Làm thế nào các thuật toán định hình thế giới của chúng ta – Kevin Slavin

How algorithms shape our world - Kevin Slavin
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How algorithms shape our world - Kevin Slavin

 


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[Music] [Music] [Applause] [Applause] [Applause] this<00:00:16.340> is<00:00:16.460> a<00:00:16.490> photograph<00:00:16.790> by<00:00:17.360> the<00:00:17.420> artist this is a photograph by the artist this is a photograph by the artist Michael<00:00:18.619> Najjar<00:00:19.040> and<00:00:19.970> it's<00:00:20.119> real<00:00:20.390> in<00:00:21.380> the Michael Najjar and it's real in the Michael Najjar and it's real in the sense<00:00:21.710> that<00:00:21.830> he<00:00:22.160> went<00:00:22.550> there<00:00:22.730> to<00:00:23.060> Argentina<00:00:23.750> to sense that he went there to Argentina to sense that he went there to Argentina to take<00:00:24.080> the<00:00:24.230> photo<00:00:24.580> but<00:00:25.580> it's<00:00:25.700> also<00:00:25.820> a<00:00:26.000> fiction take the photo but it's also a fiction take the photo but it's also a fiction there's<00:00:26.810> a<00:00:26.869> lot<00:00:27.020> of<00:00:27.200> work<00:00:27.560> that<00:00:27.829> went<00:00:28.070> into<00:00:28.250> it there's a lot of work that went into it there's a lot of work that went into it after<00:00:28.579> that<00:00:28.849> and<00:00:28.910> what<00:00:29.210> he's<00:00:29.329> done<00:00:29.540> is<00:00:29.750> he's after that and what he's done is he's after that and what he's done is he's actually<00:00:30.460> reshaped<00:00:31.460> digitally<00:00:32.419> all<00:00:32.599> of<00:00:32.750> the actually reshaped digitally all of the actually reshaped digitally all of the contours<00:00:33.950> of<00:00:34.010> the<00:00:34.070> mountains<00:00:34.430> to<00:00:34.640> follow<00:00:34.880> the contours of the mountains to follow the contours of the mountains to follow the vicissitudes<00:00:35.840> of<00:00:36.140> the<00:00:36.290> Dow<00:00:36.440> Jones<00:00:36.470> index<00:00:37.250> so vicissitudes of the Dow Jones index so vicissitudes of the Dow Jones index so what<00:00:38.420> you<00:00:38.540> see<00:00:38.870> that<00:00:39.350> precipice<00:00:39.890> that<00:00:40.070> high what you see that precipice that high what you see that precipice that high precipice<00:00:40.940> with<00:00:41.120> the<00:00:41.210> valley<00:00:41.390> is<00:00:41.750> the<00:00:41.960> 2008 precipice with the valley is the 2008 precipice with the valley is the 2008 financial<00:00:43.160> crisis<00:00:44.030> the<00:00:44.300> photo<00:00:44.780> was<00:00:45.020> made<00:00:45.230> when financial crisis the photo was made when financial crisis the photo was made when we<00:00:45.470> were<00:00:45.680> deep<00:00:45.920> in<00:00:46.130> the<00:00:46.190> valley<00:00:46.700> over<00:00:47.150> there<00:00:47.660> I we were deep in the valley over there I we were deep in the valley over there I don't<00:00:47.810> know<00:00:47.990> where<00:00:48.230> we<00:00:48.410> are<00:00:48.440> now<00:00:49.270> this<00:00:50.270> is<00:00:50.540> the don't know where we are now this is the don't know where we are now this is the Hang<00:00:51.440> Seng<00:00:51.770> Index<00:00:51.830> or<00:00:52.520> Hong<00:00:52.730> Kong<00:00:52.760> and<00:00:53.710> similar Hang Seng Index or Hong Kong and similar Hang Seng Index or Hong Kong and similar topography<00:00:55.400> I<00:00:55.430> wonder<00:00:56.030> why<00:00:56.240> and<00:00:56.890> this<00:00:57.890> is<00:00:58.070> art topography I wonder why and this is art topography I wonder why and this is art right<00:00:59.060> this<00:00:59.329> is<00:00:59.570> metaphor<00:01:00.470> but<00:01:01.220> I<00:01:01.460> think<00:01:02.090> the right this is metaphor but I think the right this is metaphor but I think the point<00:01:02.329> is<00:01:02.390> is<00:01:02.540> that<00:01:02.690> this<00:01:02.780> is<00:01:02.989> metaphor<00:01:03.560> with point is is that this is metaphor with point is is that this is metaphor with teeth<00:01:04.460> and<00:01:05.000> it's<00:01:05.180> with<00:01:05.390> those<00:01:05.600> teeth<00:01:05.930> that<00:01:06.229> I teeth and it's with those teeth that I teeth and it's with those teeth that I