:58.270 --> 00:01:58.280 align:start position:0% so when uh a uh payment is uh when a 00:01:58.280 --> 00:02:00.149 align:start position:0% so when uh a uh payment is uh when a payment<00:01:58.600> normally<00:01:59.000> takes<00:01:59.240> seconds<00:01:59.560> to<00:01:59.640> block 00:02:00.149 --> 00:02:00.159 align:start position:0% payment normally takes seconds to block 00:02:00.159 --> 00:02:02.950 align:start position:0% payment normally takes seconds to block is<00:02:00.280> minutes<00:02:00.960> away<00:02:01.960> very<00:02:02.240> little<00:02:02.479> privacy<00:02:02.799> at 00:02:02.950 --> 00:02:02.960 align:start position:0% is minutes away very little privacy at 00:02:02.960 --> 00:02:06.350 align:start position:0% is minutes away very little privacy at based<00:02:03.200> protocol<00:02:03.560> layer<00:02:04.719> so<00:02:05.719> clearly<00:02:06.039> not<00:02:06.200> good 00:02:06.350 --> 00:02:06.360 align:start position:0% based protocol layer so clearly not good 00:02:06.360 --> 00:02:09.350 align:start position:0% based protocol layer so clearly not good for<00:02:07.000> anything<00:02:08.000> fortunately<00:02:08.959> that's<00:02:09.119> what<00:02:09.239> the 00:02:09.350 --> 00:02:09.360 align:start position:0% for anything fortunately that's what the 00:02:09.360 --> 00:02:13.550 align:start position:0% for anything fortunately that's what the research<00:02:09.720> team<00:02:09.920> is<00:02:10.360> for<00:02:11.360> we<00:02:11.959> have<00:02:12.599> Solutions 00:02:13.550 --> 00:02:13.560 align:start position:0% research team is for we have Solutions 00:02:13.560 --> 00:02:15.670 align:start position:0% research team is for we have Solutions we<00:02:13.760> have<00:02:13.959> solutions<00:02:14.519> for<00:02:14.840> most<00:02:15.040> of<00:02:15.239> these 00:02:15.670 --> 00:02:15.680 align:start position:0% we have solutions for most of these 00:02:15.680 --> 00:02:19.070 align:start position:0% we have solutions for most of these problems<00:02:16.680> so<00:02:17.280> our<00:02:17.560> main<00:02:17.840> focus<00:02:18.239> in<00:02:18.560> in 00:02:19.070 --> 00:02:19.080 align:start position:0% problems so our main focus in in 00:02:19.080 --> 00:02:21.910 align:start position:0% problems so our main focus in in research<00:02:19.560> is<00:02:19.800> basically<00:02:20.640> figuring<00:02:21.040> out<00:02:21.599> where 00:02:21.910 --> 00:02:21.920 align:start position:0% research is basically figuring out where 00:02:21.920 --> 00:02:24.270 align:start position:0% research is basically figuring out where exactly<00:02:22.319> the<00:02:22.519> thean<00:02:22.840> platform<00:02:23.239> falls<00:02:23.480> short 00:02:24.270 --> 00:02:24.280 align:start position:0% exactly the thean platform falls short 00:02:24.280 --> 00:02:26.790 align:start position:0% exactly the thean platform falls short and<00:02:24.680> seeing<00:02:25.080> if<00:02:25.440> we<00:02:26.000> what<00:02:26.200> parts<00:02:26.400> of<00:02:26.560> this<00:02:26.680> we 00:02:26.790 --> 00:02:26.800 align:start position:0% and seeing if we what parts of this we 00:02:26.800 --> 00:02:29.309 align:start position:0% and seeing if we what parts of this we can<00:02:27.040> improve<00:02:28.040> so<00:02:28.640> there's<00:02:28.879> different<00:02:29.120> parts 00:02:29.309 --> 00:02:29.319 align:start position:0% can improve so there's different parts 00:02:29.319 --> 00:02:32.070 align:start position:0% can improve so there's different parts to<00:02:29.480> this<00:02:29.599> problem<00:02:30.040> so<00:02:30.519> privacy<00:02:31.519> zuku<00:02:31.959> made 00:02:32.070 --> 00:02:32.080 align:start position:0% to this problem so privacy zuku made 00:02:32.080 --> 00:02:34.750 align:start position:0% to this problem so privacy zuku made this<00:02:32.239> wonderful<00:02:32.680> presentation<00:02:33.160> on<00:02:33.480> zcash<00:02:34.480> and 00:02:34.750 --> 00:02:34.760 align:start position:0% this wonderful presentation on zcash and 00:02:34.760 --> 00:02:36.110 align:start position:0% this wonderful presentation on zcash and we're<00:02:34.920> going<00:02:35.040> to<00:02:35.120> be<00:02:35.239> integrating<00:02:35.760> lots<00:02:35.959> of 00:02:36.110 --> 00:02:36.120 align:start position:0% we're going to be integrating lots of 00:02:36.120 --> 00:02:38.750 align:start position:0% we're going to be integrating lots of that<00:02:36.239> stuff<00:02:36.480> over<00:02:36.640> the<00:02:36.760> next<00:02:37.040> couple 00:02:38.750 --> 00:02:38.760 align:start position:0% that stuff over the next couple 00:02:38.760 --> 00:02:43.270 align:start position:0% that stuff over the next couple of<00:02:39.760> months<00:02:40.280> years<00:02:40.640> we'll<00:02:40.920> see<00:02:41.920> um<00:02:42.280> scale<00:02:43.000> but 00:02:43.270 --> 00:02:43.280 align:start position:0% of months years we'll see um scale but 00:02:43.280 --> 00:02:45.350 align:start position:0% of months years we'll see um scale but here<00:02:43.519> we're<00:02:43.680> going<00:02:43.760> to<00:02:43.959> focus<00:02:44.480> on<00:02:45.080> three 00:02:45.350 --> 00:02:45.360 align:start position:0% here we're going to focus on three 00:02:45.360 --> 00:02:47.790 align:start position:0% here we're going to focus on three things<00:02:46.040> one<00:02:46.200> of<00:02:46.319> them<00:02:46.440> is<00:02:46.599> scalability<00:02:47.560> one<00:02:47.680> of 00:02:47.790 --> 00:02:47.800 align:start position:0% things one of them is scalability one of 00:02:47.800 --> 00:02:51.390 align:start position:0% things one of them is scalability one of them<00:02:48.000> is<00:02:48.239> cost<00:02:49.120> and<00:02:49.560> with<00:02:49.720> a<00:02:49.840> bit<00:02:49.959> of<00:02:50.400> latency 00:02:51.390 --> 00:02:51.400 align:start position:0% them is cost and with a bit of latency 00:02:51.400 --> 00:02:53.149 align:start position:0% them is cost and with a bit of latency so<00:02:52.120> and<00:02:52.280> there's<00:02:52.480> also<00:02:52.640> a<00:02:52.760> bunch<00:02:52.920> of<00:02:53.040> other 00:02:53.149 --> 00:02:53.159 align:start position:0% so and there's also a bunch of other 00:02:53.159 --> 00:02:54.550 align:start position:0% so and there's also a bunch of other smaller<00:02:53.519> problems<00:02:53.879> that<00:02:53.959> we<00:02:54.080> have<00:02:54.159> to<00:02:54.280> worry 00:02:54.550 --> 00:02:54.560 align:start position:0% smaller problems that we have to worry 00:02:54.560 --> 00:02:56.790 align:start position:0% smaller problems that we have to worry about<00:02:55.080> mining<00:02:55.440> centralization<00:02:56.440> selfish 00:02:56.790 --> 00:02:56.800 align:start position:0% about mining centralization selfish 00:02:56.800 --> 00:02:58.949 align:start position:0% about mining centralization selfish mining<00:02:57.400> vulnerabilities<00:02:58.400> interfaces 00:02:58.949 --> 00:02:58.959 align:start position:0% mining vulnerabilities interfaces 00:02:58.959 --> 00:03:00.869 align:start position:0% mining vulnerabilities interfaces unclean<00:02:59.400> I'll<00:02:59.560> talk<00:03:00.040> if<00:03:00.239> people<00:03:00.440> want<00:03:00.599> me<00:03:00.720> to 00:03:00.869 --> 00:03:00.879 align:start position:0% unclean I'll talk if people want me to 00:03:00.879 --> 00:03:04.070 align:start position:0% unclean I'll talk if people want me to talk<00:03:01.040> about<00:03:01.239> this<00:03:01.440> I<00:03:01.599> can<00:03:01.800> but<00:03:01.959> not<00:03:02.360> here<00:03:03.360> so 00:03:04.070 --> 00:03:04.080 align:start position:0% talk about this I can but not here so 00:03:04.080 --> 00:03:05.470 align:start position:0% talk about this I can but not here so step<00:03:04.319> one<00:03:04.599> proof<00:03:04.799> of 00:03:05.470 --> 00:03:05.480 align:start position:0% step one proof of 00:03:05.480 --> 00:03:08.070 align:start position:0% step one proof of stake<00:03:06.480> so<00:03:06.959> basically<00:03:07.440> what<00:03:07.560> is<00:03:07.680> the<00:03:07.840> point<00:03:08.000> of 00:03:08.070 --> 00:03:08.080 align:start position:0% stake so basically what is the point of 00:03:08.080 --> 00:03:10.470 align:start position:0% stake so basically what is the point of proof<00:03:08.280> of<00:03:08.440> stake<00:03:09.280> the<00:03:09.720> intuition<00:03:10.239> that<00:03:10.360> I 00:03:10.470 --> 00:03:10.480 align:start position:0% proof of stake the intuition that I 00:03:10.480 --> 00:03:12.509 align:start position:0% proof of stake the intuition that I generally<00:03:10.840> use<00:03:11.080> to<00:03:11.280> describe<00:03:11.640> it<00:03:11.879> is<00:03:12.319> what<00:03:12.400> I 00:03:12.509 --> 00:03:12.519 align:start position:0% generally use to describe it is what I 00:03:12.519 --> 00:03:15.070 align:start position:0% generally use to describe it is what I call<00:03:12.720> virtual<00:03:13.120> mining<00:03:13.920> so<00:03:14.159> proof<00:03:14.360> of<00:03:14.560> work<00:03:14.959> you 00:03:15.070 --> 00:03:15.080 align:start position:0% call virtual mining so proof of work you 00:03:15.080 --> 00:03:17.670 align:start position:0% call virtual mining so proof of work you have<00:03:15.319> $1,000<00:03:16.319> you<00:03:16.480> use<00:03:16.680> your<00:03:16.720> $<00:03:16.840> th000<00:03:17.400> to<00:03:17.519> buy 00:03:17.670 --> 00:03:17.680 align:start position:0% have $1,000 you use your $ th000 to buy 00:03:17.680 --> 00:03:20.350 align:start position:0% have $1,000 you use your $ th000 to buy a<00:03:17.760> minor<00:03:18.360> you<00:03:18.560> take<00:03:18.680> your<00:03:18.840> minor<00:03:19.400> plug<00:03:19.640> it<00:03:19.799> into 00:03:20.350 --> 00:03:20.360 align:start position:0% a minor you take your minor plug it into 00:03:20.360 --> 00:03:23.070 align:start position:0% a minor you take your minor plug it into the<00:03:20.480> internet<00:03:21.000> plug<00:03:21.200> it<00:03:21.360> into<00:03:22.080> electricity 00:03:23.070 --> 00:03:23.080 align:start position:0% the internet plug it into electricity 00:03:23.080 --> 00:03:24.869 align:start position:0% the internet plug it into electricity and<00:03:23.319> your<00:03:23.519> minor<00:03:23.959> has<00:03:24.159> the<00:03:24.280> ability<00:03:24.640> to 00:03:24.869 --> 00:03:24.879 align:start position:0% and your minor has the ability to 00:03:24.879 --> 00:03:27.030 align:start position:0% and your minor has the ability to stochastically<00:03:25.519> generate<00:03:25.920> blocks<00:03:26.840> if<00:03:26.920> you 00:03:27.030 --> 00:03:27.040 align:start position:0% stochastically generate blocks if you 00:03:27.040 --> 00:03:28.990 align:start position:0% stochastically generate blocks if you have<00:03:27.120> a<00:03:27.239> minor<00:03:27.519> of<00:03:27.599> $1,000<00:03:28.319> you<00:03:28.439> might<00:03:28.640> produce 00:03:28.990 --> 00:03:29.000 align:start position:0% have a minor of $1,000 you might produce 00:03:29.000 --> 00:03:31.390 align:start position:0% have a minor of $1,000 you might produce like<00:03:29.120> one<00:03:29.280> block<00:03:29.480> a<00:03:29.599> day<00:03:30.239> if<00:03:30.319> you<00:03:30.480> put<00:03:30.599> $2,000 00:03:31.390 --> 00:03:31.400 align:start position:0% like one block a day if you put $2,000 00:03:31.400 --> 00:03:32.589 align:start position:0% like one block a day if you put $2,000 into<00:03:31.519> your<00:03:31.640> monitor<00:03:31.920> you<00:03:32.040> might<00:03:32.159> produce<00:03:32.439> two 00:03:32.589 --> 00:03:32.599 align:start position:0% into your monitor you might produce two 00:03:32.599 --> 00:03:36.910 align:start position:0% into your monitor you might produce two blocks<00:03:32.879> a<00:03:33.040> day<00:03:33.840> but<00:03:34.040> in<00:03:34.799> put<00:03:35.000> money<00:03:35.280> in<00:03:36.159> and<00:03:36.760> you 00:03:36.910 --> 00:03:36.920 align:start position:0% blocks a day but in put money in and you 00:03:36.920 --> 00:03:39.789 align:start position:0% blocks a day but in put money in and you make<00:03:37.159> blocks<00:03:37.879> and<00:03:38.080> rewards<00:03:38.439> for<00:03:38.599> you<00:03:38.760> come<00:03:38.920> out 00:03:39.789 --> 00:03:39.799 align:start position:0% make blocks and rewards for you come out 00:03:39.799 --> 00:03:42.509 align:start position:0% make blocks and rewards for you come out proof<00:03:40.000> of<00:03:40.200> stake<00:03:40.840> take<00:03:41.120> $1,000<00:03:42.120> convert<00:03:42.480> the 00:03:42.509 --> 00:03:42.519 align:start position:0% proof of stake take $1,000 convert the 00:03:42.519 --> 00:03:45.390 align:start position:0% proof of stake take $1,000 convert the $1,000<00:03:43.239> into<00:03:43.439> 83<00:03:43.920> ether<00:03:44.720> and<00:03:44.879> then<00:03:45.080> convert 00:03:45.390 --> 00:03:45.400 align:start position:0% $1,000 into 83 ether and then convert 00:03:45.400 --> 00:03:48.789 align:start position:0% $1,000 into 83 ether and then convert the<00:03:45.480> 83<00:03:45.920> ether<00:03:46.239> into<00:03:46.439> a<00:03:46.560> virtual<00:03:47.280> minor<00:03:48.280> and 00:03:48.789 --> 00:03:48.799 align:start position:0% the 83 ether into a virtual minor and 00:03:48.799 --> 00:03:50.589 align:start position:0% the 83 ether into a virtual minor and the 00:03:50.589 --> 00:03:50.599 align:start position:0% the 00:03:50.599 --> 00:03:53.350 align:start position:0% the virtual<00:03:51.599> and<00:03:52.040> the 00:03:53.350 --> 00:03:53.360 align:start position:0% virtual and the 00:03:53.360 --> 00:03:57.470 align:start position:0% virtual and the uh<00:03:54.360> then<00:03:55.319> the<00:03:55.560> pro<00:03:56.120> inside<00:03:56.439> of<00:03:56.599> the<00:03:56.799> protocol 00:03:57.470 --> 00:03:57.480 align:start position:0% uh then the pro inside of the protocol 00:03:57.480 --> 00:03:59.390 align:start position:0% uh then the pro inside of the protocol there's<00:03:57.680> a<00:03:57.920> rule<00:03:58.239> that<00:03:58.439> says<00:03:58.840> if<00:03:58.959> you<00:03:59.120> have<00:03:59.280> a 00:03:59.390 --> 00:03:59.400 align:start position:0% there's a rule that says if you have a 00:03:59.400 --> 00:04:01.869 align:start position:0% there's a rule that says if you have a virtual<00:03:59.879> minor<00:04:00.400> you<00:04:00.599> have<00:04:00.760> the<00:04:00.920> ability<00:04:01.599> to 00:04:01.869 --> 00:04:01.879 align:start position:0% virtual minor you have the ability to 00:04:01.879 --> 00:04:03.949 align:start position:0% virtual minor you have the ability to stochastically<00:04:02.519> generate<00:04:02.920> blocks<00:04:03.599> so<00:04:03.799> the 00:04:03.949 --> 00:04:03.959 align:start position:0% stochastically generate blocks so the 00:04:03.959 --> 00:04:07.190 align:start position:0% stochastically generate blocks so the protocol<00:04:04.400> itself<00:04:04.799> basically<00:04:05.280> defines<00:04:06.280> you<00:04:07.000> it 00:04:07.190 --> 00:04:07.200 align:start position:0% protocol itself basically defines you it 00:04:07.200 --> 00:04:08.869 align:start position:0% protocol itself basically defines you it gives<00:04:07.439> you<00:04:07.680> the<00:04:07.879> right<00:04:08.159> to<00:04:08.360> create<00:04:08.680> these 00:04:08.869 --> 00:04:08.879 align:start position:0% gives you the right to create these 00:04:08.879 --> 00:04:10.990 align:start position:0% gives you the right to create these blocks<00:04:09.640> and<00:04:09.760> it<00:04:09.959> gives<00:04:10.360> gives<00:04:10.640> you<00:04:10.760> the<00:04:10.879> right 00:04:10.990 --> 00:04:11.000 align:start position:0% blocks and it gives gives you the right 00:04:11.000 --> 00:04:12.990 align:start position:0% blocks and it gives gives you the right to<00:04:11.120> create<00:04:11.360> these<00:04:11.519> blocks<00:04:11.799> in<00:04:12.000> proportion<00:04:12.480> to 00:04:12.990 --> 00:04:13.000 align:start position:0% to create these blocks in proportion to 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day if you 00:04:18.600 --> 00:04:20.310 align:start position:0% can maybe create one block a day if you have<00:04:18.680> a<00:04:18.720> $2,000<00:04:19.479> virtual<00:04:19.799> minor<00:04:20.120> you<00:04:20.199> can 00:04:20.310 --> 00:04:20.320 align:start position:0% have a $2,000 virtual minor you can 00:04:20.320 --> 00:04:22.790 align:start position:0% have a $2,000 virtual minor you can create<00:04:20.560> two<00:04:20.720> blocks<00:04:20.959> a<00:04:21.079> day<00:04:21.239> and<00:04:21.359> so<00:04:21.560> forth<00:04:22.240> so 00:04:22.790 --> 00:04:22.800 align:start position:0% create two blocks a day and so forth so 00:04:22.800 --> 00:04:24.629 align:start position:0% create two blocks a day and so forth so same<00:04:22.960> thing<00:04:23.120> as<00:04:23.240> proof<00:04:23.440> of<00:04:23.600> work<00:04:24.199> but<00:04:24.400> without 00:04:24.629 --> 00:04:24.639 align:start position:0% same thing as proof of work but without 00:04:24.639 --> 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existed since about 2011<00:04:33.759> solves<00:04:34.160> Wast<00:04:34.440> the<00:04:34.560> electricity<00:04:35.199> problem 00:04:37.029 --> 00:04:37.039 align:start position:0% 2011 solves Wast the electricity problem 00:04:37.039 --> 00:04:39.310 align:start position:0% 2011 solves Wast the electricity problem so<00:04:38.039> here's<00:04:38.280> the<00:04:38.440> approach<00:04:38.800> that<00:04:38.880> we're<00:04:39.039> taking 00:04:39.310 --> 00:04:39.320 align:start position:0% so here's the approach that we're taking 00:04:39.320 --> 00:04:42.749 align:start position:0% so here's the approach that we're taking in<00:04:39.479> C<00:04:39.800> in<00:04:40.120> at<00:04:40.240> least<00:04:40.520> my<00:04:40.639> version<00:04:40.919> of<00:04:41.320> Casper<00:04:42.320> so 00:04:42.749 --> 00:04:42.759 align:start position:0% in C in at least my version of Casper so 00:04:42.759 --> 00:04:45.070 align:start position:0% in C in at least my version of Casper so in<00:04:42.919> the<00:04:43.120> state<00:04:44.000> there<00:04:44.120> is<00:04:44.240> a<00:04:44.600> there<00:04:44.680> is<00:04:44.800> a<00:04:44.919> set 00:04:45.070 --> 00:04:45.080 align:start position:0% in the state there is a there is a set 00:04:45.080 --> 00:04:47.870 align:start position:0% in the state there is a there is a set of<00:04:45.479> there<00:04:45.600> is<00:04:45.800> a<00:04:45.960> set<00:04:46.199> of<00:04:46.600> bonded<00:04:47.000> validators 00:04:47.870 --> 00:04:47.880 align:start position:0% of there is a set of bonded validators 00:04:47.880 --> 00:04:49.590 align:start position:0% of there is a set of bonded validators do<00:04:48.039> people<00:04:48.240> here<00:04:48.440> remember<00:04:48.680> what<00:04:48.800> the<00:04:48.960> state 00:04:49.590 --> 00:04:49.600 align:start position:0% do people here remember what the state 00:04:49.600 --> 00:04:52.230 align:start position:0% do people here remember what the state is<00:04:50.600> it's<00:04:50.840> an<00:04:51.080> evil<00:04:51.360> entity<00:04:51.720> that<00:04:51.800> steals<00:04:52.120> a 00:04:52.230 --> 00:04:52.240 align:start position:0% is it's an evil entity that steals a 00:04:52.240 --> 00:04:53.670 align:start position:0% is it's an evil entity that steals a third<00:04:52.400> of<00:04:52.479> your<00:04:52.600> money<00:04:52.840> and<00:04:53.000> bombs<00:04:53.320> people<00:04:53.520> in 00:04:53.670 --> 00:04:53.680 align:start position:0% third of your money and bombs people in 00:04:53.680 --> 00:04:55.189 align:start position:0% third of your money and bombs people in third<00:04:53.840> world 00:04:55.189 --> 00:04:55.199 align:start position:0% third world 00:04:55.199 --> 00:04:59.749 align:start position:0% third world countries<00:04:56.199> no<00:04:56.400> it's<00:04:56.800> uh<00:04:57.080> a<00:04:57.520> uh 00:04:59.749 --> 00:04:59.759 align:start position:0% countries no it's uh a uh 00:04:59.759 --> 00:05:01.670 align:start position:0% countries no it's uh a uh State<00:05:00.080> the<00:05:00.240> state<00:05:00.680> is<00:05:00.880> the<00:05:01.039> set<00:05:01.240> of<00:05:01.400> sort<00:05:01.520> of 00:05:01.670 --> 00:05:01.680 align:start position:0% State the state is the set of sort of 00:05:01.680 --> 00:05:03.550 align:start position:0% State the state is the set of sort of current<00:05:02.080> information<00:05:02.919> that<00:05:03.160> things<00:05:03.360> like 00:05:03.550 --> 00:05:03.560 align:start position:0% current information that things like 00:05:03.560 --> 00:05:05.029 align:start position:0% current information that things like balances<00:05:03.960> and<00:05:04.120> nonces<00:05:04.600> that<00:05:04.680> you<00:05:04.800> have<00:05:04.919> to 00:05:05.029 --> 00:05:05.039 align:start position:0% balances and nonces that you have to 00:05:05.039 --> 00:05:07.710 align:start position:0% balances and nonces that you have to keep<00:05:05.280> track<00:05:05.600> of<00:05:06.280> and<00:05:06.639> part<00:05:06.800> of<00:05:06.919> the<00:05:07.080> state<00:05:07.400> now 00:05:07.710 --> 00:05:07.720 align:start position:0% keep track of and part of the state now 00:05:07.720 --> 00:05:09.790 align:start position:0% keep track of and part of the state now is<00:05:08.199> basically<00:05:08.600> keeping<00:05:08.919> track<00:05:09.199> of<00:05:09.400> some<00:05:09.600> set 00:05:09.790 --> 00:05:09.800 align:start position:0% is basically keeping track of some set 00:05:09.800 --> 00:05:11.870 align:start position:0% is basically keeping track of some set of<00:05:09.880> sort<00:05:10.039> of<00:05:10.160> blonded<00:05:10.520> validators<00:05:11.320> so<00:05:11.479> blonded 00:05:11.870 --> 00:05:11.880 align:start position:0% of sort of blonded validators so blonded 00:05:11.880 --> 00:05:13.150 align:start position:0% of sort of blonded validators so blonded validators<00:05:12.360> are<00:05:12.520> kind<00:05:12.639> of<00:05:12.840> active 00:05:13.150 --> 00:05:13.160 align:start position:0% validators are kind of active 00:05:13.160 --> 00:05:16.950 align:start position:0% validators are kind of active participants<00:05:13.639> in<00:05:13.759> the<00:05:14.080> protocol<00:05:15.080> and<00:05:15.479> uh<00:05:15.919> they 00:05:16.950 --> 00:05:16.960 align:start position:0% participants in the protocol and uh they 00:05:16.960 --> 00:05:19.590 align:start position:0% participants in the protocol and uh they uh<00:05:17.960> active<00:05:18.319> participants<00:05:18.840> in<00:05:18.919> the<00:05:19.039> consensus 00:05:19.590 --> 00:05:19.600 align:start position:0% uh active participants in the consensus 00:05:19.600 --> 00:05:22.830 align:start position:0% uh active participants in the consensus protocol<00:05:20.440> now<00:05:20.960> if<00:05:21.440> basically<00:05:22.120> the<00:05:22.319> state<00:05:22.639> is 00:05:22.830 --> 00:05:22.840 align:start position:0% protocol now if basically the state is 00:05:22.840 --> 00:05:23.990 align:start position:0% protocol now if basically the state is the<00:05:22.960> set<00:05:23.080> of<00:05:23.199> people<00:05:23.400> who<00:05:23.520> have<00:05:23.680> virtual 00:05:23.990 --> 00:05:24.000 align:start position:0% the set of people who have virtual 00:05:24.000 --> 00:05:26.590 align:start position:0% the set of people who have virtual minors<00:05:24.600> the<00:05:24.680> minors<00:05:25.000> are<00:05:25.160> virtual<00:05:25.639> and<00:05:25.919> where 00:05:26.590 --> 00:05:26.600 align:start position:0% minors the minors are virtual and where 00:05:26.600 --> 00:05:28.150 align:start position:0% minors the minors are virtual and where where<00:05:26.840> exactly<00:05:27.199> are<00:05:27.360> these<00:05:27.520> virtual<00:05:27.800> miners 00:05:28.150 --> 00:05:28.160 align:start position:0% where exactly are these virtual miners 00:05:28.160 --> 00:05:29.510 align:start position:0% where exactly are these virtual miners kept<00:05:28.360> track<00:05:28.560> of<00:05:28.639> or<00:05:28.759> they<00:05:28.960> kept<00:05:29.120> track<00:05:29.319> of<00:05:29.400> in 00:05:29.510 --> 00:05:29.520 align:start position:0% kept track of or they kept track of in 00:05:29.520 --> 00:05:31.790 align:start position:0% kept track of or they kept track of in the<00:05:29.759> state<00:05:29.919> of<00:05:30.039> the<00:05:30.160> protocol<00:05:30.560> itself<00:05:31.440> anyone 