{"id":"KGOZ7udYz0A","title":"Whiteboard Series with NEAR | Ep: 23 David Lancashire from Saito |","description":"We got David Lancashire (  / dlancashi  ) from Saito, based in Hong Kong speak with our co-founder and CTO Illia Polosukhin (  / ilblackdragon  ) in the 23rd episode of the Whiteboard Session featuring Saito, a blockchain protocol designed to process terabytes of data. \n\n\n------ About Whiteboard Series --------\n\nThe Whiteboard Series with NEAR is a set of video interviews with Founders who are building scalable solutions for Blockchain.  We deep dive into their story, what they're developing and how it is helping the ecosystem. \n\nFollow the latest from NEAR Protocol on, \n\n\n\n\nDiscord: https://near.ai/discord\nMedium: https://near.ai/medium\nTwitter: https://near.ai/twitter\nGitHub: https://near.ai/github\n\n\n#WhiteboardSeries #Blockchain #FutureIsNEAR","channel_name":"NEAR Protocol","published_at":"2019-07-08T00:00:00.000Z","thumbnail_url":"https://img.youtube.com/vi/KGOZ7udYz0A/hqdefault.jpg","transcript_text":"we hit block let's say you decide how long it's and because we're building big blocks right yeah the first thing was well we need an advantage so our first solution and what you now is your Genesis block right and that was actually we'd be chatting with people and they're like oh you can't do that why can't you you can't the problems are some people like it was mostly ideological where people ever you need it and we're like well tell us why you need it and then go we need it because you're my eldest I'm walking you to something better like we're like well if your money disappears what you want to do is you want to manually send it to Berlin as soon as you rebroadcast your money spend actually just pretty much all you need eject shows you get cleaned up yeah like chains just wind you know cable get cleaned up is the sheer mental effort of remembering all the other projects that walk through there's there's some things that use that they start so one of the problems is they're only dealing with most of them I've seen they're only dealing with tokens our data so regenerate is that case dark or whatever and then they'll be able to leave stuff but I mean if you've got it on this the solution is actually this this solution is okay even rebroadcast if you want but when blog 10,001 is produced everybody knows that block one is going away so you automatically reformat and rebroadcast the tram actions with the consensus lair mediating not only the rebroadcast but also a rebroadcast fee and you do this so you don't only broadcast the UTX of data but yuri podcast the data that's used in the transaction as well so this solves a lot of really interesting problems because the transaction fee let's make this what we do is say oh is we make it two times the average fee of new transactions it's something really wonderful happens you can have a blog you can have a blog chain of like a face it's eyes like it's one gigabyte blog yeah now as the detail on the chain grows there's less and less space available for new transactions right so the new transactions start getting crowded out by the old transactions because you've got you have to rebroadcast the old you don't rebroadcast every single transaction no one else on the network treats that block is valid so you know you can you can have people attacking the network that you would be a 51% right and you do the Bitcoin anyway you for keyword movie Satoshi's points the really interesting thing is is the space for new blog shrinks the fees for new blogs go up as the fees for new blocks go up the fees for all blocks go up more you've got an incentive now for people to manually rebroadcast one that's second of all what you move is you move towards an equilibrium where the price of new transactions of the press wall transactions moves into equilibrium and the amount of new data that goes onto the blockchain is the same as the amount of old data its perch breath and we finally have an economic solution to blockchain scaling and chain management because not only does the blockchain stay at a certain size but it stays in a certain size well you can guarantee the data that's attached to your transactions down the chain so if you want your stuff on the blockchain forever you can actually pay for it if you just want your stuff falling off because you want a universal broadcast future you paid a much lower fee because you don't need to pay every loop and something else happens there's a lot of cheating Bitcoin where the miners for instance but you pay your fee there's no guarantee that there's no care to you yeah I just needed only for time databases where's your storage it well one is we think of it as we think of a blockchain a universal propagation network so there are complications where you want the author terms to broadcast it and most block chains because they don't have this problem solved they go to this position where it's like no the data you are paying you you store it yourself there are situations where well you're paying to use the blockchain so you don't use them you actually want you to sort on the blockchain for instance something like a commercial insurance project you want to prove you want to keep the data on chain for three years because that's there like that legal liability I mean you can maintain your own servers but if you're maintaining your own servers you don't actually needed watching Chris yeah but like why do I just started as a part of state like never been something use the way that we aspire to that data I'm saying just the story everything as far as state there's no reason you can't do that too but then I don't mean to like then you can purchase without any problems that's like singing eerily doesn't user service and your play don't need your service but it's better if it has no service so if you have drink service you can provide some kind of services services you're not able to do like move sports teams right so you know yeah this is this is a solution and for some use cases this is better than that right because this is expensive because it's actually using the blockchain for a certain kind of storage yeah on the other hand it's guaranteeing certain properties of that transactions - correct yeah like there are some things like let's say let's say I've got a name card yeah and my name card has a bunch of stuff on it like this is my PGP key this is URL here is where you can fetch my distributive Facebook posts you could take yeah you can add that name in the card and you can have a name card certainly long now if at moment of broadcast somebody needs to stick it in the database a user can't come along two years later and then collect it because well known ones gone and you've got a coordination problem this is a PSP MongoDB problem the introduced massive coordination problems because they're like okay you're going to negotiate separately with unright he's going to save the data for you if you pay for it and all of a sudden like you're using blockchain that all of the users need to coordinate on which access point to use they all need to have a second layer economic situation with this everything is paid for by the feet so the coordination issues are solved because every node on the network must have the data all you've got to do is convince someone to give you access to the blockchain and you've got it but it's for a subset of use cases it's not you know for most use cases but if you've got a signed message from someone that's sticky on the database then you pay lower fiend you don't mean the rebroadcast fee is going to be more expensive than stating your practice scenario like as far as what I'm saying like well that's the blockchain it isn't something like the way I look at ball chain it's a database like was the way you synchronize masters and slaves yes by sending around tobacco bloggers I mean I said what Alexa buggies actually matter because this is a database that everybody needs to have why would happen well I mean I'm not I'm not really sure I understand what you're saying here because the entire point of this is your evil throat data so so yeah but here that gives it takes time data care and then you need to pay for it to be you stop paying movin on some rinses and red/system now you've got you got Soviet economics no no seriously this is enduring people come see because they're like that's why all preserving said the rent charting because yeah like you pretty much grow in your storage where is it sure but I mean even with charging that the problem isn't how many shards you have scharping is a solution I mean I think that I think the sharding the questions charting is if the shards have different economics yeah then you've got coordination housing yes right but like I'm not on target yeah what I'm saying is I'm saying you know one of the things to notice about this is the only way you make it work is it becomes like follow point where you have one fee that's all to pay for use of the blockchain now and then you have another fee that is extracted for for like oh there's a month of rent arrears to rent one of the problems is okay well how do you set that how does the network even set that and how does the network set that in a way which is secure and actually market driven this actually doesn't so one way to think about this is that it's a way of actually determining the market price that's like a theory it was like oh we're gonna have rent yeah but are they designed a library block thanks Lily and the man said like goodbye referred to that as a fear I said it back in so I the way I am right was actually in dollars based on the price of the carburetor let's just use this market over bend them then describe it and then there are two things there you've got two options one you either you can fix the block size if you fix the block size therefore you're basically you're forcing a market price to emerge in the context of how big your blocks are okay this is this is the key thing here we're forcing all transactions and new transactions to compete so the real economic question is you still need a hard cut something but what you do is you are different so the part of the done is done actually is where does she come later so let's say the later well what you get is what does rebroadcast is you get the old transaction so the old transaction let's say is p1 yeah and it's signed by the people that made the transaction right yeah you get a new transaction and we're going to call this C a1 it's signed by the block creator yeah so if you pass it through and it includes the original transaction inside yeah that's why we do 2x because we assume that the transaction is that max can be twice the size of the original but people can validate this developing the original transaction but what you can't do is you can't you're gonna validate that this was produced by the you this has to be valid it's produced by the block creator right so you can't say oh like the C's don't work unless you have a secondary there or transaction verification validation so what you do is you basically take the data and like does this work there that's fine well never fails but then you say okay well even fails then is it the secondary type of rebroadcast transaction the buyer to understand like follow and they like if I set here 100 and what what does it mean like let's say you have a qu unspent XT oh yeah from something else you you can't do it with multiple twos basically every I'll spend you TXO I mean maybe you can't our implementation everyone spent UT EXO becomes in your transaction and if the unspent you check so has you got two months menu TX over 100 this is no 98 say this is now 98 and when they're producing the block you know for additional units which are included in the fee for the block just like takeout and if they don't have a few to pay if this you see EXO only has zero point five nine and this works up to two point six seven well this is dust which falls off the chain and when you do that as you collect it and you can distribute it to the new block reducers in the form of the mighty reward so what you basically get is you get attacks on spare change that no one can use because it's lower than the fee so the stuff that's useless is all of a suddenly useful again but you also have a way to maintain data on the blockchain at market prices and this is something if they're even that have a figure that they don't even know the problems because most people know because the only sensible solution e is when you have storage and when you have a block chain propagation people are moving towards to payments yeah and the problem with the two payments approaches well okay we need to pay for bandwidth - so what are we going to do the only market solution for that is three panels like what if I need to broadcast this data but I wanted to go on in the archive node and then that archiving node like its website well I now need to be paying only for storage bandwidth what happens is it kind of mold it with every service you expect the bar you expect the blockchain you add you have to have these different pants there are so via pricing attacks that emerge that scaled if these prices are off at the market would say that you don't have that you don't have that because basically all of this stuff reconciles into the end user and their access to that first node in the network because is that first node in the network which we know it has all of the data it has to all of data and it decides to give it to them at what cost and it decides to give it to them at the cost of what are the fees that you're paying me so what one of the things that saver does because we're using market mechanisms is we're taking these two three four payments which are arbitrarily decided by developers when we shrink them into one payment which is set by market prices that's right like if they're changed when you're rebroadcast not waiting it's not that's not the problem with the network that's the problem of the people using the network yeah there's a problem the problem is you can't pay me $2 yeah we're building it for people right we're not building that Network no we're building the network to exist it's kind of like you're saying look the problem the capitalism is you can't guarantee that the prices will be 10 cents a liter 400 years cycle yeah of course dangerous device get those big difference between like 10 guys jeez that person knows tomorrow and like they have to tomorrow is a price where there's like kind of you know if we're not talking about you can have a transient chain that's 50 years you get out transient chain that's one year you could have a transient chain its 100 year Bitcoin needs to move towards a transient chain of 50 hundred years a human lifetime if you spend your Bitcoin once in your lifetime you pay the small fee if you stick around like what's the trade-off the trade-off is that the longer the Genesis period gets one the higher the fee everyone needs to pay because as it gets longer the costs of keeping the day for your own wedding guarantees you guarantee it a market system it won't break it's also thinking about it the other way around the storage is coming online super quick right cheaper then actually so the point is its robust because people are gonna go out of business or flee see you in other words you need to keep changing your pricing mechanism a technical costs emerge yeah has the guy like especially the crew spaces because all of a sudden your economic variables are heartily for cost and these guys have much more money flowing in because they imagine the politics are you gonna get what talking about changing the price yeah do we do we accept the poor of the ways to change the price when that pull request is pretty much by Amazon and they have they don't they just that's what if you got a new coating there's two issues to the user consignment fee one is its said without market the other one becomes a tactic though because you can actually look at changing that like you to keep when they go but it's not a permanent watching and it's like well why do you believe that the SP is a herd watch it doesn't have more it's not permanent it's good in classes and in fact the IRA is it the bigger the blocks get now any kind of mass market like there's some technological possibilities curve and maybe if Wednesday's bought below it it will be able to grow but even then there's going to be other networks that come out with lower detectable possibility curves and usage to the transition over time that's the big argument is the only case I can say where the permanence makes sense is where you actually get a value from all of the previous part so for instance our provenance or diamond registries or something like that where there's a real value to pay for that storage to get it now hungry be usable yeah that's why I think whatever you want to record here report everything else is tangent you can officially ready to think of this some form of that you can think of it as a mechanism like what do you know even you don't even need to rebroadcast because you can think of this as reindex like the data doesn't even do these unlocks because the computer knows but like oh you can take different actions actually in the database and then you just like you maintaining the fixed items and theaters yeah it's a it's a bookkeeping mechanism where your money used to be in block one and now it's about ten thousand won it doesn't need to be rebroadcast point is when it's spent all of the systems will say oh well it's the block 1,001 you haven't me for us we this actually this isn't even a really special part about Sato but we look at this and we prepare servers right we're like look unless unless until people realize they've gotta the problems are underlying incentive problems right but the fundamental problem is that miners have an economic incentive to take money today to get paid today and then what we're going to be much more much more well done so the problem I do agree is it like thanks Bryce is not more to price rather than breath doesn't solve that role because if blocks are huge I still have an incentive to put as much data on the launching but they even if it were this again I don't look at like lungs for me is just as transient like it's like a package you send it over to your baby it's not really a infadoos we're not we're not thinking about blocks what we're thinking about is we're thinking about it this way yeah so the reason it solves the problem it doesn't is that you have the structure and payment in time now if the payment happens here and it happens only when the stuff goes into the database you have perverse incentives because it's kind of like vtc well we're gonna make the blocks really small we're going to force a fee market and that way because there are high fees we can pay for forever no thanks for correctly you're just even that's what storages and professionally yeah yeah that's not what this is yes tingling start again that solves our problem you're describing it has a sign of fact that this is like 37 will be like it solves it solves the problem here it doesn't solve the problem where it's actually cost it's a data management solution yeah not a solution to incentives and because it doesn't solve the incentives pretty much a stream of income going forward it's a solution on the technical level and it's a better one than so what I'm saying is what is the actual incentive problem if we can fix this problem we fix the scaling issue the incentive problem is miners have incentives with data on the chain because they get paid today for I mean they get paid for it immediately it's a crutch you the commons problem right they get paid for changing the database but then enough of faith I maintain a bit sure but that can fall into disconnect you can fall into you can fall and disconnect when there aren't market prices so it makes it better because it sees luck it sleeps better than one said there are those in place dimensions or in the market price but what I'm saying is you don't need to have this arbitrary technical solution if you can fix the incentive solution and the question is what is the what if the incentive problem you look like it's fixing the incentive problem means miners will not put data on the chain unless it's paying enough to do everything that it needs and that's what this does because no the payment happens why do you get paid you get paid for block to get paid for block 10,001 you need to have done all of the work already so the payment doesn't come first and then the work happens the payment the work happens and then the payment comes so the the situation traditionally a blockchain you need to solve it this way because you need to basically be regulating technically the size of the stack you saw an incentive layer because the person who's producing this block doesn't collect enough money to cover their entire cost of operation they will go backwards like if I am for example producing four thousand one but I haven't done anything visible how do you do what transactions need to broadcast then you've done the work that's the work that's in it but I haven't maintained this or from this period of time let's say this 15 years like I haven't spammed 50 years of you know hundred gigabytes right this is this is the expense that's not it's not a meaning valid well dating is waste by exposed a images such small daily styling is almost as if you're talking about the painting for really data which is something else no I'm talking about this is this is 50 years off starting kind of gigabytes this is my versus versus downloading at once and invalidate that the magnet for engineer over time these guys I mean the personnel but it but I mean like my incentive here like I don't have an incentive for storing it I should just like I wrote download this data at the moment and I'll get your answer your incentive to enter the network at any point in time is driven by the profitability of priests applause now so the historical cost of producing blocks is paid for the historical blog production so you can't say oh but I haven't done this work for fifty years because you're not being paid for the past thirty years you're being paid for this did not maintain like these guys got paid for the first P of the 50 years no no no no you get to get the you get the new transaction fee and then you have the rebroadcast acute well don't go specific transaction I have sitting here sitting on all those those guys this right they've only paid was this the guy you've gotta you've gotta sit the fee to include things as a new transaction is the fee for this period the fee for this period is pushed into market equilibrium by the desire to store data on the chain which is where this posture so I mean you're right if you're saying people keep coming in people can leave like but you're leaving after ten thousand blogs you have to do a full Genesis period of work before you can produce the next one now you can leave and new people might look and they might say it's really profitable juice box the nice thing but say there was an also say well I could produce blobs or I could write transaction and then I'm going to put stuff in transaction writing the you get the new feet here and you get to rebroadcast technically they're collected in the same block so just just moved to understand let's say let's say we have like a very simple example we have one guy who for 10,000 blocks may produce new books and then really we just only had one collection and then this guy and then somebody showed up so this guy received whatever - right then spam you know X amount of resources yeah to maintain to keep this mmm right some of my guys show up and out ones us from validated and produce a thousand one lot so homos to be paid of dental collection while I'm in charge a nice plus profit and if this guy doesn't want to turban X plus profit that's okay then he's economic movie falls off that's why so like how do we charge that well no that's a private negotiation I'll treatment one Peter we're talking about a massive watching tons of data am I gonna give his you all for free best way you can get it actually if you start feeding me transactions if you start feeding me okay so the S P is moving let's say let's see we've got terabyte clause in your network I know how does it know become off the day before well you connect to know and it gives you the data yeah so you pay for that you've got to find somebody to you the data the nice thing but it's a there it is how do I convince you to give me the data I start giving you money now I knew that two ways I can pay you explicitly hmm or I can start feeding you transactions so for nodes and the rebbe network this is why the ribbon and only come validator and so for a while Iran will get it the other way if your expectation is that a blockchain is getting cuter exabytes of data for free but you may as well be on record and say like I'm gonna build in database and then all of the data is going to be in there we're just going to get users it for free like of course the economic software the economics don't work as he'll just their cost like the difference is in other blog chains they assume that the mark it's gonna sort it all of this side should we do or when I'm talking do you need a belt but one of the reasons you want to be paying for it right yeah as long as you're paying for reading as the reading notes start getting as they start bringing more transactions its network well you know the people that are moving exabytes of data as core network nodes and you do have market competition between them because they've got the blocks they've got the data they want the transactions for driving those because that's how they make money yeah so what you've got is you've got data is pain so you know what you're what I think you're asking these are saying well look Tony exactly how it works and the answer that is if you want an extra byte of data it's going to cost you there are two ways of doing it you negotiate a separate payment which is a market that forms at the edge of the network and the network does not specify the terms of that economics and one of the reasons that like PSP and these other networks are going to have severe economic problems or like rent and stuff like if you're letting your economic conditions be determined by code that's in the system like if the reality differs from that you either have pricing attack vectors or you have free writing say though we don't actually care in terms of access to the network we say as long as the network is supporting itself and the network is paying for the transactions that are coming in you're going to have a guaranteed point of entry because the network always has an incentive to give you a point of entry like if you want to say okay there's one node well that's kind of like Bitcoin if Bitcoin had one server why would they share their blocks with you mm-hmm the difference is in this system in order to produce blocks I need the stuff that you've got and in order for you to get the stuff you've got any blocks there's actually an economic incentive that he's going to keep the network over so let's say you're feeding me why would I give you why would you give me boss actions well I don't need to produce block but let's say there's one none right you you rotor no yeah so so here's one nub the first method system run by you no problem ok if we're going to do a one-note example we're gonna do a bit quite example because state already has way more goes well and I mean like okay by job that he do transactions yeah in Bitcoin why is why would a Bitcoin computer give a user a copy of the block I mean no no we're we're talking about big part of this example because it's it's a cognitive thing where people are like oh say it was different let's look at this question is fine yeah you have fine ship like knows they all you know then they're still big quick nuts why would a Bitcoin because we're talking about watching we're not talking about sale why would a big Queen no give data to users I mean each argue about it there's no reason to give like good clean knows will give it because there's no that's that's not why it's gonna happen I think the reason they're given because they won't use assignment for the fee is the data it's the same in Bitcoin why are you gonna serve as a but you can actually not give it like that's my boy Nick you can accept some nice little not view data yes when there's a when the network is tiny and storage bandwidth is free no one cares when the network is operating the next byte today the core network I think level 3 think their actual this is network period and that's cherry there is an exchange of value when these cost money people say oh well big one works this way it's like whoa okay big point in 2009 I could run it on the Raspberry Pi this is not a model for scalability so the answer your question is that at every point in the network there's a fee for data trade-off so if you want someone to give you a copy of the blockchain you've got two options you can handle work in a Saito network you can also pay them by starting to scale data because you can be a small murder roaming note yeah so that's the part I don't understand this let's say you do gives them seasons of action say well the user a layer no II yes right thank you for sending transactions then you send them and you're just do kind of watching right now I can just started a note watching exists because like I'm one person I'm here there's no they have blockchain I don't have all right I just started okay yeah so I'm now received to die shouldn't sound like no so sign them and then sending them to I think our function first so I didn't know that about you a new Bitcoin you got a permanent ledger that's let's say 10 exabytes you need the entire ledger develop it theoretically I mean then people are moving towards system for dummies download blockchain which is basically saying that it's not a permanent ledger and it's just basically a temporary ledger where you actually have no guarantees of data being on the blockchain which is actually why Sato matters because it provides guarantees and economic system where other budget can why would a Bitcoin note send you 10 exabytes of data so you can do the work required they probably work with their probing and ask me to pay for it if you talk to be as be people all of the rage on Twitter is that like archive notes yeah the idea is that oh well we accept that the nodes in the network will do this there's a separate note that will pay for it the problem is again it's like well ok the coordination costs and why if I'm using a blockchain because I don't want to pay more nation costs is one network so all of a sudden I have two people that are having those and I've now about two payments not only do I have two payments using the network usage archive all of my users now have payments so we've now got four payments instead of one pan and we've got coordination costs of which are piping nose ribbon paying for part of the value of the system is that this is a ridiculous system the only reason people think that this is is sensible is because they haven't solved the problem at the underlying sense Claire and going back to where you said this is a viable solution I'm not trying to criticize this because this needs better on when I'm trying to heaven isn't it if you have a system that solves things in the incentive layer you don't need this because things like rent starts self-regulating automatically so I mean like before we got them we forget is this like I'm just trying to understand how would it work right so so like I'm one note I joined I started buying food a bit on my computer yeah right so this point first of all I need to find Pierce you gotta find a cure yeah so let's say some of them like connectives and a and this this point right like I want to be well producer at some point yeah I need to negotiate foods empty you need card watching you need to do that in let's say the size of the chain Deuteronomy it's gonna turn on first the first question I have is I connect it there no how do I know like I'm gonna pay them how do I know they have actual watching let's stay because P is $10,000 per actually it's $10 per bandwidth or something so like a 10,000 chain another large chains right so you've got two options and it's the same with Bitcoin this is not a state of thing this is just the economics part right you got two options let's start with Bitcoin because where we get better than Bitcoin slang UK this guy $10 and he gives you their what if it's fake there well what is it speaking a bit long I mean that's why I don't pay the corner well they just give me data yeah yeah they're good if you can have a blockchain where everything is free it's not a polygon Mustang how how do you buy them online in that way that like only pays data how do you do that in Bitcoin yep that's why there is no that's so your your prop your solution we're saying there's an economic problem because you need I don't know I'm saying there is a problem I'm saying tell me the solution that actually provides like that's not unity that's not the problem say resolves say let's see if it doesn't solve you for someone sets of a sign that says hey like hey I'm a big point node I can send you the blockchain and it's gonna cost 50,000 bucks because it's huge you go after that archiving you know you pay the money and they send you fake data yeah like yeah that's not a solve problem that's not a soul problem in a blockchain shares well I mean you know there's smart ways to do it like you find out what the actual hash is at the table of the chain and you sync the chain backwards that's one solution you still need to actually yourself figure out what the last passions yeah so what you would do that in big this isn't the problem that we're worried about okay the problem that we're going there look let's move on you're saying that less as soon as they're going to give you the data okay and honestly assuming you got it you got it paying 10 bucks yeah the Bitcoin solution is why I'm gonna pay you 10 bucks and maybe I collect this money from users that I served the data to and so with all of these users I had this off chain private economy right so I'm gonna collect on PayPal and use like three bucks three bucks and this got some nice guy maybe five or maybe negative and so I'm my profits dollar and hey I mean I'm in the business of this this is the traditional internet curing arrangement at every point in the network you have people making off internet exchanges development pains so this is making me and my ISP I pay my minus P three bucks a month I'm gonna spend fifty bucks a month the ISP is mediating the economic agreements with all of us and move the chain okay Cinco replaces this because what you've got is you've got the VA itself that's sent that has value so if I'm a user if I'm a user and I'm sending transactions on to the network this no one gets paid for redirecting the data yes sir you've got the transactions that have fees and so the fee is paid for by use of the data and the date that comes back through what this guy has to do is he basically collects the money sentence and networking he gets paid for them so economically what you've got is you better replacement of kind of commercialized pieces that have these private ratios for people with essentially a uniform cost of Internet access where market forces basically make Bitcoin you're like if your problem is you're like of course if you want to serve someone watching and got a certain watching this is a big problem this is a Bitcoin network share the Bitcoin network is moving X bytes of data and you're like okay god I want them to send me aspects of data the difference is actually with say that one of the ways this improves is this guy at small scale and he does not need extra bytes of data sure because maybe he's giving these guys like blocks so maybe he only needs a third of the blockchain so because he only needs a third of the blockchain he can actually pay to get cryptograph verifiable after launching that's good enough for the users because they can verify that the data is solid which means that the cost here is not the same that's getting the full X by the data and what you've actually got by subsidizing revenues and economic structure where in addition for paying for log production they're also playing for light block production so and that's like--that's CPU intensive so you actually servicing users there's a reason for these notes to exist independently of these notes because these guys they're moving masses of data and they're focused on that they're focused it's like you know level 3 level 3 does not want to give you individual access to the internet because that's not their business well these guys there's space in the system for them because what they can do is they can focus on okay well you're a light client but you're not really a heavy client you don't make any demands so I'll accept transactions from you that made this fee as long as these acts per month and the whole thing becomes systematized in the end numbers is blotching so you know I mean basically everything that is sort of arbitrary but the big point system in terms of these and submarino's because becomes streamlined any economics at the blockchain itself so you can kind of think of it as like an internet peering system where instead of people having to arbitrarily decide whether data flows cost the fact that it is a data flow means that it has money and that reconciles the economic issue it also the guarantee provides a net neutrality is that you've gotta realize that the transactions that are profitable to this guy or just as profitable you've no more problem yes this guy so this guy mm-hmm he didn't switch over here if he doesn't get good turns and we actually do drive down to utility pricing for community before for this sort of read event this can't happen in Bitcoin in Bitcoin well this guy's got to get the full blog and or he's got a negotiate stuff off channel it's but like here you open this is like let's say you only know where there's no right now like for you to actually find out about those knows I understanding to tell you about it what you need to find in some okay well look I mean if we're being honest Bitcoin software here finding software is insecure yeah so letter K oh yeah yeah there's there's no reason that any blockchains purifying software is less secure than others you know that's not that it's not a viable criticism it's kind of like saying yes but gravity is hurting your plane but my gravity's hurting every plane when someone figures EV a solution to gravity like you know any law change my throne like why do I like when you like putting those problems that they can do clearing right now and now there's no payment so we assign no and that's what they meant but that's why but that's why there's like yes it's insecure yeses all those problems when we know there's no payment there's no leg economic incentive to try to train our own futures my disagreement you're saying we'll look at this problem with this problem we're talking about Bitcoin yeah so you're you're saying look the problem is you guys in your system you actually pay the network to survive and it's like yes but that's the entire point of applause a thank you any money no there's no separate payments and say oh you're just the payment comes in to the fees there's a little new payment where does the money that is here comes from this is the money that used to go to minors but the Bitcoin network you've got to have all of these circuits because all of the money is going through the guy in like since young who's got the server farm it says saying the money that used to go to the miners is now paying for the network the network is the ASA the way you make and the way you make money in Saito is you have to be really efficient at positioning your servers finding users and giving them a good deal on the data the thing that I think the thing code offenders have been thinking about scale yeah genuine scale imagine that each of those core nodes right imagine it only has one switch right so you're literally deciding who gets the 16 cores out bow and you've actually got to pick the best people to be most profitable right because you're talking about scaling no way people can random like an excellent like that whether or not they provide income you can just as you can simply attack the network by just because you know sequentially adding raspberry pi 7 to chain and then figure out how this works I mean I think the thing there is you will need to you will need to negotiate connections to the network these spikes these notes here these roots here I'm going to think of it this way but fundamentally the first point is and it's one thing many people come to say to have the misconceptions or misconceptions not going to say it was watching like they think what Bitcoin does is for free therefore big when we do this for free at ten exabytes a day and it's like no big point does this refer you because I get I get a certain emotive right think think about this stuff this US server has its own economics now imagine the is Bayonetta state or whatever now you get a lot of really fat users in China they're willing to pay a really high feeding of their millionaire country okay that's a really might be these transactions are worth a lot of money now you can get a know starting up in Hong Kong yeah and when I see him note this can literally be a guy walking across the border with a number memorized in his head and the transaction that he's writing into the system are very few yeah but they're really fat transactions because of that this guy is able to pass them to this note and he'll get the exact same amount of data that this is that this guy's getting and he knows he might send a guy when you take data what do you mean by watching yeah like like users connect to the blockchain they get services from the blockchain abstract the blockchain users pay fees and in return the notice the network you want whatever what data does the Bitcoin like there's blocks that's users don't care there's some users I might even I trust you just don't care except their own and there's proof users do care about transactions there are thrown because you're gonna have applications that are operating so you might say like if we're both using a facebook application on state oh I might say well we're friends so I want the Facebook applications that you say so in connection yeah like you might send the transaction and inside one of the reasons we want the data log changes like say no when you make a transaction you've got essentially a JSON object reasonably named they say you know and you can put the post there and wait in the transaction because we support the economics of scale you could also stay online post is on the server or maybe you've gotten a name card circulating around the block chain that says this is where to go for it and this is post idat settle for whatever it is like there are lots of ways in which people want data other block chains are compartmentalizing this is splitting this because they don't actually have a viable means for handling this but you know it's like what engine that river this be proof well you know like a myrtle tree proof where i'm not only proving to you that this is your mean if you send the full yeah exactly but I mean you know like this sort of thing when you're dealing with clients aren't getting the full data yeah there's there's a dignity there yeah because like what I think of data from watching has been is different yes it means my getting just because the way I'm looking function is a database yeah little let's just say key meditativeness that is shared between everybody and has a very specific rules on this provision that's how I think about team you think about a very different well we were the like the applications are going to use something like say are generally in broadcast applications right like so you know if you want the stuff stick in the debate what is really the first time around is this just ordering the Transpac okay if you start leaving well then that's a database application but if you're gonna use a database application you're probably would want to tweak the broadcasting fee the point is that this stuff like this is this isn't safe with all this is just watching the problem is like the reason we need to talk about it is because people don't think about this stuff at all they're like well I use Bitcoin I connected a peer-to-peer network and like the fundamental definition of watching for us is it's a like what's special about Bitcoin when it came in it's your day basis before there were consensus systems before what was special is it was the first network that supported itself financially so it's a network that exists with every number where there are financial incentives to join that to us is what is the fundamental definition of launching and you know other people don't think they they're like oh Bitcoin what you're going to connect to the computer network well it's like well no because then you have free writing problems and it's scalable the peer-to-peer network is not going to operate exabyte knows so all of these issues would like to pays for what he pays for what that's it's sort of like the Bitcoin or the old block a mindset because the old block chain lines in at scale the only way you can convince someone to do something is having a separate economic agreement off chain needs to be mediated you manage the Sato system is all of that stuff just moves on chain so I I can't imagine through this stuff but if I'm hanging a P for the network that fee is enough to incentivize everything to organize itself and so I was like the fee that's paid for my name is now paying for the network but let's say so this guy yeah you're probably also gonna send to describe to you sure I send them to a few guys and then why they care at all give me bad data well if a transaction originates here and goes through here yeah and it goes here here yeah whoever has the transaction and puts that into a blog yeah they're statistically gonna good make sure they got yeah you're gonna get paid and they're gonna get paid sure if this guy produces a blog yeah yeah why is this guy sending data to he was cannibal because he wants to get the transactions that's here we got to them if I connect to my minus P and my eyes P sons dated to Facebook why does why why does my money through Comcast what is my eyes P send me the Facebook get it back well if you care like you already pay for it but it's it's it's it like you pay $30 for signing out but then they didn't think you these are these are no questions this is like this is a data network Bitcoin question right like I can send a Bitcoin transaction to you why are you going to send me Bitcoin data back well you I mean from my perspective you're trying to solve incentive problems yes and like say it's saying that this is a big problem is not really no this is the solution here the solution is they use your key the the blockchain knows give you data the users pay fees the problem with Bitcoin is that actually is this is users hey - yeah lock chain use data well that's that's your problem well then why does everyone say oh well you know we say we go talk to people would point out the transaction proclamations on send of us and they said well that's okay we'll get that from the truth your network which is operating for free well I mean let's shoot like in Midgar let's say what should be my guest seven - - - with data yes this should be Bitcoin but this is not good coin miners do not miners do not service the pewter network if - there's so many cases where it's self-evident miners serve like Craig regular blog where he's like great mining swindle where he's talking about he's like it's an economic system the first thing miners have to use invested network infrastructure so empirically empirically Craig Wright is saying this is not Bitcoin because he's saying actually for they don't understand the economics of Bitcoin they're investing the wrong thing well first of all if you're creating a market system and people are not doing what you wanted to do that understands you has the first thing you have to say it's like well what are we incentivizing what were incentive lesson is this the fee goes to work sliders and then somebody has to do stuff for free and this is the this is like a hundred and ninety nine percent of most people were tailing it's they're working on ways to push the cost around like oh let's get bike invest but we have a network with printing money fees we can't pay for storage ourselves so we're going to put petabytes on ipfs but that's just it pushing the problem somewhere else you get like blogstock where they're like what we can't solve this problem but okay so now the question that I ask is exactly this right like what I'm hearing right now which I'm trying to figure out a way bro is you say fees go to well fee through the network and the network gives you data yeah technically the well log producers get data so yeah this is gonna be really simple really simple I'm gonna leave this up in this good this is for structure of the network users you don't connect to the log producers no connecting to the real life yeah the real a let's say he's gonna connect to blog producers yeah that's simplified because the real a good connection of the real I could catch one this is yeah this is the traditional system freighter if there's any question that this is all usable miners will service the users that's that's the Kreger argument of miners will pay for Bitcoin that the network because if they don't they don't get paid yeah and so people are like oh well this is a big one people think this is Bitcoin miners will do this because they don't get paid the problem is there are free rider pressures I understand we do it miners want to pass the buck but there's let's imagine a world where all those people right now yes they stopped these yes that's Bitcoin these are volunteers yeah so let's say they'll stop right now we do have a lot of volunteers but sales stop what's gonna happen well that'd be playing whichever minor steps up it starts Bolander is less profitable than all of the other miners that's not sure because you know would you quite an incentive any minor okay just and the miners have gotten so let's do this let's say assuming the volunteers disappear what you're really asking is you're saying what is the economic problem with Bitcoin or what is one economic problem with it so let's assume we have a Bitcoin world where we have three miners and these miners because the peer-to-peer network vanishes yeah the miners are forced to spend a lot of money to service users if so the users give them fees and the miners give the users transactions okay and we're going to replicate this ultra so we've got miners and we've got users this is fundamental no