Nobel Prize Lecture of Eric Maskin Followed by talk of blockchains and mechanism design by Jeff Coleman
AlphaBots is any SSR process that is open to validation on the AlphaBlock. The process can be alpha agents like prediction markets or data scientists, or simply machines open to competing on the AlphaBlock. Competition is important for the accountability of an SSR process. Without the validation accountability any alpha process is simply a subjective claim of alpha without an objective proof.
The verifier’s dilemma, which remains an open problem is another example of gaps in the current blockchain architecture and the consensus mechanism. There are of course workarounds with Ethereum’s smart contract while bitcoin suffers and continues to fork. However, the problem here is bigger and not just about Turing-complete scripts, increased DoS attacks and fiddling […]
Modern finance is built on linear regression. Hence Asness’s textbook use of linear regression is brilliant because simplicity is powerful. He uses Aristotelian logic to elegantly bring out the information content buried in hedge fund performance.
Fred Ehrsam, I would frame the problem differently. The need is not just for creating most powerful artificial intelligences, it is about redesigning the marketplace that can nurture such an ecosystem. The marketplace cannot be taken for granted. A poorly designed marketplace means poor AI, even if we assume that the state of AI today is structurally stable.