6. Smart Contracts and DApps

[@mrw8643]

Am I really getting a FREE online MIT course from the Gary Gensler on Blockchain and Bitcoin!?!? Wow. Yes, yes I am. Super grateful.

[@francopasqualini5363]

yea, isn't youtube amazing?

[@tuff2luhv]

same

[@asht7290]

@@francopasqualini5363 yup, KZbin is great, but this is a tremendous generous "open-educational" decision by MIT Sloan

[@knee-long1255]

No kidding. I'm soooo grateful to be able to learn about amazing technology from MIT for "free". YT is utilizing the most beneficial sort of projection for this technology of the future.

[@indobalkanizer6557]

Proud to be a KZbin Premium user, now I'm totally convinced that YT is super worth it 💯

[@onceappuonatime]

Thanks a lot to everyone at MIT for providing such valuable information to the public. In the true sense of our internet, this is one reason why it was created.

[@rodrigodiaz1321]

Best way to thank is to donate to them

[@marcastro8052]

MIT is overrated. I make more money than an average MIT graduate.

[@ricardo190988]

Education should be all free or much cheaper tbh, especially now where thanks the the internet, like you said, we don't require huge investments in infrastructure and everyone can just learn at home.

[@MrBorussia22]

Starts off with the true sense of our internet and then forgets about TikTok... Disappointing @Neeraj Nair.

[@ReTr093]

@@marcastro8052 probably because a ton of MIT graduates end up working in research, which isn't known for being the highest paying field around, although it is known for being the primary field in the creation and validation of general human knowledge. so you might be earning more than your average MIT grad, but ask yourself whether you are you contributing to humanity and society as much as your average MIT grad does?

[@Dabu-Dabu]

I still can't believe all this material is for free.... this is beyond me. and I love it.

[@ghaffarellis]

I'm forever thankful. I'm a Jamaican college dropout would take the time to educate himself regardless of circumstance. And, here I am applying myself to a MIT Programmed Course.

[@ConsciousnessExplored]

Keep it up

[@T99bull]

Don’t give up

[@jvanrs4928]

What a fantastic class. I have done my studies in pretty decent places ; however, the breath, depth, and carisma of Mr. Gensler is top notch

[@justins1147]

Anyone who cares about the future of the "money" needs to see this. Thank you MIT. Watched it twice already.

[@kevinrodriguez-ju6ij]

I feel like im attending to MIT for free, thank you guys so much for posting the video , this was so interesting , a world of knowledge and i also learn that i have to take a coding course lol

[@rp3875]

Extremely valuable course with such high quality. Cannot thank MIT enough!

[@MoneyOverFame]

Absolutely

[@djienf]

Yeah

[@thejamesinator17]

Legend has it, the girl in the front is still raising her hand to this day.

[@todayu]

It’s killing me!

[@manojvits]

LOL

[@ethanrojas2270]

😂

[@balmaceda01]

False,she was medically assisted to local clinic due to sustained ligature strain

[@tobalaba]

her name is Jihee.

[@matteoperetti9535]

This content is an example og why internet is so good

[@MP-ny3ep]

Wow , to be able to be a part of the discussion which includes the greats like Gensler and Lessig (even though it's prerecorded) is an honor. Thank you once again MIT for your invaluable service and thank you Prof.Gensler and Mr.Lessig for this wonderful lecture

[@djienf]

Hmm, is this whole semester free? Count me in. Thank you MIT, my favorite college.

[@gs2988]

These are really super interesting lectures. Appreciate them being available and accessible to us.

[@kevincoutinho8726]

A lot of the focus here was on the interpretation of the contract and mentioning that the "state" will intervene. Would have loved to hear more on how the "Consensus Mechanism" fits in with the interpretation of the contract and how DApps could be used to let the people have a say in the decision making process.