want<00:01:06.530> to<00:01:06.650> propose<00:01:07.460> today<00:01:07.939> that<00:01:08.270> we<00:01:08.479> rethink<00:01:09.140> a want to propose today that we rethink a want to propose today that we rethink a little<00:01:09.619> bit<00:01:09.799> about<00:01:10.430> the<00:01:10.610> role<00:01:10.820> of little bit about the role of little bit about the role of contemporary<00:01:12.530> math<00:01:12.799> not<00:01:13.130> just<00:01:13.399> financial contemporary math not just financial contemporary math not just financial math<00:01:14.119> but<00:01:14.420> math<00:01:14.630> in<00:01:15.170> general<00:01:15.530> that<00:01:15.770> it's math but math in general that it's math but math in general that it's transition<00:01:17.540> from<00:01:17.720> being<00:01:17.900> something<00:01:18.080> that<00:01:18.200> we transition from being something that we transition from being something that we sort<00:01:18.620> of<00:01:18.740> extract<00:01:19.550> and<00:01:19.880> derive<00:01:20.210> from<00:01:20.510> the sort of extract and derive from the sort of extract and derive from the world<00:01:20.840> to<00:01:21.020> something<00:01:21.470> that<00:01:21.860> actually<00:01:22.070> starts world to something that actually starts world to something that actually starts to<00:01:22.760> shape<00:01:23.150> it<00:01:23.360> the<00:01:24.110> world<00:01:24.320> around<00:01:24.650> us<00:01:24.920> in<00:01:25.250> the to shape it the world around us in the to shape it the world around us in the world<00:01:25.490> inside<00:01:26.360> us<00:01:26.600> and<00:01:26.810> it<00:01:26.930> specifically world inside us and it specifically world inside us and it specifically algorithms<00:01:28.760> which<00:01:29.000> are<00:01:29.210> basically<00:01:30.049> the<00:01:30.200> math algorithms which are basically the math algorithms which are basically the math that<00:01:30.680> computers<00:01:31.250> used<00:01:31.490> to<00:01:31.640> decide<00:01:32.000> stuff<00:01:32.590> they that computers used to decide stuff they that computers used to decide stuff they acquire<00:01:34.130> the<00:01:34.970> sensibility<00:01:35.690> of<00:01:35.780> truth<00:01:36.110> because acquire the sensibility of truth because acquire the sensibility of truth because they<00:01:36.680> repeat<00:01:37.159> over<00:01:37.340> and<00:01:37.640> over<00:01:37.790> again<00:01:37.970> and<00:01:38.120> they they repeat over and over again and they they repeat over and over again and they kind<00:01:38.360> of<00:01:38.420> ossify<00:01:39.170> and<00:01:39.470> calcify<00:01:40.130> and<00:01:40.549> they<00:01:40.610> kind kind of ossify and calcify and they kind kind of ossify and calcify and they kind of<00:01:40.850> become<00:01:41.659> real<00:01:42.650> and<00:01:42.979> I<00:01:43.580> was<00:01:43.670> thinking<00:01:43.850> about of become real and I was thinking about of become real and I was thinking about this<00:01:44.409> of<00:01:45.409> all<00:01:45.650> places<00:01:46.190> on<00:01:46.460> a<00:01:46.490> transatlantic this of all places on a transatlantic this of all places on a transatlantic flight<00:01:47.000> a<00:01:47.690> couple<00:01:48.170> years<00:01:48.320> ago<00:01:48.470> because<00:01:49.130> I flight a couple years ago because I flight a couple years ago because I happen<00:01:49.549> to<00:01:49.610> be<00:01:49.670> seated<00:01:50.030> next<00:01:50.210> to<00:01:50.420> a<00:01:50.869> Hungarian happen to be seated next to a Hungarian happen to be seated next to a Hungarian physicist<00:01:51.860> about<00:01:52.250> my<00:01:52.430> age<00:01:52.610> and<00:01:53.030> we<00:01:53.119> were physicist about my age and we were physicist about my age and we were talking<00:01:53.570> about<00:01:53.740> what<00:01:54.740> life<00:01:54.920> was<00:01:55.100> like<00:01:55.159> during talking about what life was like during talking about what life was like during the<00:01:55.580> Cold<00:01:55.820> War<00:01:56.060> for<00:01:56.090> physicists<00:01:56.960> in<00:01:57.320> Hungary the Cold War for physicists in Hungary the Cold War for physicists in Hungary and<00:01:57.979> I<00:01:58.340> said<00:01:58.640> so<00:01:58.790> what<00:01:58.909> were<00:01:59.060> you<00:01:59.210> doing<00:01:59.240> and<00:01:59.570> he and I said so what were you doing and he and I said so what were you doing and he