you go back to Creek right and he says the first job with miners to propagate transactions so Craig Wright sees if he sees like a small network where the miners all connected together miners we can have big blocks the miners are going to pay for this high throughput bandwidth because of course they all want to connect to each other yeah so maybe there's ten maybe there's 100 who knows somebody I know this is we got the feed and we've got the data yeah now the economic incentives are not very surly miners are not incentivized to share that transaction because if miners shared that transaction these two guys right well what you have two men is you actually and this is one of the reasons you need to solve this what you've done is you kill the openness of a network because now what will decide they find it's a small minor like you find a small minor no one's gonna send me stuff because I'm not producing enough force to actually get fast confirmations so the economic problems in Bitcoin all are solvable but they're solvable if you kill the openness of the network and if you have collusion between the nodes of the network because what happens when you get these free router pressures is that these miners they need to collude with each other to make sure that no one is free right yeah and that only like I can simplify it saying the blog yeah is there's a way to propagate transactions because that's a package thing that yes you do that yes that's pretty much like it becomes real later over blocks whether they have perfection right then the point is you got it you've got a free rider problem right because miners have a choice they can probably keep the translation just because you know we have a nobody's permit a just lost well if you don't propagate transactions in your Bitcoin yeah and let's say that are uh what what I want you to do is user I'm you don't have it yeah and what that means is the market share of you guys arcade they get even bigger and the marking sure the guys that are small to go to the business so you've got this economic situation where the network the network just it becomes PayPal I mean maybe it becomes PayPal through people but this is not what people want with an open network so I absolutely would yeah right so go back to this system this is the system you're describing you said well look if the PP minors don't give data ok well then the minors have to but the cost is that your blockchain is destroyed yes what state of us is disabled because of this because the relays are being paid we don't need volunteers and system don't get back so we actually still have a bulletin system on your say-so where I'm coming from so you have the user right which sends these yeah to think of a roadie known as the pure pure networking Bitcoin now well here's the thing to know one of them will do anything to know one thing to note is if I don't really know yeah as soon as I get the transaction into a blog I'm making money yes so I don't care who hasn't in fact I want to send it to multiple wad producers because I want competition including my transaction in a blog if you remember the mechanism where we talked about the Caribbean stuff if you just give your transactions to one guy you can hold on to the deck and then against his percentage of the fee starts rising so if I'm revving though the way I maximize my income is making sure that there's no monopolization downstream that's what we want the jerker know what to do your network is supposed to be sending us out there to a bunch of miners because if it only sends it to one you actually have these economic problems that people don't like you have three miners let's say why am I not sending it to all of them well I mean you could ok well let's you know okay you can hypothetically say we're gonna like I wouldn't try I would contend to understand exactly which which of the things are you so what are the costs to this system one you've got coordination costs the user of the network yes they're supposed to be done it's a no the user makes a fee he gives it on the network takes care of all this we've now gotten a user made in coordination costs because the user needs to keep track of who's in the network send their transactions to all of them like that's just ridiculous - the bandwidth cost of the system are massive in this point right if you can so that that would be like a big point number of remaining private payment why should users have to I mean if you're using the network you're paying a fee why should you pay like five different fees as part of making a transaction users could do that yeah so what I'm trying to understand is like how like this loses openness that Gary's Union and the quartz collusion like here my problem was this is right now when you pronate his transactions as well producers at least as far as I see don't have an incentive to pretty much in forums where they know those user why why you might need a sense money so why his son like you don't know anybody else that's appointed it's made really clear this is an ongoing thing I really don't understand no no this is my Iranian I think it's fairly widely described so far this is a floor yeah right this using this on a one-off person in the Hong Kong example that totally confuses the whole case because in the home the point is that this isn't flow right this guy's value but to me but he you say in his name is recurring that means there is no no I just fundamentally disagree with your carry on this guy yeah I'm not going to give this back money to you nothing return I mean if your entire idea of a huge criticism is that I'm going to give money to something I'm giving you a lot of all of them you're giving me nothing no screw that I'm not giving that to you the stock my transactions aren't real value if you won't and I need to do this type data for you to pay me if this guy's not gonna pay me and data screw that that's what my team is worth money - Anna's choices there are tons of pot producers on the network it's more like a training Malaysian my feet have about you than okay so my relationship when I say relationship they might have what this means is like something mourns and just I connected done something and left like it's an ongoing relationship which by definition is kind of a conclusion wait thank you well just came in and like they don't pay something in left if you like if we're talking ongoing basis because like that's that's where you can understand machine if the new guy comes in right this guys don't know if she's gonna feed the mind like he's a mighty went forward right he may be just like came in once to done what a lot of data and he leave I think connected Bitcoin economy got the same problem that's not even a problem Bitcoin your dislike you the ideas that these other blog changed people are going to do all this work for free but in Sato suddenly because we pay for reading data flow software backwards but that's just that just doesn't make any sense to me every other blockchain users connect to a node mm-hm they have me ya know do some data right and we've already noted that in fact there are massive problems with it as a closed solution over this what you want to do you won't say yeah like I'm disabled because even though this guy he wants to be profitable right how the hell's he service the user he services the user why is the user using this guy cuz he gets data why is this guy using the bot producer because he gets data the flows in the data flows they don't know I don't know anything it can be like well I see this but I don't see why data because that's an incredibly selective and I mean honestly it's kind of dishonest because you're perfectly happy to say well cable assume assume this yeah but like this will happen because the reason the reason Bitcoin has problems is because of this and then the archetype the archetype of the naturally mining an incentive propagation the reason the collusion and the incentive problems existed because there's no incentive propagate in say no there's an incentive to propagate the one of the fundamental problems the salt is this guy why doesn't he just world all the transactions and the answer is because he's indifferent to whether he produces a water or whether any of these people do all he wants is the most efficient path and so what you're going to get the economic pressures goes towards optimization maybe this guy says look you're asking for a lot of data you're not giving me enough money I'm not gonna service there is going to be a market price for data the point is you can pay the market price off chain which is what every other block chain is doing because like you said luck with realize oh I gotta have a separate payment for I can separate payment for this or I can go through the effort of doing all this manually which is it's ridiculous let's say though the fact that people are indifferent means you just pay your fee in the incentives encourage openness the big challenges is how do you make this guy anything different to hoarding things either worth money because that's one of the big point things it's like well if I'm paying them if I'm paying for money they're like and then I think when people like big pay people don't generally see the problems because they're used to how it works now so like look into the theory with insurer vitalik just wrote this really long piece on collusion I don't know if you've read it where he's talking about how you can reduce collusion in the system and keep the system honest right at the Stanford blockchain conference we were here I don't know what you heard biggest number of rooms ninety percent but it seems that in pure at least maybe percent at least 80 percent of network traffic yeah so if if you're and they're not profitable so let's say most of that second let's say they're collecting 70 percent of network fees how do they make money from having 70 percent of network fees the collusion that matters is the collusion between the person the transactions are worth money it's the collusion between in fura and the node in the network is it two and four inferior to make money this node in the network needs to be guaranteed that it won't make money too so what's gonna happen is in fear it gives the transactions this node in exchange for the payment and this guy's not going to propagate that's also a big one problem just look at Big Bang right okay well you know it pays the source of a lot of transactions so if users are making transactions through they pay service why doesn't big pain say were lucky we're relating them we're gonna send dignity why will we send binman like well because if you send them a big vein we get paid yeah and big maintenance paid right again inclusion is awesome with this system you're guaranteeing openness because the economic incentives are driven in both ways so yes there's still a priced the price for data is the money that's made and the individuals can make their well judgments fish who they connect you and determined look at my making money in the system the difference is say no actually incentivizes efficiency if I'm a block producer I can say look I will keep you the data for fewer fees well that's actually going to make me more profitable because I'm paying less for the data that I need to service the users you can take out well if I have $10,000 in cheese per block maybe I give some to a second guy I sent 8,000 to this guy and I said mm this guy ten thousand came from trying to explain the data the point is that okay if I one-way there are various ways and say oh we haven't talked about approve transactions yeah because we haven't properly prove transactions it's sort of like one example would be the block producer doesn't wait as long before were using a block because what that does is that says like maybe maybe with the old one they're like look you're gonna send me the transactions I'm gonna work them yeah or maybe I don't want look this this transaction fee is too low for me they're sending me those transactions if it's not 0.05 above yeah I don't care now you get a cheaper barn produces a surplus or wants fine all of a sudden this guy can go to these users and say look I can get you for I can give you for a 50 price yeah because the you know the way the savings actually pass the efficiency pass passes through but yet fundamentally is a fee for data exchange at every point in the stage the point is is that way with every blockchain the difference is they don't know how to reconcile they don't know how to have the same person give the data where they're turning their network into able Saito's figure it out because they don't knows how to make both this person and this person you know wait we're law producers the way they make money is more competition about rayless and the way relays make money is more competition more block reducers so there's this like every note in the network you want like there really is going to send his transaction to two people because that's that's faster yeah so like the user doesn't need to constantly maintain the state of the network and monitor all of this and he doesn't need to have a separate pin for the revenue though because if it pays the usual fee for the redmi note the revenue is going to make sure it gets propagated quickly and you can have different things like the fact that the the feed house with every stop if you you get lovely properties in addition to the optimizing networks if there's a useless node in here yeah the way these guys maximize your income is connected directly yeah right because if you connect correctly you're going to be at least twenty to thirty percent more profit but I don't think you do buddy will understand this as well as if you're looking at right at the edge of the network with your dad with these companies right this will stop a little bit why does the pure discovery just because like you have an incentive to yes yeah I someone produce to have incentives to be only about producer there knows yeah the difference is or the user the look three-layer you've got a bunch of variable seem different right so we can good coin because of p2p buyers actually you have an incentive to kick people out and send them to other people in quantity return that pure pure network is not a fun little part of it's a part of the network management you're saying like look I'm only on from that leave no economic incentives you've got them relays yeah the relays are crying out for users right it's kind of like you want to use the internet and there are 25 ISPs that want to give you free internet access because when you visit face what they get paid yeah so you know if our big concern is that a really wants to problem well of course these guys do stuff like say I will give you need to take care of I will give you this amount of fees and give you a bonus and I'll pay those myself for you to come and join me right it's living as the competition's will care yeah right given that these guys are interested in picking out I value really right so then looking at this another great business model who's getting a lot of users and has fresh transaction value are not seeing elsewhere so then yes this will need to be an ongoing relationship but these guys might have a simple way of contacting us and saying I've got transaction going right so I'm a institution I will put in one of these in my building I have this piece would you like that for me when you get to these guys the B Block reduces in the middle they couldn't negotiate like ISPs do now or like ISPs now like rent space on their cables he is in the Bronx and they hold options and stuff yeah and they make bilateral agreements to say look you owe your excess with you have a veteran that's gonna get between these guys because they'll mean to us yeah to two points one break them all because the mall the people were thinking about is the Bitcoin Bowl which is where the cognitive difference is conferred because the cognitive differences really are pretending that this model is them all over the same people to get the money in the data that's where the free rider problem comes that the first point is that this doesn't need to be another loop your network this gave me an application check so like in Sato one of the things we had to evaluate our like why would you set up an email server why would you set up an answer when you set up the application because well maybe you deal with the data over JavaScript use the in browser function and now you were really number one you now have a way to actually make money online it doesn't require advertisements and it just requires you to build an application people want to use because if they use the application like if they make a tweet well the fee pardon attended of you so there are different models like if you if the users don't care if I want to use the VA system then the EA system is using a block chain because he wants to collect my tokens remember I'm getting them from an advertising network right the advertising never was buying tokens for the block reducers you've got if you can create that first pop that's not an edited you can make lovely on the other hand if users are really concerned they're like well you know actually what cheaper maybe they make the channel work through the other really interesting thing is note that in the state of mechanism moment didn't go into it the depth of block provocation depends upon the probability of the fee essentially the measure of work so if you pay a really low fee your fee mind over here and if that's a block producer that's okay but it might take 12 hours for them to get enough work to produce a block if you pay the equivalent of $5 it rips through the network and it gets divided because this is a high value transaction so you've got this wonderful property where the higher fee means deeper network printers out there so keep your network print you know that's faster confirmation or you do the work or inferior broadcast you but you know a lot of these guys they're probably going to be a lot of those are probably not going to be public as things like funding revenue exabytes of data I don't want to deal with individual user connections I want to deal with people and aggregate them it's like the internet you know so is the economic model that takes this and it turns it into you users have a one-to-one relationship with network operators and network offers we should replace miners and that's why the network works you have the data the exchange becomes unified every number anyway you know this is possible the kerbs your network is possible - well what I mean is like in theory what you can do to just take justice into favor very well yeah but then what's the price of be real in there what's the price of mining they're actually problems with that but like you don't have a market price for things and say no you have a market price for transactions and propagation of these storage across the whole network is one feet you don't need to no need to worry like I mean you use Bitcoin like Bitcoin free estimation is better yeah but now we're introducing a couple of fees and separate fees and who's setting them in the marketplace it's like we haven't gone into how Co solves this but everything is actually a mermaid feed because at every point in time you check another competition the blog producer you connect you if there's someone who's pulling a ton of data and they're giving you no fees well that's the definition of the civil right a civil note people don't even really think about what a simple note is no that doesn't give value to the network so it surrounds you and you can do various things and say no but if you're surrounded by symbols and you know money's going to be coming in this direction to write fees and transactions you're going to notice because you're now half as profitable as you were so and the people that are civil door either gonna go to business or they're gonna take a look at their network and transaction post and they're gonna say look this blockchain to optimize we don't connect to these people we're gonna be a lot more profitable and what that does is also means that usage is cheaper for users because the user can get faster confirmation and deeper law propagation and you know that's just fancy way of saying Bitcoin the variable of these other networks whose literally people wanting centralization there's no incentive for decentralization and there's no incentive for network efficiency say go at least we incentivize both you know if you value T centralization you can pay a higher fee injure your transaction will get deeper faster and if you and the network itself will just eliminate the nodes that are useless you know how you justify how you use your block reduce your you're only connected block users how do you justify that position you've got to be much bigger block producers producing blocks that the other block producers can't not to do but the reason they give me transactions is because this guy's terrified that he's like well if I give it to him the transactions I have will be produced before the really know before the transactions that are copies of the ones that I have yeah because because this guy's competing with other people like the dream for a block producer is to be the only one that has those transactions yeah but if the problem you know if they do that their profitability goes up at the expense of the really house so they're reeling those they're just not make interest they're like well you know and they don't need to broadcast the whole network they can pick another block reducer or you know maybe they have a long-term agreement where it's like we're going to permit you to have a probability because the blockchain does let you monitor right now well you're gonna be a little bit of launching and figure out very very quickly you know what percent of the value of the transactions I'm standing in a finger buddy that's key difference between trying to fix this versus all we have here is they are essentially the same intent yeah but what you have to do is you have to make all the illusions of illusion make the network more secure and more efficient the issue with collusion is that you have somebody else somebody losing out from that possible conditions you have some say might get here let's say that's the and they're like well yeah we can pretty much wait we can't reveal a transaction or we cannot we can not really to introduce ourselves well as long as there are valid transactions on the network that's actually not possible but like look at that look at the system how do you even prevent this we've invented a kind of network node and we just said well let's assert that this is network to broadcast while miners the economic incentives that network node is not broad s wall miners because this network notable is getting paid but it can form in the old two of them or one of them if you can get away you know it's about money it's gonna what is its incentive these the sentence are not to actually do what we've asserted that it's supposed to do and that's what's it's so much of what's happening in the blockchain space because of this that people are inventing nodes on the network like archive notes and they're saying okay hypothetically if this know does this you're saying scientists will not be to send it to all of them anyone well you said okay well the problem the collusion one hypothetical solution I pay for you really know yeah they're really node is supposed to send to everyone yeah I mean why doesn't really know just send it to that miner but it sends two to the three now you've got maybe it's going to eat or some of the miners but the miners are willing to pay something for it because it's not going to the 20% but it's a fundamental incentive problem the tech side why would I care but it's a have a key anybody else okay so let's start with let's start with this tool let's start with the civil a single system and we're sending transactions you really knows yeah let's say there really no to sending it to a simple walk breeze mmm-hmm okay and the block producer says if you only send it to me I am going to get that so what you need for this to make sense is you need this to be profitable for the laundries or do we need it to be profitable for the really know they know the kickback is always well it needs to be probable for both actually we've got a fun little issue because the transaction has a feel of it has it is as a fee of a sort of masculine sense let's say it's worth a dollar yeah so how do we right now the right now the noes are being paid for the amount of work that you're doing but in a two hot network let's say it's dollars you like nothing cute it's a tense a turfy for virginity so the first note is 10 the second note gets five yeah the total amount of work that's done is 15 so the expected profits oh no no no no no no no this is a measure of work this note is done to take the word this note is done 134 okay okay so if he produces a blog he's still gonna make two-thirds of money mm-hmm if he produces a blog statistically on an aggregate he's still gonna produce one money so this is how it works now if this is under let's say the kind of report system you're paid proportionately you might have work you've done what stator does with its roaming algorithms is we're basically providing a way to securely and then cheetah bleep generate work from their network reading this is what we have cryptographic signatures so what exactly are we thinking is going to happen because the way this guy makes more money is he says okay look will you send it to me if you send it to me I've still done the same amount of work for the transaction but because I can delay block production then let's say the burn fees here yeah because I can delete long production bit I'm not that worried about competition instead of producing a block at this point in time later right I'm gonna produce it here or I'm still going to priest at that time but like that some extra resources yeah no no the amount of work that this payment describes is the reading portion this portion is just into the block produce right away yeah now what that means is this feed work if the block is produced right of the line this guy's going to get a ten Sato times two thirds and this guy's gonna get ten Sato times 1/3 a burden on an average as soon as we start delaying well all of a sudden this is eight and all of a sudden this is a two because a certain percentage of the fees is being eaten away directly by the blockers so we get 8 times 10 52 how much does a block producer have to pay the Remy node for this to even eviler both of them and the short answer is it can never be a better deal for both of them because there's only ten bucks so you can't divide the 10 bucks in a way that they're both better off so the block producer Evie de ladies he's delaying by impoverishing really good so a separate payment to bribe it works in situation works in the Syrian situation it doesn't work in Samuel because the payments are already optimized the only way to make one person better off the worse off is to actually change the way work is calculated in the system and that's a heart for it because it's already good for video safari so side payments I mean you could do them but it's you would either be less profitable for this guy or less profitable for this guy if the blog producer tries to screw to really know that really no it's going to be like below we've got an economy here one thing but the real I know is concerned about is he's concerned about exactly that you can turn on giving you the blocks and because you're not moving as quickly as you can you're delaying and that's also where the meta efficiency of the network comes from because it's like think if there's not enough block producers then if there's not enough water using the blog reviews you can afford to wait because they had a lot of competition so the profitability for bar producers comes at the expense of the profitability from American routers right so like the incentives are right and I mean that if the thing is it works the same in Reverse right and the waiter doesn't is it because you've always got competition between them to the network so the rebbe knows the rating knows want 30 a lot of competition to bloggers because that's how they maximize their share of network the blog producers want maximum competition between rellenos because starting the block precision want they want to Anam peláez the traffic group because then there's a lot less competition like you if this if this really notes ending to this this guy has got worried yeah because the work that he's doing could be for nothing if this guy produces the blog that contains the same transaction she gets so the other amazing thing is depending on the quality of these to the connections it may make sense for this Gutterson him these transactions as well yeah he's gonna cut but he needs to use this guy's to use like do you merge like if let's say that if you're this guy you've got you've got a transaction that's made one two three oh yeah so the fee is ten it was like ten over and like two men funded by five this is this transaction is worth like ten point five there's over seventeen point five this is five like it's just the only reason you would take this is that these dribbling across this connection you might take it because okay well most like maybe 99% of this guy's transactions are coming from other sources as yeah right but like the economics of the network also mean that the competition is between log producers that are competing with the same pool of fees so you can have a situation where like in the United States setting on the network is super cheap and efficient it's really easy which means that these guys and we can think of them like we're paying the peer-to-peer network and anyone no one owes I'm paying well state-o basically but it's so easy to do it's super easy to find an access point and fees you pay are essentially the precedent as soon as we have a system like someone needs to walk across the border either Hong Kong or walk across the border to North Korea or like I need my I'm in ISP and I'm literally rolling in a fiber optic there's no competition well you know if he's gonna hire so like yeah now the key thing here is that you look like if you wonder why that and this other way in Everwood because of that hobbing there's not ha Mensa need here but yeah and it's like no for life possible our propagation we now actually do have copies of the transaction theoretically what you get but you can take a look at this if you think of this as proof of work I think it gets a lot easier because people are collecting work but the work is worth different amounts what makes work worthwhile well what is really work is proximity the transaction flows the transaction in flows modified by your volume collecting them if you're the first guy generating use of the network then in many ways you're the first person delivering the value of the networked user so the network stops valuing passion and what it starts valuing is give us money and that's like Iowa desert that's the only value of work or any blotching that's gonna survive which is why we think say it was such a big deal because everyone else been like well we're gonna pay for mining or we're gonna pay for stakin where we're going to create some really complicated thing and then we're going to expect these cross subsidies now and then they get surprised because the cross subsidies don't work because that's not where people are inside the glass to do in smaller networks and smaller networks they can because well bandwidth is create storage is free as soon as we're actually dealing with petabytes of data it's like what they're not going to love the pure heroes are not going to move access was there something when we were in save it like the work fractions I think we're going to weave good pretty quickly just just as the way the recent email works if you've got the spam bag with you man we'll send on the transaction because the benefit of having a included downstream in the transaction into another block someone produces that walk I know what I was gonna say that one of the one of the fundamental problems with Bitcoin and these other efforts because they don't fundamentally know what value is for them so as it makes sense so the question of like how many people should be able to network doesn't this actual combination of ways to deploy the infrastructure we have networks optimizing towards value because where does infrastructure get deployed infrastructure gets deployed where people are willing to pay fees to use than ever so you know it's kind of the opposite of a network designed to be chocolate idea like ipfs what else because theory about the network is designed to optimize around whoever will pay for the stuff you can get away with pushing and freeloading off that's not scalable Network because freeloading is on the scalable business wall right what you've got here is you've got a network that's optimized but one of the nice things is who makes the most money the person that first thought makes the most money so the the network is optimized to push it with applications and like if you're building an application on Bitcoin it's like okay you're paying miners if you're building an application on Sato as the if you can build it so the early first ha you're a great in a great position our word is actually work I'm getting lucky word many of you write the history yeah but you will not get this introduction fees right and there's a table guess what what you can you can that is actually one of the problems you can reverse the chance to fees another example with proof of stake this is like it's a really common issue like we talked to we talk something is very well-known in Silicon Valley about this and and they were like well you know it's very secure because you're not - what do you say they're like you need to buy up all of the tokens and that drives the price up which is the cost of the attack it's like no not at all because if those tokens have any value the amount of staking you're getting is paid for by the fees in the network so you know people are staking for the economic return and what that means is all you need to do to attack the network is just like Bitcoin you invest applause or you invest it no expectation of profit and what you'll do is you'll drive down the return and then you know by driving down the return the people that are stating very good going to go elsewhere and they'll take their investment income earning assets and we'll sell them all yeah yeah so like the problem with that is it's like it's just a fundamental misunderstanding where security comes from so the fundamental question is not fundamental question is not do transaction be secure than ever but that's what like 90 90 plus percent of people who approach booth actually they deserve like he feels insecure because estate will be secured by money but they're like you know perfect state of mind and that's secured by something like really strong and in fact the security comes from transactions there's like an additional gold the security off like you're writing history comes from convention peace security of the like pretty much fourth of the chain or stuff like that says well I mean my Canadian bar game you can put you can put the transactions into your clock sit on their butts like you're signing if you double side the block it will get slashed little movie - oh it's taking yeah yeah no no I mean that's a that's a yeah there's like different levels of things and people think of them differently yes I mean the fundamental point is that if you can actually rewrite the longest chain yeah three nines deeper and then that's moved like people getting into technical issues of oh you're staking it and so you know how dishonest I mean we've done this once before so yeah yeah let's just like let's say we have a few blog producers and trying to agree unblock how about we chain actually how about we start with what the user experience isn't going to the network and then we can talk about how we divide up the fees and what the problems are from the beginning here I don't know like as we kind of did stuff before so I'm just I mean I'm thinking this month we explain the cryptographic signatures let me start from there sure so the you because it's okay okay so here's how Seder works we've got a user okay and the user wants to connect the network so it connects to some computer in the network and you make some transaction and the transaction is going to pay a fee and the fee is going to be luckily it's Tennessee we have another note this knows it could be really node it could be a block producer the user wants they can send them to multiple nodes and what's going to happen is at this point in time this gnome is generating work and this work is the amount of the work that they've got they've received them over the total amount of work that is already been generated in the network so let's say this is a really no this guy doesn't want to produce blocks so what he's gonna do is he's gonna forward into another node and let's let's imagine for simplicity sake that this is another rule a node so this is a small town so you configure town not a lot of fees not a lot of transactions what standard does the first thing we do is that on the cryptographic there when transactions are stuck around the nose that are sending and receiving they cryptographically add data to the transaction this value was like they signed it and what that allows us to do is cryptographically verify which nodes so I can't steal this transaction node over here is produced in a block I can't steal it as this other node and say hey I've done some work everyone can verify who's actually done the work like to do transaction so this amount of work now is five over and let's say the roaming node sends it again the two block producer and this gets to point five so this guy is a 2.5 so the thing we're doing is you can think of it as kind of a form of proof of work where the work were measuring is the work you've done taking this transaction moving it into the network so what we're really valuing is we're volume two feet flush collecting money for the network is the kind of work that you do and the first thing I want you to notice is we're gonna basically say okay so the total amount let's say this let's say this guy produces a block yeah so if a block is produced here the payment eventually is going to be this 2.5 over 75 and we're going to explain one of the challenges with Sato is other block chains the person that produces a block gets all of the money and the result of this is that blockchain designers they're focusing on making block production difficult or random but they're really solving two problems once she's doing work network she's collecting money what we're actually doing is we're separating payment for the work from the edge of the block production and that's the difficult problem the SATA sauce the first thing I wanted to know though is we've right away we've got an economic incentive for the network to work more efficiently because if this block producer loads in the transaction flow why is he connected to this node why doesn't he just connect directly to distant does everybody makes more money right this guy's ten magic thirds disgusting one-third everyone in the network is better off because we kicked out of this node it is it's not not doing meaningful work so the way to you the way you've justify your existence in the state of network is by doing work that's of value right and the reason it matters is because the fundamental economic problem if it sounds abstract like but what can be value well the problems with Bitcoin and proof work or my mistake is that the stock of a value is different from the stuff that needs to do to run the number so what we're doing is we're turning payment for rating and you know the data flows back the other way but we're turning that into because that's what we measured that's what we encourage that sense of us so one of the interesting things is the way you attack the state of our system is you have to spend a lot of money just like Bitcoin just like so okay so let's take a look maybe the network we've got let's do it let's imagine we have a hypothetical network let's explain actually first of all how you block producer produces a block and then we'll go to the network and once your that search ok so what happens is in Sato we have something that's called a barfi and what that barfi is is whenever a block is produced the consensus algorithms basically say this is a measure of the amount of work that we need to include in a block so you can leave you know feel for just our formal solicit yeah well you know you could modify Bitcoin to do this yeah Bitcoin has a flat network they can inquire that's kinda yeah like you know there a lot of their estate or class versions of Bitcoin where you can make the amount of work variable by pushing the work these transactions we call that hash hash right well that's what a play I know days yeah kind of I mean in the problems with that approach if you don't pay for the network so you're back to square one but yeah so this is time and that's work and what you do is we set the burn fee and burn few goes down over time and what that means is that even if the network's not really being used at any point in time they may see to attack but you're never gonna have a crush so the situation in Bitcoin you can have you have attacks on the networks the mining power goes away somewhat turns it off and things go Helen that that never actually is gonna happen a Bitcoin at the Saito because you know if nobody produces a blog for a while it gets cheaper intrusive law and what's actually going to happen is the difficulty of the burn fees can with just upwards or downwards to keep block time possible but what you have is in any blockchain with these coming in we've got we've got things we've got another curve moving in the opposite direction and that curve is transaction fees and you can think of this as Bitcoin because hatchings pay for it a fee so there's something comparable thing but what you've got is where those two curves connect is long time mmm-hmm and cost of blog production so so the internet in like there's also calling for very much a very large collection fees we're not going to let one of the problems is that were earned there are a lot of block chains to talk about there any stuff there are a lot of things where someone has to talk and not get a burn a lot of Bitcoin it's very confusing we call this a burn fee for very specific reason because what we've got is rebound cost an attack in order to do that we kind of find a way to force attack first the first thing to notice let's assume if transaction fee Boeing goes up it gets more difficult to attack the network right because it's cost goes up and we can actually adjust we never really get constant so an interesting thing is if we can make it in order to attack the network someone needs to they need to do more work and they need to pay more money this is theoretically the same kind of security that we get in proof of work and produce tape systems directly if you the goal is we've got a cost associated with work and you've got to do more so we're gonna get to the same place that Bitcoin does but we're going to need to solve a separate problem because work is related to money so the fundamental challenge in Sado is not how to make it difficult to produce blocks because you can just spend money to produce loss as the trends that is the amount of money this needs to prove slog Rises the expense of attacking or arises there are actively advanced ways where block production can be a huge multiple of this that comes at the cost of introducing a 51% attack we won't go into it but people should probably know that it's not as simple as you spend this you attack number hmm we can force this exponentially up but the key thing to note is here's the reason we can do this in Bitcoin it cost this much to attack than ever yeah that's a form of work that's measured in fees so in the Bitcoin system we can't do this because it doesn't make sense it's like well it costs you money to attack the network we're going to take that money we're going to put it in the block you produce so when you attack the network your attack pays for itself it's kind of like you take all of the money you charge someone $50.00 to open your door and Birbal your house but you put 60 bucks on the desk like your networks not going to be secure now the way to maze I know yeah I mean the expense is like what you lose if you have change versus fight money will the plane the problem is very much expenses like why you building this yeah bill exists have been build this right so the cost is actually well the point is that if all of the money goes to the person who builds blog if they get their money back there's no cost so this is where the word virtue comes it right because if we take this money and we just burned yeah then the network has the same security properties as Bitcoin sure the problem is if we burn it if we start with 21 million tokens and we're constantly burning tokens so it's like the network that can be secured the problem is that we're making it useless and you know for a scalable network that we want to support itself that's that's the issue so it kind of it kind of feels like we're back to square one with zeros as long as we're destroying the tokens were secured but if we do that we've got a bigger problem yeah so the first thing to note is there is a there is an improvement here because nobody changed the problem we've actually stepped back to a problem that the original Satoshi Hume had where there are kind of two problems the first problem is how do we make it difficult to produce walks because if it's not difficult furnished blocks everyone doesn't write but the second problem is how do we make sure that the distribution of money into the system doesn't enable further attacks on the system proof of work solves this by centralizing things in the hands of minors it says if you produce a block we're going to give you all the money but we know the payments fair because long production is essentially random based on cash so the the qualities that we wanted to prove work which is that it's difficult which is that you make proportionally the amount of money that you're doing work those properties in Bitcoin they create sort of problems because they force us to give all the blockers Insano well we've got rid of that but we've introduced a secondary problem but we still preserve difficulty so the challenge chefs and the challenge isn't how do we make a difference boss that's proof of work that's produced aid they're introducing these side activities that are difficult and then have their own properties and then essentially our attackable with money people try to pretend that they're not and we have a separate problem and the separate problem is okay we're charging you money two three slaughters we want to pay you for the work but we need to find a safe way to do that if we can find a safe way to pay you for the work then we we have these security properties the problem is if we're paying you how can we pay you for the work in a way where you can't do what we like to call it we call it a fee recycling attack right right like if you can get if you can collect 100% of the fees you build a block about the hundreds of the fees your cost of attack as the cost of producing one block and then you get all of the money back yeah this is why it's what's one of the reasons they claim has to one person attacks the position produced blocking it off money the solution to this is well what if we can find a way to guarantee that you can't get 100% of your money back again what if you would only get 50% your money back would the network be secured the answer is what we could figure out what it costs because now our cause is no longer our cost of some longer this but we still have a cost of this and this is kind of the property of it's the security property it's fundamental to Bitcoin but it's also fundamentals data isn't Bitcoin you said well it's the cost essentially of renting 51 versus the half shower or building that which is it cost attack and what Saito says it citizens well the cost of attack the state of network is whatever percentage of money you cannot recover yeah right so so the security challenge is Derek its producing producing walk is easy if you're willing to spend a lot of money the challenge is how to make it so you can't even look producer right so I have some amount of transactions that I collected yeah so just olfaction they pretty much take where am i right if you want there's yeah yeah yeah so like if an attacker and if an attacker is one of the lovely things if an attacker produces a walk or they're two things if they put all of their transactions if they steal transactions from your blog important Network I'm actually still will potentially get hated so even the tapper tax network there are two things that you do so I produce this blocked and I myself actually training it is blog but it's able to I just keep that one introductions you mean you want to produce I want to produce exactly the same like the same errand two different blogs if you want to yeah so what's going to happen maybe we can kind of explain how it works I mean basically what it boils down to is knows you're positioned in the network and the flow of money comes in to them from the transactions filtering to the network so if you really want to cause problems what you're talking about is a blog flooding attack and then the question becomes have our deal with Waka Flocka tax most damaging thing you do is try to encourage a lot of other people in the network D'Cruz possible pays well because this transaction man standing light exchange okay well here's the thing you've got well done it's the double spends in the problem because the costs of block production you determine what the cost is now what that's saying is that same for you for your specific note yeah that has the potential to produce two logs right now the cost of the blog for you depends on the cost of producing a blog the fundamental property is that if you're in honest mode and you're generating work where the fees are coming from other people it's essentially free to produce blocks yeah if you're that node you're saying look I'm an honest node on cable to produce longer blocks but it's like if I'm swapping in one transaction say well if you're swapping in one transaction then the cost for you of a block flooding attack would be that one transaction exercise of safety so you're saying you're saying I'm a blog producer yeah and you create two blocks while I'm sent money and another one doesn't yes well for them there's two questions the first question is for the user who receives it and the second question is for the network's yeah now for the user that