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Sam Williams: Mechanism Design 101

Sam Williams, founder and CEO of decentralized storage system Arweave, gives an overview of “Mechanism Design,” a field of study that has become newly relevant with the development of Bitcoin and subsequent blockchains that require carefully designed incentives for network participants. Williams uses examples to show that economic incentives, when designed properly, can persuade self-interested…

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Sam Williams, founder and CEO of decentralized storage system Arweave, gives an overview of “Mechanism Design,” a field of study that has become newly relevant with the development of Bitcoin and subsequent blockchains that require carefully designed incentives for network participants. Williams uses examples to show that economic incentives, when designed properly, can persuade self-interested people to exhibit useful behaviors at fair market value with minimal central planning. This provides a new tool to bootstrap decentralized networks. He cautions, however, that poorly conceived incentive systems can overpower moral frameworks in ways that can be dangerous. This could be harmful, he says, in decentralized protocols, since self-executing code may not easily be altered to curtail unintended consequences. Williams closes with a case study of his company, Arweave, and the way it created an endowment-style financial incentive system to build a platform where data can be secured forever. This kind of model opens the door to new kinds of community-owned networks that can’t be manipulated by central owners.

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77 Comments

77 Comments

  1. Drusie

    May 27, 2020 at 5:40 am

    loved it

  2. Ethyl

    May 27, 2020 at 5:40 am

    loved it

  3. Denni

    May 27, 2020 at 5:40 am

    loved it

  4. Deloria

    May 27, 2020 at 5:40 am

    loved it

  5. Babbette

    May 27, 2020 at 5:40 am

    loved it

  6. Daloris

    May 27, 2020 at 5:40 am

    loved it

  7. Gwyneth

    May 27, 2020 at 5:40 am

    loved it

  8. Geneva

    May 27, 2020 at 5:40 am

    loved it

  9. Hetty

    May 27, 2020 at 5:40 am

    loved it

  10. Livvyy

    May 27, 2020 at 5:40 am

    loved it

  11. Adah

    May 27, 2020 at 5:40 am

    loved it

  12. Dorry

    May 27, 2020 at 5:40 am

    loved it

  13. Bobine

    May 27, 2020 at 5:40 am

    loved it

  14. NickVanos

    May 27, 2020 at 7:34 pm

    Good content and presentation. 👍

  15. @NickVanos

    May 27, 2020 at 3:34 pm

    Good content and presentation. 👍

  16. Stephen K

    May 29, 2020 at 2:34 am

    Loved this presentation.

  17. @stephenk8319

    May 28, 2020 at 10:34 pm

    Loved this presentation.

  18. C

    May 29, 2020 at 9:22 am

    Can you provide links to the reading materials cited?

  19. @user-or7ji5hv8y

    May 29, 2020 at 5:22 am

    Can you provide links to the reading materials cited?

  20. JO Et

    May 29, 2020 at 2:50 pm

    Bitcoin incentivizes entrepreneurs who produce cheap electricity competition in the minning space then leads to innovation in the energy biz cause there is a decentralised incentive to do it ( BTC) Satoshi still king in incentive designs.

    • Vitalis Serrano

      June 2, 2021 at 8:01 am

      That’s not Satoshi’s, he didn’t create BTC for cheap electricity. The search for electricity and the boom of cryptocurrency comes down to the oldest most basic incentive: Greed

  21. @joet8652

    May 29, 2020 at 10:50 am

    Bitcoin incentivizes entrepreneurs who produce cheap electricity competition in the minning space then leads to innovation in the energy biz cause there is a decentralised incentive to do it ( BTC) Satoshi still king in incentive designs.