said<00:01:59.810> well<00:01:59.930> we<00:02:00.049> were<00:02:00.200> mostly<00:02:01.159> breaking said well we were mostly breaking said well we were mostly breaking stealth<00:02:02.060> and<00:02:02.600> I<00:02:02.720> said<00:02:02.930> that's<00:02:03.140> a<00:02:03.229> good<00:02:03.470> job stealth and I said that's a good job stealth and I said that's a good job that's<00:02:04.880> interesting<00:02:05.650> how<00:02:06.650> does<00:02:06.830> that<00:02:06.979> work that's interesting how does that work that's interesting how does that work and<00:02:07.610> so<00:02:07.759> to<00:02:07.820> understand<00:02:08.360> that<00:02:08.509> you<00:02:08.629> have<00:02:08.659> to and so to understand that you have to and so to understand that you have to understand<00:02:09.110> a<00:02:09.170> little<00:02:09.200> bit<00:02:09.470> about<00:02:10.399> how understand a little bit about how understand a little bit about how stealth<00:02:10.879> works<00:02:11.209> and<00:02:11.450> so<00:02:11.629> this<00:02:12.470> is<00:02:12.650> a stealth works and so this is a stealth works and so this is a oversimplification<00:02:14.120> but<00:02:14.269> basically<00:02:14.659> it's oversimplification but basically it's oversimplification but basically it's not<00:02:15.830> like<00:02:16.040> you<00:02:16.159> can<00:02:16.370> just<00:02:16.400> pass<00:02:17.390> a<00:02:17.450> radar not like you can just pass a radar not like you can just pass a radar signal<00:02:18.170> right<00:02:18.500> through signal right through signal right through 156<00:02:20.629> tons<00:02:21.019> of<00:02:21.230> steel<00:02:21.560> in<00:02:21.769> the<00:02:21.889> sky<00:02:22.129> it's<00:02:22.430> not 156 tons of steel in the sky it's not 156 tons of steel in the sky it's not just<00:02:22.730> going<00:02:22.879> to<00:02:22.939> disappear just going to disappear just going to disappear but<00:02:24.980> if<00:02:25.070> you<00:02:25.160> can<00:02:25.340> take<00:02:25.700> this<00:02:26.090> big<00:02:26.480> massive but if you can take this big massive but if you can take this big massive thing<00:02:27.530> and<00:02:27.830> you<00:02:28.490> could<00:02:28.730> turn<00:02:29.690> it<00:02:29.870> into<00:02:29.990> a thing and you could turn it into a thing and you could turn it into a million<00:02:31.700> little<00:02:31.730> things<00:02:32.030> something<00:02:32.840> like<00:02:33.710> a million little things something like a million little things something like a flock<00:02:34.190> of<00:02:34.220> birds<00:02:34.640> well<00:02:35.540> then<00:02:35.690> the<00:02:35.780> radar flock of birds well then the radar flock of birds well then the radar that's<00:02:36.320> looking<00:02:36.650> for<00:02:36.830> that<00:02:36.980> has<00:02:37.190> to<00:02:37.340> be<00:02:37.430> able that's looking for that has to be able that's looking for that has to be able to<00:02:37.880> see<00:02:38.120> every<00:02:38.780> flock<00:02:39.050> of<00:02:39.080> birds<00:02:39.470> in<00:02:39.740> the<00:02:39.890> sky to see every flock of birds in the sky to see every flock of birds in the sky and<00:02:40.430> if<00:02:41.210> you're<00:02:41.360> a<00:02:41.390> radar<00:02:41.870> that's<00:02:42.140> a<00:02:42.230> really and if you're a radar that's a really and if you're a radar that's a really bad<00:02:42.830> job bad job bad job and<00:02:44.960> he<00:02:45.110> said<00:02:45.350> yeah<00:02:45.590> he<00:02:46.250> said<00:02:46.430> but<00:02:46.640> that's<00:02:46.790> if and he said yeah he said but that's if and he said yeah he said but that's if you're<00:02:47.180> a<00:02:47.210> radar<00:02:47.750> he<00:02:48.140> said<00:02:48.320> so<00:02:48.440> we<00:02:48.530> didn't<00:02:48.740> use you're a radar he said so we didn't use you're a radar he said so we didn't use a<00:02:48.890> radar<00:02:49.160> we<00:02:49.550> built<00:02:50.240> a<00:02:50.390> black<00:02:50.600> box<00:02:50.900> that<00:02:51.470> was a radar we built a black box that was a radar we built a black box that was looking<00:02:51.890> for<00:02:52.000> electrical<00:02:53.000> signals looking for electrical signals looking for electrical signals electronic<00:02:54.020> communication<00:02:54.890> and<00:02:55.460> whenever<00:02:55.880> we electronic communication and whenever we electronic communication