receives it is just like any other blockchain like bedrock right if you want security security scales with the number of confirmations and so if you are making a pain to me and you're a blog producer the cost of attacking network is different for different nodes in the network so if Google is collecting 30 Google is producing 30 percent of the box yeah I'm their cost of attacking is a lot higher than someone who doesn't have that inbound transaction well it's kind of getting to the central attack cuz you're jumping to the attack vector that's fine the point is if you're an honest node what are you doing you're helping users take their transaction take a fees and you're moving them into the network and that's the measure for work if you're an attacker well you can take them how do you fake that you think that by making your own transactions to pay tomorrow for sure of course the what you're doing is I'm not worried about the confirmation stuff because there's it's kind of like wilfer user accepting the transaction what we've got is we've got a system that says producing a blog for various people has cost yeah so if you're paying me a 15 cent transaction and the cost of a blog production but so my point here is that when you're saying the traditional block costs so in proof of work for example yeah you will need to pay here yes in workplace yes like you spend time here yes you need to spend additional time yes in proof of state you'll be actually slashed right away the Manzo's is closer than that yes if you show them those in your this is the this is a block line attack yeah now this is possible it's not economically in San Tomas so and the network incentives actually what basically happens is the consent salir says yeah if you've got a relationship with other so if you produce one blogger yeah if you produce another block you can produce ten thousand blocks if you want you can send them to your peers yes the peers are not going a problem you don't think pass the first law if you want your peers but I need by consensus if you convince them to they can protocol protocol doesn't do it so you didn't want them to propagate you've got a great deal on this chain so if you want to actually have a blog button attack and you want it to propagate through the network it's a lot harder than you think if you're just talking about confirmations like a double spend the answer that is we calculate the cost of the law because of the block depends on whether you're attacking it and how many transaction fees you have for other people and you take that cost and you multiply it by the number of blocks and that's your security and that's the same as in Bitcoin if bid main has forty nine point nine percent of the network and they only need to do a tiny bit of work well what's your what's your security against one it's cost funds logs the block flooding attack is the more interesting thing to think so let's say you sent this to so how does this not know well as you're gonna see pretty much my question is why why will this not like pretty much what I would like different like ends to be and for Nantes what the the question with that is okay like accept one block from the guy so when this guy will broadcast like humans is walk he will not accept it in the same way the cost of attack scales with the number of logs the same money can potentially be used in different chance so there are two questions here that the first fundamental question which is the security one is noticing that we're providing the same Security's Bitcoin in these other networks in the sense myth you can calculate the cost of tackle mini-jack so there's two questions here and then it's important not to dance between them this there's how many blocks to wait for confirmation is malicious which have transactions happening yes produce two blocks okay let's put some numbers on so the cost let's say it's $10,000 per block and remember that there are defenses they can exponentially increase at the cost of the producing block is 10,000 yeah I got 10,000 production pieces of block so you've done the work of the network of collecting 10,000 dollars yes because of that you can think of it as a discount homework you're doing yeah so I have got this check back again so there's like one fourth actually that's like them pretty much well you've done the work so when you're in develop this is not the question I mean how much I'm spending kick I collect the ten thousand transaction well or something I mean we haven't gotten into actually explaining how the pin mechanism works but if we're talking abstractly yeah say let's just assign a figure out of blue and say if you spend a ton of money you can get 50% of your of these fees back in your part yeah okay so in that case the cost to you of this blog is not ten thousand the cost of this vlog is 5,000 okay so you're getting 5,000 this blog is gonna cost you another 5,000 this block is gonna cost you another 5,000 and it's the same here now your initial payment yeah if you can if you want to attack the network by doing this split like that you can that's a it's a block flooding attack but on this chain as well if you want to do it another flight okay you want to do another 5k you can create them you could create a third chain you can try and get the network to accept that as well and we're saying that the cost meaning the amount of money you lose if you work really hard and you manage to recover 50 percent and that's not actually viable but what you can see is that whatever chain you try to maintain we're still maintaining the properties that on any chain were on any chain there is a cost to the length now the question so for users on the longest chain we still have a guarantee of what it costs you to attack the chain so in that sense it's just like Bitcoin that's like I can rent hash power and whatever the longest chain is the attacker that matters it would be the block flooding attack which would be could I use this to produce 50 different blocks that would saturate the network and cause the network before it get on the 50 chains and there would be so much power back and forth that it would be a problem for the network the kind of main saccades like I always get on these if I did not do this again I don't know no no no no here is what we're doing is I'm trying to separate fees from the cost to you we're saying is if you produced in blocks west what are the cost to me well what you need to do if you remember is all of the nodes in the network are competing together we'll share right so if you're an attacker and it's assumed let's take a pure example you're not doing anyone mm-hmm so the cost to you is generating the amount of work that the network considers valid it's like Bitcoin there's a cost to producing a block we can measure the cost of using blocks and for an attacker it's like ranking up half power to produce but let's say I am doing like your definition of work we're just collective actions and those it work okay so you want to stone on the network but I'm not I actually have body fight fires yeah I know but there's a rhetorical slip sure so you're saying I'm an honest film on the network all the snows on the network can I study or says honest nodes on the network let's say you've got a China node and you've got a US node now if you remember the verb he is adjusting to the pace of block production now the u.s. is let's say the u.s. is generating 30 percent of transaction volume let's say China is generating 30 percent of transaction volume and let's say Europe is generating 30 percent of transaction volume what we're going to see is that the US ok is in a lot of snow and it decides to attack never well the US has 30 percent of transaction volume and it's going to essentially so let's say produces the first block for free so this is a u.s. block yeah now so now at this point it does two things mm-hmm first of all producers another block which is exactly the same long term this is La Colonia type this is not I mean I'd like the bullfighting is a little bit more I think what you described so I produced two blocks and it literally sent them to do like the block number one was into your 102 right so now China sees this blog mm-hmm and let's say you're everyone like transmitted to vlog interesting from us to Europe to China and trying to decline to use it you got you got to you got to boss yeah there's China you're thinkin echoing so we got we got a Bitcoin forger yeah so we have China have Europe so forget about the stage between Bitcoin this have taken let's say ten minutes and this have taken two minutes actually in st. all right as far as I've been there this did not take ten minutes yes like I just produced it yeah he gave me get lost it's a blog flooding in time here's the here's the question like what I'm trying to do is I'm trying to get you to see that the block flooding attack consejo is different than work difficulty chain confirmation because each of these Forks there's going to be there's going to be a cost because there's a cost of law production so you can spend the cost of block production and sure you can produce any number of chains what's actually going to happen in the real world in this situation it is the u.s. is just burning its reputation no month Kentavious long seriously and if it becomes a problem China you're over mr. Cordell thanks but think you've been the big pointer for work example where let's say these are two blocks that are produced by two people who produces the next block well the u.s. is produced a block and it now has zero work sure so if the United States wants to produce another block on either of those chains it needs to pay out of its own I don't know I'm not talking about this I'm talking about though China Europe prices they're both who produces the next one well let's say Chinese whoever produces the next block is whoever is profitable for them to produce in China trying to find a large block and then let's say Europe is actually producing today okay your your builds off the longest chain why don't you build off that this is big boy you have two nodes that produce a block and then someone builds on it they probably a nerve doesn't you I mean if you're if you're describing a model of the network we're the us consent dated the china-us consent dated europe and the network doesn't ever communicate that's like reversion bitcoin is it doesn't make any sense but your selves even if they do communicate you kind of decline ii love there's no no we're saying that there's a certain cost of the united states in producing lost if the United States wants to continue to produce blocks on both chains it can but the point is that it will cost it money the the key point is that attacking the blockchain costs money you can't you're you're forgetting that there's a cost of the attack if you're willing to spend the money yeah because you saying attack in a way when I produce blog remarks with are actually what I'm saying is I'm saying you're mixing up your mixing out an attack on blogs chain because on every block chair you never ever watch them differently and instead of producing empty blocks when you don't have to violence is an impact okay because yes empty blogs because they don't that's a fashion at this point it will cost you money part of trying to figure out which like maybe think of it this us a USB this is Bitcoin other people on the network will build on the longest chain so what I'm trying to get you see is that there are two issues here the first issue is if the US like China you're going to build on what they think isn't longest trainer yeah so if it costs the u.s. money improves blocks the US can keep it like China your can do this and then us approval these blocks right okay and then China you're a how to low so the question is like you guys can't do this right yes this is and remote they're just what cares and guess what is this so you actually need yes the USD keep doing it if it's willing to pay money but my exact okay this is exactly the same in Bitcoin as the US just producing a single block like a chain they're kind of creatively coming up you know the fundamentals need to notice actually is and this is where it's a radical improvement of Bitcoin note that in Bitcoin in Sato you've got to in this kind of situation the US needs to pay 100% of the cost of reducing block in Bitcoin the US needs to pay 51% so there's actually something really interesting people have difficulty with it and I think the reason people have difficulty with it it's why the blog flooding attack is more interesting because a lot of flooding attack yes more interesting people have kind of a kind of cognitively have difficulty wrapping their heads around it because what see who does is it puts a price on attacking the network but that price is slightly different for everyone else so like you know if like if bid main is producing 33% yeah like the security question becomes how do we make it so admit main can't collect its money back and there's other there's another really lovely property of this which is let's save in the US because basically what happens is you can take other people's transactions insured logs you can steal them if you do that though the people that grow in your your ability to get the money from the blog shrinks so if I'm an attacker on the network and I put 100 percent of our money in the network the the challenges maybe there's a way I can engineer to pay 50 percent if I start included train if I start including transactions that were included from China Europe oh I don't do that but then I can only get 10% in five or something and so what you get is you get a situation where the US which is trying to it's a revisions of course you know if the u.s. is pulling at this attack it's got two choices what if it doesn't include any work from Europe and China what happens is the amount of work on the network that's outstanding this novel in longest chain starts going up and what that means is as the birdfeed Just's like every point in time at any point in time China Newark and dump their transactions on the longest chain so the US has a choice if it's trying to censor the network it needs to keep producing blocks and the blocks need to have more and more work or trying in Europe of any point say well we'll put it there and you have said oh no you can't want it there because I'm producing this next block and then they say well can we're going to put it here this is actually is really interesting because in Sato what happens is the fact that the work can be transferred between chains like this that eliminates the 51% of tacit an interesting way third so there are other options here the cost to the u.s. go up because one they have a choice between they include they include the other transactions right so like they steal the transactions like china produces a block here and the u.s. endnote your transactions are here if they do that they they stop being able to capture 50% of the money because the transactions that they include force the money basically to other nodes in the network so you can either have help producing the longest chain you can either stop work for building up outside your chain or you can include it but if you include it your ability to recapture the money goes down right so I mean that they're the two general problems or not problems they're kind of cognitive things getting people to think that it is every blockchain is secured by theis what we need to do for maximum security need that watching that can process massive amounts of fees that's what that's what we're building because the biggest blockchain is going to be the most secure one because it's going to be the most expensive to notice that the difficulty is different it's like yeah you can produce it the the challenges challenges yes how can we lower it below 50% how can we keep people from recycling because what we don't want is we don't want a system where the u.s. does this and then the starch for cycling speeds into social attacks so how can we do that that's that's actually right so if you remember we did this we did this kind of that maybe just first with a block flooding what you've got you've got a massive massive network processing care about your X plane and you know if your node you're collecting honest transactions one of the lovely things is if you start attacking the network the easiest way for the network to respond is we stop sending you fees so you can substitute attack with all this work but like if I'm a user and all of a sudden you start creating Network disruptions the first thing I do is I send my transactions to someone else and remember you if you're like us if your Google or something and you've made massive investments in Internet infrastructure in order to process table glass blocks and all of a sudden like people stop sending you transactions because your attack the network doesn't love it so the economic incentives so you you could try with a blog propagation thing one of the major differences is that the incentives on the rest of the network are one people stop sending you transactions to at massive scale you don't have a network structure where Google is not hutton spoke it is Google disconnected driver but Superman can even pull it off because the main block producers can only mean maybe managing connections to 12 or 13 other knows given the limitations of the pipes anyway we were going to talk about how money is divided up yeah so the key observation is well we're gonna divide up the money right and notice that we had we previously did things were resent like you know this nodes gonna get 10 over 15 and this node 550 right what happens we mentioned energy before so as soon as a blog has produced the burnfree is really high and then as time passes the consensus algorithm lowers energy at a certain point in time someone on the network has enough work in their many pool they're able to produce a block mm-hmm this is where the fun begins before we do it though now is the time to step back to your question why isn't everyone producing boxes at once the reason is transactions and fees are flowing into network work is flowing into the network at different places so if you are the United States you're gonna have access to American transaction flows if you're trying to even have Chinese transaction flows Singapore will have Singapore transaction flows and what's going to happen is the network will adopt and organic round-robin production system because as soon as the US produces a block well the amount of work it has an S Memo goes to zero Chinese no God loves singing personalized blocks and so well the United States is building up work to produce another one well these guys are going to produce a block and the network basically it eliminates people who are in close proximity to each other who are producing wash of the same transaction set yeah but anyway let's let's move on to the questions so we've got basically two kinds of pants involving the production the block belong you've got already knows this this thing below the burden fee this is we can think of it as a roaming payment so this amount of money is going to go for ready mm-hmm if there's a lot of block producers and there's a lot of competition for long producers remember the revving nose runny nose has an incentive to give multiple block producers of transaction because they want block producers to be producing as soon as they possibly can the reason for that is if the block producer can afford to wait if it can make a block this amount well then this this goes directly to the blog producer so if a transaction pays a fee of ten bucks in this example maybe seven dollars would be divided up into reading those but three dollars goes directly to block producers and what this is doing is it's creating competition between blog producers and revenue notes where if this is going to be divided up but if it's really profitable to be a blog producer that's going to happen in situations where there aren't enough water racers right like the blockchain is really big you need to make a real investment in Google's Google scale infrastructure you need to have a level of connection level 3 like it's super probable you can afford to wait what that means is it's a tax on the feet so the blog producers get their money right away and the economic incentives plus rather behavior is going to keep that at what the market prices are basically because there's a return on setting up a blog correction facility so that basically gets taken off right off the top it depends on the degree of competition which we block research right so here's the here's the security the security question is how do we divide the rating name right like what we do is we have something in the network it's called pace with pace what is a variable that goes between zero and one when the money is at zero it's going to go to a ready node under personal when the variable is 1 it's going to go 100 percent to a group of knows whose purpose is to hold a lottery and what's gonna happen is we're separating the active blog production from the active deciding who gets paid so if we go back to the Bitcoin example the act of producing the blog is the it's not that we would say them so eat the pay slip is 50% say because we can do dynamic Facebook let's start with static so if the piece one is 50 the cost of producing the vlog is a hundred let's say plus whatever the law producer surplus is whatever you're going to get if you're already node you're eligible for fifty bucks if you're a lottery older you're also eligible for $50 this is in the consensus world it's a variable that's managed to the consensus network so you can't attack the network and suddenly change the pay slip so how does how does it work a block is produced and the block itself in the sale implementation you can do you can do like an already ran them stuff we use mining for a couple of reasons because it's simple and what you do is the block basically has a hash and the block implicitly the hatch the block implicitly is something we call a golden tip think of like Willy Wonka the turbo factor and the reading notes and the block producers produce a lot as the block is propagating to the golden ticket is available for everyone on the network to look at and right now it's might impose on simplicity sake and if a locker holder finds a solution to a golden ticket what it does is it takes that solution and it propagates it to the network in the form of a transaction and that transaction if it is included in the very next block the laundry holder that have found the ticket gets a tailor and a variable that's associated with a solution and because it's a cryptographic puzzle it's guaranteed to be random that random variable picks which of the row dinos contained in all of the transaction in the previous blog gets paid as well so and it doesn't need to be wanting being divided through ten the main point is that the randomness from the lottery is used for the distribution of life for this right so remember the distribution of money here for the block reducer is it's 10 over 10 over 15 and 5 or so for a to hawk production the blog producer is fantastic it can expect a lot of 50 percent payment it can expect on average to get a 33 percent of 50 bucks equals really not very much money or is that that's like seventeen so you notice in the earlier examples we're talking about fifty dollars in a network where the blogger greasers one hop away from every transaction they're in fact gonna capture the 50% pay split 17.5 there and so the cost is going to be eighty two point five percent right now now in in a network that's actually more distributed is real world networks are going to be the cost of attack for bloggers news uses can be higher and the question you got to think of it as well we've also got the cost of attack from remaining nodes as well and this is the nature of what city with us Sato says look the solution to the problem is we can make the network secure on fees alone you can divide up the fees and the challenge becomes how we divide up the fees in a way that we can actually calculate weight calculate what the cost of security is right and this is the other thing like remember because we've got a mining puzzle here producing you're not making 50% in prop if you produce a block if the next block is produced and there's no solution nobody gets paid so in addition to generating an attacker in addition to generating the money for the transactions it needs to come up with money for the transactions it also needs to be in a position to determine the water and you can think of the lottery position like validators in the sense that you know if you've got the u.s. in our earlier example which is trying to rewrite the longest chain I mean you know order for this to be a low-cost attack it needs to be able to source transaction fees from the entire network and when that happens in a press room tax net where people are gonna be like well I'm okay with them and they keep paying for it you've got the lottery holders it can be a randomization function it can be lined in whatever they've also need to continue to mine and hash on this because if they don't the US can't recycle any money so so on the lottery ticket holders can write if you know anybody I mean if I know we go I defended my mine USA mine too but notice if the US is mine to do it know what it like but don't make me fifty bucks because the amount of profit that they're making from this the problem for water holders is actually driven by market forces to be exactly the same for the profits for recognize so if you get fifty bucks back will they probably need to be spending forty eight to forty nine dollars just to do that so an attacker that needs to co-op Bothwell if you're an honest if you're using mining to attack the network it's only really it's only really feasible if the profits from writing are way higher than the profits from reading and kind of vice versa but then this is dynamic pace what the example we're talking about is just were saying okay she remember son the main point is that know if the is a transactions on salt the attackers are just trying to use money what we've done is we've introduced a cost based system that means it's no longer five it so under five thousand per block right it's five thousand per block but they're getting seventy percent point five plus that's their profit yes so otherwise the amount of money that they lose starts going up mm-hmm and what this lets us do is it lets us calculate you can you can calculate the cost of attack the various people in the system this is sort of the first version the first version with a fixed space book we have a version with a dynamic pay slit and what that does is it changes this so that the profits from reveling in the profits remaining are driven by market forces the the first version is just like thinking about this one way to think there's a difficulty to mining and let me maybe explain a bit because it's lovely we basically let the miners vote on what the difficulty of the puzzle is mm-hmm now imagine with a 50% pay slit what's that going to be well the miners vote by providing solutions and the miners have an economic incentive to move difficulty to the point that there's one transaction then you can you can only and there's there's a lot of security benefits like one of the things is if you're attacking the network you now need you need a hundred percent of lottery to pick yourself it's also like it's the reason why if you copy transactions from other blocks you can't control what the random solution will pick so the attack that we need to solve is like in the Bitcoin attack you Bruce blog well thank you for all of those transactions I've got more power I sealed with my a in this if you produce a lot I steal those transactions it's increasing the cost of the attack so but but note like there's lovely properties with difficulty where if like this isn't a hundred percent of difficulty but notice things like notice things like variance 100 percent of difficulty gonna have some areas and producing if you're an attacker producing more than one doesn't do anything for you some variants in golden ticket solution as well so it's another security thing because if you produce two solutions and you're attacking the system to choose it yourself that doesn't benefit you at all but the very so the variants above doesn't give you any benefits of the variants below only imposes cost so even an attacker that can match 100% of the water it's still going to lose money just from statistical variance in the scale of the mining solution anyway the that's basic say though which is that you divide up the money you introduced a system of generating a random number to decide who gets paid the detectors can't cheat with without incurring additional costs and you use that to basically say we have the properties of Bitcoin which art which is there's going to be a cost from producing certain blocks on network and then you know the larger economic scheme is saying if you're honest node you're collecting genuine transactions and sharing them with friends and then other nodes on the network if you're an attacker because everyone everyone who's doing anything is scale that's their entire economy like no one is going to be if if Google's produces 20% of network if they start misbehaving the economic incentives for everyone is literally to behavin we were fools cost of attack goes way way out we stopped sending them transactions the miners know if they're like looking you're too strong the network we're making money from this we're not going to support you and basically the whole thing means that the cost of attack is honest nodes do work grabbing work and they get paid for fruit dishonest moves they have to attack the network and it's not just it's not just 50% it's like because if you it becomes exponential because if you don't include other people's blocks the amount of work this is building up outside your network waiting to come on at any point in time Grouse is a point where the amount of work you the amount of money you actually need to spend not only does it cost go up because you recaptured less of it but the wage so when you're choosing between two chains right to use amount of transaction fees that are in each one it's basically it you need to regret the longest chain you need a higher difficulty and the longest chain with accumulated work I mean accumulated work work is work isn't I mean defuses work is a measure of peace with the efficiency it's a 1/1 like the problem is one growing through the stages without slashing that people will change right so it was the same question I was asking before yeah remember losing cost of producing every block like any launching you can have a fork the question is where's the rest of them this is free for them you gotta you gotta for the question here is that and just I mean Bruce biggest problem exists is that you won't you will like as a now they're going to really don't care which changing build on like you build an OG I mean here's the thing you've lowered the you lower the cost of the us in this situation unless it's ponying on cash it's in this case it's like Lily's let's just imagine this is the same box yeah just like there's one difference here that's all yeah so you're in China I mean they're actually not in like motivation there's not malicious malicious yeah they just like not really following protocol there's just like well why not why not I haven't even have an easy fix for this because the hatch the blocks is gonna be different you just have a consensus model that says which one you're gonna favor be favored by something the entire random that's not controllable by us right like what you're saying is you're saying the attack that I envision is that all of the you know all of the core nodes in the network yeah it'll build off all of the possible force yes and well we're talking about it we're talking about blockchain that's moving in petabytes of data a day because we're actually paying for the network I mean first of all I don't think that's a realistic issue is the economic incentives for everyone who you've got an attack that the economic it sounds generalize like we'll look there's an attack the real question is well I might extend another they can write what they do because if the network becomes useless their army get paid that's like saying look you know everybody will kind of mind separate their own things off why don't why don't I have a hundred block chance do you want to use Bitcoin it's like well we should change you want to transact on broadcast your transactional force like I mean I suppose it said I suppose it's a theoretical problem but it's a question of like would people money find their clients just in case to make sure like you know one of the differences is you say well what is the network structure you know you're gonna have a series the bigger the blockchain gets you're going to have a series of people that are specializing in infrastructure right you're going to get Google in the States you know by doing China you know the costs a non-trivial amount of money to be running in that area assuming that you know the people in the lobby this is same as like a single not attacks a network if it bothers you because above a stick if you don't wanna like this is some cost for them they don't want us pretty much because otherwise they will lose it well it's interesting because that's in the white paper but I don't think that's I mean the thing is there's there's actually there's a profit motive that's on the sub cost more I mean again it's a private profit life raises your money back to network in theory he boils down to assumptions of the economic rationality right but that's also like in Bitcoin like you're expecting people to rationally mine on the longest chain like this were a thing if you throw out of the expectation well you're gonna put well no there is a reason why not and the reason why not is that we're operating at scale and big blocks have cost like this is not 2009 about 2000 my Bitcoin we're designing the economics of launchings or actual scale yeah so you know people will you know in 2009 Bitcoin I can do this it's like well yeah but we're not talking about I'm making my every ten minutes we're talking about I mean right now we think the limits about a hundred terabytes but it will be in the petabytes now if you are what you're going to get is you're going to get these core nodes in the network and because we pin for routing what you're basically doing is you're creating an economic incentive where you know different regions they're kind of reading those and the running nose will connect maybe one or two and like the column gives back propagation take well what we know is we know that the network has economic incentive towards efficiencies and we'll see I personally I mean I think is gonna happen is I think that if people can't keep up with a main Network we're right now it's 30 seconds I'm good - that's gonna be 10 minutes if people can't keep up with a big network the way to do this isn't very good because why do you run reading notes in the full note it's because your network can't actually handle better so and then the writer knows the users that will connect those but you know why do you want to pay for the rebbe knows you know the network structure basically you're gonna have a core group of you're gonna have a worker by the minute now it's like level 3 you know this attack is kind of like level 3 communications starts screwing around with packets for its customers right like it could happen but look at it like what actually happens if this guy starts network doesn't control the user does just no it gets down to like it gets down to the user activated software stuff one you can't compel these guys to propagate if there's a blog flooding attack you can't compel these guys to propagators you they cool it you could convince them to propagated the network protocol has certain rules that say it says for instance when you've been convinced something so long as chain one of the things we do is like well if someone gives you other things that's okay you know don't don't no word it until you're convinced it is yeah so you know like okay so they decide to attack the network and these guys are like well I've got a really profitable thing we're not because it is is profitable for everyone yeah what's gonna happen well these guys are gonna stop sending them mmm-hmm the cost of the attack goes up and we're basically forcing the position that there's a cost to the attack yeah there's more advanced stuff where as I said we can make the cost exponential but I mean that those techniques are weaker if if this guy decides to attack they're very effective that's pretty clear if you like somebody I want the truth trying to come in and show you Clark but I mean this is like bidding you know like well what if big main starts randomly for free stuff what you know in the big one group of workers like what percentage of the network could support them as soon as you pay 50 percent you're screwed with this there's an actually note if you want person attack because it doesn't matter if you do 51 percent of the work and like the mining system let's say you've you've you've rigged it to you you've got enough let's say you 80 percent work and you've rigged the mining system well enough that you can get from lumber side back if you've done 51 percent of the work and you're getting paid 51 percent you're still losing 49 percent of the cost of the block of your block and you know honestly in that situation one of the major differences is the 51 percent of khakis incentivize because of people doing the attacker making money in this system the people that are doing the attacker losing you know one of the you know what is that that's like it's it's a transfer of money to everyone else in the network if you do that so it may be that every now and then someone will attack the network and the other nodes in the network will be okay with it because they like if they need to spend so much money it's a transfer to everyone else but oh then that works down for an hour but they had to spend five million dollars to get the money to do that the question is can they exchange pretty much I mean that's my problem I went to exchange and sold millions of State oh yeah everybody got paid Network that's just that's any blog chamber the I mean what I'm saying is like look at the there there are a bunch of vulnerabilities and attacks that people so my question is mostly like do people see the cost of attack clearly just by observing I don't know what are the kind of like that well this is the nice thing case with is a public variable that hasn't won consensus code so there are things like in Bitcoin mining who's got the hash power I don't know and like another thing with proof work that nobody talks there I've heard Craig Wright say once he says well you know when worst law ends we have a problem the you know Bitcoin security people it is transaction fee volume but you use in addition to that because they've out mining as a difficulty function it's the supply it's a supply curve of passion hour because as soon as I can rent 51% of the hash for less than 100 percent of the transaction volume I've got a feed recycling attack in Bitcoin mm-hmm I rent the hash I produced lately probably the only questions have you disguise it right but in and also produced a given think well it's all about staking but who owns the stake right how do I know that the network be securely decentralized how do I know who has the how do I know who was attacking the block difficulty production function in say no we don't have this knowledge problem because everything that's needed to figure out how weak the network is is consensus or public information so it pays what's really high well one of the like pikmin say them with a pay slip one it's it's kind of like a version of Bitcoin where the block producers getting their money at first right because see them with a basement of one the miners are the only one the takács yeah but the miners are also like the lottery holders but they've also got a burn tricity so when attack still has money right but the block producers still collecting like the writing notes don't get paid and the block producers don't get hit with reading or she put the block producers there's still competition with each other so we have a verb you know even in this broken version of state oh it's actually better than Bitcoin because you've got an actual way to pay for the network well I mean so in fact there is you depending the dependence of each polymers and waiters are loving it a little because the block producers the blog above is at you know the blog producers the Walker users get their payment for that blog yeah the miners can't do anything about the block reserve and what I'm saying because we are blood producer and yeah I mean it's like any blockchain if you can do 100% of the work attack the difference is a hundred percent of the workers of all more secure than 51% also note in SATA like a Bitcoin we've basically got okay the way you attack the network is to become really good at mining and say to them you've got one function which is block production now what that means is it means you want to be specializing in yeah right friend like we've got a mining lottery function which is we were a different kind of economic activity but the third one is also there's basically three actors there's also the users because the user transaction flows coming into the system or also a security function but if the users see anyone was made they can democratically vote transaction by transaction to them yeah and I mean dynamic pace when users can also start moving around the pace so it can be things like if the network comes under attack and it looks like someone's going to protect it if it looks like it's running though in the dynamic version cocido the pace player can actually dynamically increased because everyone but the attacker is concerned about the attacker likewise if you have centralization of mind really concerned about bid made the network can be like we are more secure from paying more for Revit yeah and one of the really interesting things about this if you think about life italic and then people are talking with the scalability trial on well the scalability trilemma says there's an optimal point that were extended for security decentralization and security decentralization scaling i think it is if you think about saving you think about the way it works you realize it's entirely wrong because security is subjective it's your position in the network and what you can have in Sato is you can have a situation where in you know the pain in moving the payslip 20.4 provides an increase in decentralization and any increase in security and an increase in basically the through the network because we're concerned about miners attack the network if we're concerned about full nodes attacking the network with increased security by pushing things back as soon as the the basically the security trilemma comes it flows out of any network where you give all of the money to the blockers if you do that you've got the problem in this situation you don't because like you can think of this mining in some ways as if you pay miners war the network becomes more expensive to attack up until the point the miners themselves become a threat if you move it down the network if the miners are a threat moving it down increases security but it's also painting the nodes that are running the network that is paying revving those it's increasing decentralization and it's also making bad with cheaper because if the revenues make money so the people don't think about that is partly because people in like the traditional watching world where we've decided to give all the money to the person that produces the blocks and we decided that the problem is how do we make this process difficult and untangle and what's a good as that says we'll look that's not the problem the problem is we know that they're spending money to produce blocks you can money in staking is you're just decide you're dressing up the fact its money and that's why those systems are vulnerable because they're dealing with like validators and you know all sorts of clues within the network they're not really about the flow of fees in it which is what they shouldn't worry about but as soon as ensure monetizes it's it's over sato says look that's the world living it's just money even we have this abstract system where it's just money we can make it secure by preventing people from monopolizing the security challenges different money makes it different money makes it difficult regardless we just need to make sure that you can anyway thank you for okay thank you thank you for watching too","transcript_synced_at":"2026-11-04T04:29:16.899Z","segments":[{"start_seconds":4,"text":"we hit block let's say you decide how long it's and because we're building big","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4s"},{"start_seconds":13,"text":"blocks right yeah the first thing was well we need an advantage so our first","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=13s"},{"start_seconds":17,"text":"solution and what you now is your","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=17s"},{"start_seconds":26,"text":"Genesis block right and that was actually we'd be chatting with people and they're like oh you can't do that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=26s"},{"start_seconds":33,"text":"why can't you you can't the problems are some people like it was","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=33s"},{"start_seconds":40,"text":"mostly ideological where people ever you need it and we're like well tell us why you need it and then go we need it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=40s"},{"start_seconds":45,"text":"because you're my eldest I'm walking you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=45s"},{"start_seconds":53,"text":"to something better like we're like well if your money disappears what you want to do is you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=53s"},{"start_seconds":60,"text":"want to manually send it to Berlin as soon as you rebroadcast your money spend","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=60s"},{"start_seconds":67,"text":"actually just pretty much all you need eject shows you get cleaned up yeah like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=67s"},{"start_seconds":74,"text":"chains just wind you know cable get","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=74s"},{"start_seconds":76,"text":"cleaned up is the sheer mental effort of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=76s"},{"start_seconds":93,"text":"remembering all the other projects that walk through there's there's some things that use that they start so one of the problems is they're only dealing with most of them I've seen they're only","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=93s"},{"start_seconds":101,"text":"dealing with tokens our data so regenerate is that case dark or whatever and then they'll be able to leave stuff but I mean if you've got it on this the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=101s"},{"start_seconds":110,"text":"solution is actually this this solution is okay even rebroadcast if you want but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=110s"},{"start_seconds":117,"text":"when blog 10,001 is produced everybody knows that block one is going away so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=117s"},{"start_seconds":126,"text":"you automatically reformat and rebroadcast the tram actions with the consensus lair mediating not only the rebroadcast but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=126s"},{"start_seconds":135,"text":"also a rebroadcast fee and you do this so you don't only broadcast the UTX of data but yuri podcast the data that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=135s"},{"start_seconds":144,"text":"used in the transaction as well so this solves a lot of really interesting problems because the transaction fee let's make this what we do is say oh is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=144s"},{"start_seconds":153,"text":"we make it two times the average fee of new transactions it's something really wonderful happens you can have a blog","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=153s"},{"start_seconds":161,"text":"you can have a blog chain of like a face it's eyes like it's one gigabyte blog yeah now as the detail on the chain grows there's less and less space","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=161s"},{"start_seconds":170,"text":"available for new transactions right so the new transactions start getting crowded out by the old transactions","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=170s"},{"start_seconds":177,"text":"because you've got you have to rebroadcast the old you don't rebroadcast every single transaction no one else on the network treats that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=177s"},{"start_seconds":184,"text":"block is valid so you know you can you can have people attacking the network that you would be a 51% right and you do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=184s"},{"start_seconds":193,"text":"the Bitcoin anyway you for keyword movie Satoshi's points the really interesting thing is is the space for new blog shrinks the fees for new blogs go up as","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=193s"},{"start_seconds":201,"text":"the fees for new blocks go up the fees for all blocks go up more you've got an incentive now for people to manually","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=201s"},{"start_seconds":209,"text":"rebroadcast one that's second of all what you move is you move towards an equilibrium where the price of new transactions of the press wall","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=209s"},{"start_seconds":216,"text":"transactions moves into equilibrium and the amount of new data that goes onto the blockchain is the same as the amount of old data its perch breath and we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=216s"},{"start_seconds":224,"text":"finally have an economic solution to blockchain scaling and chain management because not only does the blockchain stay at a certain size but it stays in a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=224s"},{"start_seconds":233,"text":"certain size well you can guarantee the data that's attached to your transactions down the chain so if you want your stuff on the blockchain","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=233s"},{"start_seconds":241,"text":"forever you can actually pay for it if you just want your stuff falling off because you want a universal broadcast future you paid a much lower fee