00:05:31.790 --> 00:05:31.800 align:start position:0% the state of the protocol itself anyone 00:05:31.800 --> 00:05:34.150 align:start position:0% the state of the protocol itself anyone can<00:05:31.960> join<00:05:32.240> the<00:05:32.440> set<00:05:33.160> by<00:05:33.600> sending<00:05:33.960> a 00:05:34.150 --> 00:05:34.160 align:start position:0% can join the set by sending a 00:05:34.160 --> 00:05:35.870 align:start position:0% can join the set by sending a transaction<00:05:34.960> to<00:05:35.160> this<00:05:35.360> contract<00:05:35.720> that's 00:05:35.870 --> 00:05:35.880 align:start position:0% transaction to this contract that's 00:05:35.880 --> 00:05:37.909 align:start position:0% transaction to this contract that's called<00:05:36.039> the<00:05:36.160> Casper<00:05:36.560> contract<00:05:37.520> so<00:05:37.759> this 00:05:37.909 --> 00:05:37.919 align:start position:0% called the Casper contract so this 00:05:37.919 --> 00:05:39.629 align:start position:0% called the Casper contract so this Casper<00:05:38.280> contract<00:05:38.600> has<00:05:38.720> a<00:05:38.840> special<00:05:39.160> address<00:05:39.560> in 00:05:39.629 --> 00:05:39.639 align:start position:0% Casper contract has a special address in 00:05:39.639 --> 00:05:42.189 align:start position:0% Casper contract has a special address in this<00:05:39.800> case<00:05:39.919> it's<00:05:40.039> a<00:05:40.160> number<00:05:40.759> 255<00:05:41.759> and<00:05:42.000> if<00:05:42.080> you 00:05:42.189 --> 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position:0% then you basically and if along with your<00:05:48.919> call<00:05:49.120> you<00:05:49.240> send<00:05:49.479> some<00:05:49.680> ether<00:05:50.000> in<00:05:50.440> then 00:05:50.550 --> 00:05:50.560 align:start position:0% your call you send some ether in then 00:05:50.560 --> 00:05:53.070 align:start position:0% your call you send some ether in then you<00:05:50.639> can<00:05:50.800> become<00:05:51.000> a<00:05:51.520> validator<00:05:52.520> so<00:05:52.840> you 00:05:53.070 --> 00:05:53.080 align:start position:0% you can become a validator so you 00:05:53.080 --> 00:05:55.230 align:start position:0% you can become a validator so you specify<00:05:53.479> a<00:05:53.560> bunch<00:05:53.759> of<00:05:53.880> parameters<00:05:54.680> validation 00:05:55.230 --> 00:05:55.240 align:start position:0% specify a bunch of parameters validation 00:05:55.240 --> 00:05:56.990 align:start position:0% specify a bunch of parameters validation code<00:05:55.520> randale<00:05:56.039> withdrawal<00:05:56.479> address<00:05:56.800> we'll 00:05:56.990 --> 00:05:57.000 align:start position:0% code randale withdrawal address we'll 00:05:57.000 --> 00:05:59.430 align:start position:0% code randale withdrawal address we'll talk<00:05:57.160> about<00:05:57.360> those<00:05:57.720> later<00:05:58.720> and<00:05:59.000> if<00:05:59.120> you<00:05:59.280> call 00:05:59.430 --> 00:05:59.440 align:start position:0% talk about those later and if you call 00:05:59.440 --> 00:06:01.590 align:start position:0% talk about those later and if you call this<00:05:59.720> function<00:06:00.080> during<00:06:00.360> Epoch<00:06:00.800> n<00:06:01.199> so<00:06:01.400> one 00:06:01.590 --> 00:06:01.600 align:start position:0% this function during Epoch n so one 00:06:01.600 --> 00:06:03.950 align:start position:0% this function during Epoch n so one Epoch<00:06:02.000> is<00:06:02.120> like<00:06:02.240> a<00:06:02.319> period<00:06:02.600> of<00:06:02.759> about<00:06:02.960> 12<00:06:03.240> hours 00:06:03.950 --> 00:06:03.960 align:start position:0% Epoch is like a period of about 12 hours 00:06:03.960 --> 00:06:05.870 align:start position:0% Epoch is like a period of about 12 hours then<00:06:04.160> at<00:06:04.240> the<00:06:04.360> start<00:06:04.560> of<00:06:04.680> epoch<00:06:05.000> n<00:06:05.199> plus<00:06:05.400> 2<00:06:05.680> so 00:06:05.870 --> 00:06:05.880 align:start position:0% then at the start of epoch n plus 2 so 00:06:05.880 --> 00:06:07.909 align:start position:0% then at the start of epoch n plus 2 so like<00:06:06.039> between<00:06:06.319> 12<00:06:06.520> and<00:06:06.639> 24<00:06:07.000> hours<00:06:07.240> from<00:06:07.400> now 00:06:07.909 --> 00:06:07.919 align:start position:0% like between 12 and 24 hours from now 00:06:07.919 --> 00:06:09.749 align:start position:0% like between 12 and 24 hours from now your<00:06:08.120> validator<00:06:08.720> joins<00:06:09.319> the<00:06:09.479> active 00:06:09.749 --> 00:06:09.759 align:start position:0% your validator joins the active 00:06:09.759 --> 00:06:13.029 align:start position:0% your validator joins the active validator<00:06:10.240> pool<00:06:11.039> and<00:06:11.560> at<00:06:11.720> that<00:06:11.919> point<00:06:12.520> you 00:06:13.029 --> 00:06:13.039 align:start position:0% validator pool and at that point you 00:06:13.039 --> 00:06:16.270 align:start position:0% validator pool and at that point you basically<00:06:13.400> your<00:06:13.560> virtual<00:06:13.880> minor<00:06:14.199> is<00:06:14.880> active 00:06:16.270 --> 00:06:16.280 align:start position:0% basically your virtual minor is active 00:06:16.280 --> 00:06:19.309 align:start position:0% basically your virtual minor is active now<00:06:17.280> while<00:06:17.520> a<00:06:17.680> validator<00:06:18.199> is<00:06:18.319> inducted<00:06:19.199> they 00:06:19.309 --> 00:06:19.319 align:start position:0% now while a validator is inducted they 00:06:19.319 --> 00:06:21.070 align:start position:0% now while a validator is inducted they will<00:06:19.759> sometimes<00:06:20.080> be<00:06:20.240> pseudo<00:06:20.680> randomly 00:06:21.070 --> 00:06:21.080 align:start position:0% will sometimes be pseudo randomly 00:06:21.080 --> 00:06:23.270 align:start position:0% will sometimes be pseudo randomly assigns<00:06:21.440> the<00:06:21.560> right<00:06:21.680> to<00:06:21.800> create<00:06:22.080> blocks<00:06:23.080> and 00:06:23.270 --> 00:06:23.280 align:start position:0% assigns the right to create blocks and 00:06:23.280 --> 00:06:25.270 align:start position:0% assigns the right to create blocks and the<00:06:23.400> probability<00:06:24.240> at<00:06:24.400> any<00:06:24.639> given<00:06:24.919> time<00:06:25.199> that 00:06:25.270 --> 00:06:25.280 align:start position:0% the probability at any given time that 00:06:25.280 --> 00:06:26.589 align:start position:0% the probability at any given time that you'll<00:06:25.400> be<00:06:25.520> pseudo<00:06:25.880> randomly<00:06:26.280> given<00:06:26.479> the 00:06:26.589 --> 00:06:26.599 align:start position:0% you'll be pseudo randomly given the 00:06:26.599 --> 00:06:29.990 align:start position:0% you'll be pseudo randomly given the rights<00:06:26.800> to<00:06:26.960> create<00:06:27.120> a<00:06:27.280> block<00:06:28.240> is<00:06:29.000> based<00:06:29.280> per<00:06:29.880> to 00:06:29.990 --> 00:06:30.000 align:start position:0% rights to create a block is based per to 00:06:30.000 --> 00:06:32.390 align:start position:0% rights to create a block is based per to the<00:06:30.080> amount<00:06:30.280> of<00:06:30.400> ether<00:06:30.680> that<00:06:30.759> You'<00:06:31.400> deposited 00:06:32.390 --> 00:06:32.400 align:start position:0% the amount of ether that You' deposited 00:06:32.400 --> 00:06:34.830 align:start position:0% the amount of ether that You' deposited now<00:06:32.840> in<00:06:33.039> proof<00:06:33.240> of<00:06:33.400> work<00:06:33.919> a<00:06:34.080> block<00:06:34.560> has<00:06:34.680> to 00:06:34.830 --> 00:06:34.840 align:start position:0% now in proof of work a block has to 00:06:34.840 --> 00:06:37.870 align:start position:0% now in proof of work a block has to contain<00:06:35.120> a<00:06:35.280> non<00:06:35.720> and<00:06:35.840> that<00:06:36.000> non<00:06:36.400> kind<00:06:36.520> of<00:06:36.880> pro 00:06:37.870 --> 00:06:37.880 align:start position:0% contain a non and that non kind of pro 00:06:37.880 --> 00:06:40.189 align:start position:0% contain a non and that non kind of pro is<00:06:38.240> a<00:06:38.400> solution<00:06:38.759> to<00:06:38.919> a<00:06:39.039> proof<00:06:39.240> of<00:06:39.360> work<00:06:39.599> puzzle 00:06:40.189 --> 00:06:40.199 align:start position:0% is a solution to a proof of work puzzle 00:06:40.199 --> 00:06:41.469 align:start position:0% is a solution to a proof of work puzzle and<00:06:40.319> that<00:06:40.479> solution<00:06:40.759> to<00:06:40.880> the<00:06:41.000> proof<00:06:41.160> of<00:06:41.280> work 00:06:41.469 --> 00:06:41.479 align:start position:0% and that solution to the proof of work 00:06:41.479 --> 00:06:44.670 align:start position:0% and that solution to the proof of work puzzle<00:06:41.840> basically<00:06:42.240> proves<00:06:43.160> that<00:06:43.800> you<00:06:44.319> in<00:06:44.520> the 00:06:44.670 --> 00:06:44.680 align:start position:0% puzzle basically proves that you in the 00:06:44.680 --> 00:06:46.350 align:start position:0% puzzle basically proves that you in the proof<00:06:44.880> of<00:06:45.000> work<00:06:45.199> Lottery<00:06:45.639> you<00:06:45.800> got<00:06:45.960> lucky<00:06:46.240> and 00:06:46.350 --> 00:06:46.360 align:start position:0% proof of work Lottery you got lucky and 00:06:46.360 --> 00:06:48.350 align:start position:0% proof of work Lottery you got lucky and you<00:06:46.479> have<00:06:46.599> the<00:06:46.720> right<00:06:46.880> to<00:06:47.000> create<00:06:47.280> this<00:06:47.400> block 00:06:48.350 --> 00:06:48.360 align:start position:0% you have the right to create this block 00:06:48.360 --> 00:06:50.430 align:start position:0% you have the right to create this block here<00:06:48.599> instead<00:06:48.840> of<00:06:48.960> doing<00:06:49.319> that<00:06:50.000> blocks<00:06:50.360> have 00:06:50.430 --> 00:06:50.440 align:start position:0% here instead of doing that blocks have 00:06:50.440 --> 00:06:51.550 align:start position:0% here instead of doing that blocks have to<00:06:50.599> contain<00:06:50.840> a 00:06:51.550 --> 00:06:51.560 align:start position:0% to contain a 00:06:51.560 --> 00:06:55.150 align:start position:0% to contain a signature<00:06:52.560> now<00:06:53.280> what<00:06:53.479> is<00:06:54.479> and<00:06:54.639> the<00:06:54.720> signature 00:06:55.150 --> 00:06:55.160 align:start position:0% signature now what is and the signature 00:06:55.160 --> 00:06:57.150 align:start position:0% signature now what is and the signature is<00:06:55.400> basically<00:06:56.039> in<00:06:56.240> simplest<00:06:56.680> forms<00:06:57.000> the 00:06:57.150 --> 00:06:57.160 align:start position:0% is basically in simplest forms the 00:06:57.160 --> 00:06:58.830 align:start position:0% is basically in simplest forms the signature<00:06:57.560> is<00:06:57.720> signed<00:06:58.039> by<00:06:58.160> the<00:06:58.280> validator 00:06:58.830 --> 00:06:58.840 align:start position:0% signature is signed by the validator 00:06:58.840 --> 00:07:00.550 align:start position:0% signature is signed by the validator private<00:06:59.199> key<00:06:59.680> and<00:06:59.840> it's<00:07:00.000> checked<00:07:00.319> against 00:07:00.550 --> 00:07:00.560 align:start position:0% private key and it's checked against 00:07:00.560 --> 00:07:02.629 align:start position:0% private key and it's checked against evaluator's<00:07:01.120> public<00:07:01.400> key<00:07:02.000> but<00:07:02.120> one<00:07:02.280> thing 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position:0% key we have this notion of validation 00:07:08.360 --> 00:07:10.869 align:start position:0% key we have this notion of validation code<00:07:09.039> so<00:07:09.199> what<00:07:09.360> this<00:07:09.479> means<00:07:09.879> is<00:07:10.120> that<00:07:10.680> okay 00:07:10.869 --> 00:07:10.879 align:start position:0% code so what this means is that okay 00:07:10.879 --> 00:07:12.990 align:start position:0% code so what this means is that okay well<00:07:11.000> the<00:07:11.160> validation<00:07:11.680> code<00:07:11.960> is<00:07:12.120> a<00:07:12.280> function 00:07:12.990 --> 00:07:13.000 align:start position:0% well the validation code is a function 00:07:13.000 --> 00:07:14.909 align:start position:0% well the validation code is a function and<00:07:13.120> the<00:07:13.240> function<00:07:13.680> says<00:07:14.440> it<00:07:14.560> takes<00:07:14.759> a 00:07:14.909 --> 00:07:14.919 align:start position:0% and the function says it takes a 00:07:14.919 --> 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be something as<00:07:22.000> simple<00:07:22.240> as<00:07:22.319> a<00:07:22.440> signature<00:07:22.879> Checker<00:07:23.560> so 00:07:23.749 --> 00:07:23.759 align:start position:0% as simple as a signature Checker so 00:07:23.759 --> 00:07:25.550 align:start position:0% as simple as a signature Checker so validation<00:07:24.240> code<00:07:24.440> basically<00:07:24.840> says<00:07:25.280> take<00:07:25.440> a 00:07:25.550 --> 00:07:25.560 align:start position:0% validation code basically says take a 00:07:25.560 --> 00:07:27.390 align:start position:0% validation code basically says take a signature<00:07:25.960> as<00:07:26.160> input<00:07:26.639> check<00:07:26.840> it<00:07:27.000> against<00:07:27.240> the 00:07:27.390 --> 00:07:27.400 align:start position:0% signature as input check it against the 00:07:27.400 --> 00:07:31.110 align:start position:0% signature as input check it against the public<00:07:27.759> key<00:07:28.680> and<00:07:29.280> if<00:07:29.720> the<00:07:30.360> signature<00:07:30.879> checks 00:07:31.110 --> 00:07:31.120 align:start position:0% public key and if the signature checks 00:07:31.120 --> 00:07:34.070 align:start position:0% public key and if the signature checks out<00:07:31.520> return<00:07:31.720> one<00:07:32.000> otherwise<00:07:32.479> return<00:07:32.720> zero<00:07:33.720> if 00:07:34.070 --> 00:07:34.080 align:start position:0% out return one otherwise return zero if 00:07:34.080 --> 00:07:37.070 align:start position:0% out return one otherwise return zero if let's<00:07:34.280> say<00:07:34.720> us<00:07:35.080> a<00:07:35.240> validator<00:07:35.879> are<00:07:36.120> concerned 00:07:37.070 --> 00:07:37.080 align:start position:0% let's say us a validator are concerned 00:07:37.080 --> 00:07:40.430 align:start position:0% let's say us a validator are concerned about<00:07:38.080> let's<00:07:38.360> say<00:07:38.960> Quantum<00:07:39.440> cryptography 00:07:40.430 --> 00:07:40.440 align:start position:0% about let's say Quantum cryptography 00:07:40.440 --> 00:07:45.629 align:start position:0% about let's say Quantum cryptography let's<00:07:40.720> say<00:07:41.039> you<00:07:41.319> think<00:07:41.960> that<00:07:42.800> the<00:07:43.080> NSA<00:07:44.080> know<00:07:44.639> as 00:07:45.629 --> 00:07:45.639 align:start position:0% let's say you think that the NSA know as 00:07:45.639 --> 00:07:48.589 align:start position:0% let's say you think that the NSA know as an<00:07:45.800> arm<00:07:46.280> the<00:07:46.599> uh<00:07:47.319> pervasive<00:07:47.800> arm<00:07:48.000> of<00:07:48.120> the<00:07:48.240> state 00:07:48.589 --> 00:07:48.599 align:start position:0% an arm the uh pervasive arm of the state 00:07:48.599 --> 00:07:51.270 align:start position:0% an arm the uh pervasive arm of the state that<00:07:48.720> it<00:07:48.919> is<00:07:49.919> has<00:07:50.560> access<00:07:50.800> to<00:07:50.960> quantum 00:07:51.270 --> 00:07:51.280 align:start position:0% that it is has access to quantum 00:07:51.280 --> 00:07:53.230 align:start position:0% that it is has access to quantum computers<00:07:51.759> and<00:07:51.879> it<00:07:51.960> can<00:07:52.159> break<00:07:52.800> public 00:07:53.230 --> 00:07:53.240 align:start position:0% computers and it can break public 00:07:53.240 --> 00:07:55.350 align:start position:0% computers and it can break public elliptic<00:07:53.639> curve<00:07:53.879> signatures<00:07:54.319> in<00:07:54.400> an<00:07:54.560> instant 00:07:55.350 --> 00:07:55.360 align:start position:0% elliptic curve signatures in an instant 00:07:55.360 --> 00:07:56.830 align:start position:0% elliptic curve signatures in an instant then<00:07:55.599> you<00:07:55.759> might<00:07:55.879> want<00:07:56.000> to<00:07:56.120> switch<00:07:56.319> to<00:07:56.440> Lamport 00:07:56.830 --> 00:07:56.840 align:start position:0% then you might want to switch to Lamport 00:07:56.840 --> 00:07:58.749 align:start position:0% then you might want to switch to Lamport signatures<00:07:57.560> Lamport<00:07:57.960> signatures<00:07:58.360> are<00:07:58.479> a<00:07:58.599> type 00:07:58.749 --> 00:07:58.759 align:start position:0% signatures Lamport signatures are a type 00:07:58.759 --> 00:07:59.790 align:start position:0% signatures Lamport signatures are a type of<00:07:58.840> signature<00:07:59.199> that's<00:07:59.319> called<00:07:59.479> want 00:07:59.790 --> 00:07:59.800 align:start position:0% of signature that's called want 00:07:59.800 --> 00:08:01.869 align:start position:0% of signature that's called want resistant<00:08:00.520> and<00:08:00.639> if<00:08:00.720> you<00:08:00.879> care<00:08:01.120> about<00:08:01.440> that 00:08:01.869 --> 00:08:01.879 align:start position:0% resistant and if you care about that 00:08:01.879 --> 00:08:03.950 align:start position:0% resistant and if you care about that then<00:08:02.240> basically<00:08:02.759> can<00:08:03.360> you<00:08:03.479> don't<00:08:03.720> have<00:08:03.800> to 00:08:03.950 --> 00:08:03.960 align:start position:0% then basically can you don't have to 00:08:03.960 --> 00:08:05.749 align:start position:0% then basically can you don't have to wait<00:08:04.120> for<00:08:04.240> the<00:08:04.360> protocol<00:08:04.720> to<00:08:04.879> Heart<00:08:05.120> Fork<00:08:05.639> you 00:08:05.749 --> 00:08:05.759 align:start position:0% wait for the protocol to Heart Fork you 00:08:05.759 --> 00:08:08.029 align:start position:0% wait for the protocol to Heart Fork you can<00:08:05.919> just<00:08:06.080> switch<00:08:06.319> to<00:08:06.479> it<00:08:06.599> yourself 00:08:08.029 --> 00:08:08.039 align:start position:0% can just switch to it yourself 00:08:08.039 --> 00:08:11.189 align:start position:0% can just switch to it yourself tomorrow<00:08:09.039> so<00:08:09.840> a<00:08:10.039> validator<00:08:10.520> can<00:08:10.680> also<00:08:10.919> call 00:08:11.189 --> 00:08:11.199 align:start position:0% tomorrow so a validator can also call 00:08:11.199 --> 00:08:14.230 align:start position:0% tomorrow so a validator can also call start<00:08:11.440> withdrawal<00:08:11.919> to<00:08:12.360> withdraw<00:08:13.360> so<00:08:14.000> one<00:08:14.120> of 00:08:14.230 --> 00:08:14.240 align:start position:0% start withdrawal to withdraw so one of 00:08:14.240 --> 00:08:16.029 align:start position:0% start withdrawal to withdraw so one of the<00:08:14.400> differences<00:08:14.879> between<00:08:15.199> real<00:08:15.520> Miners<00:08:15.879> and 00:08:16.029 --> 00:08:16.039 align:start position:0% the differences between real Miners and 00:08:16.039 --> 00:08:17.510 align:start position:0% the differences between real Miners and virtual<00:08:16.400> miners<00:08:16.800> is<00:08:16.879> that<00:08:17.039> with<00:08:17.159> virtual 00:08:17.510 --> 00:08:17.520 align:start position:0% virtual miners is that with virtual 00:08:17.520 --> 00:08:19.710 align:start position:0% virtual miners is that with virtual miners<00:08:18.199> once<00:08:18.360> you're<00:08:18.560> done<00:08:18.800> mining<00:08:19.360> you<00:08:19.479> can 00:08:19.710 --> 00:08:19.720 align:start position:0% miners once you're done mining you can 00:08:19.720 --> 00:08:24.070 align:start position:0% miners once you're done mining you can actually<00:08:20.039> sort<00:08:20.599> of<00:08:22.039> can<00:08:23.039> unfreeze<00:08:23.639> the<00:08:23.759> minor 00:08:24.070 --> 00:08:24.080 align:start position:0% actually sort of can unfreeze the minor 00:08:24.080 --> 00:08:25.550 align:start position:0% actually sort of can unfreeze the minor and<00:08:24.159> sort<00:08:24.319> of<00:08:24.440> turn<00:08:24.599> it<00:08:24.840> right<00:08:25.000> back<00:08:25.199> into 00:08:25.550 --> 00:08:25.560 align:start position:0% and sort of turn it right back into 00:08:25.560 --> 00:08:28.230 align:start position:0% and sort of turn it right back into liquid<00:08:25.879> ether<00:08:26.800> so<00:08:27.400> it's<00:08:27.560> not<00:08:27.680> a<00:08:27.800> oneway 00:08:28.230 --> 00:08:28.240 align:start position:0% liquid ether so it's not a oneway 00:08:28.240 --> 00:08:30.670 align:start position:0% liquid ether so it's not a oneway process<00:08:29.080> if<00:08:29.199> you're<00:08:29.639> done<00:08:29.800> mining<00:08:30.400> you<00:08:30.520> can 00:08:30.670 --> 00:08:30.680 align:start position:0% process if you're done mining you can 00:08:30.680 --> 00:08:31.750 align:start position:0% process if you're done mining you can call<00:08:30.879> this<00:08:31.039> function<00:08:31.319> called<00:08:31.520> start 00:08:31.750 --> 00:08:31.760 align:start position:0% call this function called start 00:08:31.760 --> 00:08:34.230 align:start position:0% call this function called start withdrawal<00:08:32.760> and<00:08:32.919> you<00:08:33.080> withdraw<00:08:33.719> and<00:08:33.880> then<00:08:34.080> one 00:08:34.230 --> 00:08:34.240 align:start position:0% withdrawal and you withdraw and then one 00:08:34.240 --> 00:08:36.990 align:start position:0% withdrawal and you withdraw and then one to<00:08:34.360> two<00:08:34.519> EPO<00:08:35.000> later<00:08:35.719> you<00:08:36.240> you<00:08:36.440> are<00:08:36.599> no<00:08:36.760> longer 00:08:36.990 --> 00:08:37.000 align:start position:0% to two EPO later you you are no longer 00:08:37.000 --> 00:08:38.350 align:start position:0% to two EPO later you you are no longer part<00:08:37.120> of<00:08:37.240> the<00:08:37.320> active<00:08:37.599> validator<00:08:38.000> pool<00:08:38.279> you 00:08:38.350 --> 00:08:38.360 align:start position:0% part of the active validator pool you 00:08:38.360 --> 00:08:39.630 align:start position:0% part of the active validator pool you can<00:08:38.440> check<00:08:38.640> your<00:08:38.760> note<00:08:39.000> off<00:08:39.200> you<00:08:39.320> can<00:08:39.440> stop 00:08:39.630 --> 00:08:39.640 align:start position:0% can check your note off you can stop 00:08:39.640 --> 00:08:41.630 align:start position:0% can check your note off you can stop creating<00:08:39.959> blocks<00:08:40.839> then<00:08:40.959> you<00:08:41.080> have<00:08:41.159> to<00:08:41.320> wait<00:08:41.519> a 00:08:41.630 --> 00:08:41.640 align:start position:0% creating blocks then you have to wait a 00:08:41.640 --> 00:08:43.430 align:start position:0% creating blocks then you have to wait a bit<00:08:41.800> more<00:08:42.360> and<00:08:42.519> after<00:08:42.760> waiting<00:08:43.000> a<00:08:43.120> bit<00:08:43.279> more 00:08:43.430 --> 00:08:43.440 align:start position:0% bit more and after waiting a bit more 00:08:43.440 --> 00:08:45.509 align:start position:0% bit more and after waiting a bit more you<00:08:43.560> can<00:08:43.680> withdraw<00:08:44.080> your<00:08:44.240> deposit<00:08:45.000> plus<00:08:45.240> any 00:08:45.509 --> 00:08:45.519 align:start position:0% you can withdraw your deposit plus any 00:08:45.519 --> 00:08:46.910 align:start position:0% you can withdraw your deposit plus any rewards<00:08:45.880> that<00:08:45.959> you<00:08:46.080> earned<00:08:46.440> minus<00:08:46.760> any 00:08:46.910 --> 00:08:46.920 align:start position:0% rewards that you earned minus any 00:08:46.920 --> 00:08:48.190 align:start position:0% rewards that you earned minus any penalties<00:08:47.320> of<00:08:47.440> the<00:08:47.560> protocol<00:08:47.880> assigned<00:08:48.120> you 00:08:48.190 --> 00:08:48.200 align:start position:0% penalties of the protocol assigned you 00:08:48.200 --> 00:08:50.790 align:start position:0% penalties of the protocol assigned you for<00:08:48.360> acting<00:08:49.000> incorrectly<00:08:50.000> so<00:08:50.480> this<00:08:50.600> is 00:08:50.790 --> 00:08:50.800 align:start position:0% for acting incorrectly so this is 00:08:50.800 --> 00:08:52.829 align:start position:0% for acting incorrectly so this is basically<00:08:51.240> your<00:08:51.440> experience<00:08:51.839> as<00:08:51.920> a<00:08:52.080> validator 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note online make 00:08:58.880 --> 00:09:00.829 align:start