and whenever we saw<00:02:56.390> a<00:02:56.630> flock<00:02:57.110> of<00:02:57.140> birds<00:02:57.530> that<00:02:57.920> had<00:02:58.100> electronic saw a flock of birds that had electronic saw a flock of birds that had electronic communication<00:02:59.060> we<00:02:59.120> thought<00:02:59.330> probably<00:02:59.840> has communication we thought probably has communication we thought probably has something<00:03:00.590> to<00:03:00.620> do<00:03:00.860> with<00:03:00.890> the<00:03:01.100> Americans<00:03:01.670> and<00:03:02.270> I something to do with the Americans and I something to do with the Americans and I said<00:03:02.840> yeah<00:03:03.560> that's<00:03:03.890> that's<00:03:04.730> good<00:03:05.090> that's<00:03:05.420> good said yeah that's that's good that's good said yeah that's that's good that's good so<00:03:05.810> you've<00:03:06.020> effectively<00:03:06.950> negated<00:03:07.610> 60<00:03:08.060> years so you've effectively negated 60 years so you've effectively negated 60 years of<00:03:08.390> aeronautical<00:03:09.230> research<00:03:09.260> what's<00:03:09.980> your<00:03:10.310> act of aeronautical research what's your act of aeronautical research what's your act to<00:03:11.330> you<00:03:11.810> know<00:03:11.930> like<00:03:12.110> what<00:03:12.230> do<00:03:12.290> you<00:03:12.320> do<00:03:12.470> when<00:03:12.650> you to you know like what do you do when you to you know like what do you do when you grow<00:03:13.070> up<00:03:13.100> and<00:03:13.580> he<00:03:14.360> said<00:03:14.660> he<00:03:15.290> said<00:03:15.530> well<00:03:15.740> you grow up and he said he said well you grow up and he said he said well you know<00:03:16.330> financial<00:03:17.330> services<00:03:17.810> and<00:03:18.590> I<00:03:18.680> said<00:03:18.890> oh know financial services and I said oh know financial services and I said oh because<00:03:20.480> those<00:03:20.750> have<00:03:20.930> been<00:03:21.020> in<00:03:21.080> the<00:03:21.290> news because those have been in the news because those have been in the news lately<00:03:22.540> and<00:03:23.540> I<00:03:23.810> said<00:03:24.080> I<00:03:24.230> said<00:03:24.410> how<00:03:24.500> does<00:03:24.560> that lately and I said I said how does that lately and I said I said how does that work<00:03:24.860> and<00:03:24.890> I<00:03:25.010> said<00:03:25.070> well<00:03:25.190> there's<00:03:25.340> 2,000 work and I said well there's 2,000 work and I said well there's 2,000 physicists<00:03:26.600> on<00:03:26.720> Wall<00:03:26.900> Street<00:03:27.230> now<00:03:27.440> and<00:03:27.709> I'm physicists on Wall Street now and I'm physicists on Wall Street now and I'm one<00:03:28.640> of<00:03:28.760> them<00:03:28.940> and<00:03:29.180> I<00:03:29.360> said<00:03:29.420> well<00:03:29.660> so<00:03:29.840> what's one of them and I said well so what's one of them and I said well so what's the<00:03:30.200> black<00:03:30.410> box<00:03:30.709> for<00:03:31.550> Wall<00:03:31.700> Street<00:03:31.730> and<00:03:32.269> he the black box for Wall Street and he the black box for Wall Street and he said<00:03:32.840> well<00:03:32.959> it's<00:03:33.050> funny<00:03:33.230> that<00:03:33.290> you<00:03:33.470> asked<00:03:33.620> that said well it's funny that you asked that said well it's funny that you asked that because<00:03:33.920> it's<00:03:34.190> actually<00:03:34.310> called<00:03:34.760> black<00:03:35.390> box because it's actually called black box because it's actually called black box trading<00:03:35.989> and<00:03:36.820> it's<00:03:37.820> also<00:03:38.030> sometimes<00:03:38.540> called trading and it's also sometimes called trading and it's also sometimes called algo<00:03:39.320> trading<00:03:39.350> algorithmic<00:03:40.340> trading<00:03:40.580> and algo trading algorithmic trading and algo trading algorithmic trading and algorithmic<00:03:42.739> trading<00:03:42.980> involved<00:03:43.700> in<00:03:43.880> part algorithmic trading involved in part algorithmic trading involved in part because<00:03:45.550> institutional<00:03:46.550> traders<00:03:46.790> have<00:03:47.150> the because institutional traders have the because institutional traders have the same<00:03:47.540> problems<00:03:48.140> that<00:03:48.380> the<00:03:48.709> United<00:03:49.070> States same problems that the United States