[@heyjonbray]

If you're interested in this still, I'd recommend checking out some materials on specific DAOs and how their governance structures work. The Ethereum VM's consensus mechanism provides rules that apply to the entire platform, while contractual consensus can be performed on a dapp basis. MakerDAO (the governance mechanism for Compound Finance) is one of the longest running and most financially liquid DAOs on Ethereum and is a good starting place for application specific governance and decentralized consensus.

[@bobsondugnutt7526]

1:06:20 The key here is that the code is open source, meaning anyone can view it. You don't have to understand the code, you only have to trust a consensus of code-readers that the code is in good faith.

[@elginbeloy6205]

Bruh this is not failsafe. Look at Linux kernel bugs that have been there for TEN YEARS! And U of M researches adding new bugs to the kernel with literally no reviewer saying shit for years.

[@julkiewitz]

@@elginbeloy6205 Worse yet, there is no recourse against badly written smart contract, as I understand. That's where the legal system's ambiguity and vagueness comes in handy. I could sign a complicated contract with a loophole allowing the other party to get my house for free. But then I could go to court and make a case that this contract was not adequately expressing the consensual will of both of the parties (namely, me). And there's a good chance I would win and render that contract or some clauses in the contract void. There is no analogue for that in smart contracts. That's why I view them as tools for professionals - financial institutions, traders, investors, not ordinary people.

[@arthurswanson3285]

@@elginbeloy6205 lol

[@apexvadeor3670]

@@elginbeloy6205 AI will fix all code bug and errors

[@rohitnair9304]

What an absolute masterclass of a lecture! You can see Prof Lesson has thought deeply on this topic. Glad to be able to listen to him here sitting in PJs.

[@gabrielsodre1897]

Thank you for making knowledge accessible to almost anyone. Greetings from Brazil.

[@goksuokar288]

These lectures are so precious, thank you MIT! For enabling us to be a part of it.

[@alexalston3240]

The course has it its stride for sure! Guest lecturer was a good idea gary! "force Lessig to pay the 10K!"

[@CSWG-d9e]

Thank you MIT & prof. Gary Gensler.

[@berajpatel8081]

Thank you Prof. Gary Gensler & Prof. Lawrence Lessig

[@cameronbowes7813]

I like that you guys allow comments. Unlike most news agencies

[@ronvada1761]

They only want one agenda out. They don't want to hear opposition or truth!

[@mauricem5232]

Thanks for a decentralized lecture! Watching from Rwanda

[@campusseoul]

It was good to have Lawrence Lessig cover the legal issues of smart contracts.

[@acmtsing]

Professor Gary Gensler is really good at teaching.

[@GreyArea619]

I can't believe this is open to the public!

[@minichanz]

It's hard to believe so little people appreciate it yet.

[@minichanz]

This will have more hits than Psy

[@Estado_Alterado]

Crazy right?!

[@nrg_fre]

It should be, Transparent The Land of The Free & Trust Isn't Free Anymore American Government WASTE$$$$$ DIGITAL BLOCKCHAIN LEDGER WILL KEEP EVERYONE MORE HONEST AND INCENTIVE TO. WHICH CHANGES THE WORLD 🌎PEACE

[@jackseropian4905]

I just found like three days ago and just been binge watching it, he’s an amazing professor guess that’s why it’s MIT lol

[@shennindar7761]

this lecture is gold dust. learned so much, brilliant delivery by both lecturers

[@MOBoperations]

Brilliant lecturers with highly valuable knowledge. Thank you MIT.

[@samforeman3137]

alot of smart contracts systems and cryptos out there but I feel like Lessig is explaining Cardano perfectly.

[@philipnovikov2413]

What a class... Especially in today's bull markets...

[@rschmidtzalles]

So far my favorite lecture of this course.