position:0% you have to keep your note online make sure<00:08:59.120> create<00:08:59.560> blocks<00:08:59.880> to<00:09:00.320> when<00:09:00.440> you<00:09:00.600> whenever 00:09:00.829 --> 00:09:00.839 align:start position:0% sure create blocks to when you whenever 00:09:00.839 --> 00:09:02.069 align:start position:0% sure create blocks to when you whenever you<00:09:00.959> get<00:09:01.120> assigned<00:09:01.399> the<00:09:01.480> right<00:09:01.640> to<00:09:01.760> create 00:09:02.069 --> 00:09:02.079 align:start position:0% you get assigned the right to create 00:09:02.079 --> 00:09:04.310 align:start position:0% you get assigned the right to create blocks<00:09:02.800> keep<00:09:03.000> that<00:09:03.120> thing<00:09:03.279> online<00:09:04.040> then<00:09:04.200> when 00:09:04.310 --> 00:09:04.320 align:start position:0% blocks keep that thing online then when 00:09:04.320 --> 00:09:07.030 align:start position:0% blocks keep that thing online then when you<00:09:04.480> get<00:09:04.640> bored<00:09:05.240> call<00:09:05.600> withraw<00:09:06.600> then<00:09:06.839> after 00:09:07.030 --> 00:09:07.040 align:start position:0% you get bored call withraw then after 00:09:07.040 --> 00:09:08.630 align:start position:0% you get bored call withraw then after another<00:09:07.279> 12<00:09:07.560> hours<00:09:07.800> you<00:09:07.920> can<00:09:08.000> shut<00:09:08.200> your<00:09:08.320> note 00:09:08.630 --> 00:09:08.640 align:start position:0% another 12 hours you can shut your note 00:09:08.640 --> 00:09:10.430 align:start position:0% another 12 hours you can shut your note off<00:09:09.079> and<00:09:09.200> then<00:09:09.360> after<00:09:09.519> another<00:09:09.880> some<00:09:10.079> point<00:09:10.240> in 00:09:10.430 --> 00:09:10.440 align:start position:0% off and then after another some point in 00:09:10.440 --> 00:09:12.430 align:start position:0% off and then after another some point in time<00:09:10.760> this<00:09:10.920> might<00:09:11.160> be<00:09:11.640> something<00:09:12.000> like<00:09:12.120> a<00:09:12.240> few 00:09:12.430 --> 00:09:12.440 align:start position:0% time this might be something like a few 00:09:12.440 --> 00:09:14.790 align:start position:0% time this might be something like a few months<00:09:13.079> you<00:09:13.200> can<00:09:13.320> take<00:09:13.519> your<00:09:14.079> you<00:09:14.200> can<00:09:14.519> call 00:09:14.790 --> 00:09:14.800 align:start position:0% months you can take your you can call 00:09:14.800 --> 00:09:16.829 align:start position:0% months you can take your you can call withdraw<00:09:15.279> and<00:09:15.399> you<00:09:15.480> can<00:09:15.560> take<00:09:15.680> your<00:09:15.839> ether<00:09:16.160> out 00:09:16.829 --> 00:09:16.839 align:start position:0% withdraw and you can take your ether out 00:09:16.839 --> 00:09:18.870 align:start position:0% withdraw and you can take your ether out nice<00:09:17.040> and<00:09:17.360> simple 00:09:18.870 --> 00:09:18.880 align:start position:0% nice and simple 00:09:18.880 --> 00:09:22.670 align:start position:0% nice and simple so<00:09:20.079> people<00:09:21.079> according<00:09:21.519> to<00:09:21.839> some<00:09:22.120> people<00:09:22.519> there 00:09:22.670 --> 00:09:22.680 align:start position:0% so people according to some people there 00:09:22.680 --> 00:09:24.389 align:start position:0% so people according to some people there are<00:09:22.920> supposed<00:09:23.399> fundamental<00:09:23.839> flaws<00:09:24.120> in<00:09:24.240> proof 00:09:24.389 --> 00:09:24.399 align:start position:0% are supposed fundamental flaws in proof 00:09:24.399 --> 00:09:27.110 align:start position:0% are supposed fundamental flaws in proof of<00:09:24.560> stake<00:09:25.360> so<00:09:25.560> let<00:09:25.640> me<00:09:25.800> go<00:09:25.920> through<00:09:26.120> some<00:09:26.279> of 00:09:27.110 --> 00:09:27.120 align:start position:0% of stake so let me go through some of 00:09:27.120 --> 00:09:30.910 align:start position:0% of stake so let me go through some of them<00:09:28.120> so<00:09:28.560> one<00:09:28.680> of<00:09:28.800> the<00:09:28.920> main<00:09:29.120> problem<00:09:29.640> s<00:09:30.360> is 00:09:30.910 --> 00:09:30.920 align:start position:0% them so one of the main problem s is 00:09:30.920 --> 00:09:33.509 align:start position:0% them so one of the main problem s is validator<00:09:31.440> selection<00:09:32.279> so<00:09:32.440> the<00:09:32.600> challenge<00:09:33.040> is 00:09:33.509 --> 00:09:33.519 align:start position:0% validator selection so the challenge is 00:09:33.519 --> 00:09:35.350 align:start position:0% validator selection so the challenge is how<00:09:33.680> do<00:09:33.800> we<00:09:34.000> choose<00:09:34.440> which<00:09:34.600> validator<00:09:35.079> creates 00:09:35.350 --> 00:09:35.360 align:start position:0% how do we choose which validator creates 00:09:35.360 --> 00:09:37.430 align:start position:0% how do we choose which validator creates the<00:09:35.519> next<00:09:35.760> block<00:09:36.360> now<00:09:36.480> in<00:09:36.680> proof<00:09:36.880> of<00:09:37.040> work<00:09:37.279> the 00:09:37.430 --> 00:09:37.440 align:start position:0% the next block now in proof of work the 00:09:37.440 --> 00:09:38.949 align:start position:0% the next block now in proof of work the problem<00:09:37.640> is<00:09:37.800> kind<00:09:37.920> of<00:09:38.000> solved<00:09:38.320> automatically 00:09:38.949 --> 00:09:38.959 align:start position:0% problem is kind of solved automatically 00:09:38.959 --> 00:09:40.949 align:start position:0% problem is kind of solved automatically because<00:09:39.320> well<00:09:39.800> one<00:09:40.120> validator<00:09:40.640> just<00:09:40.800> like 00:09:40.949 --> 00:09:40.959 align:start position:0% because well one validator just like 00:09:40.959 --> 00:09:42.389 align:start position:0% because well one validator just like randomly<00:09:41.360> solves<00:09:41.640> the<00:09:41.760> puzzle<00:09:42.040> and<00:09:42.160> gets 00:09:42.389 --> 00:09:42.399 align:start position:0% randomly solves the puzzle and gets 00:09:42.399 --> 00:09:44.509 align:start position:0% randomly solves the puzzle and gets lucky<00:09:43.240> here<00:09:43.399> we<00:09:43.519> don't<00:09:43.760> have<00:09:43.959> that<00:09:44.200> here<00:09:44.360> we 00:09:44.509 --> 00:09:44.519 align:start position:0% lucky here we don't have that here we 00:09:44.519 --> 00:09:46.030 align:start position:0% lucky here we don't have that here we have<00:09:44.680> kind<00:09:44.800> of<00:09:44.920> virtual<00:09:45.360> Mining<00:09:45.640> and<00:09:45.720> so<00:09:45.880> we 00:09:46.030 --> 00:09:46.040 align:start position:0% have kind of virtual Mining and so we 00:09:46.040 --> 00:09:48.430 align:start position:0% have kind of virtual Mining and so we have<00:09:46.120> to<00:09:46.760> simulate<00:09:47.560> randomly<00:09:48.000> assigning 00:09:48.430 --> 00:09:48.440 align:start position:0% have to simulate randomly assigning 00:09:48.440 --> 00:09:50.550 align:start position:0% have to simulate randomly assigning validators<00:09:48.920> the<00:09:49.040> right<00:09:49.160> to<00:09:49.279> create<00:09:49.480> a<00:09:49.600> block 00:09:50.550 --> 00:09:50.560 align:start position:0% validators the right to create a block 00:09:50.560 --> 00:09:52.910 align:start position:0% validators the right to create a block so<00:09:51.399> the<00:09:51.640> the<00:09:51.760> state<00:09:52.040> grunting<00:09:52.560> problem 00:09:52.910 --> 00:09:52.920 align:start position:0% so the the state grunting problem 00:09:52.920 --> 00:09:55.509 align:start position:0% so the the state grunting problem basically<00:09:53.399> says<00:09:54.079> there<00:09:54.360> may<00:09:54.680> exist<00:09:55.279> an 00:09:55.509 --> 00:09:55.519 align:start position:0% basically says there may exist an 00:09:55.519 --> 00:09:57.870 align:start position:0% basically says there may exist an economic<00:09:56.040> incentive<00:09:56.480> for<00:09:56.600> a<00:09:56.760> validator<00:09:57.560> to 00:09:57.870 --> 00:09:57.880 align:start position:0% economic incentive for a validator to 00:09:57.880 --> 00:10:00.310 align:start position:0% economic incentive for a validator to perform<00:09:58.279> computations<00:09:58.920> due<00:09:59.079> VAR<00:09:59.680> things<00:10:00.160> to 00:10:00.310 --> 00:10:00.320 align:start position:0% perform computations due VAR things to 00:10:00.320 --> 00:10:02.150 align:start position:0% perform computations due VAR things to try<00:10:00.480> to<00:10:00.680> manipulate<00:10:01.200> validator<00:10:01.640> selection<00:10:02.040> in 00:10:02.150 --> 00:10:02.160 align:start position:0% try to manipulate validator selection in 00:10:02.160 --> 00:10:04.509 align:start position:0% try to manipulate validator selection in their<00:10:02.360> favor<00:10:03.320> so<00:10:03.600> if<00:10:03.800> let's<00:10:03.959> say<00:10:04.160> you<00:10:04.320> as<00:10:04.399> a 00:10:04.509 --> 00:10:04.519 align:start position:0% their favor so if let's say you as a 00:10:04.519 --> 00:10:06.630 align:start position:0% their favor so if let's say you as a validator<00:10:04.959> you<00:10:05.079> have<00:10:05.240> 1%<00:10:05.839> of<00:10:06.000> like<00:10:06.160> the<00:10:06.279> total 00:10:06.630 --> 00:10:06.640 align:start position:0% validator you have 1% of like the total 00:10:06.640 --> 00:10:09.030 align:start position:0% validator you have 1% of like the total AC<00:10:07.160> you<00:10:07.399> are<00:10:07.600> 1%<00:10:08.040> of<00:10:08.160> the<00:10:08.279> active<00:10:08.560> validator 00:10:09.030 --> 00:10:09.040 align:start position:0% AC you are 1% of the active validator 00:10:09.040 --> 00:10:10.910 align:start position:0% AC you are 1% of the active validator set<00:10:09.560> if<00:10:09.680> the<00:10:09.760> algorithm<00:10:10.240> is<00:10:10.399> fair<00:10:10.680> you<00:10:10.760> should 00:10:10.910 --> 00:10:10.920 align:start position:0% set if the algorithm is fair you should 00:10:10.920 --> 00:10:12.870 align:start position:0% set if the algorithm is fair you should be<00:10:11.040> creating<00:10:11.320> 1%<00:10:11.720> of<00:10:11.800> the<00:10:11.920> blocks<00:10:12.560> but<00:10:12.680> if<00:10:12.760> you 00:10:12.870 --> 00:10:12.880 align:start position:0% be creating 1% of the blocks but if you 00:10:12.880 --> 00:10:14.389 align:start position:0% be creating 1% of the blocks but if you can<00:10:13.040> manipulate<00:10:13.560> it<00:10:13.959> maybe<00:10:14.160> you<00:10:14.240> can 00:10:14.389 --> 00:10:14.399 align:start position:0% can manipulate it maybe you can 00:10:14.399 --> 00:10:15.829 align:start position:0% can manipulate it maybe you can manipulate<00:10:14.800> your<00:10:14.959> weight<00:10:15.279> to<00:10:15.480> like<00:10:15.600> getting 00:10:15.829 --> 00:10:15.839 align:start position:0% manipulate your weight to like getting 00:10:15.839 --> 00:10:18.590 align:start position:0% manipulate your weight to like getting 1.4%<00:10:16.640> of<00:10:16.760> the<00:10:16.880> blocks<00:10:17.600> and<00:10:17.760> if<00:10:17.839> you<00:10:18.120> can<00:10:18.360> do 00:10:18.590 --> 00:10:18.600 align:start position:0% 1.4% of the blocks and if you can do 00:10:18.600 --> 00:10:20.110 align:start position:0% 1.4% of the blocks and if you can do that<00:10:18.920> then<00:10:19.040> you<00:10:19.160> have<00:10:19.320> the<00:10:19.480> incentive<00:10:19.959> to 00:10:20.110 --> 00:10:20.120 align:start position:0% that then you have the incentive to 00:10:20.120 --> 00:10:22.990 align:start position:0% that then you have the incentive to spend<00:10:20.560> anywhere<00:10:21.040> up<00:10:21.160> to<00:10:21.560> 0.4%<00:10:22.560> of<00:10:22.680> the<00:10:22.800> total 00:10:22.990 --> 00:10:23.000 align:start position:0% spend anywhere up to 0.4% of the total 00:10:23.000 --> 00:10:24.509 align:start position:0% spend anywhere up to 0.4% of the total block<00:10:23.240> rewards<00:10:23.640> in<00:10:23.720> order<00:10:23.920> to<00:10:24.040> get<00:10:24.160> yourself 00:10:24.509 --> 00:10:24.519 align:start position:0% block rewards in order to get yourself 00:10:24.519 --> 00:10:26.829 align:start position:0% block rewards in order to get yourself that<00:10:24.680> privileged<00:10:25.160> position<00:10:26.160> so<00:10:26.360> here's<00:10:26.600> some 00:10:26.829 --> 00:10:26.839 align:start position:0% that privileged position so here's some 00:10:26.839 --> 00:10:29.829 align:start position:0% that privileged position so here's some examples<00:10:27.680> in<00:10:27.880> like<00:10:28.040> one<00:10:28.279> old<00:10:28.519> NXT<00:10:28.920> algorith 00:10:29.829 --> 00:10:29.839 align:start position:0% examples in like one old NXT algorith 00:10:29.839 --> 00:10:31.630 align:start position:0% examples in like one old NXT algorith validator<00:10:30.320> was<00:10:30.399> suud<00:10:30.800> randomly<00:10:31.200> sampled 00:10:31.630 --> 00:10:31.640 align:start position:0% validator was suud randomly sampled 00:10:31.640 --> 00:10:33.030 align:start position:0% validator was suud randomly sampled based<00:10:31.839> on<00:10:31.959> the<00:10:32.079> signature<00:10:32.519> of<00:10:32.600> the<00:10:32.720> current 00:10:33.030 --> 00:10:33.040 align:start position:0% based on the signature of the current 00:10:33.040 --> 00:10:34.870 align:start position:0% based on the signature of the current block<00:10:33.720> so<00:10:33.880> the<00:10:34.040> attack<00:10:34.320> Vector<00:10:34.640> there<00:10:34.760> is 00:10:34.870 --> 00:10:34.880 align:start position:0% block so the attack Vector there is 00:10:34.880 --> 00:10:36.110 align:start position:0% block so the attack Vector there is basically<00:10:35.200> to<00:10:35.360> just<00:10:35.519> grind<00:10:35.760> a<00:10:35.880> bunch<00:10:36.040> of 00:10:36.110 --> 00:10:36.120 align:start position:0% basically to just grind a bunch of 00:10:36.120 --> 00:10:37.910 align:start position:0% basically to just grind a bunch of signatur<00:10:36.760> until<00:10:36.959> you<00:10:37.040> find<00:10:37.279> one<00:10:37.399> that<00:10:37.519> favors 00:10:37.910 --> 00:10:37.920 align:start position:0% signatur until you find one that favors 00:10:37.920 --> 00:10:40.670 align:start position:0% signatur until you find one that favors you<00:10:38.760> in<00:10:38.959> other<00:10:39.680> in<00:10:39.800> some<00:10:40.040> other<00:10:40.240> older<00:10:40.519> proof 00:10:40.670 --> 00:10:40.680 align:start position:0% you in other in some other older proof 00:10:40.680 --> 00:10:42.949 align:start position:0% you in other in some other older proof of<00:10:40.839> stake<00:10:41.120> algorithms<00:10:42.120> the<00:10:42.279> incentive<00:10:42.760> was 00:10:42.949 --> 00:10:42.959 align:start position:0% of stake algorithms the incentive was 00:10:42.959 --> 00:10:45.069 align:start position:0% of stake algorithms the incentive was actually<00:10:43.240> to<00:10:43.480> find<00:10:43.800> a<00:10:44.000> favorable<00:10:44.639> address<00:10:44.959> to 00:10:45.069 --> 00:10:45.079 align:start position:0% actually to find a favorable address to 00:10:45.079 --> 00:10:47.550 align:start position:0% actually to find a favorable address to move<00:10:45.320> your<00:10:45.480> coins<00:10:45.800> to<00:10:46.399> so<00:10:46.560> you<00:10:46.680> can<00:10:47.040> figure<00:10:47.320> out 00:10:47.550 --> 00:10:47.560 align:start position:0% move your coins to so you can figure out 00:10:47.560 --> 00:10:49.430 align:start position:0% move your coins to so you can figure out which<00:10:47.760> address<00:10:48.000> you<00:10:48.120> can<00:10:48.240> move<00:10:48.399> your<00:10:48.560> coins<00:10:48.839> to 00:10:49.430 --> 00:10:49.440 align:start position:0% which address you can move your coins to 00:10:49.440 --> 00:10:51.590 align:start position:0% which address you can move your coins to you<00:10:49.519> know<00:10:50.480> where<00:10:50.839> that<00:10:51.000> address<00:10:51.320> would<00:10:51.480> get 00:10:51.590 --> 00:10:51.600 align:start position:0% you know where that address would get 00:10:51.600 --> 00:10:53.350 align:start position:0% you know where that address would get assigned<00:10:51.880> to<00:10:52.000> block<00:10:52.240> fairly<00:10:52.600> soon<00:10:52.959> move<00:10:53.160> your 00:10:53.350 --> 00:10:53.360 align:start position:0% assigned to block fairly soon move your 00:10:53.360 --> 00:10:56.230 align:start position:0% assigned to block fairly soon move your coins<00:10:53.639> to<00:10:53.800> it<00:10:54.279> get<00:10:54.680> then<00:10:54.959> get<00:10:55.480> make<00:10:55.680> the<00:10:55.800> block 00:10:56.230 --> 00:10:56.240 align:start position:0% coins to it get then get make the block 00:10:56.240 --> 00:10:57.509 align:start position:0% coins to it get then get make the block and<00:10:56.360> then<00:10:56.480> immediately<00:10:56.839> move<00:10:57.040> your<00:10:57.200> coins<00:10:57.399> to 00:10:57.509 --> 00:10:57.519 align:start position:0% and then immediately move your coins to 00:10:57.519 --> 00:10:59.750 align:start position:0% and then immediately move your coins to another<00:10:57.760> favorable<00:10:58.200> address<00:10:58.519> and<00:10:58.680> so<00:10:58.839> forth 00:10:59.750 --> 00:10:59.760 align:start position:0% another favorable address and so forth 00:10:59.760 --> 00:11:03.430 align:start position:0% another favorable address and so forth so<00:11:00.760> these<00:11:01.440> issues<00:11:02.040> are 00:11:03.430 --> 00:11:03.440 align:start position:0% so these issues are 00:11:03.440 --> 00:11:06.230 align:start position:0% so these issues are fixable<00:11:04.440> so<00:11:04.880> for<00:11:05.120> example<00:11:05.600> the<00:11:05.800> address 00:11:06.230 --> 00:11:06.240 align:start position:0% fixable so for example the address 00:11:06.240 --> 00:11:08.110 align:start position:0% fixable so for example the address moving<00:11:06.560> issue<00:11:06.839> we<00:11:07.000> fixed<00:11:07.320> by<00:11:07.480> just<00:11:07.639> requiring 00:11:08.110 --> 00:11:08.120 align:start position:0% moving issue we fixed by just requiring 00:11:08.120 --> 00:11:09.670 align:start position:0% moving issue we fixed by just requiring people<00:11:08.360> to<00:11:08.560> kind<00:11:08.680> of<00:11:08.839> deposit<00:11:09.240> their<00:11:09.360> ether 00:11:09.670 --> 00:11:09.680 align:start position:0% people to kind of deposit their ether 00:11:09.680 --> 00:11:12.150 align:start position:0% people to kind of deposit their ether well<00:11:09.880> in<00:11:10.040> advance<00:11:10.920> and<00:11:11.519> by<00:11:11.680> kind<00:11:11.800> of<00:11:11.959> having 00:11:12.150 --> 00:11:12.160 align:start position:0% well in advance and by kind of having 00:11:12.160 --> 00:11:14.110 align:start position:0% well in advance and by kind of having this<00:11:12.320> sort<00:11:12.480> of<00:11:12.600> long<00:11:12.800> lockup<00:11:13.200> period<00:11:13.839> and<00:11:14.000> the 00:11:14.110 --> 00:11:14.120 align:start position:0% this sort of long lockup period and the 00:11:14.120 --> 00:11:15.670 align:start position:0% this sort of long lockup period and the long<00:11:14.320> withdrawal<00:11:14.800> period<00:11:15.079> so<00:11:15.200> you<00:11:15.360> can't<00:11:15.519> just 00:11:15.670 --> 00:11:15.680 align:start position:0% long withdrawal period so you can't just 00:11:15.680 --> 00:11:18.550 align:start position:0% long withdrawal period so you can't just like<00:11:15.800> move<00:11:16.000> coins<00:11:16.320> around<00:11:16.920> quickly<00:11:17.920> so<00:11:18.360> the 00:11:18.550 --> 00:11:18.560 align:start position:0% like move coins around quickly so the 00:11:18.560 --> 00:11:21.670 align:start position:0% like move coins around quickly so the other<00:11:18.959> problems<00:11:19.639> are<00:11:20.040> solved<00:11:20.560> by<00:11:20.760> basically 00:11:21.670 --> 00:11:21.680 align:start position:0% other problems are solved by basically 00:11:21.680 --> 00:11:25.470 align:start position:0% other problems are solved by basically having<00:11:22.079> a<00:11:22.720> kind<00:11:23.160> of<00:11:24.160> by<00:11:24.399> having<00:11:24.760> a<00:11:24.959> validator 00:11:25.470 --> 00:11:25.480 align:start position:0% having a kind of by having a validator 00:11:25.480 --> 00:11:27.790 align:start position:0% having a kind of by having a validator selection<00:11:25.920> algorithm<00:11:26.519> that<00:11:26.720> actually<00:11:27.560> is 00:11:27.790 --> 00:11:27.800 align:start position:0% selection algorithm that actually is 00:11:27.800 --> 00:11:30.829 align:start position:0% selection algorithm that actually is fairly<00:11:28.160> economically<00:11:28.760> robust<00:11:29.680> so<00:11:30.279> in<00:11:30.440> general 00:11:30.829 --> 00:11:30.839 align:start position:0% fairly economically robust so in general 00:11:30.839 --> 00:11:32.629 align:start position:0% fairly economically robust so in general this<00:11:31.000> problem<00:11:31.320> actually<00:11:31.560> is<00:11:31.760> solvable<00:11:32.399> so<00:11:32.519> you 00:11:32.629 --> 00:11:32.639 align:start position:0% this problem actually is solvable so you 00:11:32.639 --> 00:11:33.990 align:start position:0% this problem actually is solvable so you might<00:11:32.839> hear<00:11:33.040> arguments<00:11:33.480> that<00:11:33.639> say<00:11:33.800> things 00:11:33.990 --> 00:11:34.000 align:start position:0% might hear arguments that say things 00:11:34.000 --> 00:11:35.550 align:start position:0% might hear arguments that say things like<00:11:34.120> marginal<00:11:34.560> cost<00:11:34.760> approaches<00:11:35.200> marginal 00:11:35.550 --> 00:11:35.560 align:start position:0% like marginal cost approaches marginal 00:11:35.560 --> 00:11:37.790 align:start position:0% like marginal cost approaches marginal revenue<00:11:35.920> or<00:11:36.079> whatever<00:11:36.560> but<00:11:37.160> the<00:11:37.360> point 00:11:37.790 --> 00:11:37.800 align:start position:0% revenue or whatever but the point 00:11:37.800 --> 00:11:39.389 align:start position:0% revenue or whatever but the point there's<00:11:38.040> several<00:11:38.440> different<00:11:38.720> caveats<00:11:39.200> to 00:11:39.389 --> 00:11:39.399 align:start position:0% there's several different caveats to 00:11:39.399 --> 00:11:41.550 align:start position:0% there's several different caveats to this<00:11:39.839> the<00:11:40.000> most<00:11:40.200> important<00:11:40.600> one<00:11:40.880> is<00:11:41.120> that<00:11:41.399> it's 00:11:41.550 --> 00:11:41.560 align:start position:0% this the most important one is that it's 00:11:41.560 --> 00:11:43.550 align:start position:0% this the most important one is that it's not<00:11:41.800> enough<00:11:42.040> to<00:11:42.279> say<00:11:42.680> that<00:11:43.040> if<00:11:43.160> you<00:11:43.320> can't 00:11:43.550 --> 00:11:43.560 align:start position:0% not enough to say that if you can't 00:11:43.560 --> 00:11:45.750 align:start position:0% not enough to say that if you can't exploit<00:11:43.920> it<00:11:44.079> people<00:11:44.320> will<00:11:45.040> you<00:11:45.399> you<00:11:45.519> have<00:11:45.639> to 00:11:45.750 --> 00:11:45.760 align:start position:0% exploit it people will you you have to 00:11:45.760 --> 00:11:47.710 align:start position:0% exploit it people will you you have to show<00:11:46.120> that<00:11:46.399> the<00:11:46.480> algorithm<00:11:47.000> actually<00:11:47.240> can<00:11:47.440> be 00:11:47.710 --> 00:11:47.720 align:start position:0% show that the algorithm actually can be 00:11:47.720 --> 00:11:50.069 align:start position:0% show that the algorithm actually can be exploited<00:11:48.720> so<00:11:49.000> the<00:11:49.160> arguments<00:11:49.600> that<00:11:49.760> I<00:11:49.880> can 00:11:50.069 --> 00:11:50.079 align:start position:0% exploited so the arguments that I can 00:11:50.079 --> 00:11:53.069 align:start position:0% exploited so the arguments that I can make<00:11:50.399> is<00:11:51.079> we<00:11:51.399> have<00:11:51.639> this<00:11:51.880> approach<00:11:52.440> where 00:11:53.069 --> 00:11:53.079 align:start position:0% make is we have this approach where 00:11:53.079 --> 00:11:55.350 align:start position:0% make is we have this approach where basically<00:11:53.600> the<00:11:53.760> random<00:11:54.120> number<00:11:54.399> generation 00:11:55.350 --> 00:11:55.360 align:start position:0% basically