same problems that the United States airforce<00:03:49.519> had<00:03:50.000> which<00:03:50.750> is<00:03:50.900> that<00:03:51.080> they're airforce had which is that they're airforce had which is that they're moving<00:03:51.680> these<00:03:52.340> positions<00:03:53.060> whether<00:03:53.450> it's moving these positions whether it's moving these positions whether it's Procter<00:03:54.049> and<00:03:54.170> Gamble<00:03:54.590> or<00:03:54.739> etc<00:03:55.400> or<00:03:55.459> whatever Procter and Gamble or etc or whatever Procter and Gamble or etc or whatever they're<00:03:55.940> moving<00:03:56.209> like<00:03:56.239> a<00:03:56.360> million<00:03:57.140> shares<00:03:57.500> of they're moving like a million shares of they're moving like a million shares of something<00:03:58.340> through<00:03:58.610> the<00:03:58.730> market<00:03:59.120> and<00:03:59.269> if<00:03:59.810> they something through the market and if they something through the market and if they do<00:04:00.019> that<00:04:00.470> all<00:04:00.709> at<00:04:00.890> once<00:04:01.100> it's<00:04:01.340> like<00:04:01.400> playing do that all at once it's like playing do that all at once it's like playing poker<00:04:02.000> and<00:04:02.269> just<00:04:02.450> going<00:04:02.630> all-in<00:04:02.870> right<00:04:03.290> away poker and just going all-in right away poker and just going all-in right away right<00:04:04.010> you<00:04:04.160> just<00:04:04.310> tip<00:04:04.519> your<00:04:04.700> hand<00:04:04.910> and<00:04:05.150> so<00:04:06.140> they right you just tip your hand and so they right you just tip your hand and so they have<00:04:06.440> to<00:04:06.590> find<00:04:06.920> a<00:04:07.100> way<00:04:07.310> and<00:04:07.730> they<00:04:07.880> use have to find a way and they use have to find a way and they use algorithms<00:04:08.540> to<00:04:08.930> do<00:04:09.110> this<00:04:09.290> to<00:04:09.769> break<00:04:10.130> up<00:04:10.370> that algorithms to do this to break up that algorithms to do this to break up that big<00:04:10.940> thing<00:04:11.180> into<00:04:11.450> a<00:04:11.480> million<00:04:12.049> little big thing into a million little big thing into a million little transactions<00:04:13.130> and<00:04:13.370> the<00:04:13.880> magic<00:04:14.390> and<00:04:14.600> the transactions and the magic and the transactions and the magic and the horror<00:04:15.080> of<00:04:15.470> that<00:04:15.580> is<00:04:16.580> is<00:04:16.760> that<00:04:16.910> the<00:04:17.030> same<00:04:17.359> math horror of that is is that the same math horror of that is is that the same math that<00:04:18.320> you<00:04:18.350> use<00:04:18.739> to<00:04:18.950> break<00:04:19.250> up<00:04:19.489> the<00:04:19.880> big<00:04:20.090> thing that you use to break up the big thing that you use to break up the big thing into<00:04:20.720> a<00:04:20.750> million<00:04:21.080> little<00:04:21.109> things<00:04:21.380> can<00:04:22.070> be<00:04:22.190> used into a million little things can be used into a million little things can be used to<00:04:22.640> find<00:04:22.940> a<00:04:23.210> million<00:04:23.600> little<00:04:23.840> things<00:04:23.960> and<00:04:24.350> sew to find a million little things and sew to find a million little things and sew them<00:04:24.650> back<00:04:24.710> together<00:04:25.010> and<00:04:25.250> figure<00:04:25.669> out<00:04:25.700> what's them back together and figure out what's them back together and figure out what's actually<00:04:26.360> happening<00:04:26.960> in<00:04:27.080> the<00:04:27.169> market<00:04:27.500> so<00:04:27.650> if actually happening in the market so if actually happening in the market so if you<00:04:27.919> need<00:04:28.190> to<00:04:28.669> have<00:04:28.910> some<00:04:29.360> image<00:04:29.750> of<00:04:29.960> what's you need to have some image of what's you need to have some image of what's happening<00:04:30.979> in<00:04:31.130> the<00:04:31.580> stock<00:04:31.820> market<00:04:32.240> right<00:04:32.360> now happening in the stock market right now happening in the stock market right now what<00:04:32.810> you<00:04:32.930> can<00:04:33.110> picture<00:04:33.349> is<00:04:33.710> a<00:04:33.770> bunch<00:04:34.280> of what you can picture is a bunch of what you can picture is a bunch of algorithms<00:04:35.060> that<00:04:35.270> are<00:04:35.660> basically<00:04:35.990> programmed