9. Permissioned Systems

[@sksoh]

I am amazed by how he is able to summarize every question asked so beautifully and concise.

[@rosamodel3952]

It's like he understands the question even better than the person who asked it lol

[@ryanbaileyboxing]

And now he can't even decide if he wanna go after Bitcoin or not 😂

[@timyates8333]

This is how humans can create a better future, share knowledge. Thank you MIT.

[@dadswithapurpose3167]

I feel like I am back in college, it is great. I am slowly getting these theories, but I have to say I am so happy I am not being graded.

[@MichaelEdlavitch]

This is the way !

[@johnguanciale258]

C-

[@JusticeDutton]

Hugo's investor protection question @28:00 even references robinhood specifically. Brilliant.

[@timyates8333]

Blew my MIND

[@alphabromega859]

yea it's wild to see how much of the stuff discussed here played out

[@kaisidhant8283]

This class was in 2018 btw, insane how far ahead of the curve these guys were

[@emilia6067]

These MIT videos are gold. Thank you so much for uploading these for the general public!

[@QW3RTYUU]

100% with you. I feel so blessed watching these

[@TheMogules]

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[@stefanhousen5057]

you mean they are bitcoin ;)

[@Garce227]

Diamond hand!

[@sean-kb4wr]

@@stefanhousen5057 I was just about to comment that haha

[@sreesub]

This video is brilliant. Talking about stuff that is happening today like Robinhood selling data to Citadel and Google/Facebook regulations which are hot topics today. I am hoping Mr Gensler as SEC chairman does the right things for Crypto and Blockchain. I hope we get real time settlement for stocks under his watch so that Robinhood does not get margin called.

[@andsama]

its mind blowing how ahead of their time people attending those classes are

[@berajpatel8081]

code, blockchain and ledgers .... changing they way we keep lists and accounts ..... incredible !

[@kindimage]

Most useful part of this class for me: “The word settlement means to finally change the data in a ledger, and that we’re not gonna come back to it. It’s done. It’s final. If we’re moving something of value, and the value could be grapes, the value could be diamonds, the value can be real estate, the value can be money, but if we’re moving something of value and storing it on a ledger, it’s more adaptable to blockchain. If you’re doing some database that has nothing to do with things of value and ledger, you don’t need final immutable settlement, I would contend you have less reason to use any of this blockchain stuff… And another thing that blockchains help with is they lower the cost of reconciling multiple databases.”

[@cryptoholic5120]

Huge thanks to MIT & Gary for providing this gold

[@bernardorcampos]

1:17 Gary “I was at his wedding, and he’s getting married again next week. After class you can all ask him about Fidelity” 😐 Gary really should have said those sentences apart from each other

[@user-dc6tr3qe3w]

boy that robinhood question at minute 28 was spot on 😎

[@lifevacay]

Dark pool?

[@Bordelcossin]

38:29 Gary in 2018 : I would say the investor protection side (blockchain), we’re at the early stages and it’s going to take, in most jurisdictions, another three years. Gary in 2021 : The Senate has confirmed Gary Gensler as SEC chairman in a 53-45 vote. Nice.

[@authenticallysuperficial9874]

"He's having his second wedding coming up, you can all grill him about fidelity" bahahahaha 😂

[@andso7068]

1:10:42 - The turning point for Walmart in its battle against K-Mart during their prime, was Walmarts initiative to adopt the satellite based technology for their suppliers. K-Mart was still operating on pen & paper for most of their operations. Walmart is pretty good at adapting to the times and using it to their advantage. I would argue that blockchain technology to be much more efficient to satellite based tech in all ways. They see that, hence their transition.

[@Chris-kq3ix]

The broccoli analogy was great LOL. And as mentioned by a few others, Hugo's question referencing Robinhood was spot on. Bravo.

[@seymourkern7736]

What a fantastic experience. I am a full stack student blockchain developer. I have limited resources at age 80 and going strong. It’s never too late to learn. Do you have any grants for inventiveness?

[@BoDeezArts]

Towards the end of the video, you were talking about tracking foods and logistics. You need to take a good look at VeChain/VET who has already put together a program with Price Waterhouse Cooper and Wal-mart China. They have already passed with flying colors, the first stage of testing with Walmart-China and moving on the next and much larger scale of testing the VeChain logistics project with Walmart China. VeChain’s technology basically follows each product from the farm to the processors to the distributors to the retail stores. With all the covid problems, it protect all combined where the products have been to even the temperatures of the environments. VeChain is putting together more customers and partners and now joins Chinese alliance with Walmart, Starbucks and McDonald. Per Jake Simmons, by September 18, 2020 VeChain has joined the China Animal Health And Food Safety Alliance, sponsored by the Ministry of Agriculture of the People's Republic of China, as a council member.