the random number generation 00:11:55.360 --> 00:11:58.750 align:start position:0% basically the random number generation is<00:11:56.000> for<00:11:56.200> validator<00:11:56.760> selection<00:11:57.639> is<00:11:57.920> based<00:11:58.200> on 00:11:58.750 --> 00:11:58.760 align:start position:0% is for validator selection is based on 00:11:58.760 --> 00:12:00.710 align:start position:0% is for validator selection is based on information<00:11:59.399> that's<00:11:59.560> not<00:11:59.720> yet<00:11:59.839> AV 00:12:00.710 --> 00:12:00.720 align:start position:0% information that's not yet AV 00:12:00.720 --> 00:12:02.069 align:start position:0% information that's not yet AV information<00:12:01.200> that<00:12:01.360> validators<00:12:01.880> have 00:12:02.069 --> 00:12:02.079 align:start position:0% information that validators have 00:12:02.079 --> 00:12:06.030 align:start position:0% information that validators have committed<00:12:02.560> toally<00:12:03.560> submit<00:12:04.000> the<00:12:04.160> hash<00:12:05.079> but<00:12:05.920> the 00:12:06.030 --> 00:12:06.040 align:start position:0% committed toally submit the hash but the 00:12:06.040 --> 00:12:07.710 align:start position:0% committed toally submit the hash but the validators<00:12:06.560> reveal<00:12:06.880> the<00:12:07.000> information<00:12:07.519> while 00:12:07.710 --> 00:12:07.720 align:start position:0% validators reveal the information while 00:12:07.720 --> 00:12:09.230 align:start position:0% validators reveal the information while creating<00:12:08.000> a<00:12:08.120> block<00:12:08.519> while<00:12:08.720> creating<00:12:09.040> their 00:12:09.230 --> 00:12:09.240 align:start position:0% creating a block while creating their 00:12:09.240 --> 00:12:12.629 align:start position:0% creating a block while creating their block<00:12:10.200> so<00:12:10.440> block<00:12:10.720> n<00:12:11.279> contains<00:12:12.040> basically<00:12:12.480> I 00:12:12.629 --> 00:12:12.639 align:start position:0% block so block n contains basically I 00:12:12.639 --> 00:12:14.509 align:start position:0% block so block n contains basically I see<00:12:13.199> contains<00:12:13.639> this<00:12:13.800> random<00:12:14.120> number<00:12:14.399> that 00:12:14.509 --> 00:12:14.519 align:start position:0% see contains this random number that 00:12:14.519 --> 00:12:16.389 align:start position:0% see contains this random number that gets<00:12:14.720> revealed<00:12:15.399> this<00:12:15.600> random<00:12:15.920> number<00:12:16.199> can 00:12:16.389 --> 00:12:16.399 align:start position:0% gets revealed this random number can 00:12:16.399 --> 00:12:18.110 align:start position:0% gets revealed this random number can only<00:12:16.639> be<00:12:16.839> one<00:12:17.040> particular<00:12:17.480> thing<00:12:17.680> there's<00:12:17.920> no 00:12:18.110 --> 00:12:18.120 align:start position:0% only be one particular thing there's no 00:12:18.120 --> 00:12:19.430 align:start position:0% only be one particular thing there's no choice<00:12:18.360> about<00:12:18.519> which<00:12:18.680> number<00:12:18.839> you<00:12:19.000> reveal 00:12:19.430 --> 00:12:19.440 align:start position:0% choice about which number you reveal 00:12:19.440 --> 00:12:20.790 align:start position:0% choice about which number you reveal because<00:12:19.600> it<00:12:19.720> gets<00:12:19.880> checked<00:12:20.240> against 00:12:20.790 --> 00:12:20.800 align:start position:0% because it gets checked against 00:12:20.800 --> 00:12:21.990 align:start position:0% because it gets checked against something<00:12:21.079> else<00:12:21.240> that<00:12:21.320> you<00:12:21.440> submitted 00:12:21.990 --> 00:12:22.000 align:start position:0% something else that you submitted 00:12:22.000 --> 00:12:24.389 align:start position:0% something else that you submitted previously<00:12:23.000> but<00:12:23.519> once<00:12:23.680> you<00:12:23.839> submit<00:12:24.199> that 00:12:24.389 --> 00:12:24.399 align:start position:0% previously but once you submit that 00:12:24.399 --> 00:12:26.829 align:start position:0% previously but once you submit that value<00:12:25.399> then<00:12:25.959> that<00:12:26.120> becomes<00:12:26.399> a<00:12:26.519> source<00:12:26.720> of 00:12:26.829 --> 00:12:26.839 align:start position:0% value then that becomes a source of 00:12:26.839 --> 00:12:29.230 align:start position:0% value then that becomes a source of Randomness<00:12:27.240> for<00:12:27.360> the<00:12:27.480> next<00:12:27.680> block<00:12:28.240> and<00:12:28.440> then 00:12:29.230 --> 00:12:29.240 align:start position:0% Randomness for the next block and then 00:12:29.240 --> 00:12:30.470 align:start position:0% Randomness for the next block and then whoever<00:12:29.519> creates<00:12:29.800> the<00:12:29.920> next<00:12:30.079> block<00:12:30.320> is<00:12:30.399> going 00:12:30.470 --> 00:12:30.480 align:start position:0% whoever creates the next block is going 00:12:30.480 --> 00:12:31.710 align:start position:0% whoever creates the next block is going to<00:12:30.560> reveal<00:12:30.839> their<00:12:31.040> value<00:12:31.320> that's<00:12:31.440> the<00:12:31.519> source 00:12:31.710 --> 00:12:31.720 align:start position:0% to reveal their value that's the source 00:12:31.720 --> 00:12:33.189 align:start position:0% to reveal their value that's the source of<00:12:31.800> Randomness<00:12:32.199> for<00:12:32.320> the<00:12:32.440> next<00:12:32.600> block<00:12:32.880> and<00:12:33.000> so 00:12:33.189 --> 00:12:33.199 align:start position:0% of Randomness for the next block and so 00:12:33.199 --> 00:12:36.310 align:start position:0% of Randomness for the next block and so forth<00:12:34.079> so<00:12:34.639> the<00:12:34.760> argument<00:12:35.240> here<00:12:35.480> is<00:12:36.000> yes<00:12:36.160> you 00:12:36.310 --> 00:12:36.320 align:start position:0% forth so the argument here is yes you 00:12:36.320 --> 00:12:38.030 align:start position:0% forth so the argument here is yes you can<00:12:36.519> manipulate<00:12:37.000> it<00:12:37.399> but<00:12:37.519> there's<00:12:37.680> two<00:12:37.839> ways 00:12:38.030 --> 00:12:38.040 align:start position:0% can manipulate it but there's two ways 00:12:38.040 --> 00:12:40.350 align:start position:0% can manipulate it but there's two ways to<00:12:38.160> manipulate<00:12:38.639> it<00:12:39.120> one<00:12:39.240> of<00:12:39.399> them<00:12:39.639> is<00:12:40.079> well<00:12:40.240> you 00:12:40.350 --> 00:12:40.360 align:start position:0% to manipulate it one of them is well you 00:12:40.360 --> 00:12:41.629 align:start position:0% to manipulate it one of them is well you try<00:12:40.560> to<00:12:40.760> like<00:12:40.880> manipulate<00:12:41.399> what<00:12:41.480> your 00:12:41.629 --> 00:12:41.639 align:start position:0% try to like manipulate what your 00:12:41.639 --> 00:12:43.870 align:start position:0% try to like manipulate what your original<00:12:42.040> commitments<00:12:42.519> are<00:12:43.079> the<00:12:43.240> problem<00:12:43.600> is 00:12:43.870 --> 00:12:43.880 align:start position:0% original commitments are the problem is 00:12:43.880 --> 00:12:46.310 align:start position:0% original commitments are the problem is that<00:12:44.360> the<00:12:45.240> when<00:12:45.360> you're<00:12:45.720> choosing<00:12:46.120> what<00:12:46.199> your 00:12:46.310 --> 00:12:46.320 align:start position:0% that the when you're choosing what your 00:12:46.320 --> 00:12:48.269 align:start position:0% that the when you're choosing what your original<00:12:46.680> commitments<00:12:47.160> are<00:12:47.600> it's<00:12:47.839> like<00:12:48.000> so 00:12:48.269 --> 00:12:48.279 align:start position:0% original commitments are it's like so 00:12:48.279 --> 00:12:50.509 align:start position:0% original commitments are it's like so far<00:12:48.600> back<00:12:49.120> and<00:12:49.279> the<00:12:49.440> validator<00:12:50.040> selection<00:12:50.399> is 00:12:50.509 --> 00:12:50.519 align:start position:0% far back and the validator selection is 00:12:50.519 --> 00:12:51.870 align:start position:0% far back and the validator selection is going<00:12:50.600> to<00:12:50.639> be<00:12:50.760> based<00:12:51.000> on<00:12:51.160> so<00:12:51.320> much<00:12:51.519> future 00:12:51.870 --> 00:12:51.880 align:start position:0% going to be based on so much future 00:12:51.880 --> 00:12:53.829 align:start position:0% going to be based on so much future entropy<00:12:52.560> that<00:12:52.680> you<00:12:52.800> have<00:12:53.000> no<00:12:53.240> way<00:12:53.399> of<00:12:53.519> kind<00:12:53.639> of 00:12:53.829 --> 00:12:53.839 align:start position:0% entropy that you have no way of kind of 00:12:53.839 --> 00:12:55.590 align:start position:0% entropy that you have no way of kind of predicting<00:12:54.560> sort<00:12:54.720> of<00:12:54.920> which<00:12:55.120> direction<00:12:55.440> of 00:12:55.590 --> 00:12:55.600 align:start position:0% predicting sort of which direction of 00:12:55.600 --> 00:12:56.870 align:start position:0% predicting sort of which direction of manipulation<00:12:56.160> is<00:12:56.279> going<00:12:56.360> to<00:12:56.480> be<00:12:56.560> in<00:12:56.680> your 00:12:56.870 --> 00:12:56.880 align:start position:0% manipulation is going to be in your 00:12:56.880 --> 00:12:58.949 align:start position:0% manipulation is going to be in your favor<00:12:57.880> the<00:12:58.000> other<00:12:58.199> way<00:12:58.320> you<00:12:58.399> can<00:12:58.519> manipulate 00:12:58.949 --> 00:12:58.959 align:start position:0% favor the other way you can manipulate 00:12:58.959 --> 00:13:01.030 align:start position:0% favor the other way you can manipulate it<00:12:59.240> is<00:12:59.399> by<00:12:59.519> not<00:12:59.680> producing<00:13:00.040> a<00:13:00.160> block<00:13:00.720> so<00:13:00.880> you 00:13:01.030 --> 00:13:01.040 align:start position:0% it is by not producing a block so you 00:13:01.040 --> 00:13:02.509 align:start position:0% it is by not producing a block so you get<00:13:01.199> the<00:13:01.320> chance<00:13:01.560> to<00:13:01.680> produce<00:13:01.959> a<00:13:02.079> block<00:13:02.399> but 00:13:02.509 --> 00:13:02.519 align:start position:0% get the chance to produce a block but 00:13:02.519 --> 00:13:04.790 align:start position:0% get the chance to produce a block but then<00:13:02.639> you<00:13:02.760> see<00:13:03.440> oh<00:13:03.760> well<00:13:04.120> I<00:13:04.240> might<00:13:04.440> produce<00:13:04.680> a 00:13:04.790 --> 00:13:04.800 align:start position:0% then you see oh well I might produce a 00:13:04.800 --> 00:13:06.189 align:start position:0% then you see oh well I might produce a block<00:13:05.079> but<00:13:05.160> I<00:13:05.279> might<00:13:05.440> not<00:13:05.639> produce<00:13:05.880> a<00:13:06.000> block 00:13:06.189 --> 00:13:06.199 align:start position:0% block but I might not produce a block 00:13:06.199 --> 00:13:08.310 align:start position:0% block but I might not produce a block and<00:13:06.279> that<00:13:06.399> will<00:13:06.519> benefit<00:13:06.880> me<00:13:07.519> but<00:13:07.639> the<00:13:07.800> problem 00:13:08.310 --> 00:13:08.320 align:start position:0% and that will benefit me but the problem 00:13:08.320 --> 00:13:10.590 align:start position:0% and that will benefit me but the problem is<00:13:08.760> that<00:13:08.920> that<00:13:09.040> has<00:13:09.160> a<00:13:09.399> cost<00:13:10.040> and<00:13:10.160> the<00:13:10.320> cost 00:13:10.590 --> 00:13:10.600 align:start position:0% is that that has a cost and the cost 00:13:10.600 --> 00:13:12.150 align:start position:0% is that that has a cost and the cost basically<00:13:11.000> is<00:13:11.160> if<00:13:11.240> you<00:13:11.360> do<00:13:11.519> produce<00:13:11.800> a<00:13:11.920> block 00:13:12.150 --> 00:13:12.160 align:start position:0% basically is if you do produce a block 00:13:12.160 --> 00:13:13.590 align:start position:0% basically is if you do produce a block you<00:13:12.240> get<00:13:12.360> the<00:13:12.480> block<00:13:12.720> reward<00:13:13.240> if<00:13:13.320> you<00:13:13.440> don't 00:13:13.590 --> 00:13:13.600 align:start position:0% you get the block reward if you don't 00:13:13.600 --> 00:13:15.269 align:start position:0% you get the block reward if you don't produce<00:13:13.880> a<00:13:14.000> block<00:13:14.600> then<00:13:14.720> you<00:13:14.839> don't<00:13:15.000> get<00:13:15.160> the 00:13:15.269 --> 00:13:15.279 align:start position:0% produce a block then you don't get the 00:13:15.279 --> 00:13:17.430 align:start position:0% produce a block then you don't get the block<00:13:15.519> reward<00:13:16.399> so<00:13:16.760> the<00:13:16.959> number<00:13:17.240> of 00:13:17.430 --> 00:13:17.440 align:start position:0% block reward so the number of 00:13:17.440 --> 00:13:19.150 align:start position:0% block reward so the number of opportunities<00:13:18.199> where<00:13:18.399> manipulation 00:13:19.150 --> 00:13:19.160 align:start position:0% opportunities where manipulation 00:13:19.160 --> 00:13:21.030 align:start position:0% opportunities where manipulation actually<00:13:19.800> is<00:13:20.040> more<00:13:20.279> profitable<00:13:20.720> than<00:13:20.839> the 00:13:21.030 --> 00:13:21.040 align:start position:0% actually is more profitable than the 00:13:21.040 --> 00:13:24.550 align:start position:0% actually is more profitable than the cost<00:13:21.320> is<00:13:21.560> very<00:13:22.000> small 00:13:24.550 --> 00:13:24.560 align:start position:0% cost is very small 00:13:24.560 --> 00:13:26.829 align:start position:0% cost is very small so<00:13:25.560> another<00:13:25.920> problem<00:13:26.240> is<00:13:26.440> let's<00:13:26.600> say<00:13:26.720> we 00:13:26.829 --> 00:13:26.839 align:start position:0% so another problem is let's say we 00:13:26.839 --> 00:13:28.189 align:start position:0% so another problem is let's say we select<00:13:27.079> a<00:13:27.240> validator<00:13:27.839> let's<00:13:27.959> say<00:13:28.079> the 00:13:28.189 --> 00:13:28.199 align:start position:0% select a validator let's say the 00:13:28.199 --> 00:13:29.910 align:start position:0% select a validator let's say the validator<00:13:28.600> is<00:13:28.720> not<00:13:28.880> present 00:13:29.910 --> 00:13:29.920 align:start position:0% validator is not present 00:13:29.920 --> 00:13:31.949 align:start position:0% validator is not present so<00:13:30.800> what<00:13:30.920> do<00:13:31.000> we<00:13:31.160> do<00:13:31.399> well<00:13:31.519> obviously<00:13:31.880> the 00:13:31.949 --> 00:13:31.959 align:start position:0% so what do we do well obviously the 00:13:31.959 --> 00:13:33.750 align:start position:0% so what do we do well obviously the blockchain<00:13:32.360> can<00:13:32.519> just<00:13:32.680> stall<00:13:33.199> and<00:13:33.360> we<00:13:33.440> can<00:13:33.560> all 00:13:33.750 --> 00:13:33.760 align:start position:0% blockchain can just stall and we can all 00:13:33.760 --> 00:13:37.710 align:start position:0% blockchain can just stall and we can all go<00:13:33.920> home<00:13:34.519> right<00:13:35.480> okay<00:13:35.800> the's<00:13:36.320> done<00:13:37.320> go<00:13:37.480> back<00:13:37.600> to 00:13:37.710 --> 00:13:37.720 align:start position:0% go home right okay the's done go back to 00:13:37.720 --> 00:13:40.629 align:start position:0% go home right okay the's done go back to ethereum 00:13:40.629 --> 00:13:40.639 align:start position:0% 00:13:40.639 --> 00:13:43.350 align:start position:0% Classic<00:13:41.639> so<00:13:42.079> what<00:13:42.160> we<00:13:42.320> do<00:13:42.560> instead<00:13:43.040> is<00:13:43.199> we 00:13:43.350 --> 00:13:43.360 align:start position:0% Classic so what we do instead is we 00:13:43.360 --> 00:13:45.269 align:start position:0% Classic so what we do instead is we basic<00:13:43.680> instead<00:13:43.880> of<00:13:44.000> selecting<00:13:44.399> one<00:13:44.600> validator 00:13:45.269 --> 00:13:45.279 align:start position:0% basic instead of selecting one validator 00:13:45.279 --> 00:13:47.430 align:start position:0% basic instead of selecting one validator we<00:13:45.440> select<00:13:45.720> the<00:13:45.839> sequence<00:13:46.120> of<00:13:46.279> validators<00:13:47.160> so 00:13:47.430 --> 00:13:47.440 align:start position:0% we select the sequence of validators so 00:13:47.440 --> 00:13:48.949 align:start position:0% we select the sequence of validators so basically<00:13:47.839> we<00:13:48.000> select<00:13:48.360> like<00:13:48.480> an<00:13:48.600> infinite 00:13:48.949 --> 00:13:48.959 align:start position:0% basically we select like an infinite 00:13:48.959 --> 00:13:50.990 align:start position:0% basically we select like an infinite sequence<00:13:49.480> where<00:13:49.839> if<00:13:50.000> validator<00:13:50.480> zero<00:13:50.759> doesn't 00:13:50.990 --> 00:13:51.000 align:start position:0% sequence where if validator zero doesn't 00:13:51.000 --> 00:13:53.990 align:start position:0% sequence where if validator zero doesn't show<00:13:51.279> up<00:13:51.880> then<00:13:52.160> say<00:13:52.680> then<00:13:53.000> after<00:13:53.320> some<00:13:53.519> point 00:13:53.990 --> 00:13:54.000 align:start position:0% show up then say then after some point 00:13:54.000 --> 00:13:55.629 align:start position:0% show up then say then after some point point<00:13:54.199> in<00:13:54.399> time<00:13:54.639> validator<00:13:55.040> one<00:13:55.240> can<00:13:55.360> create<00:13:55.560> a 00:13:55.629 --> 00:13:55.639 align:start position:0% point in time validator one can create a 00:13:55.639 --> 00:13:57.550 align:start position:0% point in time validator one can create a block<00:13:56.120> if<00:13:56.279> validator<00:13:56.680> one<00:13:56.839> also<00:13:57.040> is<00:13:57.199> offline 00:13:57.550 --> 00:13:57.560 align:start position:0% block if validator one also is offline 00:13:57.560 --> 00:13:59.230 align:start position:0% block if validator one also is offline then<00:13:57.680> validator<00:13:58.079> 2<00:13:58.279> can<00:13:58.399> create<00:13:58.600> a<00:13:58.680> block<00:13:59.120> and 00:13:59.230 --> 00:13:59.240 align:start position:0% then validator 2 can create a block and 00:13:59.240 --> 00:14:02.069 align:start position:0% then validator 2 can create a block and so<00:13:59.399> forth<00:14:00.320> so<00:14:01.040> this<00:14:01.160> is<00:14:01.360> actually<00:14:01.639> fairly 00:14:02.069 --> 00:14:02.079 align:start position:0% so forth so this is actually fairly 00:14:02.079 --> 00:14:03.990 align:start position:0% so forth so this is actually fairly standard<00:14:02.480> so<00:14:02.639> like<00:14:02.800> NXT<00:14:03.279> works<00:14:03.600> this<00:14:03.720> way<00:14:03.920> a 00:14:03.990 --> 00:14:04.000 align:start position:0% standard so like NXT works this way a 00:14:04.000 --> 00:14:05.030 align:start position:0% standard so like NXT works this way a lot<00:14:04.120> of<00:14:04.240> existing<00:14:04.519> proof<00:14:04.720> of<00:14:04.839> stake 00:14:05.030 --> 00:14:05.040 align:start position:0% lot of existing proof of stake 00:14:05.040 --> 00:14:07.110 align:start position:0% lot of existing proof of stake algorithms<00:14:05.519> work<00:14:05.759> this<00:14:05.920> way<00:14:06.360> so<00:14:06.519> this<00:14:06.639> is<00:14:06.800> not 00:14:07.110 --> 00:14:07.120 align:start position:0% algorithms work this way so this is not 00:14:07.120 --> 00:14:09.949 align:start position:0% algorithms work this way so this is not particularly<00:14:07.680> novel<00:14:08.320> and<00:14:09.120> generally<00:14:09.600> sort<00:14:09.759> of 00:14:09.949 --> 00:14:09.959 align:start position:0% particularly novel and generally sort of 00:14:09.959 --> 00:14:11.350 align:start position:0% particularly novel and generally sort of is<00:14:10.160> the<00:14:10.320> standard<00:14:10.680> way<00:14:10.839> that<00:14:10.959> the<00:14:11.040> sort<00:14:11.199> of 00:14:11.350 --> 00:14:11.360 align:start position:0% is the standard way that the sort of 00:14:11.360 --> 00:14:13.870 align:start position:0% is the standard way that the sort of stuff<00:14:11.519> is<00:14:11.680> done<00:14:12.519> in<00:14:12.680> my<00:14:12.839> opinion<00:14:13.240> there<00:14:13.399> are 00:14:13.870 --> 00:14:13.880 align:start position:0% stuff is done in my opinion there are 00:14:13.880 --> 00:14:16.470 align:start position:0% stuff is done in my opinion there are some<00:14:14.639> sort<00:14:14.839> of<00:14:15.279> incentive<00:14:15.800> issues<00:14:16.199> that 00:14:16.470 --> 00:14:16.480 align:start position:0% some sort of incentive issues that 00:14:16.480 --> 00:14:17.829 align:start position:0% some sort of incentive issues that remain<00:14:16.720> that<00:14:16.839> should<00:14:17.000> be<00:14:17.160> researched<00:14:17.639> more 00:14:17.829 --> 00:14:17.839 align:start position:0% remain that should be researched more 00:14:17.839 --> 00:14:19.269 align:start position:0% remain that should be researched more regarding<00:14:18.240> whether<00:14:18.399> or<00:14:18.560> not<00:14:18.720> sort<00:14:18.839> of<00:14:19.000> timing 00:14:19.269 --> 00:14:19.279 align:start position:0% regarding whether or not sort of timing 00:14:19.279 --> 00:14:21.910 align:start position:0% regarding whether or not sort of timing is<00:14:19.440> incentive<00:14:19.880> compatible<00:14:20.880> but<00:14:21.160> in<00:14:21.399> general 00:14:21.910 --> 00:14:21.920 align:start position:0% is incentive compatible but in general 00:14:21.920 --> 00:14:23.269 align:start position:0% is incentive compatible but in general this<00:14:22.480> at 00:14:23.269 --> 00:14:23.279 align:start position:0% this at 00:14:23.279 --> 00:14:25.710 align:start position:0% this at least<00:14:24.279> in<00:14:24.519> practice<00:14:24.839> this<00:14:25.000> has<00:14:25.120> worked<00:14:25.360> fairly 00:14:25.710 --> 00:14:25.720 align:start position:0% least in practice this has worked fairly 00:14:25.720 --> 00:14:28.749 align:start position:0% least in practice this has worked fairly well<00:14:26.519> so<00:14:27.519> next<00:14:27.920> next<00:14:28.079> Point<00:14:28.320> let's<00:14:28.480> talk<00:14:28.639> about 00:14:28.749 --> 00:14:28.759 align:start position:0% well so next next Point let's talk about 00:14:28.759 --> 00:14:31.749 align:start position:0% well so next next Point let's talk about nothing<00:14:29.440> at<00:14:30.440> so<00:14:30.759> nothing<00:14:31.040> at<00:14:31.199> stake<00:14:31.440> is<00:14:31.600> this 00:14:31.749 --> 00:14:31.759 align:start position:0% nothing at so nothing at stake is this 00:14:31.759 --> 00:14:33.110 align:start position:0% nothing at so nothing at stake is this other<00:14:31.959> reason<00:14:32.279> why<00:14:32.440> proof<00:14:32.639> of<00:14:32.759> stake<00:14:33.000> is 00:14:33.110 --> 00:14:33.120 align:start position:0% other reason why proof of stake is 00:14:33.120 --> 00:14:35.350 align:start position:0% other reason why proof of stake is terrible<00:14:33.480> and<00:14:33.560> can<00:14:33.680> never<00:14:33.920> never<00:14:34.199> work<00:14:35.120> which 00:14:35.350 --> 00:14:35.360 align:start position:0% terrible and can never never work which 00:14:35.360 --> 00:14:36.470 align:start position:0% terrible and can never never work which why<00:14:35.480> we<00:14:35.560> should<00:14:35.759> just<00:14:35.920> like<00:14:36.040> give<00:14:36.160> up<00:14:36.279> and<00:14:36.399> go 00:14:36.470 --> 00:14:36.480 align:start position:0% why we should just like give up and go 00:14:36.480 --> 00:14:40.150 align:start position:0% why we should just like give up and go back<00:14:36.600> to<00:14:36.720> proof<00:14:36.880> of 00:14:40.150 --> 00:14:40.160 align:start position:0% 00:14:40.160 --> 00:14:44.150 align:start position:0% work<00:14:41.160> no<00:14:41.519> um<00:14:42.040> so<00:14:43.040> basically<00:14:43.519> here's<00:14:43.920> here's 00:14:44.150 --> 00:14:44.160 align:start position:0% work no um so basically here's here's 00:14:44.160 --> 00:14:47.550 align:start position:0% work no um so basically here's here's the<00:14:44.360> problem<00:14:45.079> so<00:14:45.279> in<00:14:45.399> the<00:14:45.519> normal<00:14:46.320> case<00:14:47.320> you 00:14:47.550 --> 00:14:47.560 align:start position:0% the problem so in the normal case you 00:14:47.560 --> 00:14:49.910 align:start position:0% the problem so in the normal case you have<00:14:47.880> you<00:14:48.160> as<00:14:48.240> a<00:14:48.399> minor<00:14:48.759> have<00:14:48.920> four<00:14:49.199> choices 