[@ravirenu2213]

Answer to the question 1.10.00 : If a transaction is entered into the blockchain and verified by a third party( let's say miners) , it doesn't necessarily allows the miner to actually know the contents of the transaction. So in essence, a third party would not actually know the flight you were travelling or didn't travel in this instance. The sole purpose of proof of work in a blockchain is to verify if a transaction has happened and to validate the transaction. Correct me if I'm wrong

[@jeremylittlefield]

Incorrect. The transactions are public in the mempool. Miners frequently mess with the ordering to profit off of the insider info thru arbitrage.

[@adriacarim1972]

What a big bunch of knowledge I'm taking from this guy and his partners. I have to say that somebody should tell the students who stand up before professor finish his speach doesn't deserve studying in that college. What a kindness fault.

[@ryanpatterson20]

No, they likely have something else to do with their time.

[@barrellcooper6490]

Best class so far.

[@lorenzxu5481]

It is not easy for a lawyer or any other person with just basic coding education to really understand the real code, the pseudo-code maybe. Thanks Larry!

[@littlejames3877]

Would be a great market for code translators.

[@YouAreNotThisBody]

@1:13 that guy asked why blockchain is used for insurance company,the answer is to automate the insurance process without human workers.The professor did mention "no touch technology" but he got could not answer properly when questioned by the student.Blockchain and smart contract is used in the flight insurance to automtate the claims and saving money on human wokers.

[@hookssiam]

Great point

[@wasteurtime5677]

If my house burned down and I had fire insurance, then the work of a human worker might be to carry out an investigation as to whether the fire was accidental or whether I started the fire and I'm trying to defraud the insurance company. I'm not sure about how blockchain tech would automate away that human task. What is the human task in the flight insurance example?

[@autumnmarlene]

Thank you MIT from myself and the future

[@ameremortal]

I'm so thankful for these. I love MIT people.

[@RiccardoVincelli]

1:00:15 Theoretically, a formalization effort for an event leaf should be proportional to the expected loss or value, not the probability score itself.

[@luthianotrarbach3145]

This course is awesome! Thank you, MIT for the excellent resource.

[@bungeebones]

Also, a key element of a contract is "a meeting of the minds". In order for that to occur, both parties need to be able to understand the contract. But if a contract "is in the code" and neither party can read code then there is no way their minds can meet unless they use a translated version. At that point, the contract is actually in the translation. If the code doesn't deliver what is contained in the translation then that is likely a breach. Another problem is that you end up with contracts written by programmers instead of licensed and qualified attorneys. It might end up that some programmers get prosecuted for practicing law without a license.

[@prula]

I am a music composer/producer. If I could combine my music with smart contracts, I could collect royalties for each use automatically without a Performance Royalty organisation like ASCAP or BMI or in my case: GEMA So many uses are being undetected and therefore not paid. Also the PROs and the big TV networks etc. always take "cut" including the banks who wire the fiat. This might be an enormous power shift towards artists and against the "big guys" centralized shady organisations.

[@Ricky_Bright]

It's coming...NFT's are the start and it won't stop there!

[@prula]

@@Ricky_Bright Agreed! But I think NFTs is more like a thing for end consumers / fans. I am talking about B2B relationships and copy right transactions. That's the smart contract area... maybe! :)

[@matthewryan4844]

@@prula NFTs allow a specified royalty to be paid to the NFT creator when sold. As far as use of the asset while owned, maybe that will come soon.

[@alfmar95]

Yup, same with banking. I can stake bitcoin and get like 5% APY on an appreciating asset. Or I can have the bank do the same with my money but I'll only get like 1% while they keep the rest. Crypto is going to eliminate a lot of those "middleman" jobs

[@teslacarfan]

Lecture starts at 7:36

[@raphaelprates1500]

Readings: * "Smart contracts: 12 use cases for business & beyond" Chamber of Digital Commerce * "State of DApps: 5 Observations from Usage Data" McCann * "Etherum Competitors: Guide to the Alternative Smart Contract Platforms" Blockonomi

[@nicolebrown6461]

ty

[@zezeze-ld5jh]

Great guest!We should learn basic codes too.