because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=241s"},{"start_seconds":250,"text":"you don't need to pay every loop and something else happens there's a lot of cheating Bitcoin where the miners for instance but you pay your fee there's no","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=250s"},{"start_seconds":260,"text":"guarantee that there's no care to you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=260s"},{"start_seconds":267,"text":"yeah I just needed only for time","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=267s"},{"start_seconds":315,"text":"databases where's your storage it well one is we think of it as we think of a blockchain a universal propagation","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=315s"},{"start_seconds":324,"text":"network so there are complications where you want the author terms to broadcast it and most block chains because they don't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=324s"},{"start_seconds":333,"text":"have this problem solved they go to this position where it's like no the data you are paying you you store it yourself there are situations where well you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=333s"},{"start_seconds":342,"text":"paying to use the blockchain so you don't use them you actually want you to sort on the blockchain for instance something like a commercial insurance","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=342s"},{"start_seconds":350,"text":"project you want to prove you want to keep the data on chain for three years because that's there like that legal liability I mean you can maintain your","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=350s"},{"start_seconds":358,"text":"own servers but if you're maintaining your own servers you don't actually needed watching Chris yeah but like why do I just started as a part of state","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=358s"},{"start_seconds":365,"text":"like never been something use the way that we aspire to that data I'm saying just the story everything as far as state there's no reason you can't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=365s"},{"start_seconds":373,"text":"do that too but then I don't mean to like then you can purchase without any problems that's like singing eerily","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=373s"},{"start_seconds":380,"text":"doesn't user service and your play don't need your service but it's better if it has no service so if you have drink service you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=380s"},{"start_seconds":387,"text":"provide some kind of services services you're not able to do like move sports teams right so you know yeah this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=387s"},{"start_seconds":396,"text":"is this is a solution and for some use cases this is better than that right because this is expensive because it's actually using the blockchain for a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=396s"},{"start_seconds":404,"text":"certain kind of storage yeah on the other hand it's guaranteeing certain properties of that transactions - correct yeah like there are some things","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=404s"},{"start_seconds":412,"text":"like let's say let's say I've got a name card yeah and my name card has a bunch of stuff on it like this is my PGP key","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=412s"},{"start_seconds":421,"text":"this is URL here is where you can fetch my distributive Facebook posts you could take yeah you can add that name in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=421s"},{"start_seconds":428,"text":"card and you can have a name card certainly long now if at moment of broadcast somebody needs to stick it in the database a user can't come along two","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=428s"},{"start_seconds":437,"text":"years later and then collect it because well known ones gone and you've got a coordination problem this is a PSP MongoDB problem the introduced massive","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=437s"},{"start_seconds":445,"text":"coordination problems because they're like okay you're going to negotiate separately with unright he's going to save the data for you if you pay for it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=445s"},{"start_seconds":453,"text":"and all of a sudden like you're using blockchain that all of the users need to coordinate on which access point to use they all need to have a second layer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=453s"},{"start_seconds":461,"text":"economic situation with this everything is paid for by the feet so the coordination issues are solved because every node on the network must have the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=461s"},{"start_seconds":469,"text":"data all you've got to do is convince someone to give you access to the blockchain and you've got it but it's for a subset of use cases it's not you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=469s"},{"start_seconds":478,"text":"know for most use cases but if you've got a signed message from someone that's sticky on the database then you pay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=478s"},{"start_seconds":485,"text":"lower fiend you don't mean the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=485s"},{"start_seconds":496,"text":"rebroadcast fee is going to be more expensive than stating your practice scenario like as far as what I'm saying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=496s"},{"start_seconds":507,"text":"like well that's the blockchain it isn't something like the way I look at ball chain it's a database like was the way","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=507s"},{"start_seconds":515,"text":"you synchronize masters and slaves yes by sending around tobacco bloggers I mean I said what Alexa buggies actually matter because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=515s"},{"start_seconds":524,"text":"this is a database that everybody needs to have why would happen well I mean I'm not I'm not really sure I understand what you're saying here because the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=524s"},{"start_seconds":531,"text":"entire point of this is your evil throat data so so yeah but here that gives it takes time data care and then you need","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=531s"},{"start_seconds":539,"text":"to pay for it to be you stop paying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=539s"},{"start_seconds":547,"text":"movin on some rinses and red/system now you've got you got Soviet economics no no seriously this is enduring people","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=547s"},{"start_seconds":555,"text":"come see because they're like that's why all preserving said the rent charting because yeah like you pretty much grow","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=555s"},{"start_seconds":563,"text":"in your storage where is it sure but I mean even with charging that the problem","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=563s"},{"start_seconds":570,"text":"isn't how many shards you have scharping is a solution I mean I think that I think the sharding the questions charting is if the shards have different","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=570s"},{"start_seconds":578,"text":"economics yeah then you've got coordination housing yes right but like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=578s"},{"start_seconds":586,"text":"I'm not on target yeah what I'm saying is I'm saying you know one of the things to notice about this is the only","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=586s"},{"start_seconds":593,"text":"way you make it work is it becomes like follow point where you have one fee that's all to pay for use of the blockchain now and then you have another","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=593s"},{"start_seconds":602,"text":"fee that is extracted for for like oh there's a month of rent arrears to rent one of the problems is okay well how do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=602s"},{"start_seconds":609,"text":"you set that how does the network even set that and how does the network set that in a way which is secure and actually market driven this actually","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=609s"},{"start_seconds":618,"text":"doesn't so one way to think about this is that it's a way of actually determining the market price that's like a theory it was like oh we're gonna have","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=618s"},{"start_seconds":627,"text":"rent yeah but are they designed a library block thanks Lily and the man","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=627s"},{"start_seconds":636,"text":"said like goodbye referred to that as a fear I said it back in so I the way I am","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=636s"},{"start_seconds":642,"text":"right was actually in dollars based on the price of the carburetor let's just use this market over bend them then","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=642s"},{"start_seconds":650,"text":"describe it and then there are two things there you've got two options one you either you can fix the block size if you fix the block size therefore you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=650s"},{"start_seconds":658,"text":"basically you're forcing a market price to emerge in the context of how big your blocks are okay this is this is the key thing here we're forcing all","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=658s"},{"start_seconds":667,"text":"transactions and new transactions to compete so the real economic question is you still need a hard cut something but what you do is you are different so the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=667s"},{"start_seconds":675,"text":"part of the done is done actually is where does she come later so let's say","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=675s"},{"start_seconds":679,"text":"the later well what you get is what does","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=679s"},{"start_seconds":693,"text":"rebroadcast is you get the old","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=693s"},{"start_seconds":699,"text":"transaction so the old transaction let's say is p1 yeah and it's signed by the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=699s"},{"start_seconds":706,"text":"people that made the transaction right yeah you get a new transaction and we're going to call this C a1 it's signed by","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=706s"},{"start_seconds":715,"text":"the block creator yeah so if you pass it through and it includes the original transaction inside yeah that's why we do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=715s"},{"start_seconds":723,"text":"2x because we assume that the transaction is that max can be twice the size of the original but people can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=723s"},{"start_seconds":731,"text":"validate this developing the original transaction but what you can't do is you can't you're gonna validate that this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=731s"},{"start_seconds":739,"text":"was produced by the you this has to be valid it's produced by the block creator right so you can't say oh like the C's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=739s"},{"start_seconds":747,"text":"don't work unless you have a secondary there or transaction verification validation so what you do is you basically take the data and like does","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=747s"},{"start_seconds":756,"text":"this work there that's fine well never fails but then you say okay well even fails then is it the secondary type of rebroadcast transaction the buyer to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=756s"},{"start_seconds":765,"text":"understand like follow and they like if I set here 100 and what what does it mean like let's say you have a qu unspent XT","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=765s"},{"start_seconds":774,"text":"oh yeah from something else","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=774s"},{"start_seconds":789,"text":"you you can't do it with multiple twos basically every I'll spend you TXO I mean maybe you can't our implementation","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=789s"},{"start_seconds":798,"text":"everyone spent UT EXO becomes in your transaction and if the unspent you check so has you got two months menu TX over","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=798s"},{"start_seconds":806,"text":"100 this is no 98 say this is now 98 and when they're producing the block you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=806s"},{"start_seconds":814,"text":"know for additional units which are included in the fee for the block just like takeout and if they don't have a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=814s"},{"start_seconds":824,"text":"few to pay if this you see EXO only has zero point five nine and this works up","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=824s"},{"start_seconds":831,"text":"to two point six seven well this is dust which falls off the chain and when you do that as you collect it and you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=831s"},{"start_seconds":838,"text":"distribute it to the new block reducers in the form of the mighty reward so what you basically get is you get attacks on","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=838s"},{"start_seconds":845,"text":"spare change that no one can use because it's lower than the fee so the stuff that's useless is all of a suddenly","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=845s"},{"start_seconds":853,"text":"useful again but you also have a way to maintain data on the blockchain at market prices and this is something if they're even that have a figure that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=853s"},{"start_seconds":861,"text":"they don't even know the problems because most people know because the only sensible solution e is when you have storage and when you have a block chain propagation people are moving","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=861s"},{"start_seconds":870,"text":"towards to payments yeah and the problem with the two payments approaches well okay we need to pay for bandwidth - so what are we going to do the only market","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=870s"},{"start_seconds":878,"text":"solution for that is three panels like what if I need to broadcast this data but I wanted to go on in the archive node and then that archiving node like its website","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=878s"},{"start_seconds":887,"text":"well I now need to be paying only for storage bandwidth what happens is it kind of mold it with every service you expect the bar you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=887s"},{"start_seconds":895,"text":"expect the blockchain you add you have to have these different pants there are so via pricing attacks that emerge that scaled if these prices are off at the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=895s"},{"start_seconds":904,"text":"market would say that you don't have that you don't have that because basically all of this stuff reconciles","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=904s"},{"start_seconds":912,"text":"into the end user and their access to that first node in the network because is that first node in the network which","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=912s"},{"start_seconds":920,"text":"we know it has all of the data it has to all of data and it decides to give it to them at what cost and it decides to give","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=920s"},{"start_seconds":928,"text":"it to them at the cost of what are the fees that you're paying me so what one of the things that saver does because we're using market mechanisms is we're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=928s"},{"start_seconds":935,"text":"taking these two three four payments which are arbitrarily decided by developers when we shrink them into one","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=935s"},{"start_seconds":941,"text":"payment which is set by market prices that's right","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=941s"},{"start_seconds":952,"text":"like if they're changed when you're rebroadcast not waiting it's not that's not the problem with the network that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=952s"},{"start_seconds":960,"text":"the problem of the people using the network yeah there's a problem the problem is you can't pay me $2 yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=960s"},{"start_seconds":967,"text":"we're building it for people right we're not building that Network no we're building the network to exist it's kind of like you're saying look the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=967s"},{"start_seconds":975,"text":"problem the capitalism is you can't guarantee that the prices will be 10 cents a liter 400 years cycle yeah of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=975s"},{"start_seconds":983,"text":"course dangerous device get those big difference between like 10 guys jeez that person knows tomorrow and like they have to tomorrow is a price where","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=983s"},{"start_seconds":992,"text":"there's like kind of you know if we're not talking about you can have a transient chain that's 50 years you get out transient chain that's one year you could have a transient chain its 100","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=992s"},{"start_seconds":1000,"text":"year Bitcoin needs to move towards a transient chain of 50 hundred years a human lifetime if you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1000s"},{"start_seconds":1008,"text":"spend your Bitcoin once in your lifetime you pay the small fee if you stick","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1008s"},{"start_seconds":1012,"text":"around like what's the trade-off the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1012s"},{"start_seconds":1030,"text":"trade-off is that the longer the Genesis period gets one the higher the fee everyone needs to pay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1030s"},{"start_seconds":1037,"text":"because as it gets longer the costs of keeping the day for your own wedding guarantees you guarantee it a market system it won't break it's also thinking","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1037s"},{"start_seconds":1046,"text":"about it the other way around the storage is coming online super quick","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1046s"},{"start_seconds":1049,"text":"right cheaper then actually so the point","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1049s"},{"start_seconds":1067,"text":"is its robust because people are gonna go out of business or flee see you in other words you need to keep changing your pricing mechanism a technical costs","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1067s"},{"start_seconds":1075,"text":"emerge yeah has the guy like especially the crew spaces because all of a sudden your economic variables are heartily for cost and these guys have much more money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1075s"},{"start_seconds":1084,"text":"flowing in because they imagine the politics are you gonna get what talking about changing the price yeah do we do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1084s"},{"start_seconds":1092,"text":"we accept the poor of the ways to change the price when that pull request is pretty much by Amazon and they have they don't they just","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1092s"},{"start_seconds":1107,"text":"that's what if you got a new coating there's two issues to the user consignment fee one is its said without","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1107s"},{"start_seconds":1117,"text":"market the other one becomes a tactic though because you can actually look at changing that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1117s"},{"start_seconds":1130,"text":"like you to keep when they go but it's not a permanent watching and it's like well why do you believe that the SP is a herd watch it doesn't have more it's not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1130s"},{"start_seconds":1138,"text":"permanent it's good in classes and in fact the IRA is it the bigger the blocks get now any kind of mass market like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1138s"},{"start_seconds":1147,"text":"there's some technological possibilities curve and maybe if Wednesday's bought below it it will be able to grow but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1147s"},{"start_seconds":1156,"text":"even then there's going to be other networks that come out with lower detectable possibility curves and usage to the transition over time that's the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1156s"},{"start_seconds":1163,"text":"big argument is the only case I can say where the permanence makes sense is where you actually get a value from all of the previous part so for instance our","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1163s"},{"start_seconds":1172,"text":"provenance or diamond registries or something like that where there's a real value to pay for that storage to get it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1172s"},{"start_seconds":1180,"text":"now hungry be usable yeah that's why I think whatever you want to record here report everything else is tangent you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1180s"},{"start_seconds":1189,"text":"can officially ready to think of this some form of that you can think of it as a mechanism like what do you know even","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1189s"},{"start_seconds":1196,"text":"you don't even need to rebroadcast because you can think of this as reindex like the data doesn't even do these","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1196s"},{"start_seconds":1204,"text":"unlocks because the computer knows but like oh you can take different actions actually in the database and then you just like you maintaining the fixed","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1204s"},{"start_seconds":1211,"text":"items and theaters yeah it's a it's a bookkeeping mechanism where your money used to be in block one and now it's about ten thousand won it doesn't need","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1211s"},{"start_seconds":1219,"text":"to be rebroadcast point is when it's spent all of the systems will say oh well it's the block 1,001 you haven't me","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1219s"},{"start_seconds":1229,"text":"for us we this actually this isn't even a really special part about Sato but we look at this and we prepare servers right we're like look unless unless","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1229s"},{"start_seconds":1238,"text":"until people realize they've gotta the problems are underlying incentive problems right but the fundamental","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1238s"},{"start_seconds":1246,"text":"problem is that miners have an economic incentive to take money today to get paid today and then what we're going to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1246s"},{"start_seconds":1253,"text":"be much more much more well done so the problem I do agree is it like thanks Bryce is not more to price rather than","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1253s"},{"start_seconds":1262,"text":"breath doesn't solve that role because if blocks are huge I still have an incentive to put as much data on the launching but they even if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1262s"},{"start_seconds":1269,"text":"it were this again I don't look at like lungs for me is just as transient like it's like a package you send it over to your baby","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1269s"},{"start_seconds":1276,"text":"it's not really a infadoos we're not we're not thinking about blocks what we're thinking about is we're thinking","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1276s"},{"start_seconds":1283,"text":"about it this way yeah so the reason it solves the problem it doesn't is that you have the structure and payment in time now","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1283s"},{"start_seconds":1291,"text":"if the payment happens here and it happens only when the stuff goes into the database you have perverse","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1291s"},{"start_seconds":1297,"text":"incentives because it's kind of like vtc well we're gonna make the blocks really small we're going to force a fee market and that way because there are high fees","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1297s"},{"start_seconds":1306,"text":"we can pay for forever no thanks for correctly you're just even that's what storages and professionally","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1306s"},{"start_seconds":1314,"text":"yeah yeah that's not what this is yes tingling start again that solves our problem you're describing it has a sign","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1314s"},{"start_seconds":1323,"text":"of fact that this is like 37 will be like it solves it solves the problem here it doesn't solve the problem where","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1323s"},{"start_seconds":1333,"text":"it's actually cost it's a data management solution yeah not a solution to incentives and because it doesn't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1333s"},{"start_seconds":1340,"text":"solve the incentives pretty much a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1340s"},{"start_seconds":1346,"text":"stream of income going forward it's a solution on the technical level and it's a better one than so what I'm saying is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1346s"},{"start_seconds":1355,"text":"what is the actual incentive problem if we can fix this problem we fix the scaling issue the incentive problem is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1355s"},{"start_seconds":1362,"text":"miners have incentives with data on the chain because they get paid today for I mean they get paid for it immediately","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1362s"},{"start_seconds":1369,"text":"it's a crutch you the commons problem right they get paid for changing the database but then enough of faith I maintain a bit sure but that can fall","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1369s"},{"start_seconds":1378,"text":"into disconnect you can fall into you can fall and disconnect when there aren't market prices so it makes it better because it sees luck it sleeps","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1378s"},{"start_seconds":1386,"text":"better than one said there are those in place dimensions or in the market price but what I'm saying is you don't need to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1386s"},{"start_seconds":1393,"text":"have this arbitrary technical solution if you can fix the incentive solution and the question is what is the what if the incentive problem you look like it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1393s"},{"start_seconds":1401,"text":"fixing the incentive problem means miners will not put data on the chain unless it's paying enough to do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1401s"},{"start_seconds":1408,"text":"everything that it needs and that's what this does because no the payment happens why do you get paid you get paid for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1408s"},{"start_seconds":1416,"text":"block to get paid for block 10,001 you need to have done all of the work already so the payment doesn't come","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1416s"},{"start_seconds":1423,"text":"first and then the work happens the payment the work happens and then the payment comes so the the situation","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1423s"},{"start_seconds":1432,"text":"traditionally a blockchain you need to solve it this way because you need to basically be regulating technically the size of the stack you saw an incentive","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1432s"},{"start_seconds":1439,"text":"layer because the person who's producing this block doesn't collect enough money to cover their entire cost of operation they will go backwards like if I am for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1439s"},{"start_seconds":1449,"text":"example producing four thousand one but I haven't done anything visible how do you do what transactions need to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1449s"},{"start_seconds":1456,"text":"broadcast then you've done the work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1456s"},{"start_seconds":1463,"text":"that's the work that's in it but I haven't maintained this or from this period of time let's say this 15 years like I haven't spammed","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1463s"},{"start_seconds":1470,"text":"50 years of you know hundred gigabytes","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1470s"},{"start_seconds":1475,"text":"right this is this is the expense that's not it's not a meaning valid well dating is waste by exposed a images such small","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1475s"},{"start_seconds":1482,"text":"daily styling is almost as if you're talking about the painting for really data which is something else no I'm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1482s"},{"start_seconds":1489,"text":"talking about this is this is 50 years off starting kind of gigabytes this is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1489s"},{"start_seconds":1496,"text":"my versus versus downloading at once and invalidate that the magnet for engineer over time these guys I mean the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1496s"},{"start_seconds":1503,"text":"personnel but it but I mean like my incentive here like I don't have an incentive for storing it I should just like I wrote download this data at the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1503s"},{"start_seconds":1512,"text":"moment and I'll get your answer your incentive to enter the network at any point in time is driven by the profitability of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1512s"},{"start_seconds":1521,"text":"priests applause now so the historical cost of producing blocks is paid for the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1521s"},{"start_seconds":1527,"text":"historical blog production so you can't say oh but I haven't done this work for fifty years because you're not being paid for the past thirty years you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1527s"},{"start_seconds":1536,"text":"being paid for this did not maintain","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1536s"},{"start_seconds":1546,"text":"like these guys got paid for the first P of the 50 years no no no no you get to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1546s"},{"start_seconds":1554,"text":"get the you get the new transaction fee and then you have the rebroadcast acute well don't go specific transaction I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1554s"},{"start_seconds":1562,"text":"have sitting here sitting on all those those guys this right they've only paid was this the guy you've gotta you've","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1562s"},{"start_seconds":1571,"text":"gotta sit the fee to include things as a new transaction is the fee for this period the fee for this period is pushed into market","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1571s"},{"start_seconds":1579,"text":"equilibrium by the desire to store data on the chain which is where this posture so I mean you're right if you're saying people keep coming in people can leave","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1579s"},{"start_seconds":1587,"text":"like but you're leaving after ten thousand blogs you have to do a full Genesis period of work before you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1587s"},{"start_seconds":1595,"text":"produce the next one now you can leave and new people might look and they might say it's really profitable juice box the nice thing but say there was an also","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1595s"},{"start_seconds":1603,"text":"say well I could produce blobs or I could write transaction and then I'm going to put stuff in transaction writing the you get the new feet here","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1603s"},{"start_seconds":1613,"text":"and you get to rebroadcast technically they're collected in the same block so just just moved to understand let's say","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1613s"},{"start_seconds":1620,"text":"let's say we have like a very simple example we have one guy who for 10,000 blocks may produce new books and then","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1620s"},{"start_seconds":1628,"text":"really we just only had one collection and then this guy and then somebody","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1628s"},{"start_seconds":1638,"text":"showed up so this guy received whatever - right","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1638s"},{"start_seconds":1647,"text":"then spam you know X amount of resources yeah to maintain to keep this mmm right some","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1647s"},{"start_seconds":1655,"text":"of my guys show up and out ones us from validated and produce a thousand one lot","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1655s"},{"start_seconds":1662,"text":"so homos to be paid of dental collection while I'm in charge a nice plus profit","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1662s"},{"start_seconds":1669,"text":"and if this guy doesn't want to turban X plus profit that's okay then he's economic movie falls off that's why so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1669s"},{"start_seconds":1679,"text":"like how do we charge that well no that's a private negotiation I'll treatment one Peter we're talking about","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1679s"},{"start_seconds":1686,"text":"a massive watching tons of data am I gonna give his you all for free best way you can get it actually if you start feeding me transactions if you start","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1686s"},{"start_seconds":1695,"text":"feeding me okay so the S P is moving","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1695s"},{"start_seconds":1711,"text":"let's say let's see we've got terabyte clause in your network I know how does","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1711s"},{"start_seconds":1721,"text":"it know become off the day before well you connect to know and it gives you the data yeah so you pay for that you've got to find","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1721s"},{"start_seconds":1729,"text":"somebody to you the data the nice thing but it's a there it is how do I convince you to give me the data I start giving you money now I knew","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1729s"},{"start_seconds":1737,"text":"that two ways I can pay you explicitly hmm or I can start feeding you transactions so for nodes and the rebbe","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1737s"},{"start_seconds":1745,"text":"network this is why the ribbon and only come validator and so for a while Iran","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1745s"},{"start_seconds":1755,"text":"will get it the other way if your expectation is that a blockchain is getting cuter exabytes of data for free","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1755s"},{"start_seconds":1762,"text":"but you may as well be on record and say like I'm gonna build in database and then all of the data is going to be in there we're just going to get users it for free like of course the economic","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1762s"},{"start_seconds":1770,"text":"software the economics don't work as he'll just their cost like the difference is in other blog chains they assume that the mark","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1770s"},{"start_seconds":1778,"text":"it's gonna sort it all of this side should we do or when I'm talking","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1778s"},{"start_seconds":1790,"text":"do you need a belt but one of the reasons you want to be paying for it right yeah as long as you're paying for reading as the reading notes start","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1790s"},{"start_seconds":1799,"text":"getting as they start bringing more transactions its network well you know the people that are moving exabytes of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1799s"},{"start_seconds":1806,"text":"data as core network nodes and you do have market competition between them because they've got the blocks they've got the data they want the transactions","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1806s"},{"start_seconds":1814,"text":"for driving those because that's how they make money yeah so what you've got is you've got data is pain so you know what you're what I think you're asking","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1814s"},{"start_seconds":1823,"text":"these are saying well look Tony exactly how it works and the answer that is if you want an extra byte of data it's going to cost you there are two ways of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1823s"},{"start_seconds":1831,"text":"doing it you negotiate a separate payment which is a market that forms at the edge of the network and the network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1831s"},{"start_seconds":1837,"text":"does not specify the terms of that economics and one of the reasons that like PSP and these other networks are going to have severe economic problems","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1837s"},{"start_seconds":1846,"text":"or like rent and stuff like if you're letting your economic conditions be determined by code that's in the system","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1846s"},{"start_seconds":1853,"text":"like if the reality differs from that you either have pricing attack vectors or you have free writing say though we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1853s"},{"start_seconds":1862,"text":"don't actually care in terms of access to the network we say as long as the network is supporting itself and the network is paying for the transactions","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1862s"},{"start_seconds":1870,"text":"that are coming in you're going to have a guaranteed point of entry because the network always has an incentive to give","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1870s"},{"start_seconds":1877,"text":"you a point of entry like if you want to say okay there's one node well that's kind of like Bitcoin if Bitcoin had one server why would they share their blocks","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1877s"},{"start_seconds":1885,"text":"with you mm-hmm the difference is in this system in order to produce blocks I need the stuff that you've got and in order for you to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1885s"},{"start_seconds":1893,"text":"get the stuff you've got any blocks there's actually an economic incentive that he's going to keep the network over so let's say you're feeding me why would","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1893s"},{"start_seconds":1903,"text":"I give you why would you give me boss actions well I don't need to produce","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1903s"},{"start_seconds":1912,"text":"block but let's say there's one none right you you rotor no yeah so so here's one nub the first method system run by you no","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1912s"},{"start_seconds":1922,"text":"problem ok if we're going to do a one-note example we're gonna do a bit","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1922s"},{"start_seconds":1929,"text":"quite example because state already has way more goes well and I mean like okay by job that he do transactions yeah in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1929s"},{"start_seconds":1938,"text":"Bitcoin why is why would a Bitcoin computer give a user a copy of the block","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1938s"},{"start_seconds":1944,"text":"I mean no no we're we're talking about big part of this example because it's it's a cognitive thing where people are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1944s"},{"start_seconds":1952,"text":"like oh say it was different let's look at this question is fine yeah you have fine ship like knows they all you know","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1952s"},{"start_seconds":1960,"text":"then they're still big quick nuts why would a Bitcoin because we're talking about watching we're not talking about sale why would a big Queen no give data","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1960s"},{"start_seconds":1968,"text":"to users I mean each argue about it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1968s"},{"start_seconds":1976,"text":"there's no reason to give like good clean knows will give it because there's no that's that's not why it's gonna happen I think the reason they're given","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1976s"},{"start_seconds":1985,"text":"because they won't use assignment for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1985s"},{"start_seconds":1991,"text":"the fee is the data it's the same in Bitcoin why are you gonna serve as a but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1991s"},{"start_seconds":1998,"text":"you can actually not give it like that's my boy Nick you can accept some nice little not view data yes when there's a when the network is tiny and storage","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=1998s"},{"start_seconds":2006,"text":"bandwidth is free no one cares when the network is operating the next byte today the core network I think level 3 think their actual this is network period and that's cherry","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2006s"},{"start_seconds":2015,"text":"there is an exchange of value when these cost money people say oh well big one works this way it's like whoa okay big point in 2009 I could run it on the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2015s"},{"start_seconds":2023,"text":"Raspberry Pi this is not a model for scalability so the answer your question is that at every point in the network there's a fee for data trade-off so if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2023s"},{"start_seconds":2032,"text":"you want someone to give you a copy of the blockchain you've got two options you can handle work in a Saito network you can also pay them","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2032s"},{"start_seconds":2040,"text":"by starting to scale data because you can be a small murder roaming note yeah so that's the part I don't understand","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2040s"},{"start_seconds":2048,"text":"this let's say you do gives them seasons of action say well the user a layer no","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2048s"},{"start_seconds":2054,"text":"II yes right thank you for sending transactions then you send them and you're just do kind of watching right","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2054s"},{"start_seconds":2063,"text":"now I can just started a note watching","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2063s"},{"start_seconds":2066,"text":"exists because like I'm one person I'm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2066s"},{"start_seconds":2075,"text":"here there's no they have blockchain I don't have all right I just started okay yeah so I'm now received to die shouldn't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2075s"},{"start_seconds":2083,"text":"sound like no so sign them and then sending them to I think our function first so I didn't know that about you a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2083s"},{"start_seconds":2091,"text":"new Bitcoin you got a permanent ledger that's let's say 10 exabytes you need the entire ledger develop it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2091s"},{"start_seconds":2100,"text":"theoretically I mean then people are moving towards system for dummies download blockchain which is basically saying that it's not a permanent ledger","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2100s"},{"start_seconds":2107,"text":"and it's just basically a temporary ledger where you actually have no","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2107s"},{"start_seconds":2114,"text":"guarantees of data being on the blockchain which is actually why Sato matters because it provides guarantees and economic system where other budget","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2114s"},{"start_seconds":2121,"text":"can why would a Bitcoin note send you 10 exabytes of data so you can do the work required they probably work with their","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2121s"},{"start_seconds":2131,"text":"probing and ask me to pay for it if you talk to be as be people all of the rage on Twitter is that like archive notes yeah the idea is that oh well we accept","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2131s"},{"start_seconds":2139,"text":"that the nodes in the network will do this there's a separate note that will pay for it the problem is again it's like well ok the coordination costs and why if I'm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2139s"},{"start_seconds":2147,"text":"using a blockchain because I don't want to pay more nation costs is one network so all of a sudden I have two people that are having those and I've now about","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2147s"},{"start_seconds":2155,"text":"two payments not only do I have two payments using the network usage archive all of my users now have payments so we've now got four payments","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2155s"},{"start_seconds":2164,"text":"instead of one pan and we've got coordination costs of which are piping nose ribbon paying for part of the value of the system is that this is a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2164s"},{"start_seconds":2171,"text":"ridiculous system the only reason people think that this is is sensible is because they haven't solved the problem at the underlying sense Claire and going","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2171s"},{"start_seconds":2180,"text":"back to where you said this is a viable solution I'm not trying to criticize this because this needs better on when I'm trying to heaven isn't it if you have a system that solves things","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2180s"},{"start_seconds":2188,"text":"in the incentive layer you don't need this because things like rent starts self-regulating automatically so I mean","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2188s"},{"start_seconds":2195,"text":"like before we got them we forget is this like I'm just trying to understand how would it work right so so like I'm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2195s"},{"start_seconds":2203,"text":"one note I joined I started buying food a bit on my computer yeah right so this point first of all I need to find Pierce","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2203s"},{"start_seconds":2211,"text":"you gotta find a cure yeah so let's say some of them like connectives and a and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2211s"},{"start_seconds":2218,"text":"this this point right like I want to be well producer at some point yeah I need to negotiate foods empty you need card","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2218s"},{"start_seconds":2226,"text":"watching you need to do that in let's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2226s"},{"start_seconds":2232,"text":"say the size of the chain","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2232s"},{"start_seconds":2244,"text":"Deuteronomy it's gonna turn on first the first question I have is I connect it there no how do I know like I'm gonna","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2244s"},{"start_seconds":2251,"text":"pay them how do I know they have actual watching let's stay because P is $10,000 per","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2251s"},{"start_seconds":2261,"text":"actually it's $10 per bandwidth or","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2261s"},{"start_seconds":2273,"text":"something so like a 10,000 chain another large chains right so you've got two options and it's the same with Bitcoin","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2273s"},{"start_seconds":2281,"text":"this is not a state of thing this is just the economics part right you got two options let's start with Bitcoin because where we get better than Bitcoin","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2281s"},{"start_seconds":2289,"text":"slang UK this guy $10 and he gives you their what if it's fake there well what is it speaking a bit long","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2289s"},{"start_seconds":2297,"text":"I mean that's why I don't pay the corner well they just give me data yeah yeah they're good if you can have a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2297s"},{"start_seconds":2304,"text":"blockchain where everything is free it's not a polygon Mustang how how do you buy them online in that way that like only","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2304s"},{"start_seconds":2312,"text":"pays data how do you do that in Bitcoin yep that's why there is no that's so your your prop your solution we're saying there's an economic problem","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2312s"},{"start_seconds":2320,"text":"because you need I don't