00:14:49.910 --> 00:14:49.920 align:start position:0% have you as a minor have four choices 00:14:49.920 --> 00:14:51.509 align:start position:0% have you as a minor have four choices let's<00:14:50.079> say<00:14:50.240> there<00:14:50.399> exists<00:14:50.680> a<00:14:50.800> fork<00:14:51.199> let's<00:14:51.360> say 00:14:51.509 --> 00:14:51.519 align:start position:0% let's say there exists a fork let's say 00:14:51.519 --> 00:14:53.710 align:start position:0% let's say there exists a fork let's say there<00:14:51.680> exist<00:14:51.959> two<00:14:52.160> two<00:14:52.360> blocks<00:14:52.680> A<00:14:52.800> and<00:14:52.959> B<00:14:53.560> let's 00:14:53.710 --> 00:14:53.720 align:start position:0% there exist two two blocks A and B let's 00:14:53.720 --> 00:14:56.069 align:start position:0% there exist two two blocks A and B let's say<00:14:53.920> you<00:14:54.120> as<00:14:54.199> a<00:14:54.360> minor<00:14:55.120> think<00:14:55.440> that<00:14:55.600> block<00:14:55.880> a 00:14:56.069 --> 00:14:56.079 align:start position:0% say you as a minor think that block a 00:14:56.079 --> 00:14:58.430 align:start position:0% say you as a minor think that block a has<00:14:56.199> a<00:14:56.320> 90%<00:14:56.920> chance<00:14:57.199> of<00:14:57.320> winning<00:14:57.880> and<00:14:58.040> Block<00:14:58.279> B 00:14:58.430 --> 00:14:58.440 align:start position:0% has a 90% chance of winning and Block B 00:14:58.440 --> 00:15:00.790 align:start position:0% has a 90% chance of winning and Block B has<00:14:58.519> a<00:14:58.600> 10%<00:14:59.160> chance<00:14:59.360> of<00:14:59.480> winning<00:15:00.360> option<00:15:00.600> one 00:15:00.790 --> 00:15:00.800 align:start position:0% has a 10% chance of winning option one 00:15:00.800 --> 00:15:03.269 align:start position:0% has a 10% chance of winning option one is<00:15:00.920> you<00:15:01.079> just<00:15:01.240> mine<00:15:01.480> on<00:15:01.680> neither<00:15:01.959> of<00:15:02.079> them<00:15:03.000> and 00:15:03.269 --> 00:15:03.279 align:start position:0% is you just mine on neither of them and 00:15:03.279 --> 00:15:05.749 align:start position:0% is you just mine on neither of them and if<00:15:03.360> you<00:15:03.480> do<00:15:03.680> that<00:15:03.800> you<00:15:03.920> get<00:15:04.079> no<00:15:04.320> reward<00:15:05.320> option 00:15:05.749 --> 00:15:05.759 align:start position:0% if you do that you get no reward option 00:15:05.759 --> 00:15:08.110 align:start position:0% if you do that you get no reward option b<00:15:06.160> is<00:15:06.639> you<00:15:06.839> vote<00:15:07.040> or<00:15:07.240> I<00:15:07.320> should<00:15:07.519> say<00:15:07.680> option<00:15:07.920> one 00:15:08.110 --> 00:15:08.120 align:start position:0% b is you vote or I should say option one 00:15:08.120 --> 00:15:09.990 align:start position:0% b is you vote or I should say option one is<00:15:08.240> you<00:15:08.360> vote<00:15:08.519> on<00:15:08.639> Nei<00:15:09.199> option<00:15:09.480> two<00:15:09.720> is<00:15:09.839> you 00:15:09.990 --> 00:15:10.000 align:start position:0% is you vote on Nei option two is you 00:15:10.000 --> 00:15:12.670 align:start position:0% is you vote on Nei option two is you just<00:15:10.120> create<00:15:10.320> a<00:15:10.399> block<00:15:10.639> on<00:15:10.800> top<00:15:10.959> of<00:15:11.120> a<00:15:11.839> now<00:15:12.079> 90% 00:15:12.670 --> 00:15:12.680 align:start position:0% just create a block on top of a now 90% 00:15:12.680 --> 00:15:14.230 align:start position:0% just create a block on top of a now 90% chance<00:15:13.240> a<00:15:13.399> is<00:15:13.519> going<00:15:13.639> to<00:15:13.720> win<00:15:13.920> you're<00:15:14.040> going<00:15:14.160> to 00:15:14.230 --> 00:15:14.240 align:start position:0% chance a is going to win you're going to 00:15:14.240 --> 00:15:15.749 align:start position:0% chance a is going to win you're going to create<00:15:14.440> a<00:15:14.519> block<00:15:14.720> on<00:15:14.839> top<00:15:15.000> of<00:15:15.199> a<00:15:15.480> and<00:15:15.600> you're 00:15:15.749 --> 00:15:15.759 align:start position:0% create a block on top of a and you're 00:15:15.759 --> 00:15:18.430 align:start position:0% create a block on top of a and you're going<00:15:15.839> to<00:15:15.959> win<00:15:16.199> with<00:15:16.360> them<00:15:17.279> the<00:15:17.480> option<00:15:17.839> three 00:15:18.430 --> 00:15:18.440 align:start position:0% going to win with them the option three 00:15:18.440 --> 00:15:20.710 align:start position:0% going to win with them the option three vote<00:15:18.639> on<00:15:18.839> b<00:15:19.360> b<00:15:19.560> only<00:15:19.720> has<00:15:19.839> a<00:15:19.959> 10%<00:15:20.399> chance<00:15:20.600> of 00:15:20.710 --> 00:15:20.720 align:start position:0% vote on b b only has a 10% chance of 00:15:20.720 --> 00:15:22.350 align:start position:0% vote on b b only has a 10% chance of winning<00:15:20.959> if<00:15:21.040> you<00:15:21.160> create<00:15:21.320> a<00:15:21.440> block<00:15:21.759> there<00:15:22.040> then 00:15:22.350 --> 00:15:22.360 align:start position:0% winning if you create a block there then 00:15:22.360 --> 00:15:23.550 align:start position:0% winning if you create a block there then you<00:15:22.519> have<00:15:22.600> a<00:15:22.720> much<00:15:22.920> smaller<00:15:23.240> chance<00:15:23.399> of 00:15:23.550 --> 00:15:23.560 align:start position:0% you have a much smaller chance of 00:15:23.560 --> 00:15:25.590 align:start position:0% you have a much smaller chance of getting<00:15:23.720> a<00:15:23.880> reward<00:15:24.639> option<00:15:24.920> D<00:15:25.079> is<00:15:25.199> to<00:15:25.360> split 00:15:25.590 --> 00:15:25.600 align:start position:0% getting a reward option D is to split 00:15:25.600 --> 00:15:26.990 align:start position:0% getting a reward option D is to split your<00:15:25.720> vote<00:15:25.920> between<00:15:26.240> both<00:15:26.480> but<00:15:26.560> if<00:15:26.639> you<00:15:26.759> split 00:15:26.990 --> 00:15:27.000 align:start position:0% your vote between both but if you split 00:15:27.000 --> 00:15:28.670 align:start position:0% your vote between both but if you split your<00:15:27.120> vote<00:15:27.320> then<00:15:27.440> you<00:15:27.560> get<00:15:27.759> H<00:15:28.360> because<00:15:28.560> you 00:15:28.670 --> 00:15:28.680 align:start position:0% your vote then you get H because you 00:15:28.680 --> 00:15:30.389 align:start position:0% your vote then you get H because you have<00:15:28.800> to<00:15:29.079> actually<00:15:29.319> split<00:15:29.600> your<00:15:29.720> work<00:15:29.959> in<00:15:30.160> half 00:15:30.389 --> 00:15:30.399 align:start position:0% have to actually split your work in half 00:15:30.399 --> 00:15:31.949 align:start position:0% have to actually split your work in half you<00:15:30.519> get<00:15:30.759> only<00:15:31.000> half<00:15:31.120> of<00:15:31.240> one<00:15:31.399> and<00:15:31.560> half<00:15:31.680> of<00:15:31.839> the 00:15:31.949 --> 00:15:31.959 align:start position:0% you get only half of one and half of the 00:15:31.959 --> 00:15:34.269 align:start position:0% you get only half of one and half of the other<00:15:32.759> and<00:15:33.000> that<00:15:33.199> so<00:15:33.399> it<00:15:33.519> turns<00:15:33.800> out<00:15:34.040> that<00:15:34.160> the 00:15:34.269 --> 00:15:34.279 align:start position:0% other and that so it turns out that the 00:15:34.279 --> 00:15:38.150 align:start position:0% other and that so it turns out that the best<00:15:34.519> choice<00:15:34.759> is<00:15:34.839> to<00:15:35.040> just<00:15:35.160> vote<00:15:35.360> on<00:15:35.800> a<00:15:37.160> now 00:15:38.150 --> 00:15:38.160 align:start position:0% best choice is to just vote on a now 00:15:38.160 --> 00:15:39.949 align:start position:0% best choice is to just vote on a now this<00:15:38.279> is<00:15:38.480> actually<00:15:38.839> good<00:15:39.360> because<00:15:39.639> what<00:15:39.800> this 00:15:39.949 --> 00:15:39.959 align:start position:0% this is actually good because what this 00:15:39.959 --> 00:15:42.309 align:start position:0% this is actually good because what this says<00:15:40.319> is<00:15:40.759> if<00:15:40.920> a<00:15:41.040> block<00:15:41.319> is<00:15:41.440> winning<00:15:42.000> it's<00:15:42.160> in 00:15:42.309 --> 00:15:42.319 align:start position:0% says is if a block is winning it's in 00:15:42.319 --> 00:15:44.030 align:start position:0% says is if a block is winning it's in everyone's<00:15:42.720> incentive<00:15:43.079> to<00:15:43.199> help<00:15:43.360> it<00:15:43.519> win<00:15:43.759> even 00:15:44.030 --> 00:15:44.040 align:start position:0% everyone's incentive to help it win even 00:15:44.040 --> 00:15:46.629 align:start position:0% everyone's incentive to help it win even more<00:15:44.639> so<00:15:44.839> this<00:15:45.000> is<00:15:45.199> basically<00:15:46.079> the<00:15:46.240> proof<00:15:46.440> of 00:15:46.629 --> 00:15:46.639 align:start position:0% more so this is basically the proof of 00:15:46.639 --> 00:15:48.430 align:start position:0% more so this is basically the proof of work<00:15:46.880> as<00:15:46.959> an<00:15:47.120> economic<00:15:47.560> consensus<00:15:48.000> game<00:15:48.199> has<00:15:48.319> a 00:15:48.430 --> 00:15:48.440 align:start position:0% work as an economic consensus game has a 00:15:48.440 --> 00:15:50.470 align:start position:0% work as an economic consensus game has a nice<00:15:48.639> convergence<00:15:49.199> property<00:15:49.920> so<00:15:50.120> this<00:15:50.240> is<00:15:50.360> a 00:15:50.470 --> 00:15:50.480 align:start position:0% nice convergence property so this is a 00:15:50.480 --> 00:15:52.509 align:start position:0% nice convergence property so this is a sort<00:15:50.600> of<00:15:50.759> thing<00:15:50.920> that<00:15:51.000> we<00:15:51.160> wants<00:15:51.440> to<00:15:51.639> have<00:15:51.920> in 00:15:52.509 --> 00:15:52.519 align:start position:0% sort of thing that we wants to have in 00:15:52.519 --> 00:15:54.030 align:start position:0% sort of thing that we wants to have in virtual<00:15:52.959> mining<00:15:53.319> as 00:15:54.030 --> 00:15:54.040 align:start position:0% virtual mining as 00:15:54.040 --> 00:15:56.949 align:start position:0% virtual mining as well<00:15:55.040> now<00:15:55.560> naive<00:15:55.920> proof<00:15:56.079> of<00:15:56.199> stake<00:15:56.480> economics 00:15:56.949 --> 00:15:56.959 align:start position:0% well now naive proof of stake economics 00:15:56.959 --> 00:15:58.430 align:start position:0% well now naive proof of stake economics so<00:15:57.120> this<00:15:57.199> is<00:15:57.360> how<00:15:57.519> the<00:15:57.639> older<00:15:57.920> proof<00:15:58.120> of<00:15:58.240> stake 00:15:58.430 --> 00:15:58.440 align:start position:0% so this is how the older proof of stake 00:15:58.440 --> 00:16:01.389 align:start position:0% so this is how the older proof of stake algorithms<00:15:59.279> worked<00:16:00.279> okay<00:16:00.519> votee<00:16:00.680> on<00:16:00.880> neither 00:16:01.389 --> 00:16:01.399 align:start position:0% algorithms worked okay votee on neither 00:16:01.399 --> 00:16:03.670 align:start position:0% algorithms worked okay votee on neither zero<00:16:01.959> you<00:16:02.079> can<00:16:02.199> make<00:16:02.360> a<00:16:02.480> block<00:16:02.720> on<00:16:02.839> top<00:16:03.000> of<00:16:03.160> a 00:16:03.670 --> 00:16:03.680 align:start position:0% zero you can make a block on top of a 00:16:03.680 --> 00:16:05.430 align:start position:0% zero you can make a block on top of a okay<00:16:03.839> 0.9<00:16:04.519> you<00:16:04.600> can<00:16:04.680> make<00:16:04.800> a<00:16:04.880> block<00:16:05.079> on<00:16:05.199> top<00:16:05.319> of 00:16:05.430 --> 00:16:05.440 align:start position:0% okay 0.9 you can make a block on top of 00:16:05.440 --> 00:16:08.590 align:start position:0% okay 0.9 you can make a block on top of B<00:16:05.720> 0.1<00:16:06.720> problem<00:16:07.199> is<00:16:07.759> now<00:16:07.959> you<00:16:08.079> can<00:16:08.240> create<00:16:08.440> a 00:16:08.590 --> 00:16:08.600 align:start position:0% B 0.1 problem is now you can create a 00:16:08.600 --> 00:16:11.790 align:start position:0% B 0.1 problem is now you can create a block<00:16:08.839> on<00:16:09.000> top<00:16:09.160> of<00:16:09.480> both<00:16:10.480> and<00:16:10.639> the<00:16:10.839> problem<00:16:11.240> is 00:16:11.790 --> 00:16:11.800 align:start position:0% block on top of both and the problem is 00:16:11.800 --> 00:16:13.670 align:start position:0% block on top of both and the problem is because<00:16:12.079> you<00:16:12.279> no<00:16:12.480> longer<00:16:12.880> have<00:16:13.160> computing 00:16:13.670 --> 00:16:13.680 align:start position:0% because you no longer have computing 00:16:13.680 --> 00:16:15.749 align:start position:0% because you no longer have computing power<00:16:14.040> as<00:16:14.120> a<00:16:14.279> limiting<00:16:14.759> factor<00:16:15.399> you<00:16:15.560> don't 00:16:15.749 --> 00:16:15.759 align:start position:0% power as a limiting factor you don't 00:16:15.759 --> 00:16:17.110 align:start position:0% power as a limiting factor you don't actually<00:16:16.040> have<00:16:16.120> to<00:16:16.279> sort<00:16:16.399> of<00:16:16.560> split<00:16:16.800> your<00:16:16.920> vote 00:16:17.110 --> 00:16:17.120 align:start position:0% actually have to sort of split your vote 00:16:17.120 --> 00:16:18.829 align:start position:0% actually have to sort of split your vote in<00:16:17.319> half<00:16:17.720> you<00:16:17.839> can<00:16:18.000> literally<00:16:18.440> just<00:16:18.600> make<00:16:18.720> a 00:16:18.829 --> 00:16:18.839 align:start position:0% in half you can literally just make a 00:16:18.839 --> 00:16:20.269 align:start position:0% in half you can literally just make a block<00:16:19.079> on<00:16:19.240> one<00:16:19.440> side<00:16:19.600> and<00:16:19.759> make<00:16:19.839> a<00:16:19.959> block<00:16:20.160> on 00:16:20.269 --> 00:16:20.279 align:start position:0% block on one side and make a block on 00:16:20.279 --> 00:16:22.030 align:start position:0% block on one side and make a block on the<00:16:20.399> other<00:16:20.600> side<00:16:20.959> in<00:16:21.120> whichever<00:16:21.440> one<00:16:21.600> wins<00:16:21.839> you 00:16:22.030 --> 00:16:22.040 align:start position:0% the other side in whichever one wins you 00:16:22.040 --> 00:16:25.110 align:start position:0% the other side in whichever one wins you profit<00:16:22.880> yay<00:16:23.319> so<00:16:23.519> everyone<00:16:23.959> actually<00:16:24.360> even<00:16:24.680> if 00:16:25.110 --> 00:16:25.120 align:start position:0% profit yay so everyone actually even if 00:16:25.120 --> 00:16:27.269 align:start position:0% profit yay so everyone actually even if there<00:16:25.240> are<00:16:25.440> no<00:16:25.720> attackers<00:16:26.560> everyone<00:16:26.959> has<00:16:27.120> the 00:16:27.269 --> 00:16:27.279 align:start position:0% there are no attackers everyone has the 00:16:27.279 --> 00:16:28.470 align:start position:0% there are no attackers everyone has the incentive<00:16:27.680> to<00:16:27.800> create<00:16:27.959> a<00:16:28.079> block<00:16:28.279> on<00:16:28.360> every 00:16:28.470 --> 00:16:28.480 align:start position:0% incentive to create a block on every 00:16:28.480 --> 00:16:30.829 align:start position:0% incentive to create a block on every single<00:16:28.720> ch<00:16:29.079> at<00:16:29.160> the<00:16:29.279> same<00:16:29.519> time<00:16:30.040> and<00:16:30.240> therefore 00:16:30.829 --> 00:16:30.839 align:start position:0% single ch at the same time and therefore 00:16:30.839 --> 00:16:32.710 align:start position:0% single ch at the same time and therefore in<00:16:30.959> an<00:16:31.120> economic<00:16:31.839> of<00:16:32.000> model<00:16:32.240> a<00:16:32.399> thing<00:16:32.560> just 00:16:32.710 --> 00:16:32.720 align:start position:0% in an economic of model a thing just 00:16:32.720 --> 00:16:36.710 align:start position:0% in an economic of model a thing just never<00:16:33.319> converges<00:16:34.319> so<00:16:35.240> this<00:16:35.560> is<00:16:35.759> the<00:16:35.959> problem 00:16:36.710 --> 00:16:36.720 align:start position:0% never converges so this is the problem 00:16:36.720 --> 00:16:39.509 align:start position:0% never converges so this is the problem so<00:16:37.199> in<00:16:37.959> we've<00:16:38.440> had<00:16:38.639> the<00:16:38.800> solution<00:16:39.240> that<00:16:39.360> we've 00:16:39.509 --> 00:16:39.519 align:start position:0% so in we've had the solution that we've 00:16:39.519 --> 00:16:41.470 align:start position:0% so in we've had the solution that we've been<00:16:39.680> thinking<00:16:40.160> that<00:16:40.319> we've<00:16:40.600> had<00:16:41.079> like<00:16:41.240> as<00:16:41.319> a 00:16:41.470 --> 00:16:41.480 align:start position:0% been thinking that we've had like as a 00:16:41.480 --> 00:16:43.710 align:start position:0% been thinking that we've had like as a core<00:16:41.800> concept<00:16:42.199> for<00:16:42.399> about<00:16:42.560> two<00:16:42.800> years<00:16:43.440> but<00:16:43.600> the 00:16:43.710 --> 00:16:43.720 align:start position:0% core concept for about two years but the 00:16:43.720 --> 00:16:45.590 align:start position:0% core concept for about two years but the basic<00:16:44.079> PR<00:16:44.440> it's<00:16:44.600> been<00:16:44.759> called<00:16:45.160> it's<00:16:45.399> been 00:16:45.590 --> 00:16:45.600 align:start position:0% basic PR it's been called it's been 00:16:45.600 --> 00:16:46.829 align:start position:0% basic PR it's been called it's been called<00:16:45.839> different<00:16:46.120> names<00:16:46.480> like<00:16:46.639> there's 00:16:46.829 --> 00:16:46.839 align:start position:0% called different names like there's 00:16:46.839 --> 00:16:49.309 align:start position:0% called different names like there's slasher<00:16:47.800> now<00:16:47.959> we<00:16:48.079> call<00:16:48.519> now<00:16:48.639> we<00:16:48.839> call<00:16:49.000> them 00:16:49.309 --> 00:16:49.319 align:start position:0% slasher now we call now we call them 00:16:49.319 --> 00:16:52.870 align:start position:0% slasher now we call now we call them dunal<00:16:50.319> um<00:16:51.319> and<00:16:51.639> there's<00:16:52.279> a<00:16:52.399> reason<00:16:52.639> for 00:16:52.870 --> 00:16:52.880 align:start position:0% dunal um and there's a reason for 00:16:52.880 --> 00:16:54.269 align:start position:0% dunal um and there's a reason for calling<00:16:53.079> them<00:16:53.199> dunkles<00:16:53.560> that<00:16:53.680> I<00:16:53.759> won't<00:16:53.959> go 00:16:54.269 --> 00:16:54.279 align:start position:0% calling them dunkles that I won't go 00:16:54.279 --> 00:16:58.470 align:start position:0% calling them dunkles that I won't go into<00:16:55.279> um<00:16:55.880> there<00:16:56.839> the<00:16:57.000> general<00:16:57.399> principle<00:16:57.920> is 00:16:58.470 --> 00:16:58.480 align:start position:0% into um there the general principle is 00:16:58.480 --> 00:17:01.949 align:start position:0% into um there the general principle is if<00:16:58.600> you<00:16:59.040> a<00:16:59.160> block<00:17:00.079> and<00:17:00.880> if<00:17:01.160> you<00:17:01.360> make<00:17:01.480> a<00:17:01.639> block 00:17:01.949 --> 00:17:01.959 align:start position:0% if you a block and if you make a block 00:17:01.959 --> 00:17:03.749 align:start position:0% if you a block and if you make a block that<00:17:02.120> doesn't<00:17:02.360> make<00:17:02.480> it<00:17:02.600> into<00:17:02.759> the<00:17:02.880> main<00:17:03.120> chain 00:17:03.749 --> 00:17:03.759 align:start position:0% that doesn't make it into the main chain 00:17:03.759 --> 00:17:04.990 align:start position:0% that doesn't make it into the main chain then<00:17:03.880> instead<00:17:04.120> of<00:17:04.199> being<00:17:04.400> rewarded<00:17:04.839> you 00:17:04.990 --> 00:17:05.000 align:start position:0% then instead of being rewarded you 00:17:05.000 --> 00:17:07.309 align:start position:0% then instead of being rewarded you actually<00:17:05.280> get<00:17:05.600> penalized<00:17:06.600> you<00:17:06.880> lose<00:17:07.160> an 00:17:07.309 --> 00:17:07.319 align:start position:0% actually get penalized you lose an 00:17:07.319 --> 00:17:08.549 align:start position:0% actually get penalized you lose an amount<00:17:07.520> of<00:17:07.640> ether<00:17:07.919> equal<00:17:08.120> to<00:17:08.240> the<00:17:08.319> block 00:17:08.549 --> 00:17:08.559 align:start position:0% amount of ether equal to the block 00:17:08.559 --> 00:17:10.189 align:start position:0% amount of ether equal to the block reward<00:17:09.400> now<00:17:09.520> what<00:17:09.600> does<00:17:09.720> this<00:17:09.839> do<00:17:10.000> to<00:17:10.079> the 00:17:10.189 --> 00:17:10.199 align:start position:0% reward now what does this do to the 00:17:10.199 --> 00:17:12.829 align:start position:0% reward now what does this do to the incentive<00:17:10.600> structure<00:17:11.199> well<00:17:11.319> it<00:17:11.439> does 00:17:12.829 --> 00:17:12.839 align:start position:0% incentive structure well it does 00:17:12.839 --> 00:17:15.429 align:start position:0% incentive structure well it does this<00:17:13.839> actually<00:17:14.240> this<00:17:14.760> this<00:17:14.880> is<00:17:15.039> slightly 00:17:15.429 --> 00:17:15.439 align:start position:0% this actually this this is slightly 00:17:15.439 --> 00:17:16.669 align:start position:0% this actually this this is slightly wrong<00:17:15.679> the<00:17:15.839> the<00:17:15.959> the<00:17:16.079> green<00:17:16.319> thing<00:17:16.480> should 00:17:16.669 --> 00:17:16.679 align:start position:0% wrong the the the green thing should 00:17:16.679 --> 00:17:19.549 align:start position:0% wrong the the the green thing should actually<00:17:16.880> see<00:17:17.160> 0.9<00:17:17.839> minus<00:17:18.120> 0.1<00:17:18.679> equals<00:17:18.919> 0.8 00:17:19.549 --> 00:17:19.559 align:start position:0% actually see 0.9 minus 0.1 equals 0.8 00:17:19.559 --> 00:17:21.230 align:start position:0% actually see 0.9 minus 0.1 equals 0.8 but<00:17:19.640> it's<00:17:19.760> still<00:17:19.959> the<00:17:20.039> winner<00:17:20.720> the<00:17:20.839> point<00:17:21.079> is 00:17:21.230 --> 00:17:21.240 align:start position:0% but it's still the winner the point is 00:17:21.240 --> 00:17:22.870 align:start position:0% but it's still the winner the point is if<00:17:21.319> you<00:17:21.439> look<00:17:21.600> on<00:17:21.720> the<00:17:21.839> third<00:17:22.039> one<00:17:22.199> on<00:17:22.360> B<00:17:22.640> vote 00:17:22.870 --> 00:17:22.880 align:start position:0% if you look on the third one on B vote 00:17:22.880 --> 00:17:25.870 align:start position:0% if you look on the third one on B vote on<00:17:23.079> B<00:17:23.839> there's<00:17:24.000> a<00:17:24.120> 10%<00:17:24.640> chance<00:17:24.959> B's<00:17:25.400> the<00:17:25.679> right 00:17:25.870 --> 00:17:25.880 align:start position:0% on B there's a 10% chance B's the right 00:17:25.880 --> 00:17:27.110 align:start position:0% on B there's a 10% chance B's the right chain<00:17:26.079> is<00:17:26.199> going<00:17:26.280> to<00:17:26.439> win<00:17:26.760> and<00:17:26.839> you've<00:17:27.039> got 00:17:27.110 --> 00:17:27.120 align:start position:0% chain is going to win and you've got 00:17:27.120 --> 00:17:29.909 align:start position:0% chain is going to win and you've got your<00:17:27.280> block<00:17:27.839> there's<00:17:28.000> a<00:17:28.120> 90%<00:17:28.600> chance<00:17:29.320> a<00:17:29.480> is 00:17:29.909 --> 00:17:29.919 align:start position:0% your block there's a 90% chance a is 00:17:29.919 --> 00:17:32.830 align:start position:0% your block there's a 90% chance a is going 00:17:32.830 --> 00:17:32.840 align:start position:0% going 00:17:32.840 --> 00:17:35.830 align:start position:0% going that<00:17:33.840> get<00:17:33.960> penalized<00:17:34.440> and<00:17:34.520> it<00:17:34.640> hurs<00:17:34.960> you 00:17:35.830 --> 00:17:35.840 align:start position:0% that get penalized and it hurs you 00:17:35.840 --> 00:17:38.029 align:start position:0% that get penalized and it hurs you unless<00:17:36.320> think<00:17:36.640> a<00:17:36.720> chain<00:17:36.960> is<00:17:37.120> going<00:17:37.240> to<00:17:37.400> win<00:17:37.880> you 00:17:38.029 --> 00:17:38.039 align:start position:0% unless think a chain is going to win you 00:17:38.039 --> 00:17:39.150 align:start position:0% unless think a chain is going to win you