algorithms that are basically programmed algorithms that are basically programmed to<00:04:36.830> hide to hide to hide and<00:04:37.960> a<00:04:38.020> bunch<00:04:38.199> of<00:04:38.259> algorithms<00:04:38.770> that<00:04:38.919> are and a bunch of algorithms that are and a bunch of algorithms that are programmed<00:04:39.430> to<00:04:39.520> go<00:04:39.699> find<00:04:40.060> them<00:04:40.270> and<00:04:40.419> act<00:04:40.900> and programmed to go find them and act and programmed to go find them and act and all<00:04:41.740> of<00:04:41.889> that's<00:04:42.009> great<00:04:42.639> and<00:04:42.880> it's<00:04:43.120> fine<00:04:43.479> and all of that's great and it's fine and all of that's great and it's fine and that's<00:04:44.770> 70%<00:04:45.610> of<00:04:46.449> the<00:04:47.110> United<00:04:47.350> States<00:04:47.530> stock that's 70% of the United States stock that's 70% of the United States stock where<00:04:47.860> 70%<00:04:48.250> of<00:04:48.820> the<00:04:48.970> operating<00:04:49.479> system where 70% of the operating system where 70% of the operating system formerly<00:04:50.500> known<00:04:50.800> as<00:04:51.100> your<00:04:51.610> pension formerly known as your pension formerly known as your pension your<00:04:53.770> your<00:04:54.400> mortgage<00:04:54.940> and<00:04:55.620> what<00:04:56.620> could<00:04:56.770> go your your mortgage and what could go your your mortgage and what could go wrong<00:04:57.570> right<00:04:58.570> what<00:04:58.780> could<00:04:58.930> go<00:04:58.960> wrong<00:04:59.259> is<00:04:59.620> is wrong right what could go wrong is is wrong right what could go wrong is is that<00:05:00.100> a<00:05:00.130> year<00:05:00.520> ago that a year ago that a year ago 9%<00:05:02.110> of<00:05:02.199> the<00:05:02.259> entire<00:05:02.530> market<00:05:02.770> just<00:05:03.070> disappears 9% of the entire market just disappears 9% of the entire market just disappears in<00:05:04.090> five<00:05:04.389> minutes<00:05:04.810> and<00:05:04.930> they<00:05:05.080> called<00:05:05.259> it<00:05:05.380> the in five minutes and they called it the in five minutes and they called it the flash<00:05:05.740> crash<00:05:05.979> of<00:05:06.280> 2:45<00:05:06.970> right<00:05:08.139> all<00:05:08.410> of<00:05:08.650> a flash crash of 2:45 right all of a flash crash of 2:45 right all of a sudden<00:05:08.740> 9%<00:05:09.370> just<00:05:09.520> goes<00:05:09.759> away<00:05:10.030> and<00:05:10.539> nobody<00:05:11.500> to sudden 9% just goes away and nobody to sudden 9% just goes away and nobody to this<00:05:12.010> day<00:05:12.310> can<00:05:12.820> even<00:05:13.030> agree<00:05:13.360> on<00:05:13.539> what<00:05:14.169> happened this day can even agree on what happened this day can even agree on what happened because<00:05:15.039> nobody<00:05:15.610> ordered<00:05:16.270> it<00:05:16.389> nobody<00:05:16.780> asked because nobody ordered it nobody asked because nobody ordered it nobody asked for<00:05:17.229> it<00:05:17.530> nobody<00:05:18.070> had<00:05:18.430> any<00:05:18.639> control<00:05:19.180> over<00:05:19.960> what for it nobody had any control over what for it nobody had any control over what was<00:05:20.139> actually<00:05:20.500> happening<00:05:20.740> all<00:05:21.310> they<00:05:21.610> had<00:05:22.199> was was actually happening all they had was was actually happening all they had was just<00:05:23.260> a<00:05:23.620> monitor<00:05:24.130> in<00:05:24.280> front<00:05:24.310> of<00:05:24.610> them<00:05:24.900> that<00:05:25.900> had just a monitor in front of them that had just a monitor in front of them that had the<00:05:26.229> numbers<00:05:26.590> on<00:05:26.770> it<00:05:26.800> and<00:05:27.010> just<00:05:27.460> a<00:05:27.550> red<00:05:27.760> button the numbers on it and just a red button the numbers on it and just a red button that<00:05:28.419> said<00:05:28.750> stop<00:05:29.710> and<00:05:30.510> that's<00:05:31.510> the<00:05:31.780> thing that said stop and that's the thing that said stop and that's the thing right<00:05:32.380> is<00:05:32.590> is<00:05:32.710> that<00:05:32.889> we're<00:05:33.039> writing<00:05:33.610> things right is is that we're writing things right is is that we're writing things we're<00:05:34.599> writing<00:05:34.900> these<00:05:35.199> things<00:05:35.440> that<00:05:35.530> we<00:05:35.650> can