know I'm saying there is a problem I'm saying tell me the solution that actually provides like that's not unity that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2320s"},{"start_seconds":2329,"text":"not the problem say resolves say let's see if it doesn't solve you for someone sets of a sign that says hey like hey","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2329s"},{"start_seconds":2336,"text":"I'm a big point node I can send you the blockchain and it's gonna cost 50,000 bucks because it's huge you go after that archiving you know you pay the money and they send you fake data yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2336s"},{"start_seconds":2344,"text":"like yeah that's not a solve problem that's not a soul problem in a blockchain shares well I mean you know","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2344s"},{"start_seconds":2353,"text":"there's smart ways to do it like you find out what the actual hash is at the table of the chain and you sync the chain backwards that's one solution","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2353s"},{"start_seconds":2360,"text":"you still need to actually yourself figure out what the last passions yeah so what you would do that in big this isn't the problem that we're worried","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2360s"},{"start_seconds":2368,"text":"about okay the problem that we're going there look let's move on you're saying that less as soon as they're going to give you the data okay and honestly","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2368s"},{"start_seconds":2374,"text":"assuming you got it you got it paying 10","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2374s"},{"start_seconds":2387,"text":"bucks yeah the Bitcoin solution is why I'm gonna pay you 10 bucks and maybe I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2387s"},{"start_seconds":2394,"text":"collect this money from users that I served the data to and so with all of these users I had this off chain private","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2394s"},{"start_seconds":2402,"text":"economy right so I'm gonna collect on PayPal and use like three bucks three bucks and this got some nice guy maybe five or maybe negative and so I'm my","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2402s"},{"start_seconds":2412,"text":"profits dollar and hey I mean I'm in the business of this this is the traditional internet","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2412s"},{"start_seconds":2419,"text":"curing arrangement at every point in the network you have people making off internet exchanges development pains so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2419s"},{"start_seconds":2428,"text":"this is making me and my ISP I pay my minus P three bucks a month I'm gonna spend fifty bucks a month the ISP is mediating the economic agreements with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2428s"},{"start_seconds":2436,"text":"all of us and move the chain okay Cinco replaces this because what you've","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2436s"},{"start_seconds":2445,"text":"got is you've got the VA itself that's sent that has value so if I'm a user if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2445s"},{"start_seconds":2453,"text":"I'm a user and I'm sending transactions on to the network this no one gets paid","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2453s"},{"start_seconds":2461,"text":"for redirecting the data yes sir you've got the transactions that have fees and so the fee is paid for by use of the data and the date that comes","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2461s"},{"start_seconds":2470,"text":"back through what this guy has to do is he basically collects the money sentence and networking he gets paid for them so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2470s"},{"start_seconds":2477,"text":"economically what you've got is you better replacement of kind of commercialized pieces that have these private ratios for people with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2477s"},{"start_seconds":2485,"text":"essentially a uniform cost of Internet access where market forces basically","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2485s"},{"start_seconds":2490,"text":"make Bitcoin you're like if your problem","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2490s"},{"start_seconds":2511,"text":"is you're like of course if you want to serve someone watching and got a certain watching this is a big problem this is a Bitcoin network share the Bitcoin","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2511s"},{"start_seconds":2519,"text":"network is moving X bytes of data and you're like okay god I want them to send me aspects of data the difference is actually with say that one of the ways","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2519s"},{"start_seconds":2527,"text":"this improves is this guy at small scale and he does not need extra bytes of data sure because maybe he's giving these","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2527s"},{"start_seconds":2534,"text":"guys like blocks so maybe he only needs a third of the blockchain so because he only needs a third of the blockchain he","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2534s"},{"start_seconds":2542,"text":"can actually pay to get cryptograph verifiable after launching that's good enough for the users because they can verify that the data is solid which","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2542s"},{"start_seconds":2549,"text":"means that the cost here is not the same that's getting the full X by the data and what you've actually got by subsidizing revenues and economic","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2549s"},{"start_seconds":2557,"text":"structure where in addition for paying for log production they're also playing for light block production so and that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2557s"},{"start_seconds":2565,"text":"like--that's CPU intensive so you actually servicing users there's a reason for these notes to exist independently of these notes because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2565s"},{"start_seconds":2572,"text":"these guys they're moving masses of data and they're focused on that they're focused it's like you know level 3 level 3 does not want to give you individual","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2572s"},{"start_seconds":2580,"text":"access to the internet because that's not their business well these guys there's space in the system for them because what they can do is they can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2580s"},{"start_seconds":2587,"text":"focus on okay well you're a light client but you're not really a heavy client you don't make any demands so I'll accept transactions from you that made this fee","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2587s"},{"start_seconds":2596,"text":"as long as these acts per month and the whole thing becomes systematized in the end numbers is blotching so you know I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2596s"},{"start_seconds":2603,"text":"mean basically everything that is sort of arbitrary but the big point system in terms of these and submarino's because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2603s"},{"start_seconds":2610,"text":"becomes streamlined any economics at the blockchain itself so you can kind of think of it as like an internet peering","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2610s"},{"start_seconds":2617,"text":"system where instead of people having to arbitrarily decide whether data flows cost the fact that it is a data flow","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2617s"},{"start_seconds":2625,"text":"means that it has money and that reconciles the economic issue it also the guarantee provides a net neutrality is that you've gotta realize that the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2625s"},{"start_seconds":2633,"text":"transactions that are profitable to this guy or just as profitable you've no more problem yes this guy so this guy mm-hmm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2633s"},{"start_seconds":2641,"text":"he didn't switch over here if he doesn't get good turns and we actually do drive down to utility pricing for community before for this sort of read event this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2641s"},{"start_seconds":2651,"text":"can't happen in Bitcoin in Bitcoin well this guy's got to get the full blog and or he's got a negotiate stuff off channel it's but like here you open this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2651s"},{"start_seconds":2660,"text":"is like let's say you only know where there's no right now like for you to actually find out about those knows I understanding to tell you about it what","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2660s"},{"start_seconds":2669,"text":"you need to find in some okay well look I mean if we're being honest Bitcoin software here finding software is insecure yeah so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2669s"},{"start_seconds":2678,"text":"letter K oh yeah yeah there's there's no reason that any blockchains purifying software is less secure than others you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2678s"},{"start_seconds":2685,"text":"know that's not that it's not a viable criticism it's kind of like saying yes but gravity is hurting your plane but my gravity's hurting every plane when","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2685s"},{"start_seconds":2694,"text":"someone figures EV a solution to gravity like you know any law change my throne like why do I like when you like putting","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2694s"},{"start_seconds":2702,"text":"those problems that they can do clearing right now and now there's no payment so we assign no and that's what they meant but that's why but that's why there's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2702s"},{"start_seconds":2711,"text":"like yes it's insecure yeses all those problems when we know there's no payment there's no leg economic incentive to try","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2711s"},{"start_seconds":2718,"text":"to train our own futures my disagreement you're saying we'll look at this problem with this problem we're talking about Bitcoin yeah so you're you're saying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2718s"},{"start_seconds":2725,"text":"look the problem is you guys in your system you actually pay the network to survive and it's like yes but that's the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2725s"},{"start_seconds":2732,"text":"entire point of applause a thank you any money no there's no separate payments","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2732s"},{"start_seconds":2742,"text":"and say oh you're just the payment comes in to the fees there's a little new payment where does the money that is here comes from this is the money that used to go","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2742s"},{"start_seconds":2750,"text":"to minors but the Bitcoin network you've got to have all of these circuits because all of the money is going","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2750s"},{"start_seconds":2758,"text":"through the guy in like since young who's got the server farm it says saying the money that used to go to the miners is now paying for the network the network is the ASA the way","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2758s"},{"start_seconds":2766,"text":"you make and the way you make money in Saito is you have to be really efficient at positioning your servers finding","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2766s"},{"start_seconds":2773,"text":"users and giving them a good deal on the data the thing that I think the thing code offenders have been thinking about scale yeah genuine scale imagine that each of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2773s"},{"start_seconds":2782,"text":"those core nodes right imagine it only has one switch right so you're literally","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2782s"},{"start_seconds":2791,"text":"deciding who gets the 16 cores out bow and you've actually got to pick the best people to be most profitable right","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2791s"},{"start_seconds":2799,"text":"because you're talking about scaling no way people can random like an excellent like that whether or not they provide income you can just as you can simply","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2799s"},{"start_seconds":2807,"text":"attack the network by just because you know sequentially adding raspberry pi 7 to chain and then figure out how this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2807s"},{"start_seconds":2817,"text":"works I mean I think the thing there is you will need to you will need to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2817s"},{"start_seconds":2823,"text":"negotiate connections to the network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2823s"},{"start_seconds":2830,"text":"these spikes these notes here these roots here I'm going to think of it this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2830s"},{"start_seconds":2839,"text":"way but fundamentally the first point is and it's one thing many people come to say to have the misconceptions or misconceptions not going to say it was","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2839s"},{"start_seconds":2847,"text":"watching like they think what Bitcoin does is for free therefore big when we do this for free at ten exabytes a day and it's like no big point does this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2847s"},{"start_seconds":2856,"text":"refer you because I get I get a certain emotive right think think about this stuff this US server has its own economics now","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2856s"},{"start_seconds":2864,"text":"imagine the is Bayonetta state or whatever now you get a lot of really fat users in China they're willing to pay a really high feeding of their","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2864s"},{"start_seconds":2872,"text":"millionaire country okay that's a really might be these transactions are worth a lot of money now you can get a know starting up in Hong Kong yeah and when I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2872s"},{"start_seconds":2880,"text":"see him note this can literally be a guy walking across the border with a number memorized in his head and the transaction that he's writing into the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2880s"},{"start_seconds":2888,"text":"system are very few yeah but they're really fat transactions because of that this guy is able to pass them to this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2888s"},{"start_seconds":2895,"text":"note and he'll get the exact same amount of data that this is that this guy's getting and he knows he might send a guy","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2895s"},{"start_seconds":2903,"text":"when you take data what do you mean by watching yeah like like users connect to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2903s"},{"start_seconds":2913,"text":"the blockchain they get services from the blockchain abstract the blockchain users pay fees and in return the notice the network you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2913s"},{"start_seconds":2922,"text":"want whatever what data does the Bitcoin like there's blocks","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2922s"},{"start_seconds":2929,"text":"that's users don't care there's some users I might even I trust you just don't care except their own and there's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2929s"},{"start_seconds":2937,"text":"proof users do care about transactions there are thrown because you're gonna have applications that are operating so you might say like if we're both using a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2937s"},{"start_seconds":2945,"text":"facebook application on state oh I might say well we're friends so I want the Facebook applications that you say so in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2945s"},{"start_seconds":2952,"text":"connection yeah like you might send the transaction and inside one of the reasons we want the data log changes like say no when you make a transaction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2952s"},{"start_seconds":2961,"text":"you've got essentially a JSON object reasonably named they say you know and you can put the post there and wait in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2961s"},{"start_seconds":2969,"text":"the transaction because we support the economics of scale you could also stay online post is on the server or maybe you've gotten a name card circulating","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2969s"},{"start_seconds":2977,"text":"around the block chain that says this is where to go for it and this is post idat settle for whatever it is like there are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2977s"},{"start_seconds":2984,"text":"lots of ways in which people want data other block chains are compartmentalizing this is splitting this because they don't actually have a viable means for handling this but you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2984s"},{"start_seconds":2993,"text":"know it's like what engine that river this be proof well you know like a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=2993s"},{"start_seconds":3002,"text":"myrtle tree proof where i'm not only","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3002s"},{"start_seconds":3003,"text":"proving to you that this is your mean if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3003s"},{"start_seconds":3017,"text":"you send the full yeah exactly but I mean you know like this sort of thing when you're dealing with clients aren't getting the full data yeah there's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3017s"},{"start_seconds":3026,"text":"there's a dignity there yeah because like what I think of data from watching has been is different yes it means my","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3026s"},{"start_seconds":3034,"text":"getting just because the way I'm looking function is a database yeah little let's just say key meditativeness","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3034s"},{"start_seconds":3041,"text":"that is shared between everybody and has a very specific rules on this provision that's how I think about team you think about a very different well we were the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3041s"},{"start_seconds":3049,"text":"like the applications are going to use something like say are generally in broadcast applications right like so you know if you want the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3049s"},{"start_seconds":3058,"text":"stuff stick in the debate what is really the first time around is this just ordering the Transpac okay if you start leaving well then that's a database","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3058s"},{"start_seconds":3066,"text":"application but if you're gonna use a database application you're probably would want to tweak the broadcasting fee the point is that this stuff like this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3066s"},{"start_seconds":3075,"text":"is this isn't safe with all this is just watching the problem is like the reason we need to talk about it is because people don't think about this stuff at","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3075s"},{"start_seconds":3083,"text":"all they're like well I use Bitcoin I connected a peer-to-peer network and like the fundamental definition of watching for us is it's a like what's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3083s"},{"start_seconds":3092,"text":"special about Bitcoin when it came in it's your day basis before there were consensus systems before what was","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3092s"},{"start_seconds":3099,"text":"special is it was the first network that supported itself financially so it's a network that exists with every number","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3099s"},{"start_seconds":3106,"text":"where there are financial incentives to join that to us is what is the fundamental definition of launching and you know other people don't think they","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3106s"},{"start_seconds":3115,"text":"they're like oh Bitcoin what you're going to connect to the computer network well it's like well no because then you have free writing problems and it's scalable the peer-to-peer network is not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3115s"},{"start_seconds":3124,"text":"going to operate exabyte knows so all of these issues would like to pays for what he pays for what that's it's sort of like the Bitcoin or the old block a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3124s"},{"start_seconds":3133,"text":"mindset because the old block chain lines in at scale the only way you can convince someone to do something is having a separate","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3133s"},{"start_seconds":3140,"text":"economic agreement off chain needs to be mediated you manage the Sato system is all of that stuff just moves on chain so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3140s"},{"start_seconds":3147,"text":"I I can't imagine through this stuff but if I'm hanging a P for the network that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3147s"},{"start_seconds":3154,"text":"fee is enough to incentivize everything to organize itself and so I was like the fee that's paid for my name is now","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3154s"},{"start_seconds":3161,"text":"paying for the network but let's say so this guy","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3161s"},{"start_seconds":3169,"text":"yeah you're probably also gonna send to describe to you sure I send them to a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3169s"},{"start_seconds":3175,"text":"few guys and then why they care at all give me bad data well if a transaction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3175s"},{"start_seconds":3183,"text":"originates here and goes through here yeah and it goes here here yeah whoever has the transaction and puts that into a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3183s"},{"start_seconds":3190,"text":"blog yeah they're statistically gonna good make sure they got yeah you're gonna get paid and they're gonna get","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3190s"},{"start_seconds":3197,"text":"paid sure if this guy produces a blog yeah yeah why is this guy sending data","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3197s"},{"start_seconds":3206,"text":"to he was cannibal because he wants to get the transactions that's here we got to them if I connect to my minus P and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3206s"},{"start_seconds":3214,"text":"my eyes P sons dated to Facebook why does why why does my money through Comcast what is my eyes P send me the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3214s"},{"start_seconds":3222,"text":"Facebook get it back well if you care like you already pay for it but it's it's it's it like you pay $30 for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3222s"},{"start_seconds":3230,"text":"signing out but then they didn't think you these are these are no questions this is like this is a data network Bitcoin question right like I can send a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3230s"},{"start_seconds":3239,"text":"Bitcoin transaction to you why are you going to send me Bitcoin data back well you I mean from my perspective you're trying to solve incentive","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3239s"},{"start_seconds":3246,"text":"problems yes and like say it's saying that this is a big problem is not really no this is the solution here the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3246s"},{"start_seconds":3254,"text":"solution is they use your key the the blockchain knows give you data the users pay fees the problem with Bitcoin is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3254s"},{"start_seconds":3264,"text":"that actually is this is users","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3264s"},{"start_seconds":3268,"text":"hey - yeah lock chain use data well","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3268s"},{"start_seconds":3276,"text":"that's that's your problem well then why does everyone say oh well you know we say we go talk to people would point out","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3276s"},{"start_seconds":3285,"text":"the transaction proclamations on send of us and they said well that's okay we'll get that from the truth your network which is operating for free well I mean","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3285s"},{"start_seconds":3292,"text":"let's shoot like in Midgar let's say what should be my guest seven - - - with data yes this should be","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3292s"},{"start_seconds":3299,"text":"Bitcoin but this is not good coin miners do not miners do not service the pewter network if - there's so many","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3299s"},{"start_seconds":3308,"text":"cases where it's self-evident miners serve like Craig regular blog where he's like great mining swindle where he's talking about he's like it's an economic system the first thing","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3308s"},{"start_seconds":3317,"text":"miners have to use invested network infrastructure so empirically empirically Craig Wright is saying this is not Bitcoin because he's saying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3317s"},{"start_seconds":3324,"text":"actually for they don't understand the economics of Bitcoin they're investing the wrong thing well first of all if you're creating a market system and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3324s"},{"start_seconds":3332,"text":"people are not doing what you wanted to do that understands you has the first thing you have to say it's like well what are we incentivizing what were incentive lesson is this the fee goes to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3332s"},{"start_seconds":3340,"text":"work sliders and then somebody has to do stuff for free and this is the this is like a hundred and ninety nine percent","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3340s"},{"start_seconds":3347,"text":"of most people were tailing it's they're working on ways to push the cost around like oh let's get bike invest but we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3347s"},{"start_seconds":3354,"text":"have a network with printing money fees we can't pay for storage ourselves so we're going to put petabytes on ipfs but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3354s"},{"start_seconds":3363,"text":"that's just it pushing the problem somewhere else you get like blogstock where they're like what we can't solve this problem but okay so now the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3363s"},{"start_seconds":3370,"text":"question that I ask is exactly this right like what I'm hearing right now which I'm trying to figure out a way bro","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3370s"},{"start_seconds":3376,"text":"is you say fees go to well fee through the network and the network gives you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3376s"},{"start_seconds":3382,"text":"data yeah technically the well log","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3382s"},{"start_seconds":3398,"text":"producers get data so yeah this is gonna","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3398s"},{"start_seconds":3409,"text":"be really simple really simple I'm gonna leave this up in this good this is for structure of the network users you don't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3409s"},{"start_seconds":3417,"text":"connect to the log producers no connecting to the real life yeah the real a let's say he's gonna connect to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3417s"},{"start_seconds":3424,"text":"blog producers yeah that's simplified because the real a good connection of the real I could catch one","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3424s"},{"start_seconds":3475,"text":"this is yeah this is the traditional system freighter if there's any question that this is all usable miners will service the users","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3475s"},{"start_seconds":3484,"text":"that's that's the Kreger argument of miners will pay for Bitcoin that the network because if they don't they don't get paid yeah and so people are like oh well this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3484s"},{"start_seconds":3492,"text":"is a big one people think this is Bitcoin miners will do this because they don't get paid the problem is there are free rider pressures I understand we do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3492s"},{"start_seconds":3499,"text":"it miners want to pass the buck but there's let's imagine a world where all those people right now yes they stopped these yes that's Bitcoin these are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3499s"},{"start_seconds":3508,"text":"volunteers yeah so let's say they'll stop right now we do have a lot of volunteers but sales stop what's gonna happen well that'd be playing whichever","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3508s"},{"start_seconds":3515,"text":"minor steps up it starts Bolander is less profitable than all of the other miners that's not sure because you know","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3515s"},{"start_seconds":3522,"text":"would you quite an incentive any minor okay just and the miners have gotten so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3522s"},{"start_seconds":3530,"text":"let's do this let's say assuming the volunteers disappear what you're really asking is you're saying what is the economic problem with Bitcoin or what is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3530s"},{"start_seconds":3539,"text":"one economic problem with it so let's assume we have a Bitcoin world where we have three miners and these","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3539s"},{"start_seconds":3546,"text":"miners because the peer-to-peer network vanishes yeah the miners are forced to spend a lot of money to service users if so the users give them fees and the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3546s"},{"start_seconds":3555,"text":"miners give the users transactions okay and we're going to replicate this ultra so we've got miners and we've got users this is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3555s"},{"start_seconds":3562,"text":"fundamental no you go back to Creek right and he says the first job with miners to propagate transactions so Craig Wright sees if he sees like a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3562s"},{"start_seconds":3571,"text":"small network where the miners all connected together miners we can have big blocks the miners are going to pay for this high throughput bandwidth because of course they all want to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3571s"},{"start_seconds":3580,"text":"connect to each other yeah so maybe there's ten maybe there's 100 who knows somebody I know this is we got the feed","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3580s"},{"start_seconds":3588,"text":"and we've got the data yeah now the economic incentives are not very surly","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3588s"},{"start_seconds":3597,"text":"miners are not incentivized to share that transaction because if miners shared that transaction these two guys","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3597s"},{"start_seconds":3604,"text":"right well what you have two men is you actually and this is one of the reasons","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3604s"},{"start_seconds":3613,"text":"you need to solve this what you've done is you kill the openness of a network because now what will decide they find it's a small minor like you find a small","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3613s"},{"start_seconds":3621,"text":"minor no one's gonna send me stuff because I'm not producing enough force to actually get fast confirmations so the economic","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3621s"},{"start_seconds":3629,"text":"problems in Bitcoin all are solvable but they're solvable if you kill the openness of the network and if you have collusion between the nodes of the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3629s"},{"start_seconds":3637,"text":"network because what happens when you get these free router pressures is that these miners they need to collude with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3637s"},{"start_seconds":3645,"text":"each other to make sure that no one is free right yeah and that only like I can simplify it saying the blog yeah is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3645s"},{"start_seconds":3653,"text":"there's a way to propagate transactions because that's a package thing that yes you do that yes that's pretty much like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3653s"},{"start_seconds":3664,"text":"it becomes real later over blocks whether they have perfection right then the point is you got it you've got a free rider problem right because miners","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3664s"},{"start_seconds":3671,"text":"have a choice they can probably keep the translation just because you know we have a nobody's permit a just lost well if you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3671s"},{"start_seconds":3679,"text":"don't propagate transactions in your Bitcoin yeah and let's say that are uh what what I want you to do is user I'm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3679s"},{"start_seconds":3686,"text":"you don't have it yeah and what that means is the market share of you guys","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3686s"},{"start_seconds":3693,"text":"arcade they get even bigger and the marking sure the guys that are small to go to the business so you've got this economic situation where the network the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3693s"},{"start_seconds":3703,"text":"network just it becomes PayPal I mean maybe it becomes PayPal through people but this is not what people want with an open network so I absolutely would yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3703s"},{"start_seconds":3712,"text":"right so go back to this system this is the system you're describing you said well look if the PP minors don't give","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3712s"},{"start_seconds":3720,"text":"data ok well then the minors have to but the cost is that your blockchain is destroyed yes what state of us is disabled because of this because the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3720s"},{"start_seconds":3728,"text":"relays are being paid we don't need volunteers and system don't get back so we actually still have a bulletin system","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3728s"},{"start_seconds":3735,"text":"on your say-so where I'm coming from","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3735s"},{"start_seconds":3745,"text":"so you have the user right which sends","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3745s"},{"start_seconds":3750,"text":"these yeah to think of a roadie known as","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3750s"},{"start_seconds":3761,"text":"the pure pure networking Bitcoin now","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3761s"},{"start_seconds":3771,"text":"well here's the thing to know one of them will do anything to know one thing to note is if I don't really know yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3771s"},{"start_seconds":3779,"text":"as soon as I get the transaction into a blog I'm making money yes so I don't care who hasn't in fact I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3779s"},{"start_seconds":3786,"text":"want to send it to multiple wad producers because I want competition including my transaction in a blog if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3786s"},{"start_seconds":3794,"text":"you remember the mechanism where we talked about the Caribbean stuff if you just give your transactions to one guy you can hold on to the deck","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3794s"},{"start_seconds":3801,"text":"and then against his percentage of the fee starts rising so if I'm revving though the way I maximize my income is making sure that there's no","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3801s"},{"start_seconds":3810,"text":"monopolization downstream that's what we want the jerker know what to do your network is supposed to be sending us out","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3810s"},{"start_seconds":3816,"text":"there to a bunch of miners because if it only sends it to one you actually have these economic problems that people","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3816s"},{"start_seconds":3822,"text":"don't like you have three miners let's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3822s"},{"start_seconds":3830,"text":"say why am I not sending it to all of them well I mean you could ok well let's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3830s"},{"start_seconds":3841,"text":"you know okay you can hypothetically say we're gonna like I wouldn't try I would","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3841s"},{"start_seconds":3853,"text":"contend to understand exactly which which of the things are you so what are the costs to this system one you've got","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3853s"},{"start_seconds":3861,"text":"coordination costs the user of the network yes they're supposed to be done it's a no the user makes a fee he gives it on the network takes care of all this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3861s"},{"start_seconds":3869,"text":"we've now gotten a user made in coordination costs because the user needs to keep track of who's in the network send their transactions to all","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3869s"},{"start_seconds":3877,"text":"of them like that's just ridiculous - the bandwidth cost of the system are massive in this point right if you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3877s"},{"start_seconds":3888,"text":"so that that would be like a big point number of remaining private payment why should users have to I mean if you're using the network you're paying a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3888s"},{"start_seconds":3896,"text":"fee why should you pay like five different fees as part of making a transaction users could do that yeah so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3896s"},{"start_seconds":3904,"text":"what I'm trying to understand is like how like this loses openness that Gary's Union and the quartz collusion like here","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3904s"},{"start_seconds":3911,"text":"my problem was this is right now when you pronate his transactions as well producers at least as far as I see don't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3911s"},{"start_seconds":3919,"text":"have an incentive to pretty much in forums where they know those user why","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3919s"},{"start_seconds":3927,"text":"why you might need a sense money so why his son like you don't know anybody else that's appointed it's made really","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3927s"},{"start_seconds":3934,"text":"clear this is an ongoing thing I really don't understand no no this is my Iranian I think it's fairly widely","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3934s"},{"start_seconds":3943,"text":"described so far this is a floor yeah right this using this on a one-off person in the Hong Kong example that totally","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3943s"},{"start_seconds":3951,"text":"confuses the whole case because in the home the point is that this isn't flow","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3951s"},{"start_seconds":3963,"text":"right this guy's value but to me but he you say in his name is recurring that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3963s"},{"start_seconds":3968,"text":"means there is no no I just fundamentally disagree with your carry","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3968s"},{"start_seconds":3977,"text":"on this guy yeah I'm not going to give this back money to you nothing return I mean if your entire idea of a huge criticism is that I'm going to give","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3977s"},{"start_seconds":3984,"text":"money to something I'm giving you a lot of all of them you're giving me nothing no screw that I'm not giving that to you the stock my transactions aren't real","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3984s"},{"start_seconds":3991,"text":"value if you won't and I need to do this type data for you to pay me if this guy's not gonna pay me and data screw","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3991s"},{"start_seconds":3998,"text":"that that's what my team is worth money - Anna's choices there are tons of pot","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=3998s"},{"start_seconds":4005,"text":"producers on the network it's more like a training Malaysian my feet have about","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4005s"},{"start_seconds":4009,"text":"you than okay so my relationship when I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4009s"},{"start_seconds":4020,"text":"say relationship they might have what this means is like something mourns and just I connected done something and left","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4020s"},{"start_seconds":4027,"text":"like it's an ongoing relationship which by definition is kind of a conclusion","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4027s"},{"start_seconds":4033,"text":"wait thank you well just came in and like they don't pay something in left if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4033s"},{"start_seconds":4040,"text":"you like if we're talking ongoing basis because like that's that's where you can understand machine","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4040s"},{"start_seconds":4048,"text":"if the new guy comes in right this guys don't know if she's gonna feed the mind like he's a mighty went forward right he may be just like came in once to done","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4048s"},{"start_seconds":4057,"text":"what a lot of data and he leave I think connected Bitcoin economy got the same problem that's not even a problem Bitcoin your dislike you the ideas that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4057s"},{"start_seconds":4064,"text":"these other blog changed people are going to do all this work for free but in Sato suddenly because we pay for reading data flow software backwards but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4064s"},{"start_seconds":4071,"text":"that's just that just doesn't make any sense to me every other blockchain users connect to a node mm-hm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4071s"},{"start_seconds":4079,"text":"they have me ya know do some data right and we've already noted that in fact there are massive problems with it as a closed solution over this what you want","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4079s"},{"start_seconds":4087,"text":"to do you won't say yeah like I'm disabled because even though this guy he wants to be profitable right how the hell's he service the user he services","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4087s"},{"start_seconds":4096,"text":"the user why is the user using this guy cuz he gets data why is this guy using the bot producer because he gets data the flows in the data flows they don't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4096s"},{"start_seconds":4105,"text":"know I don't know anything it can be like well I see this but I don't see why data because that's an incredibly","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4105s"},{"start_seconds":4112,"text":"selective and I mean honestly it's kind of dishonest because you're perfectly happy to say well cable assume assume","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4112s"},{"start_seconds":4118,"text":"this yeah but like this will happen","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4118s"},{"start_seconds":4125,"text":"because the reason the reason Bitcoin has problems is because of this and then the archetype the archetype of the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4125s"},{"start_seconds":4132,"text":"naturally mining an incentive propagation the reason the collusion and the incentive problems existed because there's no incentive propagate in say no","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4132s"},{"start_seconds":4140,"text":"there's an incentive to propagate the one of the fundamental problems the salt is this guy why doesn't he just world all the transactions and the answer is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4140s"},{"start_seconds":4149,"text":"because he's indifferent to whether he produces a water or whether any of these people do all he wants is the most efficient path and so what you're going","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4149s"},{"start_seconds":4158,"text":"to get the economic pressures goes towards optimization maybe this guy says look you're asking for a lot of data you're not giving me enough money I'm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4158s"},{"start_seconds":4165,"text":"not gonna service there is going to be a market price for data the point is you can pay the market price off chain which","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4165s"},{"start_seconds":4173,"text":"is what every other block chain is doing because like you said luck with realize oh I gotta have a separate payment for I can separate payment for this or I can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4173s"},{"start_seconds":4181,"text":"go through the effort of doing all this manually which is it's ridiculous let's say though the fact that people are indifferent means you just pay your","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4181s"},{"start_seconds":4189,"text":"fee in the incentives encourage openness the big challenges is how do you make this guy anything different to hoarding","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4189s"},{"start_seconds":4196,"text":"things either worth money because that's one of the big point things it's like well if I'm paying them if I'm paying for money they're like and then I think","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4196s"},{"start_seconds":4204,"text":"when people like big pay people don't generally see the problems because they're used to how it works now so like look into the theory with insurer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4204s"},{"start_seconds":4212,"text":"vitalik just wrote this really long piece on collusion I don't know if you've read it where he's talking about how you can reduce collusion in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4212s"},{"start_seconds":4220,"text":"system and keep the system honest right at the Stanford blockchain conference we were here I don't know what you heard biggest number of rooms ninety percent","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4220s"},{"start_seconds":4227,"text":"but it seems that in pure at least maybe percent at least 80 percent of network traffic yeah so if if you're and they're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4227s"},{"start_seconds":4235,"text":"not profitable so let's say most of that second let's say they're collecting 70 percent of network fees how do they make","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4235s"},{"start_seconds":4242,"text":"money from having 70 percent of network fees the collusion that matters is the collusion between the person the transactions are worth money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4242s"},{"start_seconds":4250,"text":"it's the collusion between in fura and the node in the network is it two and four inferior to make money this node in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4250s"},{"start_seconds":4258,"text":"the network needs to be guaranteed that it won't make money too so what's gonna happen is in fear it gives the transactions this node in exchange for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4258s"},{"start_seconds":4265,"text":"the payment and this guy's not going to propagate that's also a big one problem just look at Big Bang right okay well you know it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4265s"},{"start_seconds":4273,"text":"pays the source of a lot of transactions so if users are making transactions through they pay service why doesn't big pain say were lucky we're relating them","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4273s"},{"start_seconds":4281,"text":"we're gonna send dignity why will we send binman like well because if you send them a big vein we get paid","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4281s"},{"start_seconds":4289,"text":"yeah and big maintenance paid right again inclusion is awesome with this system you're guaranteeing openness because the economic incentives are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4289s"},{"start_seconds":4298,"text":"driven in both ways so yes there's still a priced the price for data is the money that's made and the individuals can make","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4298s"},{"start_seconds":4306,"text":"their well judgments fish who they connect you and determined look at my making money in the system the difference is say no actually","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4306s"},{"start_seconds":4314,"text":"incentivizes efficiency if I'm a block