[@manojvits]

THANK YOU !!! Great Lecture, makes you aware of some really complex problems and ends on optimism. Thank you

[@lorenzotijerina238]

I love this so much. Im beyond grateful.

[@julkiewitz]

Concerning the flight delay insurance example, I don't see what would stop any insurer from making that kind of product available without the use of smart contracts - e.g. a website where one hooks up their payment method and their deposit account and then the flight number. However there are some notable differences compared to using a "regular non-smart" contract: 1) I have to place less trust in the insurer's solvency etc. 2) I have to place less trust in the insurer's will to follow the letter of the contract. 3) The most important: the contract itself could become a security that can be traded. That's certainly not something that a simple website could allow in any way.

[@bafanamotheogane3225]

Thoroughly enjoyed this lesson

[@Tony-yn5rr]

This professor is now the head of the SEC

[@sannysamund]

SEC means ?

[@CO8848_2]

He was the head of CFTC before,

[@victoraraujo9735]

Vitalik not Vatalik. Very good Lecture, thank's MIT OCW. (from Portugal)

[@KrishnaG0902]

Gary gensler is the head of SEC now, embroiled with Coinbase.

[@vinicius360vivan]

Great class, watching from Brazil. Thank you!

[@l.halawani]

Whoooaaa that sounds like an awesome course. Blockchain, AI, I wonder what else!

[@jonathanhill7829]

My key takeaway - "There is no reason for 90% of what lawyers do to be done by lawyers"

[@trejohnson7677]

Well that’s a big barrier to it’s adoption. DELETE THIS COMMENT 😂.

[@ryguy2556]

You have a lot to learn

[@definitelyannpc2038]

Better than watching a movie!

[@danielburgwynbarker7849]

01:15:42 “We already saw in the derivatives market the fact that the choice by policymakers was to allow it to be an invisible market and not to regulate that market. It created all sorts of risks that sensible people might think shouldn’t be there…” (glares at Gensler) 🤣

[@Infinitenothingness180]

high quality stuff.. Thank you MIT !

[@0xAnthony]

that EOS shilling in the course aged well

[@mastergog1]

What a great self-reinforcing business model indeed : D

[@jamisony]

Thanks MIT, much appreciated this.

[@CO8848_2]

The tech discussion, well, kinda was missing the big picture, not to mention some of which was not quite right, e.g., throughput of a chain is not determined by how hard the proof of work is or what hashing algorithm is involved, it’s by the defined protocol by consensus. The Turing completeness is also not really about loops, but rather computability or not; there is no limit to how many languages can be used for the smart contract is, as any Turing complete virtual machine can be represented by any high level language, too; etc etc. this might suffice for a “intro to smart contract 101 - what they are kinda taking about”, but it’s not really enough of you really want to know.

[@KafshakTashtak]

If only all schools and courses were available to all for free.

[@alexkess8506]

Thank you Gary and MIT.

[@tuff2luhv]

this would be a dream college class to go to

[@zeytelaloi]

A better example than flight delay is crop insurance. Farmers in Africa which rely on rains could engage in crop insurance schemes where they pay a premium in the good years, but in the bad years (no rain) they would get a settlement. This prevents them from starving, leaving their farm behind and having to become migrate workers. Instead they do not have to think The oracle could be an aggregate of data from NASA, ESA, some Chinese agency and so on whatever posting global weather data. The founder of Chainlink has talked a lot about this. While we can talk about concern for privacy and other drawbacks here, keep in mind that this insurance scheme could be created by anyone in any place in the world, not just a big insurance company. Today this type of scheme might not be feasible, and even if it was setup, a powerful corporation might just be able to bribe their way out of paying for things, or outlast the poor farmer in any legal battle. This is the type of solution that blockchain smart contracts unleash.