actually<00:17:38.280> have<00:17:38.400> the<00:17:38.520> incentive<00:17:38.919> not<00:17:39.039> to 00:17:39.150 --> 00:17:39.160 align:start position:0% actually have the incentive not to 00:17:39.160 --> 00:17:40.710 align:start position:0% actually have the incentive not to create<00:17:39.400> blocks<00:17:39.679> on<00:17:39.799> it<00:17:40.080> if<00:17:40.160> you<00:17:40.280> think<00:17:40.440> a<00:17:40.559> chain 00:17:40.710 --> 00:17:40.720 align:start position:0% create blocks on it if you think a chain 00:17:40.720 --> 00:17:42.070 align:start position:0% create blocks on it if you think a chain is<00:17:40.840> going<00:17:40.919> to<00:17:41.000> win<00:17:41.160> you<00:17:41.320> have<00:17:41.440> the<00:17:41.679> you<00:17:41.799> do<00:17:41.960> have 00:17:42.070 --> 00:17:42.080 align:start position:0% is going to win you have the you do have 00:17:42.080 --> 00:17:43.909 align:start position:0% is going to win you have the you do have the<00:17:42.160> incentive<00:17:42.480> to<00:17:42.600> create<00:17:42.840> blocks<00:17:43.120> on<00:17:43.240> it<00:17:43.679> so 00:17:43.909 --> 00:17:43.919 align:start position:0% the incentive to create blocks on it so 00:17:43.919 --> 00:17:46.470 align:start position:0% the incentive to create blocks on it so the<00:17:44.039> consensus<00:17:44.440> game<00:17:44.600> is<00:17:44.880> conent<00:17:45.880> so<00:17:46.200> this<00:17:46.320> is 00:17:46.470 --> 00:17:46.480 align:start position:0% the consensus game is conent so this is 00:17:46.480 --> 00:17:49.830 align:start position:0% the consensus game is conent so this is the<00:17:46.640> basic<00:17:46.919> kind<00:17:47.039> of<00:17:47.640> principle<00:17:48.640> now<00:17:49.200> let's 00:17:49.830 --> 00:17:49.840 align:start position:0% the basic kind of principle now let's 00:17:49.840 --> 00:17:51.669 align:start position:0% the basic kind of principle now let's talk<00:17:50.160> about 00:17:51.669 --> 00:17:51.679 align:start position:0% talk about 00:17:51.679 --> 00:17:56.590 align:start position:0% talk about finality<00:17:52.840> so<00:17:53.840> there's<00:17:54.559> cap<00:17:55.159> theorem<00:17:55.919> so<00:17:56.200> Vlad 00:17:56.590 --> 00:17:56.600 align:start position:0% finality so there's cap theorem so Vlad 00:17:56.600 --> 00:17:59.669 align:start position:0% finality so there's cap theorem so Vlad talked<00:17:56.960> about<00:17:57.679> flp<00:17:58.200> impossibility 00:17:59.669 --> 00:17:59.679 align:start position:0% talked about flp impossibility 00:17:59.679 --> 00:18:02.950 align:start position:0% talked about flp impossibility um<00:18:00.159> which<00:18:00.280> is<00:18:00.440> the<00:18:00.600> Floy<00:18:00.919> Lynch<00:18:01.840> pattered<00:18:02.840> to 00:18:02.950 --> 00:18:02.960 align:start position:0% um which is the Floy Lynch pattered to 00:18:02.960 --> 00:18:04.590 align:start position:0% um which is the Floy Lynch pattered to Ft<00:18:03.400> impossibility<00:18:04.039> which<00:18:04.159> says<00:18:04.280> you<00:18:04.400> can't 00:18:04.590 --> 00:18:04.600 align:start position:0% Ft impossibility which says you can't 00:18:04.600 --> 00:18:05.950 align:start position:0% Ft impossibility which says you can't travel<00:18:04.919> F 00:18:05.950 --> 00:18:05.960 align:start position:0% travel F 00:18:05.960 --> 00:18:08.950 align:start position:0% travel F light<00:18:06.960> that<00:18:07.039> was<00:18:07.159> a 00:18:08.950 --> 00:18:08.960 align:start position:0% light that was a 00:18:08.960 --> 00:18:11.510 align:start position:0% light that was a joke<00:18:09.960> I'm<00:18:10.159> going<00:18:10.280> to<00:18:10.520> talk<00:18:10.720> about<00:18:10.919> the<00:18:11.039> cap 00:18:11.510 --> 00:18:11.520 align:start position:0% joke I'm going to talk about the cap 00:18:11.520 --> 00:18:14.310 align:start position:0% joke I'm going to talk about the cap theorem<00:18:12.480> so<00:18:12.840> it<00:18:13.000> basically<00:18:13.400> the<00:18:13.480> cap<00:18:13.919> theorem 00:18:14.310 --> 00:18:14.320 align:start position:0% theorem so it basically the cap theorem 00:18:14.320 --> 00:18:16.950 align:start position:0% theorem so it basically the cap theorem says<00:18:15.120> in<00:18:15.240> the<00:18:15.400> event<00:18:15.679> of<00:18:15.799> a<00:18:15.880> network<00:18:16.280> partition 00:18:16.950 --> 00:18:16.960 align:start position:0% says in the event of a network partition 00:18:16.960 --> 00:18:18.789 align:start position:0% says in the event of a network partition you<00:18:17.080> can<00:18:17.240> either<00:18:17.520> have<00:18:17.679> a<00:18:17.919> consistency<00:18:18.559> or<00:18:18.679> you 00:18:18.789 --> 00:18:18.799 align:start position:0% you can either have a consistency or you 00:18:18.799 --> 00:18:21.110 align:start position:0% you can either have a consistency or you can<00:18:18.919> have<00:18:19.080> availability<00:18:19.720> but<00:18:19.919> not<00:18:20.159> both<00:18:21.000> now 00:18:21.110 --> 00:18:21.120 align:start position:0% can have availability but not both now 00:18:21.120 --> 00:18:22.430 align:start position:0% can have availability but not both now if<00:18:21.200> you<00:18:21.280> want<00:18:21.360> to<00:18:21.760> understand<00:18:21.880> the<00:18:22.000> capap 00:18:22.430 --> 00:18:22.440 align:start position:0% if you want to understand the capap 00:18:22.440 --> 00:18:23.909 align:start position:0% if you want to understand the capap theorem<00:18:22.840> like<00:18:23.000> the<00:18:23.280> one<00:18:23.360> of<00:18:23.440> the<00:18:23.559> simplest 00:18:23.909 --> 00:18:23.919 align:start position:0% theorem like the one of the simplest 00:18:23.919 --> 00:18:25.390 align:start position:0% theorem like the one of the simplest ways<00:18:24.159> is<00:18:24.280> to<00:18:24.440> just<00:18:24.600> like<00:18:24.760> look<00:18:24.880> at<00:18:24.960> the<00:18:25.080> sketch 00:18:25.390 --> 00:18:25.400 align:start position:0% ways is to just like look at the sketch 00:18:25.400 --> 00:18:27.830 align:start position:0% ways is to just like look at the sketch proof<00:18:26.080> so<00:18:26.240> it<00:18:26.400> basically<00:18:26.799> says<00:18:27.400> if<00:18:27.520> you<00:18:27.640> have<00:18:27.760> a 00:18:27.830 --> 00:18:27.840 align:start position:0% proof so it basically says if you have a 00:18:27.840 --> 00:18:29.270 align:start position:0% proof so it basically says if you have a decentralized<00:18:28.440> network 00:18:29.270 --> 00:18:29.280 align:start position:0% decentralized network 00:18:29.280 --> 00:18:31.310 align:start position:0% decentralized network then<00:18:29.480> if<00:18:29.640> the<00:18:29.760> network<00:18:30.080> splits<00:18:30.400> in<00:18:30.640> half<00:18:31.159> we're 00:18:31.310 --> 00:18:31.320 align:start position:0% then if the network splits in half we're 00:18:31.320 --> 00:18:33.630 align:start position:0% then if the network splits in half we're going<00:18:31.400> to<00:18:31.520> send<00:18:31.919> transaction<00:18:32.480> a<00:18:32.760> which<00:18:32.919> sends 00:18:33.630 --> 00:18:33.640 align:start position:0% going to send transaction a which sends 00:18:33.640 --> 00:18:37.230 align:start position:0% going to send transaction a which sends know<00:18:33.799> 10<00:18:34.080> ether<00:18:34.559> from<00:18:35.280> me<00:18:35.600> to<00:18:35.840> Vlad<00:18:36.840> on<00:18:37.120> the 00:18:37.230 --> 00:18:37.240 align:start position:0% know 10 ether from me to Vlad on the 00:18:37.240 --> 00:18:38.710 align:start position:0% know 10 ether from me to Vlad on the left<00:18:37.559> half<00:18:37.880> and<00:18:38.000> on<00:18:38.120> the<00:18:38.240> right<00:18:38.480> half<00:18:38.600> I'm 00:18:38.710 --> 00:18:38.720 align:start position:0% left half and on the right half I'm 00:18:38.720 --> 00:18:41.029 align:start position:0% left half and on the right half I'm going<00:18:38.799> to<00:18:38.919> send<00:18:39.120> the<00:18:39.240> same<00:18:39.440> 10<00:18:39.760> ether<00:18:40.440> from<00:18:40.720> me 00:18:41.029 --> 00:18:41.039 align:start position:0% going to send the same 10 ether from me 00:18:41.039 --> 00:18:44.549 align:start position:0% going to send the same 10 ether from me over<00:18:41.240> to<00:18:41.520> Ming<00:18:42.520> now<00:18:43.520> let's<00:18:43.799> say<00:18:44.080> there's<00:18:44.320> two 00:18:44.549 --> 00:18:44.559 align:start position:0% over to Ming now let's say there's two 00:18:44.559 --> 00:18:47.350 align:start position:0% over to Ming now let's say there's two possibilities<00:18:45.559> one<00:18:45.720> of<00:18:45.880> them<00:18:46.120> is<00:18:46.760> on<00:18:46.880> the<00:18:47.039> left 00:18:47.350 --> 00:18:47.360 align:start position:0% possibilities one of them is on the left 00:18:47.360 --> 00:18:49.310 align:start position:0% possibilities one of them is on the left half<00:18:47.799> my<00:18:48.000> transaction<00:18:48.400> to<00:18:48.559> Vlad<00:18:48.840> is<00:18:49.000> accepted 00:18:49.310 --> 00:18:49.320 align:start position:0% half my transaction to Vlad is accepted 00:18:49.320 --> 00:18:50.830 align:start position:0% half my transaction to Vlad is accepted on<00:18:49.400> the<00:18:49.520> right<00:18:49.679> half<00:18:49.880> my<00:18:50.000> transaction<00:18:50.440> to<00:18:50.640> Ming 00:18:50.830 --> 00:18:50.840 align:start position:0% on the right half my transaction to Ming 00:18:50.840 --> 00:18:53.510 align:start position:0% on the right half my transaction to Ming is<00:18:51.039> accepted<00:18:51.960> that's<00:18:52.159> called<00:18:52.520> inconsistency 00:18:53.510 --> 00:18:53.520 align:start position:0% is accepted that's called inconsistency 00:18:53.520 --> 00:18:55.390 align:start position:0% is accepted that's called inconsistency because<00:18:54.320> now<00:18:54.520> you<00:18:54.679> have<00:18:54.840> two<00:18:55.000> parts<00:18:55.200> of<00:18:55.280> the 00:18:55.390 --> 00:18:55.400 align:start position:0% because now you have two parts of the 00:18:55.400 --> 00:18:57.390 align:start position:0% because now you have two parts of the network<00:18:55.720> that<00:18:55.840> believe<00:18:56.200> different<00:18:56.520> things 00:18:57.390 --> 00:18:57.400 align:start position:0% network that believe different things 00:18:57.400 --> 00:18:58.909 align:start position:0% network that believe different things the<00:18:57.520> second<00:18:57.880> possibility<00:18:58.400> though<00:18:58.520> is<00:18:58.799> at 00:18:58.909 --> 00:18:58.919 align:start position:0% the second possibility though is at 00:18:58.919 --> 00:19:00.350 align:start position:0% the second possibility though is at least<00:18:59.159> one<00:18:59.280> of<00:18:59.440> those<00:18:59.640> transactions<00:19:00.200> is 00:19:00.350 --> 00:19:00.360 align:start position:0% least one of those transactions is 00:19:00.360 --> 00:19:02.149 align:start position:0% least one of those transactions is blocked<00:19:00.919> so<00:19:01.120> at<00:19:01.200> least<00:19:01.400> one<00:19:01.520> of<00:19:01.640> them<00:19:01.840> like 00:19:02.149 --> 00:19:02.159 align:start position:0% blocked so at least one of them like 00:19:02.159 --> 00:19:04.029 align:start position:0% blocked so at least one of them like just<00:19:02.280> doesn't<00:19:02.600> go<00:19:02.760> through<00:19:03.520> now<00:19:03.720> this<00:19:03.840> is 00:19:04.029 --> 00:19:04.039 align:start position:0% just doesn't go through now this is 00:19:04.039 --> 00:19:06.230 align:start position:0% just doesn't go through now this is called<00:19:04.520> being<00:19:04.880> unavailable<00:19:05.640> because 00:19:06.230 --> 00:19:06.240 align:start position:0% called being unavailable because 00:19:06.240 --> 00:19:07.710 align:start position:0% called being unavailable because basically<00:19:06.640> try<00:19:06.840> to<00:19:06.919> send<00:19:07.039> a<00:19:07.200> transaction 00:19:07.710 --> 00:19:07.720 align:start position:0% basically try to send a transaction 00:19:07.720 --> 00:19:09.590 align:start position:0% basically try to send a transaction doesn't<00:19:07.960> go<00:19:08.120> in<00:19:08.520> the<00:19:08.640> network<00:19:09.080> is<00:19:09.280> or<00:19:09.440> the 00:19:09.590 --> 00:19:09.600 align:start position:0% doesn't go in the network is or the 00:19:09.600 --> 00:19:12.830 align:start position:0% doesn't go in the network is or the protocol<00:19:10.039> is<00:19:10.240> unavailable<00:19:10.840> to<00:19:11.000> you<00:19:11.960> so<00:19:12.240> our 00:19:12.830 --> 00:19:12.840 align:start position:0% protocol is unavailable to you so our 00:19:12.840 --> 00:19:14.549 align:start position:0% protocol is unavailable to you so our now<00:19:13.080> proof<00:19:13.280> of<00:19:13.480> work<00:19:13.760> is<00:19:14.000> availability 00:19:14.549 --> 00:19:14.559 align:start position:0% now proof of work is availability 00:19:14.559 --> 00:19:16.470 align:start position:0% now proof of work is availability favoring<00:19:15.280> if<00:19:15.400> there<00:19:15.520> is<00:19:15.600> a<00:19:15.799> partition<00:19:16.360> it 00:19:16.470 --> 00:19:16.480 align:start position:0% favoring if there is a partition it 00:19:16.480 --> 00:19:19.070 align:start position:0% favoring if there is a partition it favors<00:19:17.120> availability<00:19:18.120> most<00:19:18.520> traditional 00:19:19.070 --> 00:19:19.080 align:start position:0% favors availability most traditional 00:19:19.080 --> 00:19:20.830 align:start position:0% favors availability most traditional bantine<00:19:19.440> F<00:19:19.679> tolerance<00:19:20.120> algorithms<00:19:20.600> are 00:19:20.830 --> 00:19:20.840 align:start position:0% bantine F tolerance algorithms are 00:19:20.840 --> 00:19:22.669 align:start position:0% bantine F tolerance algorithms are consistency<00:19:21.400> favoring<00:19:22.120> if<00:19:22.320> there<00:19:22.440> if<00:19:22.559> the 00:19:22.669 --> 00:19:22.679 align:start position:0% consistency favoring if there if the 00:19:22.679 --> 00:19:24.710 align:start position:0% consistency favoring if there if the network<00:19:22.960> splits<00:19:23.240> in<00:19:23.480> half<00:19:24.039> unless<00:19:24.360> one<00:19:24.480> of<00:19:24.600> the 00:19:24.710 --> 00:19:24.720 align:start position:0% network splits in half unless one of the 00:19:24.720 --> 00:19:26.149 align:start position:0% network splits in half unless one of the halves<00:19:24.960> is<00:19:25.120> like<00:19:25.240> more<00:19:25.400> than<00:19:25.559> twice<00:19:25.799> as<00:19:25.919> big<00:19:26.080> as 00:19:26.149 --> 00:19:26.159 align:start position:0% halves is like more than twice as big as 00:19:26.159 --> 00:19:27.310 align:start position:0% halves is like more than twice as big as the<00:19:26.280> other<00:19:26.480> half<00:19:26.720> in<00:19:26.799> which<00:19:26.960> case<00:19:27.120> it's<00:19:27.240> not 00:19:27.310 --> 00:19:27.320 align:start position:0% the other half in which case it's not 00:19:27.320 --> 00:19:30.190 align:start position:0% the other half in which case it's not really<00:19:27.679> a<00:19:27.840> half<00:19:28.919> it's<00:19:29.280> uh<00:19:29.520> basically<00:19:30.080> the 00:19:30.190 --> 00:19:30.200 align:start position:0% really a half it's uh basically the 00:19:30.200 --> 00:19:33.070 align:start position:0% really a half it's uh basically the thing<00:19:30.400> just<00:19:30.559> stops<00:19:31.480> in<00:19:31.600> our<00:19:31.880> case<00:19:32.200> we<00:19:32.400> have<00:19:32.919> a 00:19:33.070 --> 00:19:33.080 align:start position:0% thing just stops in our case we have a 00:19:33.080 --> 00:19:35.510 align:start position:0% thing just stops in our case we have a kind<00:19:33.240> of<00:19:33.480> availability<00:19:34.200> favoring<00:19:34.720> base<00:19:34.960> layer 00:19:35.510 --> 00:19:35.520 align:start position:0% kind of availability favoring base layer 00:19:35.520 --> 00:19:37.230 align:start position:0% kind of availability favoring base layer so<00:19:35.760> like<00:19:35.919> the<00:19:36.120> concept<00:19:36.559> of<00:19:36.840> this<00:19:36.960> sort<00:19:37.080> of 00:19:37.230 --> 00:19:37.240 align:start position:0% so like the concept of this sort of 00:19:37.240 --> 00:19:40.270 align:start position:0% so like the concept of this sort of proof<00:19:37.440> of<00:19:37.559> stake<00:19:37.880> chain<00:19:38.640> that<00:19:38.960> uh<00:19:39.120> kind<00:19:39.280> of 00:19:40.270 --> 00:19:40.280 align:start position:0% proof of stake chain that uh kind of 00:19:40.280 --> 00:19:43.590 align:start position:0% proof of stake chain that uh kind of looks<00:19:41.280> roughly<00:19:41.799> like<00:19:42.240> uh<00:19:42.720> like<00:19:43.000> that<00:19:43.480> this 00:19:43.590 --> 00:19:43.600 align:start position:0% looks roughly like uh like that this 00:19:43.600 --> 00:19:45.430 align:start position:0% looks roughly like uh like that this sort<00:19:43.760> of<00:19:43.880> Bas<00:19:44.120> layer<00:19:44.320> proof<00:19:44.480> of<00:19:44.600> stake<00:19:44.840> chain 00:19:45.430 --> 00:19:45.440 align:start position:0% sort of Bas layer proof of stake chain 00:19:45.440 --> 00:19:47.950 align:start position:0% sort of Bas layer proof of stake chain is<00:19:45.720> availability<00:19:46.360> favoring<00:19:47.080> if<00:19:47.280> 90%<00:19:47.760> of<00:19:47.880> the 00:19:47.950 --> 00:19:47.960 align:start position:0% is availability favoring if 90% of the 00:19:47.960 --> 00:19:50.230 align:start position:0% is availability favoring if 90% of the nodes<00:19:48.280> go<00:19:48.440> offline<00:19:49.039> the<00:19:49.159> other<00:19:49.360> 10%<00:19:50.000> will 00:19:50.230 --> 00:19:50.240 align:start position:0% nodes go offline the other 10% will 00:19:50.240 --> 00:19:52.350 align:start position:0% nodes go offline the other 10% will carry<00:19:50.480> it<00:19:50.640> on<00:19:51.280> but<00:19:51.480> we<00:19:51.600> have<00:19:51.760> this<00:19:51.919> notion<00:19:52.159> of<00:19:52.240> a 00:19:52.350 --> 00:19:52.360 align:start position:0% carry it on but we have this notion of a 00:19:52.360 --> 00:19:54.789 align:start position:0% carry it on but we have this notion of a finality<00:19:52.840> Gadget<00:19:53.600> and<00:19:53.760> the<00:19:53.919> finality<00:19:54.400> Gadget 00:19:54.789 --> 00:19:54.799 align:start position:0% finality Gadget and the finality Gadget 00:19:54.799 --> 00:19:57.710 align:start position:0% finality Gadget and the finality Gadget is<00:19:55.000> consistency<00:19:55.600> favoring<00:19:56.559> so<00:19:57.200> basically 00:19:57.710 --> 00:19:57.720 align:start position:0% is consistency favoring so basically 00:19:57.720 --> 00:20:01.070 align:start position:0% is consistency favoring so basically what<00:19:57.880> the<00:19:58.760> um<00:19:59.480> what<00:19:59.640> the<00:19:59.880> finality<00:20:00.400> G<00:20:00.640> Gadget 00:20:01.070 --> 00:20:01.080 align:start position:0% what the um what the finality G Gadget 00:20:01.080 --> 00:20:04.750 align:start position:0% what the um what the finality G Gadget does<00:20:01.960> is<00:20:02.360> it<00:20:02.960> tries<00:20:03.280> to<00:20:03.520> kind<00:20:03.640> of<00:20:03.880> get<00:20:04.320> stronger 00:20:04.750 --> 00:20:04.760 align:start position:0% does is it tries to kind of get stronger 00:20:04.760 --> 00:20:07.630 align:start position:0% does is it tries to kind of get stronger confirmations<00:20:05.760> on<00:20:06.000> particular<00:20:06.480> blocks<00:20:07.280> from 00:20:07.630 --> 00:20:07.640 align:start position:0% confirmations on particular blocks from 00:20:07.640 --> 00:20:11.390 align:start position:0% confirmations on particular blocks from inside<00:20:07.960> of<00:20:08.080> the<00:20:08.440> protocol<00:20:09.799> so<00:20:10.799> how<00:20:10.919> do<00:20:11.000> we<00:20:11.159> do 00:20:11.390 --> 00:20:11.400 align:start position:0% inside of the protocol so how do we do 00:20:11.400 --> 00:20:13.669 align:start position:0% inside of the protocol so how do we do this<00:20:11.880> so<00:20:12.159> one<00:20:12.280> of<00:20:12.400> the<00:20:12.600> principles<00:20:13.280> is<00:20:13.520> the 00:20:13.669 --> 00:20:13.679 align:start position:0% this so one of the principles is the 00:20:13.679 --> 00:20:16.789 align:start position:0% this so one of the principles is the sort<00:20:13.840> of<00:20:13.919> foru<00:20:14.559> rule<00:20:15.480> so<00:20:15.720> in<00:20:15.880> proof<00:20:16.080> of<00:20:16.280> work<00:20:16.640> we 00:20:16.789 --> 00:20:16.799 align:start position:0% sort of foru rule so in proof of work we 00:20:16.799 --> 00:20:18.430 align:start position:0% sort of foru rule so in proof of work we talk<00:20:17.039> about<00:20:17.440> the<00:20:17.559> blockchain<00:20:18.039> that<00:20:18.159> has<00:20:18.320> the 00:20:18.430 --> 00:20:18.440 align:start position:0% talk about the blockchain that has the 00:20:18.440 --> 00:20:20.470 align:start position:0% talk about the blockchain that has the most<00:20:18.679> work<00:20:19.120> proof<00:20:19.320> of<00:20:19.440> work<00:20:19.679> backing<00:20:20.039> it<00:20:20.320> sort 00:20:20.470 --> 00:20:20.480 align:start position:0% most work proof of work backing it sort 00:20:20.480 --> 00:20:22.669 align:start position:0% most work proof of work backing it sort of<00:20:20.679> winning<00:20:21.440> right<00:20:21.640> longest<00:20:21.960> chain<00:20:22.240> wins 00:20:22.669 --> 00:20:22.679 align:start position:0% of winning right longest chain wins 00:20:22.679 --> 00:20:24.669 align:start position:0% of winning right longest chain wins chain<00:20:22.880> with<00:20:23.000> the<00:20:23.080> most<00:20:23.240> proof<00:20:23.440> of<00:20:23.559> work<00:20:23.760> wins 00:20:24.669 --> 00:20:24.679 align:start position:0% chain with the most proof of work wins 00:20:24.679 --> 00:20:26.549 align:start position:0% chain with the most proof of work wins in<00:20:24.880> Casper<00:20:25.360> what<00:20:25.480> we<00:20:25.600> talk<00:20:25.799> about<00:20:26.080> is<00:20:26.400> the 00:20:26.549 --> 00:20:26.559 align:start position:0% in Casper what we talk about is the 00:20:26.559 --> 00:20:28.310 align:start position:0% in Casper what we talk about is the blockchain<00:20:27.039> with<00:20:27.159> the<00:20:27.280> most<00:20:27.559> value<00:20:27.840> at<00:20:28.039> loss 00:20:28.310 --> 00:20:28.320 align:start position:0% blockchain with the most value at loss 00:20:28.320 --> 00:20:31.149 align:start position:0% blockchain with the most value at loss backing<00:20:28.760> it<00:20:28.880> wins<00:20:29.520> so<00:20:29.720> the<00:20:29.880> blockchain<00:20:30.840> where 00:20:31.149 --> 00:20:31.159 align:start position:0% backing it wins so the blockchain where 00:20:31.159 --> 00:20:32.990 align:start position:0% backing it wins so the blockchain where people<00:20:31.520> stake<00:20:32.039> sort<00:20:32.200> of<00:20:32.320> the<00:20:32.440> most<00:20:32.679> ether 00:20:32.990 --> 00:20:33.000 align:start position:0% people stake sort of the most ether 00:20:33.000 --> 00:20:35.110 align:start position:0% people stake sort of the most ether behind<00:20:33.280> it<00:20:33.640> wins<00:20:34.280> how<00:20:34.400> do<00:20:34.480> you<00:20:34.600> stake<00:20:34.880> ether 00:20:35.110 --> 00:20:35.120 align:start position:0% behind it wins how do you stake ether 00:20:35.120 --> 00:20:36.950 align:start position:0% behind it wins how do you stake ether behind<00:20:35.320> the<00:20:35.440> blockchain<00:20:36.200> now<00:20:36.320> one<00:20:36.480> of<00:20:36.640> that<00:20:36.760> is 00:20:36.950 --> 00:20:36.960 align:start position:0% behind the blockchain now one of that is 00:20:36.960 --> 00:20:38.549 align:start position:0% behind the blockchain now one of that is by<00:20:37.080> making<00:20:37.280> a<00:20:37.400> block<00:20:37.640> in<00:20:37.720> it<00:20:38.080> if<00:20:38.159> you<00:20:38.280> make<00:20:38.440> a 00:20:38.549 --> 00:20:38.559 align:start position:0% by making a block in it if you make a 00:20:38.559 --> 00:20:39.990 align:start position:0% by making a block in it if you make a block<00:20:38.799> in<00:20:38.880> a<00:20:39.000> blockchain<00:20:39.440> then<00:20:39.600> basically<00:20:39.880> you 00:20:39.990 --> 00:20:40.000 align:start position:0% block in a blockchain then basically you 00:20:40.000 --> 00:20:42.190 align:start