[@onetwothree4148]

Yep, exactly what I was thinking. VET is already doing this

[@flicndills123]

Vet to the moon 🌙

[@chrisfilet]

Noticed something weird: Gensler pronounces "susceptible" as "sup-sceptible" twice, once at 1:07:10 and the other earlier.

[@seryvesbuhat6568]

What a lecture! So far this was the most exciting part of the course. Im excited to the next classes.

[@dsbranch9144]

These lectures are brilliant and priceless.

[@bungeebones]

The students discussing the potential use of blockchain for real estate titles (50:00) don't seem to be aware of M.E.R.S. (Mortgage Electronic Registry System). While not actually titles, mortgages, too, need to be registered at the local government records; at least they used to until MERS. Since most mortgages are traded in the secondary market, the mortgage brokers considered it too cumbersome to record those transfers at local records agencies and built their own system. It became embroiled in court cases around the country and resulted in a foreclosure defense known as "Show Me The Note". The mortgage brokers would have been better served by recording the transfers on a public blockchain than they were by their permission, centralized system. Today, the entire real estate sector is relying on MERS to track who is owed the mortgage payments. Any mistake by MERS means the wrong entity got paid while the legitimate lender might still have a claim. MERS is quite a mess.

[@ecjjox]

I am excited for the use cases project presentation after this lecture, I hope they have it on KZbin haha

[@prula]

I think it is wrong to say a "hash" is compressing data. Because that would mean, I could decompress the hash and get the same data out of it. That's not possible. So a hash is more like an encrypted summary of the content it hashes. And I can make sure, that if I have the same original content, and hash it with the same Algorithm, the hash will be identical and therefore the exact same data, which is the proof that it's actually the same content and wasn't changed.

[@onetwothree4148]

Most compression algorithms do not produce something that can be reversed.

[@campusseoul]

We will plan on looking at Corda.

[@RiccardoVincelli]

10:49 Stuart Haber surpasses Satoshi Nakamoto in the number of citations (52 vs 51)

[@antoniogil5156]

Funny about the *Fidelity* guy who is getting married again lol

[@lawniczakjohn]

30:00 You have some policing on it… But there isn’t any policing on centralized front running… None. There are no penalties for Market Makers or Hedge Funds, or if there are they are negligible and the cost of doing business. We need penalties that fit the crime and jail for those who commit them. 33:02 Time-stamping and order books.

[@rami87ah]

Thank you MIT. This is highly appreciated!

[@brainstormingsharing1309]

Absolutely well done and definitely keep it up!!! 👍👍👍👍👍

[@nandit123]

Nice video and the concluding advice.. thanks prof. Gensler

[@Lippy8555]

The transaction statistics are misleading. #Bitcoin has batched transactions and layer 2. So it depends how you want to slice this but #Bitcoin is handling more transactions than what people can imagine!

[@ndl32697]

Would it be accurate to say that Cardano is attempting to solve Buterin's Trillema?

[@bobsondugnutt7526]

Scalability and Security I can see, but Decentralization is difficult when the currency is pre-mined with 16.99% going to the developers. And because it is proof of stake, those who want to take over the network (corporate/state actors) simply have to buy a lot of the currency. With proof-of-work, energy-intensive as it is, an intermediary (miners) exists between corporate/state actors and influence over the protocols. I am still wrapping my head around the properties of consensus mechanisms but I think as of now a proof-of-work system is needed for maximized decentralization. Otherwise in my opinion it will be the weakest of the trilemma.

[@petrid779]

Financial institutions, take note of the 28:00 mark. Good question that may indicate Gensler's regulatory agenda.

[@Garce227]

Love explanation of front running!

[@chowa3686]

Thank you for sharing this knowledge

[@luvpreetsingh8020]

So, NYT crossword puzzle solution by matching hashes, is a Zero Knowledge Proof?

[@flicndills123]

Xrp can do a lot more transactions in just a few seconds than btc can do in a entire 24hrs! With no errors might I add

[@bobsondugnutt7526]

In terms of the trilemma, bitcoin loses on scalability but xrp loses on decentralization. I would argue decentralization is the most important of the three. I don't see governments being okay with xrp when they can just design their own centralized digital currencies.

[@jake77515]

23:57 I like how this was explained.

[@seymourkern7736]

I am having a great audio problem understanding all international dialects. Is it possible to have the presenter paraphrase in English what is being spoken by someone in the audience with a non English dialect?