producer I can say look I will keep you the data for fewer fees well that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4314s"},{"start_seconds":4323,"text":"actually going to make me more profitable because I'm paying less for the data that I need to service the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4323s"},{"start_seconds":4329,"text":"users you can take out well if I have","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4329s"},{"start_seconds":4340,"text":"$10,000 in cheese per block maybe I give some to a second guy I sent 8,000 to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4340s"},{"start_seconds":4346,"text":"this guy and I said mm this guy ten","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4346s"},{"start_seconds":4357,"text":"thousand came from trying to explain the data the point is that okay if I one-way","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4357s"},{"start_seconds":4364,"text":"there are various ways and say oh we haven't talked about approve transactions yeah because we haven't properly prove transactions it's sort of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4364s"},{"start_seconds":4372,"text":"like one example would be the block producer doesn't wait as long before","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4372s"},{"start_seconds":4381,"text":"were using a block because what that does is that says like maybe maybe with the old one they're like look you're gonna send me the transactions I'm gonna","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4381s"},{"start_seconds":4390,"text":"work them yeah or maybe I don't want look this this transaction fee is too low for me they're sending me those","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4390s"},{"start_seconds":4398,"text":"transactions if it's not 0.05 above yeah I don't care now you get a cheaper barn produces a surplus or wants fine all of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4398s"},{"start_seconds":4406,"text":"a sudden this guy can go to these users and say look I can get you for I can give you for a 50 price yeah because the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4406s"},{"start_seconds":4414,"text":"you know the way the savings actually pass the efficiency pass passes through but yet fundamentally is a fee for data","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4414s"},{"start_seconds":4422,"text":"exchange at every point in the stage the point is is that way with every blockchain the difference is they don't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4422s"},{"start_seconds":4430,"text":"know how to reconcile they don't know how to have the same person give the data where they're turning their network into able Saito's figure it out","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4430s"},{"start_seconds":4438,"text":"because they don't knows how to make both this person and this person you know wait we're law producers the way","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4438s"},{"start_seconds":4446,"text":"they make money is more competition about rayless and the way relays make money is more competition more block reducers so there's this like every note","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4446s"},{"start_seconds":4454,"text":"in the network you want like there really is going to send his transaction to two people because that's that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4454s"},{"start_seconds":4463,"text":"faster yeah so like the user doesn't need to constantly maintain the state of the network and monitor all of this and he doesn't need to have a separate pin","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4463s"},{"start_seconds":4471,"text":"for the revenue though because if it pays the usual fee for the redmi note the revenue is going to make sure it gets propagated quickly and you can have","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4471s"},{"start_seconds":4480,"text":"different things like the fact that the the feed house with every stop if you you get lovely properties in addition to the optimizing networks if there's a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4480s"},{"start_seconds":4487,"text":"useless node in here yeah the way these guys maximize your income is connected directly yeah right because if you connect correctly you're going to be at","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4487s"},{"start_seconds":4496,"text":"least twenty to thirty percent more profit but I don't think you do buddy will understand this as well as if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4496s"},{"start_seconds":4503,"text":"you're looking at right at the edge of the network with your dad with these companies right this will stop a little","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4503s"},{"start_seconds":4508,"text":"bit why does the pure discovery just","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4508s"},{"start_seconds":4517,"text":"because like you have an incentive to yes yeah I someone produce to have","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4517s"},{"start_seconds":4526,"text":"incentives to be only about producer there knows yeah the difference is or the user the look three-layer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4526s"},{"start_seconds":4534,"text":"you've got a bunch of variable seem different right so we can good coin because of p2p buyers actually you have an incentive to kick people out and send","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4534s"},{"start_seconds":4541,"text":"them to other people in quantity return that pure pure network is not a fun little part of it's a part of the network management","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4541s"},{"start_seconds":4549,"text":"you're saying like look I'm only on from that leave no economic incentives you've got them relays","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4549s"},{"start_seconds":4557,"text":"yeah the relays are crying out for users right it's kind of like you want to use the internet and there are 25 ISPs that want to give you free internet access","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4557s"},{"start_seconds":4565,"text":"because when you visit face what they get paid yeah so you know if our big concern is that a really wants to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4565s"},{"start_seconds":4570,"text":"problem well of course these guys do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4570s"},{"start_seconds":4583,"text":"stuff like say I will give you need to take care of I will give you this amount of fees and give you a bonus and I'll pay those myself for you to come and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4583s"},{"start_seconds":4592,"text":"join me right it's living as the competition's will care yeah right given that these guys are interested in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4592s"},{"start_seconds":4599,"text":"picking out I value really right so then looking at this another great business model who's getting a lot of users and has fresh transaction value are not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4599s"},{"start_seconds":4607,"text":"seeing elsewhere so then yes this will need to be an ongoing relationship but these guys might have a simple way of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4607s"},{"start_seconds":4615,"text":"contacting us and saying I've got transaction going right so I'm a institution I will put in one of these","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4615s"},{"start_seconds":4621,"text":"in my building I have this piece would you like that for me when you get to these guys the B Block reduces in the middle","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4621s"},{"start_seconds":4630,"text":"they couldn't negotiate like ISPs do now or like ISPs now like rent space on","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4630s"},{"start_seconds":4638,"text":"their cables he is in the Bronx and they hold options and stuff yeah and they make bilateral agreements to say look you owe your excess with you have a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4638s"},{"start_seconds":4647,"text":"veteran that's gonna get between these guys because they'll mean to us yeah to two points one break them all because the mall the people were thinking about","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4647s"},{"start_seconds":4655,"text":"is the Bitcoin Bowl which is where the cognitive difference is conferred because the cognitive differences really are pretending that this model is them","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4655s"},{"start_seconds":4663,"text":"all over the same people to get the money in the data that's where the free rider problem comes that the first point is that this doesn't need to be another loop your network this gave me an","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4663s"},{"start_seconds":4671,"text":"application check so like in Sato one of the things we had to evaluate our like why would you set up an email server why would you set up an answer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4671s"},{"start_seconds":4680,"text":"when you set up the application because well maybe you deal with the data over JavaScript use the in browser function and now you were really number one you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4680s"},{"start_seconds":4688,"text":"now have a way to actually make money online it doesn't require advertisements and it just requires you to build an","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4688s"},{"start_seconds":4696,"text":"application people want to use because if they use the application like if they make a tweet well the fee pardon attended of you so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4696s"},{"start_seconds":4704,"text":"there are different models like if you if the users don't care if I want to use the VA system then the EA system is using a block chain because he wants to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4704s"},{"start_seconds":4713,"text":"collect my tokens remember I'm getting them from an advertising network right the advertising never was buying tokens for the block reducers","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4713s"},{"start_seconds":4720,"text":"you've got if you can create that first pop that's not an edited you can make lovely on the other hand if users are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4720s"},{"start_seconds":4728,"text":"really concerned they're like well you know actually what cheaper maybe they make the channel work through the other really interesting thing is note that in the state of mechanism moment didn't go","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4728s"},{"start_seconds":4736,"text":"into it the depth of block provocation depends upon the probability of the fee essentially the measure of work so if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4736s"},{"start_seconds":4745,"text":"you pay a really low fee your fee mind over here and if that's a block producer that's okay but it might take 12 hours","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4745s"},{"start_seconds":4753,"text":"for them to get enough work to produce a block if you pay the equivalent of $5 it rips through the network and it gets","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4753s"},{"start_seconds":4760,"text":"divided because this is a high value transaction so you've got this wonderful property where the higher fee means","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4760s"},{"start_seconds":4767,"text":"deeper network printers out there so keep your network print you know that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4767s"},{"start_seconds":4774,"text":"faster confirmation or you do the work or inferior broadcast you but you know a lot of these guys they're probably going","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4774s"},{"start_seconds":4781,"text":"to be a lot of those are probably not going to be public as things like funding revenue exabytes of data I don't want to deal with individual user connections I want to deal with people","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4781s"},{"start_seconds":4790,"text":"and aggregate them it's like the internet you know so is the economic model that takes this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4790s"},{"start_seconds":4797,"text":"and it turns it into you users have a one-to-one relationship","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4797s"},{"start_seconds":4804,"text":"with network operators and network offers we should replace miners and that's why the network works you have the data the exchange becomes unified","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4804s"},{"start_seconds":4813,"text":"every number anyway you know this is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4813s"},{"start_seconds":4828,"text":"possible the kerbs your network is possible - well what I mean is like in theory what you can do to just take","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4828s"},{"start_seconds":4840,"text":"justice into favor very well yeah but then what's the price of be real in there what's the price of mining they're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4840s"},{"start_seconds":4847,"text":"actually problems with that but like you don't have a market price for things and say no you have a market price for transactions and propagation of these storage across the whole network is one","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4847s"},{"start_seconds":4856,"text":"feet you don't need to no need to worry like I mean you use Bitcoin like Bitcoin","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4856s"},{"start_seconds":4863,"text":"free estimation is better yeah but now we're introducing a couple of fees and separate fees and who's setting them in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4863s"},{"start_seconds":4871,"text":"the marketplace it's like we haven't gone into how Co solves this but everything is actually a mermaid feed because at every point in time you check","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4871s"},{"start_seconds":4879,"text":"another competition the blog producer you connect you if there's someone who's pulling a ton of data and they're giving you no fees well that's the definition","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4879s"},{"start_seconds":4887,"text":"of the civil right a civil note people don't even really think about what a simple note is no that doesn't give","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4887s"},{"start_seconds":4895,"text":"value to the network so it surrounds you and you can do various things and say no but if you're surrounded by symbols and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4895s"},{"start_seconds":4903,"text":"you know money's going to be coming in this direction to write fees and transactions you're going to notice because you're now half as profitable as","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4903s"},{"start_seconds":4911,"text":"you were so and the people that are civil door either gonna go to business or they're gonna take a look at their network and transaction post and they're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4911s"},{"start_seconds":4919,"text":"gonna say look this blockchain to optimize we don't connect to these people we're gonna be a lot more profitable and what that does is also","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4919s"},{"start_seconds":4927,"text":"means that usage is cheaper for users because the user can get faster confirmation and deeper law propagation and you know that's just","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4927s"},{"start_seconds":4935,"text":"fancy way of saying Bitcoin the variable of these other networks whose literally people wanting centralization there's no incentive for decentralization and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4935s"},{"start_seconds":4943,"text":"there's no incentive for network efficiency say go at least we incentivize both you know if you value T","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4943s"},{"start_seconds":4950,"text":"centralization you can pay a higher fee injure your transaction will get deeper faster and if you and the network itself","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4950s"},{"start_seconds":4958,"text":"will just eliminate the nodes that are useless you know how you justify how you use your block reduce your you're only","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4958s"},{"start_seconds":4965,"text":"connected block users how do you justify that position you've got to be much bigger block producers producing blocks that the other block producers can't not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4965s"},{"start_seconds":4974,"text":"to do but the reason they give me transactions is because this guy's terrified that he's like well if I give it to him the transactions I have will","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4974s"},{"start_seconds":4982,"text":"be produced before the really know before the transactions that are copies of the ones that I have yeah because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4982s"},{"start_seconds":4992,"text":"because this guy's competing with other people like the dream for a block producer is to be the only one that has","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4992s"},{"start_seconds":4999,"text":"those transactions yeah but if the problem you know if they do that their profitability goes up at the expense of the really house so they're reeling","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=4999s"},{"start_seconds":5007,"text":"those they're just not make interest they're like well you know and they don't need to broadcast the whole network they can pick another block","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5007s"},{"start_seconds":5013,"text":"reducer or you know maybe they have a long-term agreement where it's like we're going to permit you to have a probability because the blockchain","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5013s"},{"start_seconds":5021,"text":"does let you monitor right now well you're gonna be a little bit of launching and figure out very very quickly you know what percent of the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5021s"},{"start_seconds":5029,"text":"value of the transactions I'm standing in a finger buddy that's key difference between trying to fix this versus all we have here is they are essentially the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5029s"},{"start_seconds":5038,"text":"same intent yeah but what you have to do is you have to make all the illusions of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5038s"},{"start_seconds":5045,"text":"illusion make the network more secure and more efficient the issue with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5045s"},{"start_seconds":5053,"text":"collusion is that you have somebody else somebody losing out from that possible","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5053s"},{"start_seconds":5064,"text":"conditions you have some say might get here let's say that's the and they're like well yeah we can pretty much wait","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5064s"},{"start_seconds":5074,"text":"we can't reveal a transaction or we cannot we can not really to introduce ourselves well as long as there are valid transactions on the network that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5074s"},{"start_seconds":5083,"text":"actually not possible but like look at that look at the system how do you even prevent this we've invented a kind of network node and we just said well let's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5083s"},{"start_seconds":5092,"text":"assert that this is network to broadcast while miners the economic incentives that network node is not broad s wall miners because this network notable is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5092s"},{"start_seconds":5101,"text":"getting paid but it can form in the old two of them or one of them if you can get away you know it's about money it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5101s"},{"start_seconds":5109,"text":"gonna what is its incentive these the sentence are not to actually do what we've asserted that it's supposed to do and that's what's it's so much of what's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5109s"},{"start_seconds":5117,"text":"happening in the blockchain space because of this that people are inventing nodes on the network like archive notes and they're saying okay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5117s"},{"start_seconds":5123,"text":"hypothetically if this know does this you're saying scientists will not be to send it to all of them anyone","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5123s"},{"start_seconds":5132,"text":"well you said okay well the problem the collusion one hypothetical solution I pay for you really know yeah they're really node is supposed to send to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5132s"},{"start_seconds":5140,"text":"everyone yeah I mean why doesn't really","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5140s"},{"start_seconds":5143,"text":"know just send it to that miner but it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5143s"},{"start_seconds":5156,"text":"sends two to the three now you've got maybe it's going to eat or some of the miners but the miners are willing to pay something for it because it's not going","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5156s"},{"start_seconds":5164,"text":"to the 20% but it's a fundamental incentive problem the tech side why would I care but it's a have a key","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5164s"},{"start_seconds":5174,"text":"anybody else okay so let's start with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5174s"},{"start_seconds":5192,"text":"let's start with this tool let's start with the civil a single system and we're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5192s"},{"start_seconds":5200,"text":"sending transactions you really knows yeah let's say there really no to sending it to a simple walk breeze mmm-hmm okay and the block producer says","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5200s"},{"start_seconds":5209,"text":"if you only send it to me I am going to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5209s"},{"start_seconds":5215,"text":"get that so what you need for this to make sense is you need this to be","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5215s"},{"start_seconds":5222,"text":"profitable for the laundries or do we need it to be profitable for the really","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5222s"},{"start_seconds":5228,"text":"know they know the kickback is always well it needs to be probable for both","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5228s"},{"start_seconds":5236,"text":"actually we've got a fun little issue because the transaction has a feel of it has it is as a fee of a sort of masculine sense let's say it's worth a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5236s"},{"start_seconds":5243,"text":"dollar yeah so how do we right now the right now the noes are being paid for the amount of work that you're doing but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5243s"},{"start_seconds":5250,"text":"in a two hot network let's say it's dollars you like nothing cute it's a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5250s"},{"start_seconds":5257,"text":"tense a turfy for virginity so the first note is 10 the second note gets five yeah the total amount of work that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5257s"},{"start_seconds":5264,"text":"done is 15 so the expected profits oh no no no no no no no this is a measure of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5264s"},{"start_seconds":5273,"text":"work this note is done to take the word this note is done 134 okay okay so if he","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5273s"},{"start_seconds":5282,"text":"produces a blog he's still gonna make two-thirds of money mm-hmm if he produces a blog statistically on an aggregate he's still","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5282s"},{"start_seconds":5290,"text":"gonna produce one money so this is how it works now if this is under let's say the kind of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5290s"},{"start_seconds":5299,"text":"report system you're paid proportionately you might have work you've done what stator does with its roaming algorithms is we're basically providing","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5299s"},{"start_seconds":5306,"text":"a way to securely and then cheetah bleep generate work from their network reading this is what we have cryptographic","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5306s"},{"start_seconds":5312,"text":"signatures so what exactly are we thinking is going to happen because the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5312s"},{"start_seconds":5320,"text":"way this guy makes more money is he says okay look will you send it to me if you send it to me I've still done the same","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5320s"},{"start_seconds":5327,"text":"amount of work for the transaction but because I can delay block production then let's say the burn fees here yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5327s"},{"start_seconds":5335,"text":"because I can delete long production bit I'm not that worried about competition instead of producing a block at this point in time later right I'm gonna","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5335s"},{"start_seconds":5344,"text":"produce it here or I'm still going to priest at that time but like that some extra resources yeah no no the amount of work that this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5344s"},{"start_seconds":5352,"text":"payment describes is the reading portion this portion is just into the block produce right away yeah now what that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5352s"},{"start_seconds":5361,"text":"means is this feed work if the block is produced right of the line this guy's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5361s"},{"start_seconds":5368,"text":"going to get a ten Sato times two thirds and this guy's gonna get ten Sato times 1/3 a burden on an average as soon as we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5368s"},{"start_seconds":5376,"text":"start delaying well all of a sudden this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5376s"},{"start_seconds":5383,"text":"is eight and all of a sudden this is a two because a certain percentage of the fees is being eaten away directly by the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5383s"},{"start_seconds":5392,"text":"blockers so we get 8 times 10 52 how much does a block producer have to pay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5392s"},{"start_seconds":5399,"text":"the Remy node for this to even eviler both of them and the short answer is it can never be a better deal for both of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5399s"},{"start_seconds":5407,"text":"them because there's only ten bucks so you can't divide the 10 bucks in a way that they're both better off so the block producer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5407s"},{"start_seconds":5414,"text":"Evie de ladies he's delaying by impoverishing really good so a separate","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5414s"},{"start_seconds":5422,"text":"payment to bribe it works in situation works in the Syrian situation it doesn't work in Samuel because the payments are already optimized the only","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5422s"},{"start_seconds":5429,"text":"way to make one person better off the worse off is to actually change the way work is calculated in the system and that's a heart for it because it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5429s"},{"start_seconds":5437,"text":"already good for video safari so side payments I mean you could do them but it's you would either be less profitable","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5437s"},{"start_seconds":5446,"text":"for this guy or less profitable for this guy if the blog producer tries to screw to really know that really no it's going to be like below we've got an economy here","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5446s"},{"start_seconds":5455,"text":"one thing but the real I know is concerned about is he's concerned about exactly that you can turn on giving you the blocks and because you're not moving","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5455s"},{"start_seconds":5463,"text":"as quickly as you can you're delaying and that's also where the meta efficiency of the network comes from because it's like think if there's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5463s"},{"start_seconds":5470,"text":"not enough block producers then if there's not enough water using the blog reviews you can afford to wait because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5470s"},{"start_seconds":5477,"text":"they had a lot of competition so the profitability for bar producers comes at the expense of the profitability from","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5477s"},{"start_seconds":5485,"text":"American routers right so like the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5485s"},{"start_seconds":5491,"text":"incentives are right and I mean that if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5491s"},{"start_seconds":5512,"text":"the thing is it works the same in Reverse right and the waiter doesn't is it because you've always got competition between them to the network so the rebbe","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5512s"},{"start_seconds":5519,"text":"knows the rating knows want 30 a lot of competition to bloggers because that's how they maximize their share of network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5519s"},{"start_seconds":5526,"text":"the blog producers want maximum competition between rellenos because starting the block precision want they want to Anam peláez","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5526s"},{"start_seconds":5534,"text":"the traffic group because then there's a lot less competition like you if this if this really notes ending to this this guy has got worried","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5534s"},{"start_seconds":5542,"text":"yeah because the work that he's doing could be for nothing if this guy produces the blog that contains the same","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5542s"},{"start_seconds":5549,"text":"transaction she gets so the other amazing thing is depending on the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5549s"},{"start_seconds":5556,"text":"quality of these to the connections it may make sense for this Gutterson him these transactions as well yeah he's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5556s"},{"start_seconds":5567,"text":"gonna cut but he needs to use this guy's to use like do you merge like if let's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5567s"},{"start_seconds":5574,"text":"say that if you're this guy you've got","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5574s"},{"start_seconds":5589,"text":"you've got a transaction that's made one two three oh yeah so the fee is ten it was like ten over and like two men","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5589s"},{"start_seconds":5597,"text":"funded by five this is this transaction is worth like ten point five there's over seventeen point five this is five","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5597s"},{"start_seconds":5605,"text":"like it's just the only reason you would take this is that these dribbling across","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5605s"},{"start_seconds":5611,"text":"this connection you might take it because okay well most like maybe 99% of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5611s"},{"start_seconds":5619,"text":"this guy's transactions are coming from other sources as yeah right but like the economics of the network also mean that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5619s"},{"start_seconds":5627,"text":"the competition is between log producers that are competing with the same pool of fees so you can have a situation where","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5627s"},{"start_seconds":5634,"text":"like in the United States setting on the network is super cheap and efficient it's really easy which means that these guys and we can think of them like we're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5634s"},{"start_seconds":5643,"text":"paying the peer-to-peer network and anyone no one owes I'm paying well state-o basically but it's so easy to do it's super easy to find an access point","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5643s"},{"start_seconds":5650,"text":"and fees you pay are essentially the precedent as soon as we have a system like someone needs to walk across the border","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5650s"},{"start_seconds":5658,"text":"either Hong Kong or walk across the border to North Korea or like I need my I'm in ISP and I'm literally rolling in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5658s"},{"start_seconds":5666,"text":"a fiber optic there's no competition well you know if he's gonna hire so like yeah now the key thing here is that you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5666s"},{"start_seconds":5675,"text":"look like if you wonder why that and this other way in Everwood because of that hobbing there's not ha Mensa","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5675s"},{"start_seconds":5683,"text":"need here but yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5683s"},{"start_seconds":5690,"text":"and it's like no for life possible our propagation we now actually do have copies of the transaction theoretically","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5690s"},{"start_seconds":5699,"text":"what you get but you can take a look at this if you think of this as proof of work I think it gets a lot easier because people are collecting work but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5699s"},{"start_seconds":5707,"text":"the work is worth different amounts what makes work worthwhile well what is really work is proximity the transaction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5707s"},{"start_seconds":5715,"text":"flows the transaction in flows modified by your volume collecting them if you're the first guy generating use of the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5715s"},{"start_seconds":5723,"text":"network then in many ways you're the first person delivering the value of the networked user so the network stops","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5723s"},{"start_seconds":5731,"text":"valuing passion and what it starts valuing is give us money and that's like Iowa desert that's the only value of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5731s"},{"start_seconds":5739,"text":"work or any blotching that's gonna survive which is why we think say it was such a big deal because everyone else been like well we're gonna pay for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5739s"},{"start_seconds":5746,"text":"mining or we're gonna pay for stakin where we're going to create some really complicated thing and then we're going to expect these cross subsidies now and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5746s"},{"start_seconds":5755,"text":"then they get surprised because the cross subsidies don't work because that's not where people are inside the glass to do in smaller networks and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5755s"},{"start_seconds":5765,"text":"smaller networks they can because well bandwidth is create storage is free as soon as we're actually dealing with petabytes of data it's like what they're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5765s"},{"start_seconds":5773,"text":"not going to love the pure heroes are not going to move access","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5773s"},{"start_seconds":5782,"text":"was there something when we were in save it like the work fractions I think we're going to weave good pretty quickly just","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5782s"},{"start_seconds":5791,"text":"just as the way the recent email works if you've got the spam bag with you man","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5791s"},{"start_seconds":5798,"text":"we'll send on the transaction because the benefit of having a included","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5798s"},{"start_seconds":5802,"text":"downstream in the transaction into","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5802s"},{"start_seconds":5810,"text":"another block someone produces that walk I know what I was gonna say that one of the one of the fundamental problems with Bitcoin and these other efforts because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5810s"},{"start_seconds":5818,"text":"they don't fundamentally know what value","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5818s"},{"start_seconds":5820,"text":"is for them so as it makes sense so the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5820s"},{"start_seconds":5870,"text":"question of like how many people should be able to network doesn't this actual","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5870s"},{"start_seconds":5878,"text":"combination of ways to deploy the infrastructure we have networks","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5878s"},{"start_seconds":5890,"text":"optimizing towards value because where does infrastructure get deployed infrastructure gets deployed where people are willing to pay fees to use","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5890s"},{"start_seconds":5897,"text":"than ever so you know it's kind of the opposite of a network designed to be","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5897s"},{"start_seconds":5904,"text":"chocolate idea like ipfs what else because theory about the network is designed to optimize around whoever will pay for the stuff you can get away with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5904s"},{"start_seconds":5912,"text":"pushing and freeloading off that's not scalable Network because freeloading is on the scalable business wall right what you've got here is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5912s"},{"start_seconds":5920,"text":"you've got a network that's optimized but one of the nice things is who makes the most money the person that first thought makes the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5920s"},{"start_seconds":5926,"text":"most money so the the network is optimized to push it with applications and like if you're building an","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5926s"},{"start_seconds":5934,"text":"application on Bitcoin it's like okay you're paying miners if you're building an application on Sato as the if you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5934s"},{"start_seconds":5941,"text":"build it so the early first ha","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5941s"},{"start_seconds":5943,"text":"you're a great in a great position our","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5943s"},{"start_seconds":5961,"text":"word is actually work I'm getting lucky word many of you write the history yeah but you will not get this introduction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5961s"},{"start_seconds":5970,"text":"fees right and there's a table guess what what you can you can that is actually one of the problems you can reverse the chance to fees another","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5970s"},{"start_seconds":5977,"text":"example with proof of stake this is like it's a really common issue like we talked to we talk something is very well-known in Silicon Valley about this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5977s"},{"start_seconds":5985,"text":"and and they were like well you know it's very secure because you're not - what do you say they're like you need to buy up all of the tokens and that drives","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5985s"},{"start_seconds":5994,"text":"the price up which is the cost of the attack it's like no not at all because if those tokens have any value the amount of staking you're getting is paid","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=5994s"},{"start_seconds":6003,"text":"for by the fees in the network so you know people are staking for the economic return and what that means is all you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6003s"},{"start_seconds":6010,"text":"need to do to attack the network is just like Bitcoin you invest applause or you invest it no expectation of profit and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6010s"},{"start_seconds":6018,"text":"what you'll do is you'll drive down the return and then you know by driving down the return the people that are stating very good going to go elsewhere and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6018s"},{"start_seconds":6026,"text":"they'll take their investment income earning assets and we'll sell them all yeah yeah so like the problem with that is it's like it's just a fundamental","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6026s"},{"start_seconds":6034,"text":"misunderstanding where security comes from so the fundamental question is not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6034s"},{"start_seconds":6042,"text":"fundamental question is not do transaction be secure than ever but that's what like 90 90 plus percent of people who approach booth","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6042s"},{"start_seconds":6049,"text":"actually they deserve like he feels insecure because estate will be secured by money but they're like you know","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6049s"},{"start_seconds":6057,"text":"perfect state of mind and that's secured by something like really strong and in fact the security comes from","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6057s"},{"start_seconds":6065,"text":"transactions there's like an additional gold the security off like you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6065s"},{"start_seconds":6073,"text":"writing history comes from convention peace security of the like pretty much","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6073s"},{"start_seconds":6080,"text":"fourth of the chain or stuff like that says well I mean my Canadian bar game you can put you can put the transactions","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6080s"},{"start_seconds":6088,"text":"into your clock sit on their butts like you're signing if you double side the block it will get slashed little movie - oh it's taking yeah yeah no no I mean","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6088s"},{"start_seconds":6097,"text":"that's a that's a yeah there's like different levels of things and people think of them differently yes I mean the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6097s"},{"start_seconds":6105,"text":"fundamental point is that if you can actually rewrite the longest chain yeah three nines deeper and then that's moved like people getting into technical","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6105s"},{"start_seconds":6113,"text":"issues of oh you're staking it and so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6113s"},{"start_seconds":6115,"text":"you know how dishonest I mean we've done","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6115s"},{"start_seconds":6133,"text":"this once before so yeah yeah let's just like let's say we have a few blog producers and trying to agree unblock","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6133s"},{"start_seconds":6142,"text":"how about we chain actually how about we start with what the user experience isn't going to the network and then we can talk about how we divide up the fees","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6142s"},{"start_seconds":6150,"text":"and what the problems are from the beginning here I don't know like as we kind of did stuff before so I'm just I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6150s"},{"start_seconds":6157,"text":"mean I'm thinking this month we explain","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6157s"},{"start_seconds":6167,"text":"the cryptographic signatures let me start from there sure so the you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6167s"},{"start_seconds":6175,"text":"because it's okay okay so here's how","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6175s"},{"start_seconds":6192,"text":"Seder works we've got a user okay and the user wants to connect the network so it connects to some computer in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6192s"},{"start_seconds":6200,"text":"network and you make some transaction and the transaction is going to pay a fee and the fee is going to be luckily","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6200s"},{"start_seconds":6206,"text":"it's Tennessee we have another note this knows it could be really node it could","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6206s"},{"start_seconds":6215,"text":"be a block producer the user wants they can send them to multiple nodes and what's going to happen is at this point","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6215s"},{"start_seconds":6223,"text":"in time this gnome is generating work and this work is the amount of the work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6223s"},{"start_seconds":6231,"text":"that they've got they've received them over the total amount of work that is already been generated in the network so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6231s"},{"start_seconds":6240,"text":"let's say this is a really no this guy doesn't want to produce blocks so what he's gonna do is he's gonna forward into another node and let's let's imagine for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6240s"},{"start_seconds":6248,"text":"simplicity sake that this is another rule a node so this is a small town so you configure town not a lot of fees not a lot of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6248s"},{"start_seconds":6257,"text":"transactions what standard does the first thing we do is that on the cryptographic there when transactions are stuck around the nose that are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6257s"},{"start_seconds":6266,"text":"sending and receiving they cryptographically add data to the transaction this value was like they","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6266s"},{"start_seconds":6273,"text":"signed it and what that allows us to do is cryptographically verify which nodes so I can't steal this transaction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6273s"},{"start_seconds":6280,"text":"node over here is produced in a block I can't steal it as this other node and say hey I've done some work everyone can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6280s"},{"start_seconds":6288,"text":"verify who's actually done the work like to do transaction so this amount of work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6288s"},{"start_seconds":6293,"text":"now is five over and let's say the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6293s"},{"start_seconds":6304,"text":"roaming node sends it again the two block producer and this gets to point","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6304s"},{"start_seconds":6310,"text":"five so this guy is a 2.5 so the thing we're doing is you can think of it as","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6310s"},{"start_seconds":6318,"text":"kind of a form of proof of work where the work were measuring is the work you've done taking this transaction moving it into the network so what we're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6318s"},{"start_seconds":6327,"text":"really valuing is we're volume two feet flush collecting money for the network is the kind of work that you do and the first thing I want you to notice is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6327s"},{"start_seconds":6335,"text":"we're gonna basically say okay so the total amount let's say this let's say this guy produces a block yeah so if a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6335s"},{"start_seconds":6342,"text":"block is produced here the payment","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6342s"},{"start_seconds":6346,"text":"eventually is going to be this 2.5 over","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6346s"},{"start_seconds":6355,"text":"75 and we're going to explain one of the challenges with Sato is other block chains the person that produces a block","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6355s"},{"start_seconds":6362,"text":"gets all of the money and the result of this is that blockchain designers they're focusing on making block production difficult or random but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6362s"},{"start_seconds":6371,"text":"they're really solving two problems once she's doing work network she's collecting money what we're actually doing is we're separating payment for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6371s"},{"start_seconds":6380,"text":"the work from the edge of the block production and that's the difficult problem the SATA sauce the first thing I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6380s"},{"start_seconds":6387,"text":"wanted to know though is we've right away we've got an economic incentive for the network to work more efficiently","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6387s"},{"start_seconds":6393,"text":"because if this block producer loads in the transaction flow why is he connected","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6393s"},{"start_seconds":6400,"text":"to this node why doesn't he just connect directly to distant does everybody