position:0% block in a blockchain then basically you stake<00:20:40.280> your<00:20:40.440> ether<00:20:40.840> behind<00:20:41.080> that<00:20:41.240> blockchain 00:20:42.190 --> 00:20:42.200 align:start position:0% stake your ether behind that blockchain 00:20:42.200 --> 00:20:43.909 align:start position:0% stake your ether behind that blockchain because<00:20:42.640> in<00:20:42.880> every<00:20:43.120> blockchain<00:20:43.559> other<00:20:43.760> than 00:20:43.909 --> 00:20:43.919 align:start position:0% because in every blockchain other than 00:20:43.919 --> 00:20:46.110 align:start position:0% because in every blockchain other than that<00:20:44.080> blockchain<00:20:44.440> you<00:20:44.559> lose<00:20:44.840> the<00:20:45.039> you<00:20:45.200> lose 00:20:46.110 --> 00:20:46.120 align:start position:0% that blockchain you lose the you lose 00:20:46.120 --> 00:20:48.190 align:start position:0% that blockchain you lose the you lose one<00:20:46.320> block<00:20:46.600> reward<00:20:46.919> worth<00:20:47.080> of<00:20:47.200> ether<00:20:47.799> so<00:20:48.039> if 00:20:48.190 --> 00:20:48.200 align:start position:0% one block reward worth of ether so if 00:20:48.200 --> 00:20:50.510 align:start position:0% one block reward worth of ether so if you<00:20:48.440> if<00:20:48.520> the<00:20:48.679> block<00:20:48.880> reward<00:20:49.159> is<00:20:49.240> 0.2<00:20:49.880> ether<00:20:50.400> you 00:20:50.510 --> 00:20:50.520 align:start position:0% you if the block reward is 0.2 ether you 00:20:50.520 --> 00:20:52.630 align:start position:0% you if the block reward is 0.2 ether you make<00:20:50.640> a<00:20:50.799> block<00:20:51.080> you<00:20:51.200> make<00:20:51.360> a<00:20:51.440> block<00:20:51.679> on<00:20:51.840> chain<00:20:52.120> a 00:20:52.630 --> 00:20:52.640 align:start position:0% make a block you make a block on chain a 00:20:52.640 --> 00:20:54.590 align:start position:0% make a block you make a block on chain a you<00:20:52.840> have<00:20:53.080> actually<00:20:53.360> Stak<00:20:53.679> 0.2<00:20:54.240> ether<00:20:54.480> on 00:20:54.590 --> 00:20:54.600 align:start position:0% you have actually Stak 0.2 ether on 00:20:54.600 --> 00:20:57.230 align:start position:0% you have actually Stak 0.2 ether on chain<00:20:54.880> a<00:20:55.600> now<00:20:55.799> guess<00:20:55.960> what<00:20:56.080> we<00:20:56.240> do<00:20:56.799> basically 00:20:57.230 --> 00:20:57.240 align:start position:0% chain a now guess what we do basically 00:20:57.240 --> 00:20:59.549 align:start position:0% chain a now guess what we do basically we<00:20:57.440> let<00:20:57.679> people<00:20:58.000> stake<00:20:58.320> even<00:20:58.679> more<00:20:58.840> ether<00:20:59.400> so 00:20:59.549 --> 00:20:59.559 align:start position:0% we let people stake even more ether so 00:20:59.559 --> 00:21:00.870 align:start position:0% we let people stake even more ether so we<00:20:59.679> have<00:20:59.760> a<00:20:59.880> separate<00:21:00.240> mechanism<00:21:00.760> that 00:21:00.870 --> 00:21:00.880 align:start position:0% we have a separate mechanism that 00:21:00.880 --> 00:21:03.029 align:start position:0% we have a separate mechanism that basically<00:21:01.360> gives<00:21:01.679> people<00:21:02.280> the<00:21:02.480> opportunity 00:21:03.029 --> 00:21:03.039 align:start position:0% basically gives people the opportunity 00:21:03.039 --> 00:21:05.029 align:start position:0% basically gives people the opportunity to<00:21:03.200> make<00:21:03.360> what<00:21:03.440> we<00:21:03.559> call<00:21:03.720> finality<00:21:04.200> claims<00:21:04.880> so 00:21:05.029 --> 00:21:05.039 align:start position:0% to make what we call finality claims so 00:21:05.039 --> 00:21:06.470 align:start position:0% to make what we call finality claims so in<00:21:05.159> this<00:21:05.320> case<00:21:05.480> you<00:21:05.600> have<00:21:05.720> a<00:21:05.799> finality<00:21:06.200> claim 00:21:06.470 --> 00:21:06.480 align:start position:0% in this case you have a finality claim 00:21:06.480 --> 00:21:09.190 align:start position:0% in this case you have a finality claim that<00:21:06.679> says<00:21:07.280> this<00:21:07.480> block<00:21:08.240> has<00:21:08.440> some<00:21:08.679> particular 00:21:09.190 --> 00:21:09.200 align:start position:0% that says this block has some particular 00:21:09.200 --> 00:21:11.149 align:start position:0% that says this block has some particular hash<00:21:09.840> with<00:21:10.080> probability 00:21:11.149 --> 00:21:11.159 align:start position:0% hash with probability 00:21:11.159 --> 00:21:13.190 align:start position:0% hash with probability 99.9%<00:21:12.159> now<00:21:12.320> what<00:21:12.400> does<00:21:12.559> this<00:21:12.679> mean<00:21:12.840> to<00:21:12.960> you<00:21:13.120> as 00:21:13.190 --> 00:21:13.200 align:start position:0% 99.9% now what does this mean to you as 00:21:13.200 --> 00:21:16.669 align:start position:0% 99.9% now what does this mean to you as a<00:21:13.320> validator<00:21:13.799> in<00:21:14.000> practice<00:21:14.360> it<00:21:14.480> means<00:21:15.440> in<00:21:15.880> all 00:21:16.669 --> 00:21:16.679 align:start position:0% a validator in practice it means in all 00:21:16.679 --> 00:21:19.710 align:start position:0% a validator in practice it means in all histories<00:21:17.679> where<00:21:18.279> this<00:21:18.440> is<00:21:18.600> the<00:21:18.760> case<00:21:19.440> you<00:21:19.600> get 00:21:19.710 --> 00:21:19.720 align:start position:0% histories where this is the case you get 00:21:19.720 --> 00:21:21.710 align:start position:0% histories where this is the case you get a<00:21:19.840> reward<00:21:20.159> of<00:21:20.279> one<00:21:20.840> in<00:21:20.960> all<00:21:21.120> histories<00:21:21.559> where 00:21:21.710 --> 00:21:21.720 align:start position:0% a reward of one in all histories where 00:21:21.720 --> 00:21:24.710 align:start position:0% a reward of one in all histories where this<00:21:21.799> is<00:21:22.000> not<00:21:22.200> the<00:21:22.320> case<00:21:22.919> you<00:21:23.159> lose<00:21:23.480> a<00:21:23.720> thousand 00:21:24.710 --> 00:21:24.720 align:start position:0% this is not the case you lose a thousand 00:21:24.720 --> 00:21:26.750 align:start position:0% this is not the case you lose a thousand now<00:21:24.919> of<00:21:25.080> course<00:21:25.760> it's<00:21:26.000> sort<00:21:26.159> of<00:21:26.320> easy<00:21:26.600> to 00:21:26.750 --> 00:21:26.760 align:start position:0% now of course it's sort of easy to 00:21:26.760 --> 00:21:28.750 align:start position:0% now of course it's sort of easy to mathematically<00:21:27.360> see<00:21:27.640> you<00:21:27.799> only<00:21:28.000> have<00:21:28.159> the<00:21:28.240> in 00:21:28.750 --> 00:21:28.760 align:start position:0% mathematically see you only have the in 00:21:28.760 --> 00:21:31.190 align:start position:0% mathematically see you only have the in to<00:21:28.919> do<00:21:29.120> this<00:21:29.640> if<00:21:29.760> you<00:21:30.000> actually<00:21:30.360> believe<00:21:31.039> this 00:21:31.190 --> 00:21:31.200 align:start position:0% to do this if you actually believe this 00:21:31.200 --> 00:21:34.549 align:start position:0% to do this if you actually believe this block<00:21:32.039> will<00:21:32.320> have<00:21:32.520> this<00:21:32.720> hash<00:21:33.000> with<00:21:33.240> 99.9% 00:21:34.549 --> 00:21:34.559 align:start position:0% block will have this hash with 99.9% 00:21:34.559 --> 00:21:36.830 align:start position:0% block will have this hash with 99.9% probability 00:21:36.830 --> 00:21:36.840 align:start position:0% probability 00:21:36.840 --> 00:21:40.909 align:start position:0% probability so<00:21:37.840> now<00:21:38.520> basically<00:21:39.520> bets<00:21:39.880> start<00:21:40.240> off<00:21:40.600> sort<00:21:40.760> of 00:21:40.909 --> 00:21:40.919 align:start position:0% so now basically bets start off sort of 00:21:40.919 --> 00:21:42.950 align:start position:0% so now basically bets start off sort of being<00:21:41.200> very<00:21:41.400> conservative<00:21:42.240> so<00:21:42.520> let's<00:21:42.679> say<00:21:42.840> a 00:21:42.950 --> 00:21:42.960 align:start position:0% being very conservative so let's say a 00:21:42.960 --> 00:21:45.350 align:start position:0% being very conservative so let's say a finality<00:21:43.440> cycle<00:21:43.760> Begins<00:21:44.039> for<00:21:44.200> some<00:21:44.400> block 00:21:45.350 --> 00:21:45.360 align:start position:0% finality cycle Begins for some block 00:21:45.360 --> 00:21:47.990 align:start position:0% finality cycle Begins for some block validators<00:21:45.880> start<00:21:46.200> off<00:21:46.440> making<00:21:46.760> sort<00:21:46.960> of<00:21:47.200> very 00:21:47.990 --> 00:21:48.000 align:start position:0% validators start off making sort of very 00:21:48.000 --> 00:21:49.789 align:start position:0% validators start off making sort of very low<00:21:48.279> odds<00:21:48.559> bets<00:21:48.840> they<00:21:49.000> might<00:21:49.159> say<00:21:49.440> oh<00:21:49.720> this 00:21:49.789 --> 00:21:49.799 align:start position:0% low odds bets they might say oh this 00:21:49.799 --> 00:21:51.510 align:start position:0% low odds bets they might say oh this thing's<00:21:50.080> going<00:21:50.159> to<00:21:50.320> can<00:21:50.720> be<00:21:50.880> finalized<00:21:51.400> with 00:21:51.510 --> 00:21:51.520 align:start position:0% thing's going to can be finalized with 00:21:51.520 --> 00:21:56.029 align:start position:0% thing's going to can be finalized with odds<00:21:51.720> 4<00:21:51.919> to1<00:21:52.360> 5<00:21:52.600> to1<00:21:52.919> 6:1<00:21:53.760> 10:1<00:21:54.760> then<00:21:55.039> over<00:21:55.320> time 00:21:56.029 --> 00:21:56.039 align:start position:0% odds 4 to1 5 to1 6:1 10:1 then over time 00:21:56.039 --> 00:21:57.990 align:start position:0% odds 4 to1 5 to1 6:1 10:1 then over time as<00:21:56.360> validators<00:21:56.919> see<00:21:57.200> that<00:21:57.360> everyone<00:21:57.640> else<00:21:57.840> is 00:21:57.990 --> 00:21:58.000 align:start position:0% as validators see that everyone else is 00:21:58.000 --> 00:22:00.230 align:start position:0% as validators see that everyone else is betting<00:21:58.279> let's<00:21:58.720> 10<00:21:58.880> to1<00:21:59.120> on<00:21:59.200> a<00:21:59.360> particular<00:22:00.120> on 00:22:00.230 --> 00:22:00.240 align:start position:0% betting let's 10 to1 on a particular on 00:22:00.240 --> 00:22:01.830 align:start position:0% betting let's 10 to1 on a particular on a<00:22:00.400> particular<00:22:00.840> block<00:22:01.400> they're<00:22:01.559> going<00:22:01.640> to<00:22:01.720> be 00:22:01.830 --> 00:22:01.840 align:start position:0% a particular block they're going to be 00:22:01.840 --> 00:22:03.710 align:start position:0% a particular block they're going to be willing<00:22:02.039> to<00:22:02.159> bet<00:22:02.320> 20<00:22:02.559> to1<00:22:02.960> once<00:22:03.159> everyone<00:22:03.440> sees 00:22:03.710 --> 00:22:03.720 align:start position:0% willing to bet 20 to1 once everyone sees 00:22:03.720 --> 00:22:05.110 align:start position:0% willing to bet 20 to1 once everyone sees that<00:22:03.880> everyone<00:22:04.120> else<00:22:04.240> is<00:22:04.400> betting<00:22:04.640> 20<00:22:04.880> to1 00:22:05.110 --> 00:22:05.120 align:start position:0% that everyone else is betting 20 to1 00:22:05.120 --> 00:22:06.230 align:start position:0% that everyone else is betting 20 to1 they're<00:22:05.240> going<00:22:05.320> to<00:22:05.400> be<00:22:05.480> willing<00:22:05.720> to<00:22:05.840> bet<00:22:06.000> 40 00:22:06.230 --> 00:22:06.240 align:start position:0% they're going to be willing to bet 40 00:22:06.240 --> 00:22:09.430 align:start position:0% they're going to be willing to bet 40 to1<00:22:06.679> and<00:22:06.840> so<00:22:07.039> forth<00:22:07.960> and<00:22:08.440> the<00:22:08.640> third<00:22:08.880> of<00:22:09.120> Hope 00:22:09.430 --> 00:22:09.440 align:start position:0% to1 and so forth and the third of Hope 00:22:09.440 --> 00:22:11.310 align:start position:0% to1 and so forth and the third of Hope is<00:22:09.640> that<00:22:09.840> value<00:22:10.080> at<00:22:10.279> loss<00:22:10.600> on<00:22:10.760> a<00:22:10.919> particular 00:22:11.310 --> 00:22:11.320 align:start position:0% is that value at loss on a particular 00:22:11.320 --> 00:22:14.230 align:start position:0% is that value at loss on a particular block<00:22:11.880> will<00:22:12.080> increase<00:22:13.000> exponentially<00:22:14.000> and 00:22:14.230 --> 00:22:14.240 align:start position:0% block will increase exponentially and 00:22:14.240 --> 00:22:15.669 align:start position:0% block will increase exponentially and eventually<00:22:14.760> it's<00:22:14.880> going<00:22:14.960> to<00:22:15.120> hit<00:22:15.279> what<00:22:15.400> I<00:22:15.520> call 00:22:15.669 --> 00:22:15.679 align:start position:0% eventually it's going to hit what I call 00:22:15.679 --> 00:22:18.070 align:start position:0% eventually it's going to hit what I call economic<00:22:16.120> finality<00:22:16.960> and<00:22:17.159> economic<00:22:17.559> finality 00:22:18.070 --> 00:22:18.080 align:start position:0% economic finality and economic finality 00:22:18.080 --> 00:22:20.230 align:start position:0% economic finality and economic finality basically<00:22:18.440> means<00:22:19.120> validators<00:22:19.760> make<00:22:20.039> these 00:22:20.230 --> 00:22:20.240 align:start position:0% basically means validators make these 00:22:20.240 --> 00:22:22.669 align:start position:0% basically means validators make these bets<00:22:20.559> to<00:22:20.679> such<00:22:20.880> an<00:22:21.039> extent<00:22:21.880> that<00:22:22.159> they're<00:22:22.600> they 00:22:22.669 --> 00:22:22.679 align:start position:0% bets to such an extent that they're they 00:22:22.679 --> 00:22:25.110 align:start position:0% bets to such an extent that they're they are<00:22:22.880> willing<00:22:23.159> to<00:22:23.400> lose<00:22:23.880> all<00:22:24.039> of<00:22:24.200> their<00:22:24.400> ether 00:22:25.110 --> 00:22:25.120 align:start position:0% are willing to lose all of their ether 00:22:25.120 --> 00:22:27.070 align:start position:0% are willing to lose all of their ether in<00:22:25.400> all<00:22:25.760> all<00:22:26.000> histories<00:22:26.520> except<00:22:26.760> for<00:22:26.919> those 00:22:27.070 --> 00:22:27.080 align:start position:0% in all all histories except for those 00:22:27.080 --> 00:22:28.269 align:start position:0% in all all histories except for those histories<00:22:27.440> that<00:22:27.559> contain<00:22:27.799> a<00:22:27.960> particular 00:22:28.269 --> 00:22:28.279 align:start position:0% histories that contain a particular 00:22:28.279 --> 00:22:29.070 align:start position:0% histories that contain a particular block 00:22:29.070 --> 00:22:29.080 align:start position:0% block 00:22:29.080 --> 00:22:30.950 align:start position:0% block why<00:22:29.200> do<00:22:29.360> they<00:22:29.480> do<00:22:29.720> this<00:22:30.039> because<00:22:30.720> in<00:22:30.840> the 00:22:30.950 --> 00:22:30.960 align:start position:0% why do they do this because in the 00:22:30.960 --> 00:22:32.470 align:start position:0% why do they do this because in the history<00:22:31.440> in<00:22:31.559> the<00:22:31.679> histories<00:22:32.000> that<00:22:32.159> do<00:22:32.320> have 00:22:32.470 --> 00:22:32.480 align:start position:0% history in the histories that do have 00:22:32.480 --> 00:22:33.710 align:start position:0% history in the histories that do have that<00:22:32.640> particular<00:22:33.000> block<00:22:33.279> they<00:22:33.400> get<00:22:33.559> some 00:22:33.710 --> 00:22:33.720 align:start position:0% that particular block they get some 00:22:33.720 --> 00:22:36.830 align:start position:0% that particular block they get some mediumsized<00:22:34.520> reward<00:22:35.520> so<00:22:35.760> you<00:22:35.840> know<00:22:36.000> over<00:22:36.240> here 00:22:36.830 --> 00:22:36.840 align:start position:0% mediumsized reward so you know over here 00:22:36.840 --> 00:22:38.430 align:start position:0% mediumsized reward so you know over here sort<00:22:37.000> of<00:22:37.120> the<00:22:37.279> right<00:22:37.440> side<00:22:37.600> of<00:22:37.720> the<00:22:37.840> chart<00:22:38.320> you 00:22:38.430 --> 00:22:38.440 align:start position:0% sort of the right side of the chart you 00:22:38.440 --> 00:22:40.110 align:start position:0% sort of the right side of the chart you see<00:22:38.640> there's<00:22:38.760> a<00:22:38.880> mediumsized<00:22:39.400> reward<00:22:40.000> and 00:22:40.110 --> 00:22:40.120 align:start position:0% see there's a mediumsized reward and 00:22:40.120 --> 00:22:42.149 align:start position:0% see there's a mediumsized reward and there's<00:22:40.279> a<00:22:40.400> pretty<00:22:40.600> huge<00:22:40.919> loss<00:22:41.520> but<00:22:41.679> if<00:22:41.799> you<00:22:42.080> if 00:22:42.149 --> 00:22:42.159 align:start position:0% there's a pretty huge loss but if you if 00:22:42.159 --> 00:22:43.950 align:start position:0% there's a pretty huge loss but if you if you<00:22:42.360> really<00:22:42.600> are<00:22:42.960> that<00:22:43.080> sure<00:22:43.360> about<00:22:43.520> the<00:22:43.679> block 00:22:43.950 --> 00:22:43.960 align:start position:0% you really are that sure about the block 00:22:43.960 --> 00:22:46.230 align:start position:0% you really are that sure about the block then<00:22:44.080> you'll<00:22:44.240> take<00:22:44.400> it 00:22:46.230 --> 00:22:46.240 align:start position:0% then you'll take it 00:22:46.240 --> 00:22:49.430 align:start position:0% then you'll take it so<00:22:47.240> that's<00:22:48.080> if<00:22:48.559> then<00:22:48.760> if<00:22:48.919> one<00:22:49.080> particular 00:22:49.430 --> 00:22:49.440 align:start position:0% so that's if then if one particular 00:22:49.440 --> 00:22:51.029 align:start position:0% so that's if then if one particular block<00:22:49.679> gets<00:22:49.880> finalized<00:22:50.400> then<00:22:50.480> the<00:22:50.600> finality 00:22:51.029 --> 00:22:51.039 align:start position:0% block gets finalized then the finality 00:22:51.039 --> 00:22:54.390 align:start position:0% block gets finalized then the finality cycle<00:22:51.320> sort<00:22:51.440> of<00:22:51.600> starts<00:22:52.440> again 00:22:54.390 --> 00:22:54.400 align:start position:0% cycle sort of starts again 00:22:54.400 --> 00:22:57.950 align:start position:0% cycle sort of starts again so<00:22:55.400> why<00:22:55.640> finality<00:22:56.600> basically<00:22:57.159> because<00:22:57.760> it 00:22:57.950 --> 00:22:57.960 align:start position:0% so why finality basically because it 00:22:57.960 --> 00:23:00.830 align:start position:0% so why finality basically because it makes<00:22:58.640> even<00:22:59.240> forks<00:22:59.760> and<00:22:59.919> rollbacks<00:23:00.520> that<00:23:00.600> are 00:23:00.830 --> 00:23:00.840 align:start position:0% makes even forks and rollbacks that are 00:23:00.840 --> 00:23:03.789 align:start position:0% makes even forks and rollbacks that are backed<00:23:01.240> by<00:23:01.480> 51%<00:23:02.200> validator<00:23:02.679> collusions<00:23:03.520> so 00:23:03.789 --> 00:23:03.799 align:start position:0% backed by 51% validator collusions so 00:23:03.799 --> 00:23:06.070 align:start position:0% backed by 51% validator collusions so expensive<00:23:04.240> as<00:23:04.360> to<00:23:04.480> be<00:23:04.679> impractical<00:23:05.679> once<00:23:05.880> a 00:23:06.070 --> 00:23:06.080 align:start position:0% expensive as to be impractical once a 00:23:06.080 --> 00:23:08.669 align:start position:0% expensive as to be impractical once a block<00:23:06.480> is<00:23:06.760> finalized<00:23:07.360> it<00:23:07.520> can't<00:23:07.720> be<00:23:07.880> reverted 00:23:08.669 --> 00:23:08.679 align:start position:0% block is finalized it can't be reverted 00:23:08.679 --> 00:23:09.990 align:start position:0% block is finalized it can't be reverted like<00:23:08.919> even<00:23:09.159> if<00:23:09.320> two-thirds<00:23:09.799> of<00:23:09.880> the 00:23:09.990 --> 00:23:10.000 align:start position:0% like even if two-thirds of the 00:23:10.000 --> 00:23:12.390 align:start position:0% like even if two-thirds of the validators<00:23:10.440> are<00:23:10.600> evil<00:23:11.279> like<00:23:11.480> they<00:23:11.559> can<00:23:11.720> do 00:23:12.390 --> 00:23:12.400 align:start position:0% validators are evil like they can do 00:23:12.400 --> 00:23:13.909 align:start position:0% validators are evil like they can do still<00:23:12.679> do<00:23:12.880> quite<00:23:13.039> a<00:23:13.080> few<00:23:13.240> mean<00:23:13.559> things<00:23:13.799> but 00:23:13.909 --> 00:23:13.919 align:start position:0% still do quite a few mean things but 00:23:13.919 --> 00:23:15.710 align:start position:0% still do quite a few mean things but they<00:23:14.000> can't<00:23:14.159> revert<00:23:14.480> the<00:23:14.600> block<00:23:15.360> and<00:23:15.520> this<00:23:15.600> is 00:23:15.710 --> 00:23:15.720 align:start position:0% they can't revert the block and this is 00:23:15.720 --> 00:23:17.669 align:start position:0% they can't revert the block and this is a<00:23:15.840> really<00:23:16.039> nice<00:23:16.279> property<00:23:16.600> to<00:23:16.799> have<00:23:17.360> another 00:23:17.669 --> 00:23:17.679 align:start position:0% a really nice property to have another 00:23:17.679 --> 00:23:19.110 align:start position:0% a really nice property to have another nice<00:23:17.919> property<00:23:18.240> to<00:23:18.400> have<00:23:18.559> is<00:23:18.679> it<00:23:18.880> really 00:23:19.110 --> 00:23:19.120 align:start position:0% nice property to have is it really 00:23:19.120 --> 00:23:22.310 align:start position:0% nice property to have is it really benefits<00:23:19.559> like<00:23:19.760> line<00:23:20.039> syncing<00:23:21.039> because<00:23:22.039> when 00:23:22.310 --> 00:23:22.320 align:start position:0% benefits like line syncing because when 00:23:22.320 --> 00:23:25.149 align:start position:0% benefits like line syncing because when a<00:23:22.600> single<00:23:23.559> trans<00:23:23.960> one<00:23:24.080> a<00:23:24.200> single<00:23:24.600> claim<00:23:24.919> when<00:23:25.039> a 00:23:25.149 --> 00:23:25.159 align:start position:0% a single trans one a single claim when a 00:23:25.159 --> 00:23:27.310 align:start position:0% a single trans one a single claim when a single<00:23:25.440> cryptographically<00:23:26.159> signed<00:23:26.559> claim 00:23:27.310 --> 00:23:27.320 align:start position:0% single cryptographically signed claim 00:23:27.320 --> 00:23:29.470 align:start position:0% single cryptographically signed claim represents<00:23:28.159> a<00:23:28.520> milon<00:23:28.840> basically<00:23:29.279> like<00:23:29.400> a 00:23:29.470 --> 00:23:29.480 align:start position:0% represents a milon basically like a 00:23:29.480 --> 00:23:31.269 align:start position:0% represents a milon basically like a million<00:23:29.840> dollar<00:23:30.159> worth<00:23:30.320> of<00:23:30.440> value<00:23:30.840> loss<00:23:31.000> on<00:23:31.120> a 00:23:31.269 --> 00:23:31.279 align:start position:0% million dollar worth of value loss on a 00:23:31.279 --> 00:23:33.190 align:start position:0% million dollar worth of value loss on a particular<00:23:31.640> block<00:23:32.240> then<00:23:32.400> it's<00:23:32.600> actually<00:23:32.960> very 00:23:33.190 --> 00:23:33.200 align:start position:0% particular block then it's actually very 00:23:33.200 --> 00:23:36.149 align:start position:0% particular block then it's actually very easy<00:23:33.440> for<00:23:33.679> light<00:23:33.919> clients<00:23:34.400> to<00:23:35.279> sort<00:23:35.440> of<00:23:35.880> light 00:23:36.149 --> 00:23:36.159 align:start position:0% easy for light clients to sort of light 00:23:36.159 --> 00:23:37.590 align:start position:0% easy for light clients to sort of light verify<00:23:36.640> that<00:23:36.760> a<00:23:36.880> particular<00:23:37.240> block<00:23:37.480> is 00:23:37.590 --> 00:23:37.600 align:start position:0% verify that a particular block is 00:23:37.600 --> 00:23:39.350 align:start position:0% verify that a particular block is correct<00:23:38.039> because<00:23:38.240> all<00:23:38.360> they<00:23:38.520> do<00:23:38.679> is<00:23:38.840> they 00:23:39.350 --> 00:23:39.360 align:start position:0% correct because all they do is they 00:23:39.360 --> 00:23:40.990 align:start position:0% correct because all they do is they