[@SV-tc8cu]

Looks like Etherium inventor name is misspelt - the correct spelling is 'Vitalik' which is short for 'Vitaly'

[@markdodson5432]

Thank you, MIT!

[@titancryptograph6523]

6:07 - To answer your question: Hedera Hashgraph is a competitor to Ethereum

[@kennethkeen1234]

It begins at 07:44 for those who don't need the crap.

[@Garce227]

Just feel so lucky and grateful😀🙏

[@vikmakfilms5284]

Just got more crytpos today, and crytpo contracts also, AMP, XYO, ankr , Cardano , Etherum , Bitcoin, Polygon

[@G_Q_L]

this is a real use, but the legal stuff is the topic to work

[@anupamacharya8854]

I think one very important thing we can add here in addition to what Prof. Lawrence Lessig has taught is that - Objectivity of the outcome makes writing *Law as Code* much more easier (proportionally) overall. For example - In the classic example of Insurance product connected to flight delays, the objectivity of the outcome connected to the Source of Truth makes the overall product easier to be implemented as *Law as Code* because outcome is guaranteed to happen as data is objective - flight is getting delayed or not getting delayed. Ofcourse, the concern of the candidate that he may not trust whether code is faulty or not can obviously be verified by any independent agency.

[@anupamacharya8854]

To summarize - 1. Objectivity of Outcome & 2. Source of Truth (for the outcome) are two key params in designing the systems which are favourable to the concept of Smart Contracts.

[@maxg7838]

Thank you MIT!

[@paulyates3370]

Very interesting lecture

[@kunifer]

Thanks a lot for this amazing 👏 course!

[@2gchaz18]

great playlist! thank you!! volume on the videos is kinda low btw

[@demystifycrypto3459]

who's here after hearing Gensler's comments in front of congress?

[@cauebraga]

After watching this, I can say: 1. Hugo is the most applied student, every classes his questions are there somewhere. 2. Ethereum is all hype and speculation, because when it comes to the law it's still very hard to create rules and predict the problems SC may cause. I am not saying the SC ideas are bad, but there's still a long way to be tested. Having a public figure behind the protocol also brings some danger. Also theTuring-complete language makes the protocol more vunerable for attacks. 3. Chances of bitcoin going mainstream are much likely to happen due to the restricted language used, for being 100% decentralized and for having clarity in its purpose. As Professor Gensler said: "In Ethereum you can write a program to do just anything." It's higly flexible but hard to be inside real world's law. Bitcoin, on the other hand, not even the law can stop as the network everyday gets globally extended. 4. Thank you, MIT and Professor Gensler for the perfect contents presented until now.

[@astrea17x]

20:24 there is an error in the subtitles, it should be 'altcoins' rather than 'Ott coins'.

[@mitocw]

Thanks for the note! The subtitles have been updated.

[@daswassuup]

Lecture starts at 7:33 👌

[@84raizen84]

From Italy... Thank you

[@drewcrawford7628]

Great course!

[@mm-zw1zc]

Excellent discussion.

[@luluu7808]

finally I have learnt what are Dapps mean

[@doukoure3468]

Is blockchain with smart contract can realy solve African weak instutions' problem? For the first time i got a little hope.

[@nicolebrown6461]

what do you mean?

[@noellechan7930]

thanks for sharing out this lecture !

[@m.talibsameerkhan8369]

2:16 I was not expecting Stan Lee cameo in this video

[@pedrocontrerasavendano8578]

Really good class, thank you

[@mohammadrahmaty521]

Great class! Thank you!

[@deadfarang]

Well, we know Nick Szabo is not Satoshi. Turing complete?

[@ghaffarellis]

Turing Complete is such a headache at time. Here's why, you take the theory at surface value, assume that it should apply to a new solution. If the solution foes apply or need to apply the theory, then said solution is in valid. With bitcoin, the lock time remains a proven way for the system's accountability.