makes","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6400s"},{"start_seconds":6410,"text":"more money right this guy's ten magic thirds disgusting one-third everyone in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6410s"},{"start_seconds":6418,"text":"network is better off because we kicked out of this node it is it's not not doing meaningful work so the way to you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6418s"},{"start_seconds":6425,"text":"the way you've justify your existence in the state of network is by doing work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6425s"},{"start_seconds":6431,"text":"that's of value right and the reason it matters is because the fundamental economic problem if it sounds abstract","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6431s"},{"start_seconds":6440,"text":"like but what can be value well the problems with Bitcoin and proof work or my mistake is that the stock of a value","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6440s"},{"start_seconds":6447,"text":"is different from the stuff that needs to do to run the number so what we're doing is we're turning payment for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6447s"},{"start_seconds":6454,"text":"rating and you know the data flows back the other way but we're turning that into because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6454s"},{"start_seconds":6462,"text":"that's what we measured that's what we encourage that sense of us so one of the interesting things is the way you attack the state of our system is you have to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6462s"},{"start_seconds":6470,"text":"spend a lot of money just like Bitcoin","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6470s"},{"start_seconds":6472,"text":"just like so okay so let's take a look","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6472s"},{"start_seconds":6493,"text":"maybe the network we've got let's do it let's imagine we have a hypothetical","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6493s"},{"start_seconds":6500,"text":"network let's explain actually first of all how you block producer produces a block and then we'll go to the network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6500s"},{"start_seconds":6509,"text":"and once your that search ok so what happens is in Sato we have something","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6509s"},{"start_seconds":6516,"text":"that's called a barfi and what that barfi is is whenever a block is produced the consensus algorithms basically say","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6516s"},{"start_seconds":6524,"text":"this is a measure of the amount of work that we need to include in a block so you can leave you know feel for just our","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6524s"},{"start_seconds":6532,"text":"formal solicit yeah well you know you could modify Bitcoin to do this yeah Bitcoin has a flat network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6532s"},{"start_seconds":6539,"text":"they can inquire that's kinda yeah like you know there a lot of their estate or class versions of Bitcoin where you can make the amount of work variable by","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6539s"},{"start_seconds":6547,"text":"pushing the work these transactions we call that hash hash right well that's what a play I know days yeah kind of I mean in the problems with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6547s"},{"start_seconds":6555,"text":"that approach if you don't pay for the network so you're back to square one but yeah so this is time and that's work and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6555s"},{"start_seconds":6562,"text":"what you do is we set the burn fee and burn few goes down over time and what that means is that even if the network's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6562s"},{"start_seconds":6570,"text":"not really being used at any point in time they may see to attack but you're never gonna have a crush so the situation in Bitcoin you can have","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6570s"},{"start_seconds":6578,"text":"you have attacks on the networks the mining power goes away somewhat turns it off and things go Helen that that never actually is gonna happen a Bitcoin at","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6578s"},{"start_seconds":6585,"text":"the Saito because you know if nobody produces a blog for a while it gets cheaper intrusive law and what's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6585s"},{"start_seconds":6592,"text":"actually going to happen is the difficulty of the burn fees can with just upwards or downwards to keep block time possible but what you have is in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6592s"},{"start_seconds":6602,"text":"any blockchain with these coming in we've got we've got things we've got another curve moving in the opposite direction and that curve is transaction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6602s"},{"start_seconds":6612,"text":"fees and you can think of this as Bitcoin because hatchings pay for it a fee so there's something comparable thing but what you've got is where those","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6612s"},{"start_seconds":6620,"text":"two curves connect is long time","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6620s"},{"start_seconds":6625,"text":"mmm-hmm and cost of blog production so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6625s"},{"start_seconds":6633,"text":"so the internet in like there's also calling for very much a very large collection fees","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6633s"},{"start_seconds":6641,"text":"we're not going to let one of the problems is that were earned there are a lot of block chains to talk about there","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6641s"},{"start_seconds":6648,"text":"any stuff there are a lot of things where someone has to talk and not get a burn a lot of Bitcoin it's very confusing we call this a burn fee for very specific reason because what we've","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6648s"},{"start_seconds":6657,"text":"got is rebound cost an attack in order to do that we kind of find a way to force attack first the first thing to notice","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6657s"},{"start_seconds":6664,"text":"let's assume if transaction fee Boeing goes up it gets more difficult to attack the network right because it's cost goes","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6664s"},{"start_seconds":6671,"text":"up and we can actually adjust we never really get constant so an interesting thing is if we can make it in order to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6671s"},{"start_seconds":6681,"text":"attack the network someone needs to they need to do more work and they need to pay more money this is theoretically the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6681s"},{"start_seconds":6688,"text":"same kind of security that we get in proof of work and produce tape systems directly if you the goal is we've got a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6688s"},{"start_seconds":6696,"text":"cost associated with work and you've got to do more so we're gonna get to the same place that Bitcoin does but we're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6696s"},{"start_seconds":6703,"text":"going to need to solve a separate problem because work is related to money so the fundamental challenge in Sado is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6703s"},{"start_seconds":6712,"text":"not how to make it difficult to produce blocks because you can just spend money to produce loss as the trends that is the amount of money this needs to prove","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6712s"},{"start_seconds":6720,"text":"slog Rises the expense of attacking or arises there are actively advanced ways where block production can be a huge multiple","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6720s"},{"start_seconds":6729,"text":"of this that comes at the cost of introducing a 51% attack we won't go into it but people should probably know that it's not as simple as you spend","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6729s"},{"start_seconds":6738,"text":"this you attack number hmm we can force this exponentially up but the key thing to note is here's the reason we can do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6738s"},{"start_seconds":6748,"text":"this in Bitcoin it cost this much to attack than ever yeah that's a form of work that's measured in fees so in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6748s"},{"start_seconds":6757,"text":"Bitcoin system we can't do this because it doesn't make sense it's like well it costs you money to attack the network we're going to take that money we're going to put it in the block you produce","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6757s"},{"start_seconds":6765,"text":"so when you attack the network your attack pays for itself it's kind of like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6765s"},{"start_seconds":6772,"text":"you take all of the money you charge someone $50.00 to open your door and Birbal your house but you put 60 bucks","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6772s"},{"start_seconds":6780,"text":"on the desk like your networks not going to be secure now the way to maze I know yeah I mean the expense is like what you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6780s"},{"start_seconds":6789,"text":"lose if you have change versus fight money will the plane the problem is very much expenses like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6789s"},{"start_seconds":6797,"text":"why you building this yeah bill exists have been build this right so the cost","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6797s"},{"start_seconds":6807,"text":"is actually well the point is that if all of the money goes to the person who builds blog if they get their money back","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6807s"},{"start_seconds":6816,"text":"there's no cost so this is where the word virtue comes it right because if we take this money and we just burned yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6816s"},{"start_seconds":6823,"text":"then the network has the same security properties as Bitcoin sure the problem is if we burn it if we start with 21","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6823s"},{"start_seconds":6832,"text":"million tokens and we're constantly burning tokens so it's like the network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6832s"},{"start_seconds":6841,"text":"that can be secured the problem is that we're making it useless and you know for a scalable network that we want to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6841s"},{"start_seconds":6849,"text":"support itself that's that's the issue so it kind of it kind of feels like we're back to square one with zeros as long as we're destroying the tokens were","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6849s"},{"start_seconds":6856,"text":"secured but if we do that we've got a bigger problem yeah so the first thing to note is there is a there is an improvement here","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6856s"},{"start_seconds":6863,"text":"because nobody changed the problem we've actually stepped back to a problem that the original Satoshi Hume had where","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6863s"},{"start_seconds":6871,"text":"there are kind of two problems the first problem is how do we make it difficult to produce walks because if it's not difficult furnished blocks everyone","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6871s"},{"start_seconds":6880,"text":"doesn't write but the second problem is how do we make sure that the distribution of money into the system doesn't enable further attacks on the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6880s"},{"start_seconds":6889,"text":"system proof of work solves this by centralizing things in the hands of minors it says if you produce a block we're going to give you all the money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6889s"},{"start_seconds":6897,"text":"but we know the payments fair because long production is essentially random based on cash so the the qualities that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6897s"},{"start_seconds":6905,"text":"we wanted to prove work which is that it's difficult which is that you make proportionally the amount of money that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6905s"},{"start_seconds":6913,"text":"you're doing work those properties in Bitcoin they create sort of problems because they force us to give all","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6913s"},{"start_seconds":6919,"text":"the blockers Insano well we've got rid of that but we've introduced a secondary problem but we still preserve difficulty","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6919s"},{"start_seconds":6928,"text":"so the challenge chefs and the challenge isn't how do we make a difference boss that's proof of work that's produced aid","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6928s"},{"start_seconds":6935,"text":"they're introducing these side activities that are difficult and then have their own properties and then essentially our attackable with money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6935s"},{"start_seconds":6943,"text":"people try to pretend that they're not and we have a separate problem and the separate problem is okay we're charging you money two three","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6943s"},{"start_seconds":6952,"text":"slaughters we want to pay you for the work but we need to find a safe way to do that if we can find a safe way to pay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6952s"},{"start_seconds":6961,"text":"you for the work then we we have these security properties the problem is if we're paying you how can we pay you for the work in a way where you can't do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6961s"},{"start_seconds":6970,"text":"what we like to call it we call it a fee recycling attack right right like if you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6970s"},{"start_seconds":6982,"text":"can get if you can collect 100% of the fees you build a block about the hundreds of the fees your cost of attack as the cost of producing one block and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6982s"},{"start_seconds":6990,"text":"then you get all of the money back yeah this is why it's what's one of the reasons they claim has to one person","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6990s"},{"start_seconds":6998,"text":"attacks the position produced blocking it off money the solution to this is well what if we can find a way to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=6998s"},{"start_seconds":7005,"text":"guarantee that you can't get 100% of your money back again what if you would only get 50% your","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7005s"},{"start_seconds":7014,"text":"money back would the network be secured the answer is what we could figure out what it costs because now our cause is no longer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7014s"},{"start_seconds":7021,"text":"our cost of some longer this but we still have a cost of this and this is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7021s"},{"start_seconds":7028,"text":"kind of the property of it's the security property it's fundamental to Bitcoin but it's also fundamentals data isn't Bitcoin you said well it's the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7028s"},{"start_seconds":7036,"text":"cost essentially of renting 51 versus the half shower or building that which is it cost attack and what Saito","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7036s"},{"start_seconds":7043,"text":"says it citizens well the cost of attack the state of network is whatever percentage of money you cannot recover","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7043s"},{"start_seconds":7050,"text":"yeah right so so the security challenge is Derek its producing producing walk is easy if you're willing to spend a lot of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7050s"},{"start_seconds":7059,"text":"money the challenge is how to make it so you can't even look producer right so I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7059s"},{"start_seconds":7068,"text":"have some amount of transactions that I collected yeah so just olfaction they pretty much take where am i right if you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7068s"},{"start_seconds":7074,"text":"want there's yeah yeah yeah so like if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7074s"},{"start_seconds":7082,"text":"an attacker and if an attacker is one of the lovely things if an attacker produces a walk or they're two things if they put all of their transactions if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7082s"},{"start_seconds":7091,"text":"they steal transactions from your blog important Network I'm actually still will potentially get hated so even the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7091s"},{"start_seconds":7100,"text":"tapper tax network there are two things that you do so I produce this blocked and I myself actually training it is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7100s"},{"start_seconds":7109,"text":"blog but it's able to I just keep that one introductions you mean you want to produce I want to produce exactly the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7109s"},{"start_seconds":7117,"text":"same like the same errand two different blogs if you want to yeah so what's going to happen","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7117s"},{"start_seconds":7126,"text":"maybe we can kind of explain how it works I mean basically what it boils down to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7126s"},{"start_seconds":7133,"text":"is knows you're positioned in the network and the flow of money comes in to them from the transactions filtering","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7133s"},{"start_seconds":7141,"text":"to the network so if you really want to cause problems what you're talking about is a blog flooding attack and then the question becomes have","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7141s"},{"start_seconds":7148,"text":"our deal with Waka Flocka tax most damaging thing you do is try to encourage a lot of other people in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7148s"},{"start_seconds":7156,"text":"network D'Cruz possible pays well because this transaction man standing light exchange okay well here's the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7156s"},{"start_seconds":7165,"text":"thing you've got well done it's the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7165s"},{"start_seconds":7175,"text":"double spends in the problem because the costs of block production you determine what the cost is now what that's saying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7175s"},{"start_seconds":7184,"text":"is that same for you for your specific note yeah that has the potential to produce two logs right now the cost of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7184s"},{"start_seconds":7191,"text":"the blog for you depends on the cost of producing a blog the fundamental property is that if you're in honest mode and you're generating work where","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7191s"},{"start_seconds":7200,"text":"the fees are coming from other people it's essentially free to produce blocks yeah if you're that node you're saying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7200s"},{"start_seconds":7207,"text":"look I'm an honest node on cable to produce longer blocks but it's like if I'm swapping in one transaction say well","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7207s"},{"start_seconds":7214,"text":"if you're swapping in one transaction then the cost for you of a block flooding attack would be that one","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7214s"},{"start_seconds":7221,"text":"transaction exercise of safety so you're saying you're saying I'm a blog producer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7221s"},{"start_seconds":7228,"text":"yeah and you create two blocks while I'm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7228s"},{"start_seconds":7238,"text":"sent money and another one doesn't yes well for them there's two questions the first question is for the user who receives it and the second question is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7238s"},{"start_seconds":7245,"text":"for the network's yeah now for the user that receives it is just like any other blockchain like bedrock right if you want security","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7245s"},{"start_seconds":7253,"text":"security scales with the number of confirmations and so if you are making a pain to me and you're a blog producer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7253s"},{"start_seconds":7261,"text":"the cost of attacking network is different for different nodes in the network so if Google is collecting 30","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7261s"},{"start_seconds":7268,"text":"Google is producing 30 percent of the box yeah I'm their cost of attacking is a lot higher than someone who doesn't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7268s"},{"start_seconds":7275,"text":"have that inbound transaction well it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7275s"},{"start_seconds":7283,"text":"kind of getting to the central attack cuz you're jumping to the attack vector that's fine the point is if you're an honest node what are you doing you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7283s"},{"start_seconds":7290,"text":"helping users take their transaction take a fees and you're moving them into the network and that's the measure for work if you're an attacker well you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7290s"},{"start_seconds":7299,"text":"take them how do you fake that you think that by making your own transactions to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7299s"},{"start_seconds":7304,"text":"pay tomorrow for sure","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7304s"},{"start_seconds":7317,"text":"of course the what you're doing is I'm not worried about the confirmation stuff because there's it's kind of like wilfer","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7317s"},{"start_seconds":7325,"text":"user accepting the transaction what we've got is we've got a system that says producing a blog for various people has cost yeah so if you're paying me a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7325s"},{"start_seconds":7334,"text":"15 cent transaction and the cost of a blog production but so my point here is that when you're saying the traditional","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7334s"},{"start_seconds":7342,"text":"block costs so in proof of work for example yeah you will need to pay here","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7342s"},{"start_seconds":7348,"text":"yes in workplace yes like you spend time here yes you need to spend additional time yes in proof of state you'll be","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7348s"},{"start_seconds":7357,"text":"actually slashed right away the Manzo's is closer than that yes if you show them those in your this is the this is a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7357s"},{"start_seconds":7365,"text":"block line attack yeah now this is possible it's not economically in San Tomas so and the network incentives actually","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7365s"},{"start_seconds":7373,"text":"what basically happens is the consent salir says yeah if you've got a relationship with other so if you produce one blogger yeah if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7373s"},{"start_seconds":7383,"text":"you produce another block you can produce ten thousand blocks if you want you can send them to your peers yes the peers are not going a problem you don't think pass the first law if you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7383s"},{"start_seconds":7392,"text":"want your peers but I need by consensus if you convince them to they can protocol protocol doesn't do it so you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7392s"},{"start_seconds":7401,"text":"didn't want them to propagate you've got a great deal on this chain so if you want to actually have a blog button attack and you want it to propagate through the network it's a lot harder","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7401s"},{"start_seconds":7409,"text":"than you think if you're just talking about confirmations like a double spend the answer that is we calculate the cost of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7409s"},{"start_seconds":7417,"text":"the law because of the block depends on whether you're attacking it and how many transaction fees you have for other","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7417s"},{"start_seconds":7424,"text":"people and you take that cost and you multiply it by the number of blocks and that's your security and that's the same","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7424s"},{"start_seconds":7433,"text":"as in Bitcoin if bid main has forty nine point nine percent of the network and they only need to do a tiny bit of work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7433s"},{"start_seconds":7440,"text":"well what's your what's your security against one it's cost funds logs the block flooding attack is the more","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7440s"},{"start_seconds":7447,"text":"interesting thing to think so let's say","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7447s"},{"start_seconds":7457,"text":"you sent this to so how does this not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7457s"},{"start_seconds":7469,"text":"know well as you're gonna see pretty much my question is why why will this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7469s"},{"start_seconds":7476,"text":"not like pretty much what I would like different like ends to be and for Nantes","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7476s"},{"start_seconds":7485,"text":"what the the question with that is okay like accept one block from the guy so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7485s"},{"start_seconds":7494,"text":"when this guy will broadcast like humans is walk he will not accept it in the same way the cost of attack scales with the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7494s"},{"start_seconds":7504,"text":"number of logs the same money can potentially be used in different chance so there are two questions here that the first fundamental question which is the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7504s"},{"start_seconds":7512,"text":"security one is noticing that we're providing the same Security's Bitcoin in these other networks in the sense myth you can calculate the cost of tackle","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7512s"},{"start_seconds":7521,"text":"mini-jack so there's two questions here and then it's important not to dance","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7521s"},{"start_seconds":7527,"text":"between them this there's how many blocks to wait for confirmation is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7527s"},{"start_seconds":7537,"text":"malicious which have transactions happening yes produce two blocks okay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7537s"},{"start_seconds":7558,"text":"let's put some numbers on so the cost let's say it's $10,000 per block and remember that there are defenses they","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7558s"},{"start_seconds":7567,"text":"can exponentially increase at the cost","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7567s"},{"start_seconds":7574,"text":"of the producing block is 10,000 yeah I got 10,000 production pieces of block so you've done the work of the network of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7574s"},{"start_seconds":7582,"text":"collecting 10,000 dollars yes because of that you can think of it as a discount homework you're doing yeah so I have got","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7582s"},{"start_seconds":7589,"text":"this check back again so there's like one fourth actually that's like them pretty much well you've done the work so when you're in develop this is not the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7589s"},{"start_seconds":7597,"text":"question I mean how much I'm spending kick I collect the ten thousand transaction well or something I mean we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7597s"},{"start_seconds":7604,"text":"haven't gotten into actually explaining how the pin mechanism works but if we're talking abstractly yeah say let's just","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7604s"},{"start_seconds":7612,"text":"assign a figure out of blue and say if you spend a ton of money you can get 50%","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7612s"},{"start_seconds":7620,"text":"of your of these fees back in your part yeah okay so in that case the cost to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7620s"},{"start_seconds":7628,"text":"you of this blog is not ten thousand the cost of this vlog is 5,000 okay so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7628s"},{"start_seconds":7636,"text":"you're getting 5,000 this blog is gonna cost you another 5,000 this block is gonna cost you another 5,000 and it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7636s"},{"start_seconds":7644,"text":"the same here now your initial payment yeah if you can if you want to attack the network by doing this split like that you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7644s"},{"start_seconds":7651,"text":"that's a it's a block flooding attack but on this chain as well if you want to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7651s"},{"start_seconds":7659,"text":"do it another flight okay you want to do another 5k you can create them you could create a third chain you can try and get the network to accept that as well","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7659s"},{"start_seconds":7667,"text":"and we're saying that the cost meaning the amount of money you lose if you work really hard and you manage to recover 50 percent and that's not actually viable","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7667s"},{"start_seconds":7675,"text":"but what you can see is that whatever chain you try to maintain we're still maintaining the properties that on any","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7675s"},{"start_seconds":7683,"text":"chain were on any chain there is a cost to the length now the question so for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7683s"},{"start_seconds":7690,"text":"users on the longest chain we still have a guarantee of what it costs you to attack the chain so in that sense it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7690s"},{"start_seconds":7698,"text":"just like Bitcoin that's like I can rent hash power and whatever the longest chain is the attacker that matters it would be the block flooding attack which","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7698s"},{"start_seconds":7706,"text":"would be could I use this to produce 50 different blocks that would saturate the network and cause the network before it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7706s"},{"start_seconds":7714,"text":"get on the 50 chains and there would be so much power back and forth that it would be a problem for the network the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7714s"},{"start_seconds":7722,"text":"kind of main saccades like I always get on these if I did not do this again I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7722s"},{"start_seconds":7731,"text":"don't know no no no no here is what we're doing is I'm trying to separate fees from the cost to you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7731s"},{"start_seconds":7737,"text":"we're saying is if you produced in blocks west what are the cost to me well","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7737s"},{"start_seconds":7744,"text":"what you need to do if you remember is all of the nodes in the network are competing together we'll share right so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7744s"},{"start_seconds":7751,"text":"if you're an attacker and it's assumed let's take a pure example you're not doing anyone mm-hmm so the cost to you is generating","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7751s"},{"start_seconds":7761,"text":"the amount of work that the network considers valid it's like Bitcoin there's a cost to producing a block we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7761s"},{"start_seconds":7768,"text":"can measure the cost of using blocks and for an attacker it's like ranking up half power to produce but let's say I am","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7768s"},{"start_seconds":7777,"text":"doing like your definition of work we're just collective actions and those it work okay so you want to stone on the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7777s"},{"start_seconds":7784,"text":"network but I'm not I actually have body fight fires yeah I know but there's a rhetorical slip sure so you're saying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7784s"},{"start_seconds":7791,"text":"I'm an honest film on the network all the snows on the network can I study or says honest nodes on the network let's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7791s"},{"start_seconds":7799,"text":"say you've got a China node and you've got a US node now if you remember the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7799s"},{"start_seconds":7810,"text":"verb he is adjusting to the pace of block production now the u.s. is let's say the u.s. is generating 30 percent of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7810s"},{"start_seconds":7819,"text":"transaction volume let's say China is generating 30 percent of transaction volume and let's say Europe is generating 30 percent of transaction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7819s"},{"start_seconds":7828,"text":"volume what we're going to see is that the US ok is in a lot of snow and it decides to attack never well the US has","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7828s"},{"start_seconds":7836,"text":"30 percent of transaction volume and it's going to essentially so let's say produces the first block for free so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7836s"},{"start_seconds":7844,"text":"this is a u.s. block yeah now so now at this point it does two things mm-hmm first of all producers another","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7844s"},{"start_seconds":7852,"text":"block which is exactly the same long term this is La Colonia type this is not I mean I'd like the bullfighting is a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7852s"},{"start_seconds":7861,"text":"little bit more I think what you described so I produced two blocks and it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7861s"},{"start_seconds":7867,"text":"literally sent them to do like the block number one was into your 102 right so now China sees this blog mm-hmm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7867s"},{"start_seconds":7877,"text":"and let's say you're everyone like transmitted to vlog interesting from us to Europe to China and trying to decline","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7877s"},{"start_seconds":7883,"text":"to use it you got you got to you got to boss yeah there's China you're thinkin","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7883s"},{"start_seconds":7891,"text":"echoing so we got we got a Bitcoin forger yeah so we have China have Europe so forget about the stage between","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7891s"},{"start_seconds":7899,"text":"Bitcoin this have taken let's say ten minutes and this have taken two minutes actually in st. all right as far as I've","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7899s"},{"start_seconds":7908,"text":"been there this did not take ten minutes yes like I just produced it yeah he gave me get lost it's a blog flooding in time","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7908s"},{"start_seconds":7917,"text":"here's the here's the question like what I'm trying to do is I'm trying to get you to see that the block flooding attack consejo is different than work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7917s"},{"start_seconds":7925,"text":"difficulty chain confirmation because each of these Forks there's going to be there's going to be a cost because there's a cost of law production so you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7925s"},{"start_seconds":7933,"text":"can spend the cost of block production and sure you can produce any number of chains what's actually going to happen in the real world in this situation it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7933s"},{"start_seconds":7940,"text":"is the u.s. is just burning its reputation no month Kentavious long seriously and if it becomes a problem China you're over mr. Cordell thanks but","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7940s"},{"start_seconds":7949,"text":"think you've been the big pointer for work example where let's say these are two blocks that are produced by two people who produces the next block well","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7949s"},{"start_seconds":7956,"text":"the u.s. is produced a block and it now has zero work sure so if the United States wants to produce another block on","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7956s"},{"start_seconds":7963,"text":"either of those chains it needs to pay out of its own I don't know I'm not talking about this I'm talking about though China Europe prices they're both","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7963s"},{"start_seconds":7971,"text":"who produces the next one well let's say Chinese whoever produces the next block is whoever is profitable for them to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7971s"},{"start_seconds":7977,"text":"produce in China trying to find a large block and then let's say Europe is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7977s"},{"start_seconds":7984,"text":"actually producing today okay your your builds off the longest chain why don't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7984s"},{"start_seconds":7991,"text":"you build off that this is big boy you have two nodes that produce a block and then someone builds on it they","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7991s"},{"start_seconds":7999,"text":"probably a nerve doesn't you I mean if you're if you're describing a model of the network we're the us consent dated the china-us","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=7999s"},{"start_seconds":8006,"text":"consent dated europe and the network doesn't ever communicate that's like reversion bitcoin is it doesn't make any sense but your selves even if they do","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8006s"},{"start_seconds":8013,"text":"communicate you kind of decline ii love there's no no we're saying that there's a certain cost of the united states in producing lost if the United States","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8013s"},{"start_seconds":8021,"text":"wants to continue to produce blocks on both chains it can but the point is that it will cost it money the the key point","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8021s"},{"start_seconds":8030,"text":"is that attacking the blockchain costs money you can't you're you're forgetting that there's a cost of the attack if you're willing to spend the money yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8030s"},{"start_seconds":8038,"text":"because you saying attack in a way when I produce blog remarks with are actually what I'm saying is I'm saying you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8038s"},{"start_seconds":8045,"text":"mixing up your mixing out an attack on blogs chain because on every block chair you never ever watch them differently","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8045s"},{"start_seconds":8052,"text":"and instead of producing empty blocks when you don't have to violence is an impact okay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8052s"},{"start_seconds":8061,"text":"because yes empty blogs because they don't that's a fashion at this point it will cost you money part of trying to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8061s"},{"start_seconds":8067,"text":"figure out which like maybe think of it this us a USB this is Bitcoin other","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8067s"},{"start_seconds":8075,"text":"people on the network will build on the longest chain so what I'm trying to get you see is that there are two issues here the first issue is if the US like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8075s"},{"start_seconds":8085,"text":"China you're going to build on what they think isn't longest trainer yeah so if it costs the u.s. money improves blocks the US can keep it like China your can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8085s"},{"start_seconds":8093,"text":"do this and then us approval these blocks right okay and then China you're a how to low so the question is like you guys can't do this right yes","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8093s"},{"start_seconds":8101,"text":"this is and remote they're just what cares and guess what is this so you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8101s"},{"start_seconds":8107,"text":"actually need yes the USD keep doing it if it's willing to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8107s"},{"start_seconds":8114,"text":"pay money but my exact okay this is exactly the same in Bitcoin as the US just producing a single block","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8114s"},{"start_seconds":8122,"text":"like a chain they're kind of creatively coming up you know the fundamentals need to notice actually is and this is where","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8122s"},{"start_seconds":8130,"text":"it's a radical improvement of Bitcoin note that in Bitcoin in Sato","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8130s"},{"start_seconds":8138,"text":"you've got to in this kind of situation the US needs to pay 100% of the cost of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8138s"},{"start_seconds":8146,"text":"reducing block in Bitcoin the US needs to pay 51% so there's actually something really","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8146s"},{"start_seconds":8153,"text":"interesting people have difficulty with it and I think the reason people have difficulty with it it's why the blog flooding attack is more interesting because a lot of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8153s"},{"start_seconds":8160,"text":"flooding attack yes more interesting people have kind of a kind of cognitively have difficulty wrapping their heads around it because what see","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8160s"},{"start_seconds":8169,"text":"who does is it puts a price on attacking the network but that price is slightly different for everyone else so like you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8169s"},{"start_seconds":8176,"text":"know if like if bid main is producing 33% yeah like the security question","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8176s"},{"start_seconds":8185,"text":"becomes how do we make it so admit main can't collect its money back and there's other there's another really lovely","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8185s"},{"start_seconds":8193,"text":"property of this which is let's save in the US because basically what happens is you can take other people's transactions","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8193s"},{"start_seconds":8201,"text":"insured logs you can steal them if you do that though the people that grow in your your ability to get the money from","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8201s"},{"start_seconds":8211,"text":"the blog shrinks so if I'm an attacker on the network and I put 100 percent of our money in the network the the challenges maybe there's a way I can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8211s"},{"start_seconds":8219,"text":"engineer to pay 50 percent if I start included train if I start including transactions that were included from China Europe oh I don't do that but then","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8219s"},{"start_seconds":8227,"text":"I can only get 10% in five or something and so what you get is you get a situation where the US which is trying to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8227s"},{"start_seconds":8234,"text":"it's a revisions of course you know if the u.s. is pulling at this attack it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8234s"},{"start_seconds":8242,"text":"got two choices what if it doesn't include any work from Europe and China what happens is the amount of work on","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8242s"},{"start_seconds":8251,"text":"the network that's outstanding this novel in longest chain starts going up and what that means is as the birdfeed","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8251s"},{"start_seconds":8259,"text":"Just's like every point in time at any point in time China Newark and dump their transactions on the longest chain so the US has a choice if it's trying to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8259s"},{"start_seconds":8268,"text":"censor the network it needs to keep producing blocks and the blocks need to have more and more work or trying in Europe of any point say well we'll put","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8268s"},{"start_seconds":8277,"text":"it there and you have said oh no you can't want it there because I'm producing this next block and then they say well can we're going to put it here this is actually is really interesting","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8277s"},{"start_seconds":8286,"text":"because in Sato what happens is the fact that the work can be transferred between chains like this that eliminates the 51% of tacit an interesting way third so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8286s"},{"start_seconds":8295,"text":"there are other options here the cost to the u.s. go up because one they have a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8295s"},{"start_seconds":8302,"text":"choice between they include they include the other transactions right so like they steal the transactions like china produces a block here and the u.s.","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8302s"},{"start_seconds":8313,"text":"endnote your transactions are here if they do that they they stop being able","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8313s"},{"start_seconds":8320,"text":"to capture 50% of the money because the transactions that they include force the money basically to other nodes in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8320s"},{"start_seconds":8327,"text":"network so you can either have help producing the longest chain you can either stop work for building up outside","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8327s"},{"start_seconds":8336,"text":"your chain or you can include it but if you include it your ability to recapture the money goes down right so I mean that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8336s"},{"start_seconds":8345,"text":"they're the two general problems or not problems they're kind of cognitive things getting people to think that it is every blockchain is secured by theis","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8345s"},{"start_seconds":8352,"text":"what we need to do for maximum security need that watching that can process massive amounts of fees that's what","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8352s"},{"start_seconds":8360,"text":"that's what we're building because the biggest blockchain is going to be the most secure one because it's going to be the most expensive to notice that the difficulty is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8360s"},{"start_seconds":8368,"text":"different it's like yeah you can produce it the the challenges challenges yes how can we lower it below 50% how can we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8368s"},{"start_seconds":8376,"text":"keep people from recycling because what we don't want is we don't want a system where the u.s. does this and then the starch for cycling speeds into social","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8376s"},{"start_seconds":8383,"text":"attacks so how can we do that that's that's actually right so if you remember","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8383s"},{"start_seconds":8394,"text":"we did this we did this kind of that maybe just first with a block flooding what you've got you've got a massive","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8394s"},{"start_seconds":8402,"text":"massive network processing care about your X plane and you know if your node you're collecting honest transactions one of the lovely things is if you start","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8402s"},{"start_seconds":8410,"text":"attacking the network the easiest way for the network to respond is we stop sending you fees so you can substitute","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8410s"},{"start_seconds":8418,"text":"attack with all this work but like if I'm a user and all of a sudden you start creating Network disruptions the first","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8418s"},{"start_seconds":8425,"text":"thing I do is I send my transactions to someone else and remember you if you're like us if your Google or something and you've made massive investments in Internet infrastructure in order to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8425s"},{"start_seconds":8434,"text":"process