download<00:23:39.760> a<00:23:39.840> bunch<00:23:40.000> of<00:23:40.159> these<00:23:40.520> of<00:23:40.799> these 00:23:40.990 --> 00:23:41.000 align:start position:0% download a bunch of these of these 00:23:41.000 --> 00:23:43.990 align:start position:0% download a bunch of these of these claims<00:23:41.799> and<00:23:41.960> they<00:23:42.320> see<00:23:42.640> oh<00:23:42.880> look<00:23:43.640> people<00:23:43.840> are 00:23:43.990 --> 00:23:44.000 align:start position:0% claims and they see oh look people are 00:23:44.000 --> 00:23:45.669 align:start position:0% claims and they see oh look people are betting<00:23:44.200> $<00:23:44.279> 12<00:23:44.559> million<00:23:45.080> that<00:23:45.240> this<00:23:45.360> block<00:23:45.559> is 00:23:45.669 --> 00:23:45.679 align:start position:0% betting $ 12 million that this block is 00:23:45.679 --> 00:23:46.909 align:start position:0% betting $ 12 million that this block is correct<00:23:46.039> so<00:23:46.159> I'm<00:23:46.279> just<00:23:46.360> going<00:23:46.440> to<00:23:46.559> assume<00:23:46.799> it's 00:23:46.909 --> 00:23:46.919 align:start position:0% correct so I'm just going to assume it's 00:23:46.919 --> 00:23:49.029 align:start position:0% correct so I'm just going to assume it's correct<00:23:47.480> I'm<00:23:47.640> going<00:23:47.720> to<00:23:47.960> then<00:23:48.520> I<00:23:48.640> assume<00:23:48.880> it's 00:23:49.029 --> 00:23:49.039 align:start position:0% correct I'm going to then I assume it's 00:23:49.039 --> 00:23:50.430 align:start position:0% correct I'm going to then I assume it's correct<00:23:49.360> then<00:23:49.480> I<00:23:49.600> download<00:23:49.919> the<00:23:50.000> new<00:23:50.200> state 00:23:50.430 --> 00:23:50.440 align:start position:0% correct then I download the new state 00:23:50.440 --> 00:23:52.310 align:start position:0% correct then I download the new state and<00:23:50.559> then<00:23:50.640> I<00:23:50.760> see<00:23:51.080> what<00:23:51.679> what<00:23:51.840> blocks<00:23:52.120> in<00:23:52.240> the 00:23:52.310 --> 00:23:52.320 align:start position:0% and then I see what what blocks in the 00:23:52.320 --> 00:23:54.789 align:start position:0% and then I see what what blocks in the future<00:23:52.679> people<00:23:52.919> are<00:23:53.360> betting<00:23:54.279> another<00:23:54.440> $12 00:23:54.789 --> 00:23:54.799 align:start position:0% future people are betting another $12 00:23:54.799 --> 00:24:00.710 align:start position:0% future people are betting another $12 million<00:23:55.400> on<00:23:55.840> and<00:23:55.960> so<00:23:56.159> forth<00:23:56.400> and<00:23:56.520> so<00:23:56.720> forth<00:23:57.640> so 00:24:00.710 --> 00:24:00.720 align:start position:0% 00:24:00.720 --> 00:24:03.390 align:start position:0% sharding<00:24:01.720> so<00:24:02.240> all<00:24:02.559> that<00:24:02.720> I've<00:24:02.880> talked<00:24:03.159> about 00:24:03.390 --> 00:24:03.400 align:start position:0% sharding so all that I've talked about 00:24:03.400 --> 00:24:06.549 align:start position:0% sharding so all that I've talked about so<00:24:03.640> far<00:24:04.080> is<00:24:04.840> non-shed<00:24:05.799> not<00:24:06.039> particularly 00:24:06.549 --> 00:24:06.559 align:start position:0% so far is non-shed not particularly 00:24:06.559 --> 00:24:08.190 align:start position:0% so far is non-shed not particularly scale<00:24:06.919> while<00:24:07.080> sort<00:24:07.200> of<00:24:07.320> simple<00:24:07.640> proof<00:24:07.840> of 00:24:08.190 --> 00:24:08.200 align:start position:0% scale while sort of simple proof of 00:24:08.200 --> 00:24:12.310 align:start position:0% scale while sort of simple proof of stake<00:24:09.200> that<00:24:10.240> can<00:24:11.240> basically<00:24:11.840> keeps 00:24:12.310 --> 00:24:12.320 align:start position:0% stake that can basically keeps 00:24:12.320 --> 00:24:14.070 align:start position:0% stake that can basically keeps everything<00:24:12.840> fairly<00:24:13.240> similar<00:24:13.559> to<00:24:13.720> proof<00:24:13.919> of 00:24:14.070 --> 00:24:14.080 align:start position:0% everything fairly similar to proof of 00:24:14.080 --> 00:24:15.789 align:start position:0% everything fairly similar to proof of work<00:24:14.480> except<00:24:14.760> it<00:24:14.840> makes<00:24:15.039> walk<00:24:15.320> times<00:24:15.520> a<00:24:15.640> bit 00:24:15.789 --> 00:24:15.799 align:start position:0% work except it makes walk times a bit 00:24:15.799 --> 00:24:17.110 align:start position:0% work except it makes walk times a bit faster<00:24:16.200> it<00:24:16.320> makes<00:24:16.520> the<00:24:16.679> system<00:24:16.960> more 00:24:17.110 --> 00:24:17.120 align:start position:0% faster it makes the system more 00:24:17.120 --> 00:24:19.230 align:start position:0% faster it makes the system more efficient<00:24:17.799> it<00:24:17.919> means<00:24:18.240> the<00:24:18.360> amount<00:24:18.600> of<00:24:18.760> ether 00:24:19.230 --> 00:24:19.240 align:start position:0% efficient it means the amount of ether 00:24:19.240 --> 00:24:21.870 align:start position:0% efficient it means the amount of ether that<00:24:19.720> uh<00:24:20.720> has<00:24:20.840> to<00:24:20.960> be<00:24:21.120> issued<00:24:21.400> in<00:24:21.480> order<00:24:21.679> to<00:24:21.760> pay 00:24:21.870 --> 00:24:21.880 align:start position:0% that uh has to be issued in order to pay 00:24:21.880 --> 00:24:24.190 align:start position:0% that uh has to be issued in order to pay for<00:24:22.000> miners<00:24:22.440> goes<00:24:22.600> down<00:24:22.760> a<00:24:22.919> lot<00:24:23.120> and<00:24:23.240> so<00:24:23.440> forth 00:24:24.190 --> 00:24:24.200 align:start position:0% for miners goes down a lot and so forth 00:24:24.200 --> 00:24:27.269 align:start position:0% for miners goes down a lot and so forth Shing<00:24:25.200> so<00:24:25.480> the<00:24:25.640> dream<00:24:25.960> basically<00:24:26.480> is<00:24:27.000> to 00:24:27.269 --> 00:24:27.279 align:start position:0% Shing so the dream basically is to 00:24:27.279 --> 00:24:29.269 align:start position:0% Shing so the dream basically is to achieve<00:24:27.880> unchain<00:24:28.440> scaling<00:24:28.799> to<00:24:28.960> tens<00:24:29.159> of 00:24:29.269 --> 00:24:29.279 align:start position:0% achieve unchain scaling to tens of 00:24:29.279 --> 00:24:31.269 align:start position:0% achieve unchain scaling to tens of thousands<00:24:29.559> of<00:24:29.720> transactions<00:24:30.240> a<00:24:30.399> second<00:24:31.120> but 00:24:31.269 --> 00:24:31.279 align:start position:0% thousands of transactions a second but 00:24:31.279 --> 00:24:33.510 align:start position:0% thousands of transactions a second but at<00:24:31.440> this<00:24:31.760> through<00:24:32.399> a<00:24:32.600> fully<00:24:32.919> decentralized 00:24:33.510 --> 00:24:33.520 align:start position:0% at this through a fully decentralized 00:24:33.520 --> 00:24:35.870 align:start position:0% at this through a fully decentralized peer-to-peer<00:24:33.840> Network<00:24:34.480> that<00:24:34.720> can<00:24:35.120> if<00:24:35.279> needed 00:24:35.870 --> 00:24:35.880 align:start position:0% peer-to-peer Network that can if needed 00:24:35.880 --> 00:24:38.470 align:start position:0% peer-to-peer Network that can if needed run<00:24:36.120> on<00:24:36.360> nothing<00:24:36.679> but<00:24:36.880> consumer<00:24:37.480> laptops 00:24:38.470 --> 00:24:38.480 align:start position:0% run on nothing but consumer laptops 00:24:38.480 --> 00:24:40.269 align:start position:0% run on nothing but consumer laptops sounds<00:24:38.720> like<00:24:38.840> a<00:24:39.000> contradiction<00:24:39.919> how<00:24:40.039> do<00:24:40.120> you 00:24:40.269 --> 00:24:40.279 align:start position:0% sounds like a contradiction how do you 00:24:40.279 --> 00:24:42.789 align:start position:0% sounds like a contradiction how do you do<00:24:40.440> it<00:24:41.200> answer<00:24:41.600> is<00:24:42.120> every<00:24:42.360> note<00:24:42.559> in<00:24:42.679> the 00:24:42.789 --> 00:24:42.799 align:start position:0% do it answer is every note in the 00:24:42.799 --> 00:24:44.510 align:start position:0% do it answer is every note in the network<00:24:43.240> only<00:24:43.480> keeps<00:24:43.760> track<00:24:44.000> of<00:24:44.120> a<00:24:44.200> small 00:24:44.510 --> 00:24:44.520 align:start position:0% network only keeps track of a small 00:24:44.520 --> 00:24:46.830 align:start position:0% network only keeps track of a small portion<00:24:44.799> of<00:24:45.080> transactions<00:24:46.080> but<00:24:46.279> it<00:24:46.399> can<00:24:46.760> it 00:24:46.830 --> 00:24:46.840 align:start position:0% portion of transactions but it can it 00:24:46.840 --> 00:24:48.590 align:start position:0% portion of transactions but it can it can<00:24:46.960> use<00:24:47.200> mer<00:24:47.559> proofs<00:24:47.799> to<00:24:47.919> verify<00:24:48.320> everything 00:24:48.590 --> 00:24:48.600 align:start position:0% can use mer proofs to verify everything 00:24:48.600 --> 00:24:51.470 align:start position:0% can use mer proofs to verify everything if<00:24:48.720> needed<00:24:49.559> now<00:24:49.760> bitor<00:24:50.320> scales<00:24:50.679> like<00:24:50.919> this 00:24:51.470 --> 00:24:51.480 align:start position:0% if needed now bitor scales like this 00:24:51.480 --> 00:24:54.110 align:start position:0% if needed now bitor scales like this with<00:24:51.679> bit<00:24:51.880> torent<00:24:52.440> you<00:24:52.520> know<00:24:52.679> it<00:24:52.919> has<00:24:53.720> huge 00:24:54.110 --> 00:24:54.120 align:start position:0% with bit torent you know it has huge 00:24:54.120 --> 00:24:56.350 align:start position:0% with bit torent you know it has huge like<00:24:54.279> pedabytes<00:24:54.559> of<00:24:54.880> data<00:24:55.600> but<00:24:55.840> somehow<00:24:56.200> it's 00:24:56.350 --> 00:24:56.360 align:start position:0% like pedabytes of data but somehow it's 00:24:56.360 --> 00:24:58.710 align:start position:0% like pedabytes of data but somehow it's still<00:24:56.520> a<00:24:56.600> decentralized<00:24:57.200> network<00:24:57.880> and<00:24:58.000> the<00:24:58.559> is 00:24:58.710 --> 00:24:58.720 align:start position:0% still a decentralized network and the is 00:24:58.720 --> 00:25:00.470 align:start position:0% still a decentralized network and the is because<00:24:58.960> each<00:24:59.679> this<00:24:59.799> happens<00:25:00.120> because<00:25:00.320> each 00:25:00.470 --> 00:25:00.480 align:start position:0% because each this happens because each 00:25:00.480 --> 00:25:01.990 align:start position:0% because each this happens because each note<00:25:00.679> Only<00:25:00.799> Stores<00:25:01.080> a<00:25:01.200> tiny<00:25:01.399> portion<00:25:01.640> of<00:25:01.760> the 00:25:01.990 --> 00:25:02.000 align:start position:0% note Only Stores a tiny portion of the 00:25:02.000 --> 00:25:03.990 align:start position:0% note Only Stores a tiny portion of the of<00:25:02.120> the<00:25:02.240> data<00:25:03.039> so<00:25:03.240> basically<00:25:03.559> we<00:25:03.679> want<00:25:03.760> to<00:25:03.880> do 00:25:03.990 --> 00:25:04.000 align:start position:0% of the data so basically we want to do 00:25:04.000 --> 00:25:05.549 align:start position:0% of the data so basically we want to do this<00:25:04.120> for<00:25:04.279> blockchains<00:25:04.799> as<00:25:04.919> well<00:25:05.399> the 00:25:05.549 --> 00:25:05.559 align:start position:0% this for blockchains as well the 00:25:05.559 --> 00:25:07.190 align:start position:0% this for blockchains as well the challenge<00:25:05.840> of<00:25:05.960> doing<00:25:06.159> it<00:25:06.240> in<00:25:06.399> blockchain<00:25:06.799> land 00:25:07.190 --> 00:25:07.200 align:start position:0% challenge of doing it in blockchain land 00:25:07.200 --> 00:25:09.190 align:start position:0% challenge of doing it in blockchain land is<00:25:07.360> that<00:25:07.679> you<00:25:07.919> also<00:25:08.159> wants<00:25:08.399> to<00:25:08.600> make<00:25:08.760> sure<00:25:09.039> that 00:25:09.190 --> 00:25:09.200 align:start position:0% is that you also wants to make sure that 00:25:09.200 --> 00:25:10.510 align:start position:0% is that you also wants to make sure that on<00:25:09.360> top<00:25:09.520> of<00:25:09.640> all<00:25:09.840> this<00:25:09.960> you<00:25:10.080> still<00:25:10.279> have<00:25:10.360> a 00:25:10.510 --> 00:25:10.520 align:start position:0% on top of all this you still have a 00:25:10.520 --> 00:25:14.389 align:start position:0% on top of all this you still have a robust<00:25:11.039> consensus<00:25:12.039> so<00:25:12.520> sharding<00:25:13.520> basically 00:25:14.389 --> 00:25:14.399 align:start position:0% robust consensus so sharding basically 00:25:14.399 --> 00:25:16.549 align:start position:0% robust consensus so sharding basically the<00:25:14.559> idea<00:25:15.000> is<00:25:15.320> that<00:25:15.520> instead<00:25:15.840> of<00:25:16.000> having<00:25:16.360> just 00:25:16.549 --> 00:25:16.559 align:start position:0% the idea is that instead of having just 00:25:16.559 --> 00:25:19.470 align:start position:0% the idea is that instead of having just one<00:25:16.760> Shard<00:25:17.520> you<00:25:17.679> would<00:25:17.919> have<00:25:18.360> multiple<00:25:18.760> shards 00:25:19.470 --> 00:25:19.480 align:start position:0% one Shard you would have multiple shards 00:25:19.480 --> 00:25:20.789 align:start position:0% one Shard you would have multiple shards and<00:25:19.640> these<00:25:19.799> multiple<00:25:20.120> shards<00:25:20.440> are<00:25:20.600> kind<00:25:20.679> of 00:25:20.789 --> 00:25:20.799 align:start position:0% and these multiple shards are kind of 00:25:20.799 --> 00:25:22.149 align:start position:0% and these multiple shards are kind of sort<00:25:20.960> of<00:25:21.080> mini<00:25:21.320> blockchains<00:25:21.840> that<00:25:21.960> sort<00:25:22.080> of 00:25:22.149 --> 00:25:22.159 align:start position:0% sort of mini blockchains that sort of 00:25:22.159 --> 00:25:24.389 align:start position:0% sort of mini blockchains that sort of grow<00:25:22.399> in<00:25:22.559> parallel<00:25:23.440> and<00:25:23.640> these<00:25:23.760> shards<00:25:24.159> also 00:25:24.389 --> 00:25:24.399 align:start position:0% grow in parallel and these shards also 00:25:24.399 --> 00:25:26.630 align:start position:0% grow in parallel and these shards also talk<00:25:24.600> to<00:25:24.799> each<00:25:24.919> other<00:25:25.640> so<00:25:26.080> there's<00:25:26.320> sort<00:25:26.480> of 00:25:26.630 --> 00:25:26.640 align:start position:0% talk to each other so there's sort of 00:25:26.640 --> 00:25:28.750 align:start position:0% talk to each other so there's sort of one<00:25:26.799> Shard<00:25:27.240> called<00:25:27.440> the<00:25:27.559> home<00:25:27.720> shard<00:25:28.440> and<00:25:28.600> on 00:25:28.750 --> 00:25:28.760 align:start position:0% one Shard called the home shard and on 00:25:28.760 --> 00:25:30.230 align:start position:0% one Shard called the home shard and on the<00:25:28.880> home<00:25:29.000> Shard<00:25:29.279> you<00:25:29.440> store<00:25:29.640> the<00:25:29.760> validator 00:25:30.230 --> 00:25:30.240 align:start position:0% the home Shard you store the validator 00:25:30.240 --> 00:25:32.029 align:start position:0% the home Shard you store the validator set<00:25:30.840> and<00:25:31.039> that's<00:25:31.200> sort<00:25:31.360> of<00:25:31.440> The<00:25:31.520> Shard<00:25:31.880> that 00:25:32.029 --> 00:25:32.039 align:start position:0% set and that's sort of The Shard that 00:25:32.039 --> 00:25:33.950 align:start position:0% set and that's sort of The Shard that still<00:25:32.279> kind<00:25:32.360> of<00:25:32.480> works<00:25:32.760> as<00:25:32.960> before<00:25:33.679> all<00:25:33.799> the 00:25:33.950 --> 00:25:33.960 align:start position:0% still kind of works as before all the 00:25:33.960 --> 00:25:36.789 align:start position:0% still kind of works as before all the other<00:25:34.360> shards<00:25:35.360> at<00:25:35.679> at<00:25:35.840> any<00:25:36.039> particular<00:25:36.559> point 00:25:36.789 --> 00:25:36.799 align:start position:0% other shards at at any particular point 00:25:36.799 --> 00:25:39.950 align:start position:0% other shards at at any particular point in<00:25:37.039> time<00:25:37.600> you<00:25:37.760> only<00:25:38.279> have<00:25:38.840> about<00:25:39.200> you<00:25:39.440> randomly 00:25:39.950 --> 00:25:39.960 align:start position:0% in time you only have about you randomly 00:25:39.960 --> 00:25:42.029 align:start position:0% in time you only have about you randomly select<00:25:40.320> or<00:25:40.440> pseudo<00:25:40.799> randomly<00:25:41.159> select<00:25:41.760> 100 00:25:42.029 --> 00:25:42.039 align:start position:0% select or pseudo randomly select 100 00:25:42.039 --> 00:25:43.950 align:start position:0% select or pseudo randomly select 100 validators<00:25:42.559> to<00:25:42.679> be<00:25:42.840> a<00:25:43.240> to<00:25:43.440> validate<00:25:43.840> that 00:25:43.950 --> 00:25:43.960 align:start position:0% validators to be a to validate that 00:25:43.960 --> 00:25:46.389 align:start position:0% validators to be a to validate that chard<00:25:44.360> at<00:25:44.520> at<00:25:44.640> any<00:25:44.840> particular<00:25:45.240> point<00:25:45.440> in<00:25:45.679> time 00:25:46.389 --> 00:25:46.399 align:start position:0% chard at at any particular point in time 00:25:46.399 --> 00:25:49.310 align:start position:0% chard at at any particular point in time so<00:25:46.679> during<00:25:47.039> each<00:25:47.360> Epoch<00:25:48.360> at<00:25:48.720> you<00:25:48.919> at<00:25:49.000> the<00:25:49.120> start 00:25:49.310 --> 00:25:49.320 align:start position:0% so during each Epoch at you at the start 00:25:49.320 --> 00:25:51.310 align:start position:0% so during each Epoch at you at the start of<00:25:49.440> an<00:25:49.559> Epoch<00:25:50.000> you<00:25:50.159> say<00:25:50.440> you<00:25:50.600> choose<00:25:50.919> for<00:25:51.159> each 00:25:51.310 --> 00:25:51.320 align:start position:0% of an Epoch you say you choose for each 00:25:51.320 --> 00:25:53.310 align:start position:0% of an Epoch you say you choose for each Shard<00:25:51.640> Su<00:25:51.880> or<00:25:52.039> randomly<00:25:52.840> these<00:25:53.080> 100 00:25:53.310 --> 00:25:53.320 align:start position:0% Shard Su or randomly these 100 00:25:53.320 --> 00:25:54.750 align:start position:0% Shard Su or randomly these 100 validators<00:25:53.720> are<00:25:53.880> validate<00:25:54.159> chart<00:25:54.440> one<00:25:54.600> these 00:25:54.750 --> 00:25:54.760 align:start position:0% validators are validate chart one these 00:25:54.760 --> 00:25:56.149 align:start position:0% validators are validate chart one these 100<00:25:54.960> will<00:25:55.120> validate<00:25:55.399> chart<00:25:55.640> two<00:25:55.799> these<00:25:55.960> 100 00:25:56.149 --> 00:25:56.159 align:start position:0% 100 will validate chart two these 100 00:25:56.159 --> 00:25:58.310 align:start position:0% 100 will validate chart two these 100 will<00:25:56.320> validate<00:25:56.600> chart<00:25:56.880> three<00:25:57.080> and<00:25:57.200> so<00:25:57.399> forth 00:25:58.310 --> 00:25:58.320 align:start position:0% will validate chart three and so forth 00:25:58.320 --> 00:26:01.870 align:start position:0% will validate chart three and so forth why<00:25:58.440> do<00:25:58.520> we<00:25:58.679> do<00:25:58.880> this<00:25:59.520> well<00:25:59.720> number<00:26:00.240> one<00:26:01.240> the<00:26:01.640> if 00:26:01.870 --> 00:26:01.880 align:start position:0% why do we do this well number one the if 00:26:01.880 --> 00:26:03.630 align:start position:0% why do we do this well number one the if the<00:26:02.039> random<00:26:02.399> sampling<00:26:02.840> works<00:26:03.200> well<00:26:03.440> then<00:26:03.559> it 00:26:03.630 --> 00:26:03.640 align:start position:0% the random sampling works well then it 00:26:03.640 --> 00:26:05.789 align:start position:0% the random sampling works well then it means<00:26:03.840> the<00:26:03.960> mechanism<00:26:04.399> can<00:26:04.520> be<00:26:04.720> secure<00:26:05.480> reason 00:26:05.789 --> 00:26:05.799 align:start position:0% means the mechanism can be secure reason 00:26:05.799 --> 00:26:07.510 align:start position:0% means the mechanism can be secure reason is<00:26:05.960> if<00:26:06.039> you're<00:26:06.200> an<00:26:06.399> attacker<00:26:07.000> you<00:26:07.200> can't 00:26:07.510 --> 00:26:07.520 align:start position:0% is if you're an attacker you can't 00:26:07.520 --> 00:26:08.750 align:start position:0% is if you're an attacker you can't choose<00:26:07.960> which<00:26:08.120> Shard<00:26:08.399> you're<00:26:08.520> going<00:26:08.640> to 00:26:08.750 --> 00:26:08.760 align:start position:0% choose which Shard you're going to 00:26:08.760 --> 00:26:10.389 align:start position:0% choose which Shard you're going to you're<00:26:08.919> going<00:26:09.000> to<00:26:09.159> validate<00:26:09.559> on<00:26:09.960> so<00:26:10.200> an 00:26:10.389 --> 00:26:10.399 align:start position:0% you're going to validate on so an 00:26:10.399 --> 00:26:12.190 align:start position:0% you're going to validate on so an attacker<00:26:10.760> will<00:26:10.960> still<00:26:11.240> need<00:26:11.600> to<00:26:11.799> take<00:26:11.960> over 00:26:12.190 --> 00:26:12.200 align:start position:0% attacker will still need to take over 00:26:12.200 --> 00:26:14.149 align:start position:0% attacker will still need to take over the<00:26:12.320> majority<00:26:12.679> of<00:26:12.760> the<00:26:12.840> entire<00:26:13.360> of<00:26:13.760> close<00:26:14.000> to 00:26:14.149 --> 00:26:14.159 align:start position:0% the majority of the entire of close to 00:26:14.159 --> 00:26:15.510 align:start position:0% the majority of the entire of close to the<00:26:14.320> majority<00:26:14.640> of<00:26:14.760> the<00:26:14.840> entire<00:26:15.080> network<00:26:15.399> to 00:26:15.510 --> 00:26:15.520 align:start position:0% the majority of the entire network to 00:26:15.520 --> 00:26:18.230 align:start position:0% the majority of the entire network to take<00:26:15.720> over<00:26:15.919> even<00:26:16.120> one<00:26:16.279> chard<00:26:17.200> so<00:26:17.880> this<00:26:17.960> is<00:26:18.080> sort 00:26:18.230 --> 00:26:18.240 align:start position:0% take over even one chard so this is sort 00:26:18.240 --> 00:26:20.590 align:start position:0% take over even one chard so this is sort of<00:26:18.360> the<00:26:18.520> basic<00:26:18.880> principle<00:26:19.799> um<00:26:20.039> if<00:26:20.120> he<00:26:20.279> wants<00:26:20.480> to 00:26:20.590 --> 00:26:20.600 align:start position:0% of the basic principle um if he wants to 00:26:20.600 --> 00:26:22.549 align:start position:0% of the basic principle um if he wants to find<00:26:20.840> out<00:26:21.039> more<00:26:21.480> read<00:26:21.679> the<00:26:21.799> M<00:26:22.080> paper<00:26:22.480> which 00:26:22.549 --> 00:26:22.559 align:start position:0% find out more read the M paper which 00:26:22.559 --> 00:26:24.630 align:start position:0% find out more read the M paper which will<00:26:22.720> be<00:26:22.840> a<00:26:23.039> releas<00:26:23.399> soon<00:26:24.080> and<00:26:24.279> we<00:26:24.399> have<00:26:24.520> a 00:26:24.630 --> 00:26:24.640 align:start position:0% will be a releas soon and we have a 00:26:24.640 --> 00:26:26.389 align:start position:0% will be a releas soon and we have a proof<00:26:24.799> of<00:26:25.000> concept<00:26:25.480> not<00:26:25.600> for<00:26:25.720> charting<00:26:26.200> but<00:26:26.320> at 00:26:26.389 --> 00:26:26.399 align:start position:0% proof of concept not for charting but at 00:26:26.399 --> 00:26:27.950 align:start position:0% proof of concept not for charting but at least<00:26:26.559> sort<00:26:26.720> of<00:26:26.840> for<00:26:27.279> a<00:26:27.399> lot<00:26:27.520> of<00:26:27.600> the<00:26:27.720> earlier 00:26:27.950 --> 00:26:27.960 align:start position:0% least sort of for a lot of the earlier 00:26:27.960 --> 00:26:29.630 align:start position:0% least sort of for a lot of the earlier proof<00:26:28.679> things<00:26:28.919> and<00:26:29.000> you<00:26:29.120> can<00:26:29.200> feel<00:26:29.360> free<00:26:29.520> to 00:26:29.630 --> 00:26:29.640 align:start position:0% proof things and you can feel free to 00:26:29.640 --> 00:26:34.440 align:start position:0% proof things and you can feel free to pray<00:26:29.760> with<00:26:29.880> it<00:26:30.039> yourself<00:26:30.840> so<00:26:31.240> thank<00:26:31.440> you