    • @vitalisserrano1579

      June 2, 2021 at 4:01 am

      That’s not Satoshi’s, he didn’t create BTC for cheap electricity. The search for electricity and the boom of cryptocurrency comes down to the oldest most basic incentive: Greed

  22. Elvis Kiprono

    June 3, 2020 at 10:12 am

    Quite informative

  23. Elvis Tile

    June 3, 2020 at 10:12 am

    Quite informative

  24. @ElvisKipronotile

    June 3, 2020 at 6:12 am

    Quite informative

  25. Nandit Mehra

    September 3, 2020 at 9:24 am

    this video fills a deeply missing link

  26. @nandit123

    September 3, 2020 at 5:24 am

    this video fills a deeply missing link

  27. mike wazowski

    September 9, 2020 at 10:05 am

    Incredible

  28. @mikewazowski4472

    September 9, 2020 at 6:05 am

    Incredible

  29. Simulation

    September 10, 2020 at 6:08 pm

    Thanks for this Sam!

  30. @SimulationSeries

    September 10, 2020 at 2:08 pm

    Thanks for this Sam!

    • @beoptimistic5853

      January 31, 2021 at 12:30 pm

      💐.

  31. Earn Free LifeStyle

    December 19, 2020 at 4:47 pm

    Great video.

  32. ROHIT SINGH

    February 21, 2021 at 4:36 pm

    Amazing!

  33. @ROHITSINGH-kw1oo

    February 21, 2021 at 11:36 am

    Amazing!

  34. Jay D

    April 29, 2021 at 9:56 pm

    Like paying US Govt paying hospitals per covid patient and covid death…

  35. Jay Canuckle

    April 29, 2021 at 9:56 pm

    Like paying US Govt paying hospitals per covid patient and covid death…

  36. Justin B

    April 29, 2021 at 5:56 pm

    Like paying US Govt paying hospitals per covid patient and covid death…

  37. J D

    April 29, 2021 at 5:56 pm

    Like paying US Govt paying hospitals per covid patient and covid death…

  38. @jdchannelviewer

    April 29, 2021 at 5:56 pm

    Like paying US Govt paying hospitals per covid patient and covid death…

  39. Sheesh

    May 23, 2021 at 9:32 pm

    Audio way too low

  40. @DerKesekuchen

    May 23, 2021 at 5:32 pm

    Audio way too low

  41. @Sheeshening

    May 23, 2021 at 5:32 pm

    Audio way too low

  42. prasad mahadik

    September 23, 2021 at 6:14 am

    Wow, genius in using the decreasing cost of storage and creating an inflating asset out of it.

    • JaxRwld

      May 6, 2022 at 10:24 pm

      Timestamp?

  43. @prasadmahadik5684

    September 23, 2021 at 2:14 am

    Wow, genius in using the decreasing cost of storage and creating an inflating asset out of it.

    • @JaxRwld

      May 6, 2022 at 6:24 pm

      Timestamp?

  44. Dave M

    November 15, 2021 at 9:17 pm

    Not a developer or even technically inclined, but I hung in there almost until the 3/4 mark. Until about 35:10 when he said that content would be moderated by code but then didn’t explain how that’s even possible. Or maybe he did explain it and it went so far over my head… But if anyone has an idea how to explain it, I’d love to hear it. Fascinating video anyway.

    • Ram Das

      May 8, 2022 at 9:16 pm

      It’s self-moderated by the nodes in that each miner decides what data they want to host. This talk didn’t go into the technical aspects so he didn’t really touch on it. From what I’ve seen so far they don’t have a satisfying answer on how that will work in practice and coexist with current legislation though. Because it means the node operators would have to scan all that data for “illegal” content that could get them in trouble with the law. Seems messy.

  45. @davem8086

    November 15, 2021 at 4:17 pm

    Not a developer or even technically inclined, but I hung in there almost until the 3/4 mark. Until about 35:10 when he said that content would be moderated by code but then didn’t explain how that’s even possible. Or maybe he did explain it and it went so far over my head… But if anyone has an idea how to explain it, I’d love to hear it. Fascinating video anyway.

    • @ramdas363

      May 8, 2022 at 5:16 pm

      It’s self-moderated by the nodes in that each miner decides what data they want to host. This talk didn’t go into the technical aspects so he didn’t really touch on it. From what I’ve seen so far they don’t have a satisfying answer on how that will work in practice and coexist with current legislation though. Because it means the node operators would have to scan all that data for “illegal” content that could get them in trouble with the law. Seems messy.