[@mitocw]

We recommend you turn on captioning. Almost all of our videos are captioned. There are also transcripts available on MIT OpenCourseWare at: ocw.mit.edu/15-S12F18. Best wishes on your studies!

[@nicolashuljich2]

You have to activate CC and that is all!

[@iammrharding857]

What a swerve at 31.00 about 5% and darkpools

[@kevenwang9285]

Hugo is brilliant.

[@ryanbaileyboxing]

My favorite finance channels besides this one: Mondays: Earn your leisure market Mondays Tuesdays: Wallstreet looks like us now network, Reppond Investments Wednesday: Reppond investments Also, melanin money podcast and peter Schiff show, Palisades gold, the RO Show wealthion, Joseph Carlson For crypto: Ivan on tech, crypto banter, cryptosrus Make my week complete!

[@gfx260]

30:00 I can’t disagree

[@keanuleachay8371]

golden content

[@Garce227]

Could we get access to the assignments?

[@mitocw]

See the course on MIT OpenCourseWare for any materials: ocw.mit.edu/15-S12F18. Best wishes on your studies!

[@RedShiftedDollar]

I feel like Bitcoin is permissioned. Doesn't the tx fee serve to entice the miner to grant you permission to be included in their block? A zero fee transaction might never be processed. If I require zero permission, why do I require a fee? Also, can't miners decide based on any other parameter they choose? One miner might not care about fees at all and instead simply requires that anyone in his block ask permission first. What am I missing here?

[@HugosLeung]

You better go back to the first lecture. Missing some fundamental knowledge about how the Bitcoin Blockchain works.

[@RedShiftedDollar]

@@HugosLeung please post timestamp or at least paraphrase my mistake.

[@RedShiftedDollar]

@@HugosLeung At least answer this yes/no question. Do miners have free choice to select the transactions they include in their blocks?

[@RedShiftedDollar]

@@HugosLeung Was your post intended as a personal attack? It's very rude to post "go back to bitcoin 101" when in fact it is you who is incapable of articulating even a single sentence on the subject. What about my post indicates lack of knowledge? I actually arrived at my question after reviewing the functions included in Satoshi's original source code. I honestly don't think transactions can be processed without the permission of miners. But like I said, I've got to be missing something right?

[@HugosLeung]

Not a personal attack. It is permissionless bc the miner solving the PoW gets to add the block and that can be anybody. It is not limited as it would a permissions system. This is what I mean by going to the fundamentals. As for what gets entered into the block, that is not part of the definition of permission. It would have to do with how transactions get grabbed from the database of queued transactions.

[@kd6613]

Let’s all trust the brilliant British woman famous for credit default swap. Human greed truly has no shame or limits. We can forgive Robert Oppenheimer but not sure what kind of mental gymnastics we have to do here.

[@BANYAT_W]

Thank you

[@iammrharding857]

Whats allan,s project ?

[@PianoCat-Music]

Bitcoin is solving the pain point of having unethical FIAT Money

[@EduardsESA]

North Korea and Russia in one line? You OK, Gary?

[@JossinJax]

They really dropped the ball on this one. 50+ minutes in and still don’t know what permission v permissionless systems are.

[@andsama]

watching those videos without the reading , youre missing alot it builds upon them .

[@JossinJax]

@@andsama Gonna have to find them then!

[@andsama]

@@JossinJax it in the link under the video , which opens the official page under the reading section you will find all the readings

[@TM-fr7gh]

Permissioned sounds like a fancy database lol

[@samferrer]

... yes, but every little town is embedded into a bigger system ... 53.00

[@kenichimori8533]

0 Permissioned = 1 0 1

[@therecyclingguy256]

**takes seat 🪑

[@tommyboy1653]

FTX ,SBV,and it's gone.

[@abdullahaslan8401]

9:35

[@SuperYouthful]

Should I be applying for my own jobs in the FUTURE BECAUSE I don't have any MONEY FOR YOUR OWN BUSINESS as well as YOUR job WITH her HUSBAND IN OUR SOCIETY. Which one should I go down the paths with EACH OTHER IN AMERICA THAT WE CAN GET TO know ABOUT this WORLD RIGHT now BETWEEN the EAST include the CIA and the LIVING ROOM of the UNITED STATES OF AMERICA.

[@bg8988]

i'm sorry to give you a thumbs down, but i don't know what else to do. this video keeps playing despite my attempts to block it. i ve seen it once and that was enough. i wasn't that interested in the first place. stop playing this in my feed. what's the point of giving useres the option to tell you we're not interested in seeing content if you're just going to show said content more often after the request was made. pretty sure i blocked this channel last time it came up in my feed..