we're writing these things that we can we're writing these things that we can no<00:05:36.039> longer<00:05:36.070> read<00:05:36.729> and<00:05:37.030> it's<00:05:37.840> we've<00:05:38.080> we've no longer read and it's we've we've no longer read and it's we've we've rendered<00:05:38.800> something<00:05:39.550> kind<00:05:40.030> of<00:05:40.120> illegible<00:05:40.900> and rendered something kind of illegible and rendered something kind of illegible and we've<00:05:43.150> lost<00:05:43.570> the<00:05:44.229> sense<00:05:44.620> of<00:05:44.919> what's<00:05:45.310> actually we've lost the sense of what's actually we've lost the sense of what's actually happening<00:05:46.120> in<00:05:47.020> this<00:05:47.590> world<00:05:47.650> that<00:05:48.070> we've<00:05:48.190> made happening in this world that we've made happening in this world that we've made and<00:05:48.580> we're<00:05:48.880> starting<00:05:49.419> to<00:05:49.570> make<00:05:49.840> our<00:05:50.080> way and we're starting to make our way and we're starting to make our way there's<00:05:50.860> a<00:05:50.979> company<00:05:51.340> in<00:05:51.430> Boston<00:05:52.360> called there's a company in Boston called there's a company in Boston called Nanak's<00:05:53.050> and<00:05:53.550> they<00:05:54.550> use<00:05:54.789> math<00:05:55.389> and<00:05:55.840> magic<00:05:56.260> and Nanak's and they use math and magic and Nanak's and they use math and magic and I<00:05:56.860> don't<00:05:56.889> know<00:05:57.159> what<00:05:57.460> and<00:05:57.669> they<00:05:58.030> reach<00:05:58.330> in<00:05:58.630> to I don't know what and they reach in to I don't know what and they reach in to all<00:05:59.080> the<00:05:59.229> market<00:05:59.560> data<00:05:59.740> and<00:05:59.949> they<00:06:00.789> find all the market data and they find all the market data and they find actually<00:06:01.780> sometimes<00:06:02.229> some<00:06:02.470> of<00:06:02.500> these actually sometimes some of these actually sometimes some of these algorithms<00:06:02.949> and<00:06:03.400> they<00:06:03.550> when<00:06:03.970> they<00:06:04.090> find<00:06:04.360> them algorithms and they when they find them algorithms and they when they find them they<00:06:04.570> they<00:06:04.990> pull<00:06:05.680> them<00:06:05.889> out<00:06:06.010> and<00:06:06.220> they<00:06:06.280> pin they they pull them out and they pin they they pull them out and they pin them<00:06:06.970> to<00:06:07.120> the<00:06:07.210> wall<00:06:07.389> like<00:06:07.659> butterflies<00:06:08.229> and them to the wall like butterflies and them to the wall like butterflies and they<00:06:09.669> do<00:06:09.729> what<00:06:10.090> we've<00:06:10.270> always<00:06:10.539> done<00:06:10.780> when they do what we've always done when they do what we've always done when confronted<00:06:12.010> with<00:06:12.159> huge<00:06:12.610> amounts<00:06:12.909> of<00:06:13.030> data confronted with huge amounts of data confronted with huge amounts of data that<00:06:13.360> we<00:06:13.570> don't<00:06:13.720> understand<00:06:14.349> which<00:06:14.860> is<00:06:14.889> that that we don't understand which is that that we don't understand which is that they<00:06:15.250> give<00:06:15.400> them<00:06:15.580> a<00:06:15.669> name<00:06:15.940> and<00:06:16.240> a<00:06:16.750> story<00:06:16.810> so they give them a name and a story so they give them a name and a story so this<00:06:17.949> is<00:06:18.130> one<00:06:18.280> that<00:06:18.430> they<00:06:18.550> found<00:06:19.050> they<00:06:20.050> called this is one that they found they called this is one that they found they called the<00:06:21.220> knife



the<00:06:24.789> carnival