table glass blocks and all of a sudden like people stop sending you transactions because your attack the network doesn't love it so the economic","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8434s"},{"start_seconds":8444,"text":"incentives so you you could try with a blog propagation thing one of the major differences is that the incentives on","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8444s"},{"start_seconds":8451,"text":"the rest of the network are one people stop sending you transactions to at massive scale you don't have a network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8451s"},{"start_seconds":8459,"text":"structure where Google is not hutton spoke it is Google disconnected driver but Superman can even pull it off because the main block producers can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8459s"},{"start_seconds":8467,"text":"only mean maybe managing connections to 12 or 13 other knows given the limitations of the pipes anyway we were","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8467s"},{"start_seconds":8476,"text":"going to talk about how money is divided up yeah so the key observation is well we're gonna divide up the money right","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8476s"},{"start_seconds":8484,"text":"and notice that we had we previously did things were resent like you know this nodes gonna get 10 over 15 and this node","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8484s"},{"start_seconds":8493,"text":"550 right what happens we mentioned energy before so as soon as a blog has","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8493s"},{"start_seconds":8501,"text":"produced the burnfree is really high and then as time passes the consensus algorithm lowers energy at a certain","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8501s"},{"start_seconds":8508,"text":"point in time someone on the network has enough work in their many pool they're able to produce a block mm-hmm this is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8508s"},{"start_seconds":8516,"text":"where the fun begins before we do it though now is the time to step back to your question why isn't everyone producing boxes at once","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8516s"},{"start_seconds":8522,"text":"the reason is transactions and fees are flowing into network work is flowing into the network at different places so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8522s"},{"start_seconds":8530,"text":"if you are the United States you're gonna have access to American transaction flows if you're trying to even have Chinese transaction flows","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8530s"},{"start_seconds":8537,"text":"Singapore will have Singapore transaction flows and what's going to happen is the network will adopt and organic round-robin production system","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8537s"},{"start_seconds":8545,"text":"because as soon as the US produces a block well the amount of work it has an S Memo goes to zero Chinese no God loves","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8545s"},{"start_seconds":8553,"text":"singing personalized blocks and so well the United States is building up work to produce another one well these guys are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8553s"},{"start_seconds":8560,"text":"going to produce a block and the network basically it eliminates people who are in close proximity to each other who are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8560s"},{"start_seconds":8568,"text":"producing wash of the same transaction set yeah but anyway let's let's move on to the questions so we've got basically two kinds of pants involving the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8568s"},{"start_seconds":8577,"text":"production the block belong you've got already knows this this thing below the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8577s"},{"start_seconds":8583,"text":"burden fee this is we can think of it as a roaming payment so this amount of money is going to go for ready mm-hmm","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8583s"},{"start_seconds":8592,"text":"if there's a lot of block producers and there's a lot of competition for long producers remember the revving nose","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8592s"},{"start_seconds":8599,"text":"runny nose has an incentive to give multiple block producers of transaction because they want block producers to be producing as soon as they possibly can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8599s"},{"start_seconds":8608,"text":"the reason for that is if the block producer can afford to wait if it can make a block this amount","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8608s"},{"start_seconds":8616,"text":"well then this this goes directly to the blog producer so if a transaction pays a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8616s"},{"start_seconds":8624,"text":"fee of ten bucks in this example maybe seven dollars would be divided up into reading those but three dollars goes","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8624s"},{"start_seconds":8632,"text":"directly to block producers and what this is doing is it's creating competition between blog producers and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8632s"},{"start_seconds":8639,"text":"revenue notes where if this is going to be divided up but if it's really profitable to be a blog producer that's going to happen in situations where","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8639s"},{"start_seconds":8648,"text":"there aren't enough water racers right like the blockchain is really big you need to make a real investment in Google's Google scale infrastructure you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8648s"},{"start_seconds":8657,"text":"need to have a level of connection level 3 like it's super probable you can afford to wait what that means is it's a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8657s"},{"start_seconds":8664,"text":"tax on the feet so the blog producers get their money right away and the economic incentives plus rather","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8664s"},{"start_seconds":8671,"text":"behavior is going to keep that at what the market prices are basically because there's a return on setting up a blog correction facility so that basically","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8671s"},{"start_seconds":8681,"text":"gets taken off right off the top it depends on the degree of competition which we block research right so here's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8681s"},{"start_seconds":8690,"text":"the here's the security the security question is how do we divide the rating name right like what we do is we have","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8690s"},{"start_seconds":8699,"text":"something in the network it's called pace with pace what is a variable that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8699s"},{"start_seconds":8706,"text":"goes between zero and one when the money is at zero it's going to go to a ready","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8706s"},{"start_seconds":8715,"text":"node under personal when the variable is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8715s"},{"start_seconds":8722,"text":"1 it's going to go 100 percent to a group of knows whose purpose is to hold","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8722s"},{"start_seconds":8730,"text":"a lottery and what's gonna happen is we're separating the active blog","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8730s"},{"start_seconds":8737,"text":"production from the active deciding who gets paid so if we go back to the Bitcoin example the act of producing the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8737s"},{"start_seconds":8745,"text":"blog is the it's not that we would say them so eat","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8745s"},{"start_seconds":8751,"text":"the pay slip is 50% say because we can do dynamic Facebook let's start with","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8751s"},{"start_seconds":8759,"text":"static so if the piece one is 50 the cost of producing the vlog is a hundred","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8759s"},{"start_seconds":8766,"text":"let's say plus whatever the law producer surplus is whatever you're going to get if you're already node you're eligible","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8766s"},{"start_seconds":8773,"text":"for fifty bucks if you're a lottery older you're also eligible for $50 this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8773s"},{"start_seconds":8779,"text":"is in the consensus world it's a variable that's managed to the consensus network so you can't attack the network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8779s"},{"start_seconds":8787,"text":"and suddenly change the pay slip so how does how does it work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8787s"},{"start_seconds":8795,"text":"a block is produced and the block itself in the sale implementation you can do you can do like an already ran them","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8795s"},{"start_seconds":8802,"text":"stuff we use mining for a couple of reasons because it's simple and what you do is the block basically has a hash and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8802s"},{"start_seconds":8810,"text":"the block implicitly the hatch the block implicitly is something we call a golden tip think of like Willy Wonka the turbo","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8810s"},{"start_seconds":8818,"text":"factor and the reading notes and the block producers produce a lot as the block is propagating to the golden","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8818s"},{"start_seconds":8826,"text":"ticket is available for everyone on the network to look at and right now it's might impose on simplicity sake and if a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8826s"},{"start_seconds":8836,"text":"locker holder finds a solution to a golden ticket what it does is it takes that solution and it propagates it to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8836s"},{"start_seconds":8845,"text":"the network in the form of a transaction and that transaction if it is included in the very next block the laundry","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8845s"},{"start_seconds":8855,"text":"holder that have found the ticket gets a tailor and a variable that's associated with a solution and because it's a cryptographic puzzle it's guaranteed to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8855s"},{"start_seconds":8864,"text":"be random that random variable picks which of the row dinos contained in all of the transaction","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8864s"},{"start_seconds":8872,"text":"in the previous blog gets paid as well so and it doesn't need to be wanting being divided through ten the main point is that the randomness from the lottery","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8872s"},{"start_seconds":8880,"text":"is used for the distribution of life for this right so remember the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8880s"},{"start_seconds":8888,"text":"distribution of money here for the block reducer is it's 10 over 10 over 15 and 5","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8888s"},{"start_seconds":8894,"text":"or so for a to hawk production the blog producer is fantastic it can expect a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8894s"},{"start_seconds":8903,"text":"lot of 50 percent payment it can expect on average to get a 33 percent of 50 bucks equals really not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8903s"},{"start_seconds":8913,"text":"very much money or is that that's like seventeen so you notice in the earlier examples we're talking about fifty","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8913s"},{"start_seconds":8922,"text":"dollars in a network where the blogger greasers one hop away from every transaction they're in fact gonna capture the 50% pay split 17.5 there and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8922s"},{"start_seconds":8931,"text":"so the cost is going to be eighty two point five percent right now now in in a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8931s"},{"start_seconds":8938,"text":"network that's actually more distributed is real world networks are going to be the cost of attack for bloggers news uses can be higher and the question you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8938s"},{"start_seconds":8946,"text":"got to think of it as well we've also got the cost of attack from remaining nodes as well and this is the nature of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8946s"},{"start_seconds":8954,"text":"what city with us Sato says look the solution to the problem is we can make the network secure on fees alone you can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8954s"},{"start_seconds":8963,"text":"divide up the fees and the challenge becomes how we divide up the fees in a way that we can actually calculate weight calculate what the cost of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8963s"},{"start_seconds":8972,"text":"security is right and this is the other thing like remember because we've got a mining puzzle here producing you're not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8972s"},{"start_seconds":8979,"text":"making 50% in prop if you produce a block if the next block is produced and there's no solution","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8979s"},{"start_seconds":8985,"text":"nobody gets paid so in addition to generating an attacker in addition to generating the money for the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8985s"},{"start_seconds":8993,"text":"transactions it needs to come up with money for the transactions it also needs to be in a position to determine the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=8993s"},{"start_seconds":9001,"text":"water and you can think of the lottery position like validators in the sense that you know if you've got the u.s. in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9001s"},{"start_seconds":9008,"text":"our earlier example which is trying to rewrite the longest chain I mean you know order for this to be a low-cost","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9008s"},{"start_seconds":9015,"text":"attack it needs to be able to source transaction fees from the entire network and when that happens in a press room tax net where people are gonna be like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9015s"},{"start_seconds":9023,"text":"well I'm okay with them and they keep paying for it you've got the lottery holders it can be a randomization function it can be lined","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9023s"},{"start_seconds":9031,"text":"in whatever they've also need to continue to mine and hash on this because if they don't the US can't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9031s"},{"start_seconds":9037,"text":"recycle any money so so on the lottery","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9037s"},{"start_seconds":9044,"text":"ticket holders can write if you know anybody I mean if I know we go I defended my mine USA mine too but notice","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9044s"},{"start_seconds":9052,"text":"if the US is mine to do it know what it like but don't make me fifty bucks because the amount of profit that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9052s"},{"start_seconds":9060,"text":"they're making from this the problem for water holders is actually driven by market forces to be exactly the same for the profits for recognize so if you get","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9060s"},{"start_seconds":9068,"text":"fifty bucks back will they probably need to be spending forty eight to forty nine dollars just to do that so an attacker that needs to co-op Bothwell if you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9068s"},{"start_seconds":9078,"text":"an honest if you're using mining to attack the network it's only really it's only really feasible if the profits from","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9078s"},{"start_seconds":9085,"text":"writing are way higher than the profits from reading and kind of vice versa but then this is dynamic pace what the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9085s"},{"start_seconds":9093,"text":"example we're talking about is just were saying okay she remember son the main point is that know if the is a transactions on salt the attackers are","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9093s"},{"start_seconds":9101,"text":"just trying to use money what we've done is we've introduced a cost based system that means it's no longer five it so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9101s"},{"start_seconds":9109,"text":"under five thousand per block right it's five thousand per block but they're getting seventy percent point five plus","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9109s"},{"start_seconds":9116,"text":"that's their profit yes so otherwise the amount of money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9116s"},{"start_seconds":9123,"text":"that they lose starts going up mm-hmm and what this lets us do is it lets us calculate you can you can calculate the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9123s"},{"start_seconds":9131,"text":"cost of attack the various people in the system this is sort of the first version the first version with a fixed space","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9131s"},{"start_seconds":9138,"text":"book we have a version with a dynamic pay slit and what that does is it changes this so that the profits from","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9138s"},{"start_seconds":9146,"text":"reveling in the profits remaining are driven by market forces the the first version is just like thinking about this","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9146s"},{"start_seconds":9154,"text":"one way to think there's a difficulty to mining and let me maybe explain a bit because it's lovely we basically let the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9154s"},{"start_seconds":9162,"text":"miners vote on what the difficulty of the puzzle is mm-hmm now imagine with a 50% pay slit what's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9162s"},{"start_seconds":9169,"text":"that going to be well the miners vote by providing solutions and the miners have an economic incentive to move difficulty","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9169s"},{"start_seconds":9177,"text":"to the point that there's one transaction then you can you can only","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9177s"},{"start_seconds":9189,"text":"and there's there's a lot of security benefits like one of the things is if you're attacking the network you now need you need a hundred percent of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9189s"},{"start_seconds":9197,"text":"lottery to pick yourself it's also like it's the reason why if you copy","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9197s"},{"start_seconds":9203,"text":"transactions from other blocks you can't control what the random solution will pick so the attack that we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9203s"},{"start_seconds":9213,"text":"need to solve is like in the Bitcoin attack you Bruce blog well thank you for all of those transactions I've got more","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9213s"},{"start_seconds":9219,"text":"power I sealed with my a in this if you produce a lot I steal those transactions it's increasing the cost of the attack","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9219s"},{"start_seconds":9227,"text":"so but but note like there's lovely properties with difficulty where if like this isn't a hundred percent of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9227s"},{"start_seconds":9235,"text":"difficulty but notice things like notice things like variance 100 percent of difficulty gonna have some areas and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9235s"},{"start_seconds":9244,"text":"producing if you're an attacker producing more than one doesn't do anything for you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9244s"},{"start_seconds":9252,"text":"some variants in golden ticket solution as well so it's another security thing because if you produce two solutions and you're attacking the system to choose it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9252s"},{"start_seconds":9260,"text":"yourself that doesn't benefit you at all but the very so the variants above doesn't give you any benefits of the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9260s"},{"start_seconds":9267,"text":"variants below only imposes cost so even an attacker that can match 100% of the water it's still going to lose money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9267s"},{"start_seconds":9275,"text":"just from statistical variance in the scale of the mining solution anyway the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9275s"},{"start_seconds":9282,"text":"that's basic say though which is that you divide up the money you introduced a system of generating a random number to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9282s"},{"start_seconds":9290,"text":"decide who gets paid the detectors can't cheat with without incurring additional costs and you use that to basically say","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9290s"},{"start_seconds":9299,"text":"we have the properties of Bitcoin which art which is there's going to be a cost from producing certain blocks on network and then you know the larger economic","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9299s"},{"start_seconds":9308,"text":"scheme is saying if you're honest node you're collecting genuine transactions and sharing them with friends and then other nodes on the network if you're an","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9308s"},{"start_seconds":9317,"text":"attacker because everyone everyone who's doing anything is scale that's their entire economy like no one is going to be if if Google's produces 20% of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9317s"},{"start_seconds":9325,"text":"network if they start misbehaving the economic incentives for everyone is literally to behavin we were fools cost of attack goes way way out we stopped","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9325s"},{"start_seconds":9334,"text":"sending them transactions the miners know if they're like looking you're too strong the network we're making money from this we're not going to support you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9334s"},{"start_seconds":9341,"text":"and basically the whole thing means that the cost of attack is honest nodes do work grabbing work and they get paid for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9341s"},{"start_seconds":9349,"text":"fruit dishonest moves they have to attack the network and it's not just","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9349s"},{"start_seconds":9357,"text":"it's not just 50% it's like because if you it becomes exponential because if","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9357s"},{"start_seconds":9365,"text":"you don't include other people's blocks the amount of work this is building up outside your network waiting to come on at any point in time","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9365s"},{"start_seconds":9373,"text":"Grouse is a point where the amount of work you the amount of money you actually need to spend not only does it cost go up because you recaptured less","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9373s"},{"start_seconds":9381,"text":"of it but the wage so when you're choosing between two chains right to use amount of transaction fees that are in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9381s"},{"start_seconds":9390,"text":"each one it's basically it you need to regret the longest chain you need a higher","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9390s"},{"start_seconds":9397,"text":"difficulty and the longest chain with accumulated work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9397s"},{"start_seconds":9405,"text":"I mean accumulated work work is work isn't I mean defuses work is a measure","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9405s"},{"start_seconds":9413,"text":"of peace with the efficiency it's a 1/1","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9413s"},{"start_seconds":9423,"text":"like the problem is one growing through the stages without slashing that people","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9423s"},{"start_seconds":9430,"text":"will change right so it was the same question I was asking before yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9430s"},{"start_seconds":9446,"text":"remember losing cost of producing every","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9446s"},{"start_seconds":9449,"text":"block like any launching you can have a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9449s"},{"start_seconds":9467,"text":"fork the question is where's the rest of them this is free for them you gotta you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9467s"},{"start_seconds":9475,"text":"gotta for the question here is that and just I mean Bruce biggest problem exists","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9475s"},{"start_seconds":9481,"text":"is that you won't you will like as a now they're going to really don't care which","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9481s"},{"start_seconds":9488,"text":"changing build on like you build an OG I mean here's the thing you've lowered the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9488s"},{"start_seconds":9494,"text":"you lower the cost of the us in this situation unless it's ponying on cash it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9494s"},{"start_seconds":9501,"text":"in this case it's like Lily's let's just imagine this is the same box yeah just like there's one difference here that's all yeah","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9501s"},{"start_seconds":9510,"text":"so you're in China I mean they're actually not in like motivation there's not malicious malicious yeah they just","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9510s"},{"start_seconds":9517,"text":"like not really following protocol there's just like well why not why not I haven't even have an easy fix for this because the hatch the blocks is gonna be different","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9517s"},{"start_seconds":9524,"text":"you just have a consensus model that says which one you're gonna favor be favored by something the entire random that's not controllable by us right like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9524s"},{"start_seconds":9532,"text":"what you're saying is you're saying the attack that I envision is that all of the you know all of the core nodes in the network yeah it'll build off all of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9532s"},{"start_seconds":9541,"text":"the possible force yes and well we're talking about it we're talking about blockchain that's moving in petabytes of data a day because we're actually paying","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9541s"},{"start_seconds":9549,"text":"for the network I mean first of all I don't think that's a realistic issue is the economic incentives for everyone who","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9549s"},{"start_seconds":9557,"text":"you've got an attack that the economic it sounds generalize like we'll look there's an attack the real question is well I might extend another they can","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9557s"},{"start_seconds":9564,"text":"write what they do because if the network becomes useless their army get paid that's like saying look you know","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9564s"},{"start_seconds":9571,"text":"everybody will kind of mind separate their own things off why don't why don't I have a hundred block chance do you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9571s"},{"start_seconds":9578,"text":"want to use Bitcoin it's like well we should change you want to transact on broadcast your transactional force like I mean I suppose it said I suppose it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9578s"},{"start_seconds":9588,"text":"a theoretical problem but it's a question of like would people money find their clients just in case to make sure","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9588s"},{"start_seconds":9600,"text":"like you know one of the differences is you say well what is the network structure you know you're gonna have a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9600s"},{"start_seconds":9608,"text":"series the bigger the blockchain gets you're going to have a series of people that are specializing in infrastructure right you're going to get Google in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9608s"},{"start_seconds":9617,"text":"States you know by doing China you know the costs a non-trivial amount of money to be running in that area","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9617s"},{"start_seconds":9626,"text":"assuming that you know the people in the lobby this is same as like a single not attacks a network if it bothers you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9626s"},{"start_seconds":9634,"text":"because above a stick if you don't wanna like this is some cost for them they don't want us pretty much because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9634s"},{"start_seconds":9641,"text":"otherwise they will lose it well it's interesting because that's in the white paper but I don't think that's I mean the thing is there's there's actually","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9641s"},{"start_seconds":9648,"text":"there's a profit motive that's on the sub cost more I mean again it's a private profit life raises your money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9648s"},{"start_seconds":9656,"text":"back to network in theory he boils down to assumptions of the economic rationality right but that's also like in Bitcoin like you're expecting people","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9656s"},{"start_seconds":9664,"text":"to rationally mine on the longest chain like this were a thing if you throw out","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9664s"},{"start_seconds":9670,"text":"of the expectation well you're gonna put","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9670s"},{"start_seconds":9684,"text":"well no there is a reason why not and the reason why not is that we're operating at scale and big blocks have cost like this is not 2009 about 2000 my","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9684s"},{"start_seconds":9693,"text":"Bitcoin we're designing the economics of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9693s"},{"start_seconds":9702,"text":"launchings or actual scale yeah so you know people will you know in 2009 Bitcoin I can do this it's like well yeah but we're not","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9702s"},{"start_seconds":9710,"text":"talking about I'm making my every ten minutes we're talking about I mean right now we think the limits about a hundred terabytes but it will be in the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9710s"},{"start_seconds":9717,"text":"petabytes now if you are what you're going to get is you're going to get these core nodes in the network and because we pin for routing what you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9717s"},{"start_seconds":9725,"text":"basically doing is you're creating an economic incentive where you know different regions they're kind of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9725s"},{"start_seconds":9733,"text":"reading those and the running nose will connect maybe one or two and like the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9733s"},{"start_seconds":9742,"text":"column gives back propagation take well what we know is we know that the network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9742s"},{"start_seconds":9750,"text":"has economic incentive towards efficiencies and we'll see I personally I mean I think is gonna happen is I think that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9750s"},{"start_seconds":9759,"text":"if people can't keep up with a main Network we're right now it's 30 seconds I'm good - that's gonna be 10 minutes if people can't keep up with a big network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9759s"},{"start_seconds":9768,"text":"the way to do this isn't very good because why do you run reading notes in the full note it's because your network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9768s"},{"start_seconds":9775,"text":"can't actually handle better so and then the writer knows the users that will","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9775s"},{"start_seconds":9781,"text":"connect those but you know why do you want to pay for the rebbe knows you know the network structure basically you're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9781s"},{"start_seconds":9789,"text":"gonna have a core group of you're gonna have a worker by the minute now it's like level 3 you know this attack is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9789s"},{"start_seconds":9798,"text":"kind of like level 3 communications starts screwing around with packets for its customers right like it could happen","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9798s"},{"start_seconds":9804,"text":"but look at it like what actually happens if this guy starts network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9804s"},{"start_seconds":9819,"text":"doesn't control the user does just no it","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9819s"},{"start_seconds":9830,"text":"gets down to like it gets down to the user activated software stuff one you can't compel these guys to propagate if there's a blog flooding attack you can't","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9830s"},{"start_seconds":9838,"text":"compel these guys to propagators you they cool it you could convince them to propagated the network protocol has","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9838s"},{"start_seconds":9846,"text":"certain rules that say it says for instance when you've been convinced something so long as chain one of the things we do is like well if someone gives you other things that's okay you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9846s"},{"start_seconds":9853,"text":"know don't don't no word it until you're convinced it is yeah so you know like","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9853s"},{"start_seconds":9861,"text":"okay so they decide to attack the network and these guys are like well I've got a really profitable thing we're not because it is is profitable for","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9861s"},{"start_seconds":9869,"text":"everyone yeah what's gonna happen well these guys are gonna stop sending them mmm-hmm the cost of the attack goes up","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9869s"},{"start_seconds":9876,"text":"and we're basically forcing the position that there's a cost to the attack yeah there's more advanced stuff where as I","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9876s"},{"start_seconds":9884,"text":"said we can make the cost exponential but I mean that those techniques are weaker if if this guy decides to attack","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9884s"},{"start_seconds":9892,"text":"they're very effective that's pretty","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9892s"},{"start_seconds":9901,"text":"clear if you like somebody I want the truth trying to come in and show you Clark but I mean this is like bidding you know like well what if big main starts","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9901s"},{"start_seconds":9908,"text":"randomly for free stuff what you know in the big one group of workers like what percentage of the network could support them as soon as you pay 50 percent","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9908s"},{"start_seconds":9916,"text":"you're screwed with this there's an actually note if you want person attack because it doesn't matter if you do 51","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9916s"},{"start_seconds":9923,"text":"percent of the work and like the mining system let's say you've you've you've rigged it to you you've got enough let's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9923s"},{"start_seconds":9931,"text":"say you 80 percent work and you've rigged the mining system well enough that you can get from lumber side back if you've done 51 percent of the work","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9931s"},{"start_seconds":9940,"text":"and you're getting paid 51 percent you're still losing 49 percent of the cost of the block of your block and you know honestly in that situation one of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9940s"},{"start_seconds":9948,"text":"the major differences is the 51 percent of khakis incentivize because of people doing the attacker making money in this system the people that are doing the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9948s"},{"start_seconds":9956,"text":"attacker losing you know one of the you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9956s"},{"start_seconds":9979,"text":"know what is that that's like it's it's a transfer of money to everyone else in the network if you do that so it may be that every now and then someone will","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9979s"},{"start_seconds":9988,"text":"attack the network and the other nodes in the network will be okay with it because they like if they need to spend so much money it's a transfer to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9988s"},{"start_seconds":9996,"text":"everyone else but oh then that works down for an hour but they had to spend five million dollars to get the money to do that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=9996s"},{"start_seconds":10003,"text":"the question is can they exchange pretty much I mean that's my problem I went to","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10003s"},{"start_seconds":10012,"text":"exchange and sold millions of State oh yeah everybody got paid Network that's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10012s"},{"start_seconds":10019,"text":"just that's any blog chamber the I mean","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10019s"},{"start_seconds":10028,"text":"what I'm saying is like look at the there there are a bunch of vulnerabilities and attacks that people so my question is mostly like do people","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10028s"},{"start_seconds":10035,"text":"see the cost of attack clearly just by observing I don't know what are the kind","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10035s"},{"start_seconds":10042,"text":"of like that well this is the nice thing case with is a public variable that hasn't won consensus code so there are things like in Bitcoin mining who's got","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10042s"},{"start_seconds":10051,"text":"the hash power I don't know and like another thing with proof work that nobody talks there I've heard Craig Wright say once he says well you know","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10051s"},{"start_seconds":10059,"text":"when worst law ends we have a problem the you know Bitcoin security people it is transaction fee volume but you use in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10059s"},{"start_seconds":10067,"text":"addition to that because they've out mining as a difficulty function it's the supply it's a supply curve of passion","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10067s"},{"start_seconds":10074,"text":"hour because as soon as I can rent 51% of the hash for less than 100 percent of the transaction volume I've got a feed","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10074s"},{"start_seconds":10083,"text":"recycling attack in Bitcoin mm-hmm I rent the hash I produced lately probably the only questions have you disguise it right but in and also produced a given","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10083s"},{"start_seconds":10093,"text":"think well it's all about staking but who owns the stake right how do I know that the network be securely decentralized how do I know who has the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10093s"},{"start_seconds":10101,"text":"how do I know who was attacking the block difficulty production function in say no we don't have this knowledge problem because everything that's needed","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10101s"},{"start_seconds":10110,"text":"to figure out how weak the network is is consensus or public information so it pays what's really high well one","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10110s"},{"start_seconds":10118,"text":"of the like pikmin say them with a pay slip one it's it's kind of like a version of Bitcoin where the block producers getting their money at first","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10118s"},{"start_seconds":10126,"text":"right because see them with a basement of one the miners are the only one the takács yeah but the miners are also","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10126s"},{"start_seconds":10134,"text":"like the lottery holders but they've also got a burn tricity so when attack still has money right but the block","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10134s"},{"start_seconds":10142,"text":"producers still collecting like the writing notes don't get paid and the block producers don't get hit with reading or she put the block producers","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10142s"},{"start_seconds":10150,"text":"there's still competition with each other so we have a verb you know even in this broken version of state oh it's actually better than Bitcoin because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10150s"},{"start_seconds":10158,"text":"you've got an actual way to pay for the network well I mean so in fact there is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10158s"},{"start_seconds":10166,"text":"you depending the dependence of each polymers and waiters are loving it a little because the block producers the blog above is at you know the blog","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10166s"},{"start_seconds":10174,"text":"producers the Walker users get their payment for that blog yeah the miners can't do anything about the block reserve and what I'm saying because we","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10174s"},{"start_seconds":10182,"text":"are blood producer and yeah I mean it's like any blockchain if you can do 100% of the work attack the difference is a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10182s"},{"start_seconds":10191,"text":"hundred percent of the workers of all more secure than 51% also note in SATA like a Bitcoin we've basically got okay","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10191s"},{"start_seconds":10199,"text":"the way you attack the network is to become really good at mining and say to them you've got one function which is","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10199s"},{"start_seconds":10207,"text":"block production now what that means is it means you want to be specializing in yeah right friend like we've got a","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10207s"},{"start_seconds":10216,"text":"mining lottery function which is we were a different kind of economic activity but the third one is also there's basically three actors there's also the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10216s"},{"start_seconds":10223,"text":"users because the user transaction flows coming into the system or also a security function but if the users see","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10223s"},{"start_seconds":10230,"text":"anyone was made they can democratically vote transaction by transaction to them","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10230s"},{"start_seconds":10237,"text":"yeah and I mean dynamic pace when users can also start moving around the pace so it can be things like if the network","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10237s"},{"start_seconds":10245,"text":"comes under attack and it looks like someone's going to protect it if it looks like it's running though in the dynamic version cocido the pace player can actually","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10245s"},{"start_seconds":10254,"text":"dynamically increased because everyone but the attacker is concerned about the attacker likewise if you have centralization of mind really concerned","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10254s"},{"start_seconds":10261,"text":"about bid made the network can be like we are more secure from paying more for Revit yeah and one of the really","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10261s"},{"start_seconds":10267,"text":"interesting things about this if you think about life italic and then people are talking with the scalability trial","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10267s"},{"start_seconds":10276,"text":"on well the scalability trilemma says there's an optimal point that were extended for security decentralization","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10276s"},{"start_seconds":10283,"text":"and security decentralization scaling i think it is if you think about saving you think about the way it works you realize it's entirely wrong because","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10283s"},{"start_seconds":10291,"text":"security is subjective it's your position in the network and what you can have in Sato is you can have a situation","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10291s"},{"start_seconds":10298,"text":"where in you know the pain in moving the payslip 20.4 provides an increase in","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10298s"},{"start_seconds":10308,"text":"decentralization and any increase in security and an increase in basically","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10308s"},{"start_seconds":10315,"text":"the through the network because we're","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10315s"},{"start_seconds":10323,"text":"concerned about miners attack the network if we're concerned about full nodes attacking the network with increased security by pushing things","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10323s"},{"start_seconds":10329,"text":"back as soon as the the basically the security trilemma comes it flows out of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10329s"},{"start_seconds":10337,"text":"any network where you give all of the money to the blockers if you do that you've got the problem in this situation you don't because like you can think of","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10337s"},{"start_seconds":10346,"text":"this mining in some ways as if you pay miners war the network becomes more expensive to attack up until the point","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10346s"},{"start_seconds":10354,"text":"the miners themselves become a threat if you move it down the network if the miners are a threat moving it down","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10354s"},{"start_seconds":10361,"text":"increases security but it's also painting the nodes that are running the network that is paying revving those it's increasing decentralization and","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10361s"},{"start_seconds":10369,"text":"it's also making bad with cheaper because if the revenues make money so","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10369s"},{"start_seconds":10377,"text":"the people don't think about that is partly because people in like the traditional watching world where we've decided to give all the","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10377s"},{"start_seconds":10385,"text":"money to the person that produces the blocks and we decided that the problem is how do we make this process difficult and untangle and what's a good as that","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10385s"},{"start_seconds":10394,"text":"says we'll look that's not the problem the problem is we know that they're spending money to produce blocks you can money in staking is you're just decide","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10394s"},{"start_seconds":10402,"text":"you're dressing up the fact its money and that's why those systems are vulnerable because they're dealing with like validators and you know all sorts","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10402s"},{"start_seconds":10409,"text":"of clues within the network they're not really about the flow of fees in it which is what they shouldn't worry about but as soon as ensure monetizes it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10409s"},{"start_seconds":10417,"text":"it's over sato says look that's the world living it's just money even we have this abstract system where it's","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10417s"},{"start_seconds":10424,"text":"just money we can make it secure by preventing people from monopolizing the security challenges different money","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10424s"},{"start_seconds":10432,"text":"makes it different money makes it difficult regardless we just need to make sure that you can anyway thank you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10432s"},{"start_seconds":10442,"text":"for okay thank you","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10442s"},{"start_seconds":10451,"text":"thank you for watching too","url":"https://www.youtube.com/watch?v=KGOZ7udYz0A&t=10451s"}],"youtube_url":"https://youtube.com/watch?v=KGOZ7udYz0A","url":"https://near-pedia.xyz/videos/KGOZ7udYz0A"}