[@ctcsys]

Craig S Wright made that clear. Bitcoin ( not btc any more) is like a 2 stack machine and can be coded like Forth

[@whimsythecrypto-hippy-wolf1900]

@@ctcsys not btc anymore?? what u talking 'bout Mr Willis?

[@pjcornell4318]

The most important question was not asked. If a smart contract is used by a going concern in a jurisdiction, of course that jurisdiction can bring the law to bear on the use of that contract. How will they be able to stop independent individuals from engaging with computer code on a decentralized network?

[@barrellcooper6490]

I think you miss the point, for example if Mafia hit man agrees to resolve your problem, and you don't pay, Mafia hit man does not take you to court, he sizes you for a pair of concrete shoes and it's you in the river. The contract is illegal and if he doesn't get paid the contract is not enforceable through the legal system. It was still a contract and it still was enforceable and it didn't need the internet or block chain to operate without the state. But what if you aren't a Mafia hit man and you don't have access to extralegal enforcement tools? Then you make a legal contract so that you can use the state to enforce the contract, or you don't make the contract. If the parties are satisfied with the results, the contract terms don't violate the law to the extent they are know to the state legal system then the parties may decide they don't need the services of the state legal system. Example: you buy a house with a smart contract. There is a problem with the house that the seller should have disclosed but didn't. Suing in court to enforce performance under the contract and disclosure laws becomes an option.

[@pjcornell4318]

@@barrellcooper6490 no I don't think that you understand my point. I'm not sure you understand what a smart contract is. The situation that you describe would not be possible to put into a smart contract. But what a smart contract might do for example, is automatically enact a financial transaction such as a derivative that breaks SEC rules. There really wouldn't be much the SEC could do to stop it once the code was on the ethereum blockchain. yes, they could attempt to prosecute the people who avail themselves of that code, but they really couldn't prevent people from using it if they were determined to do it, and if they were smart about it there'd be no way that the SEC could bring the law to bear on them at all because they could keep it anonymous

[@julkiewitz]

@@pjcornell4318 Isn't that similar to any other situations where parties break the law? A financial institution could enter into an illegal derivative contract with another financial institution and act on that contract. SEC can prosecute parties involved. If they still continue the illegal conduct they could presumably have some of their assets seized. If seizing assets was to become an issue with crypto, presumably the govt might enact a law that states that any crypto assets that financial institutions hold must also be accessible via some backdoor to the government - they put their keys in some kind of an escrow. But this won't be an issue as long as most of assets are kept in regular currencies as you can always just seize equivalent in other assets or you can enforce the laws at the exchange points.

[@whimsythecrypto-hippy-wolf1900]

great talk! thanx edit~ info is a bit outdated, FYI

[@julkiewitz]

Is it really true about video capture and Macs? If true that's insane. Is there any reference to back it up?

[@saveri0magiust0]

What Is the formal difference between a promise and a performance?

[@sairammurtypeddada6894]

Absolute GEM!!!

[@lennon_richardson]

Why does he abbreviate contract with a “k”?

[@lawniczakjohn]

1:01:35 Why smart contracts are called dumb contracts and how they will act conceptually for complex contracts in the future.

[@SittingWithDogs]

I really hope Gary puts forth good solid regulation for this space. This blockchain space is a bigger innovation than anything we have previously seen. If we don’t get it right (and we currently are not!) America will suffer greatly. Please Gary & all elected officials do the right thing. People will move in droves & take their businesses and money with them. This could be the one thing that saves our economy from the future disruptions in income from AI and robotics among thousands of other great benefits

[@maxlife459]

Ooh boy.... this has not aged well....

[@SuperHawu]

Can one find the "readings" anywhere?

[@mitocw]

ocw.mit.edu/courses/sloan-school-of-management/15-s12-blockchain-and-money-fall-2018/readings/. Best wishes on your studies!

[@SuperHawu]

@@mitocw vielen lieben Dank 🤗