  46. @davemontore

    November 15, 2021 at 4:17 pm

    Not a developer or even technically inclined, but I hung in there almost until the 3/4 mark. Until about 35:10 when he said that content would be moderated by code but then didn’t explain how that’s even possible. Or maybe he did explain it and it went so far over my head… But if anyone has an idea how to explain it, I’d love to hear it. Fascinating video anyway.

  47. D C

    December 24, 2021 at 9:31 pm

    Maybe in Mechanism Design 301 he will get to how all rewards put into crypto markets by capital donors are spread until equilibrium is reached near the marginal cost of shitcoin shilling.

  48. D

    December 24, 2021 at 9:31 pm

    Maybe in Mechanism Design 301 he will get to how all rewards put into crypto markets by capital donors are spread until equilibrium is reached near the marginal cost of shitcoin shilling.

  49. DdDdD

    December 24, 2021 at 9:31 pm

    Maybe in Mechanism Design 301 he will get to how all rewards put into crypto markets by capital donors are spread until equilibrium is reached near the marginal cost of shitcoin shilling.

  50. @ddddddddd345

    December 24, 2021 at 4:31 pm

    Maybe in Mechanism Design 301 he will get to how all rewards put into crypto markets by capital donors are spread until equilibrium is reached near the marginal cost of shitcoin shilling.

  51. Božo Popović

    February 12, 2022 at 9:12 pm

    What a loss! Some guys should just stick with their developer tools.

  52. @PopovicBozo

    February 12, 2022 at 4:12 pm

    What a loss! Some guys should just stick with their developer tools.

  53. Jay Berg

    April 8, 2022 at 12:14 pm

    Disagree but love the title 😍

  54. @jaybny

    April 8, 2022 at 8:14 am

    Disagree but love the title 😍

  55. Anak Wannaphaschaiyong

    April 23, 2022 at 7:47 pm

    This is soooooooooo good

  56. milfex-lostex

    April 23, 2022 at 7:47 pm

    This is soooooooooo good

  57. Chandarong Nuon

    May 6, 2022 at 11:53 am

    Very nice content

  58. @nuonchanndarong

    May 6, 2022 at 7:53 am

    Very nice content

  59. Ram Das

    May 8, 2022 at 8:59 pm

    Moderated questions are lame and antithetical to the spirit of the talk. How do we know the presenter didn’t rehearse the QA? Why is there a live audience if all they’re allowed to do is sit there like sheep and not say anything?
    Blockchains are about verifying instead of trusting. The general public better treat their investments in general the same way. This is what VC firms do internally but obviously their business model is all about you having less information then them so “talks” like these are nothing but sales pitches.

  60. @ramdas363

    May 8, 2022 at 4:59 pm

    Moderated questions are lame and antithetical to the spirit of the talk. How do we know the presenter didn’t rehearse the QA? Why is there a live audience if all they’re allowed to do is sit there like sheep and not say anything?
    Blockchains are about verifying instead of trusting. The general public better treat their investments in general the same way. This is what VC firms do internally but obviously their business model is all about you having less information then them so “talks” like these are nothing but sales pitches.

  61. Magic Internet Movie called atoms

    May 24, 2022 at 9:08 pm

    👁️💚💧🎬💉🧬🦋

  62. Atoms Movie

    May 24, 2022 at 9:08 pm

    👁️💚💧🎬💉🧬🦋

  63. @atomsmovie

    May 24, 2022 at 5:08 pm

    👁️💚💧🎬💉🧬🦋

  64. EarthStudent

    September 21, 2022 at 4:13 am

    💯

  65. LANVAL

    September 21, 2022 at 4:13 am

    💯

  66. LNVL

    September 21, 2022 at 4:13 am

    💯

  67. @LNVL28

    September 21, 2022 at 12:13 am

    💯

  68. Flávio Fraschetti

    February 8, 2023 at 1:59 pm

    One of the best classes in this course. Thank you so much

  69. @fiosaoar

    February 8, 2023 at 8:59 am

    One of the best classes in this course. Thank you so much

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