the carnival the carnival the<00:06:26.979> Boston<00:06:27.520> shuffler the Boston shuffler the Boston shuffler Twilight<00:06:30.280> and<00:06:30.520> the Twilight and the Twilight and the gag<00:06:32.710> is<00:06:33.099> that<00:06:33.430> of<00:06:33.520> course<00:06:33.750> these<00:06:34.750> aren't<00:06:35.020> just gag is that of course these aren't just gag is that of course these aren't just running<00:06:35.620> through<00:06:35.860> the<00:06:35.979> market<00:06:36.400> right<00:06:36.820> you<00:06:36.970> can running through the market right you can running through the market right you can find<00:06:37.599> these<00:06:38.169> kinds<00:06:38.650> of<00:06:38.740> things<00:06:39.159> wherever<00:06:39.520> you find these kinds of things wherever you find these kinds of things wherever you look<00:06:39.880> once<00:06:40.240> you<00:06:40.419> learn<00:06:40.659> how<00:06:40.690> to<00:06:40.960> look<00:06:41.199> for<00:06:41.260> them look once you learn how to look for them look once you learn how to look for them right<00:06:42.130> you<00:06:42.280> can<00:06:42.430> find<00:06:42.699> it<00:06:42.820> here<00:06:42.970> this<00:06:43.750> book right you can find it here this book right you can find it here this book about<00:06:44.470> flies<00:06:44.889> that<00:06:45.520> you<00:06:45.669> may<00:06:45.849> have<00:06:46.000> been about flies that you may have been about flies that you may have been looking<00:06:46.270> at<00:06:46.539> on<00:06:46.690> Amazon<00:06:47.349> you<00:06:47.529> may<00:06:47.650> have looking at on Amazon you may have looking at on Amazon you may have noticed<00:06:48.159> it<00:06:48.340> when<00:06:48.639> its<00:06:48.820> price<00:06:49.120> started<00:06:49.690> at<00:06:49.779> 1.7 noticed it when its price started at 1.7 noticed it when its price started at 1.7 million<00:06:50.740> dollars<00:06:51.250> it's<00:06:51.870> out-of-print<00:06:52.550> still million dollars it's out-of-print still million dollars it's out-of-print still if<00:06:55.290> you<00:06:55.590> had<00:06:55.800> bought<00:06:56.040> it<00:06:56.220> at<00:06:56.340> 1.7<00:06:56.850> it<00:06:57.030> would if you had bought it at 1.7 it would if you had bought it at 1.7 it would have<00:06:57.240> been<00:06:57.330> a<00:06:57.360> bargain<00:06:57.720> a<00:06:57.810> few<00:06:58.050> hours<00:06:58.170> later<00:06:58.500> it have been a bargain a few hours later it have been a bargain a few hours later it had<00:06:58.980> gone<00:06:59.160> up<00:06:59.370> to<00:06:59.900> twenty<00:07:00.900> three<00:07:01.200> point<00:07:01.530> six had gone up to twenty three point six had gone up to twenty three point six million<00:07:02.100> dollars<00:07:02.550> plus<00:07:02.910> shipping<00:07:03.360> and million dollars plus shipping and million dollars plus shipping and handling<00:07:03.630> and<00:07:04.200> the<00:07:04.620> question<00:07:05.160> is<00:07:05.340> nobody<00:07:06.000> was handling and the question is nobody was handling and the question is nobody was buying<00:07:06.390> or<00:07:06.690> selling<00:07:06.720> anything<00:07:07.290> what<00:07:07.830> was buying or selling anything what was buying or selling anything what was happening<00:07:08.490> and<00:07:08.610> you<00:07:08.730> see<00:07:09.000> this<00:07:09.180> behavior<00:07:09.720> on happening and you see this behavior on happening and you see this behavior on Amazon<00:07:10.410> as<00:07:10.620> surely<00:07:11.040> as<00:07:11.160> you<00:07:11.190> see<00:07:11.520> it<00:07:11.610> on<00:07:11.730> Wall Amazon as surely as you see it on Wall Amazon as surely as you see it on Wall Street<00:07:12.270> and<00:07:12.360> when<00:07:12.720> you<00:07:12.900> see<00:07:13.170> this<00:07:13.350> kind<00:07:13.530> of Street and when you see this kind of Street and when you see this kind of behavior<00:07:13.740> what<00:07:14.250> you<00:07:14.370> see<00:07:14.670> is<00:07:14.880> the<00:07:15.240> evidence<00:07:15.270> of behavior what you see is the evidence of behavior what you see is the evidence of algorithms<00:07:16.980> in<00:07:17.160> conflict<00:07:17.850> algorithms<00:07:18.780> locked algorithms in conflict algorithms locked algorithms in conflict algorithms locked in<00:07:19.350> loops<00:07:19.620> with<00:07:19.890> each<00:07:20.010> other<00:07:20.220> without<00:07:20.640> any in loops with each other without any in loops with each other without any human<00:07:21.750> oversight<00:07:22.410> without<00:07:22.890> any<00:07:23.100> adult human oversight without any adult human oversight without any adult supervision<00:07:24.420> to<00:07:24.810> say<00:07:24.990> actually<00:07:25.580> 1.7<00:07:26.580> million supervision to say actually 1.7 million supervision to say actually 1.7 million is<00:07:27.600> plenty<00:07:28.020> you<00:07:28.800> stick<00:07:29.100> with<00:07:29.250> it<00:07:29.400> and<00:07:29.960> as<00:07:30.960> with is plenty you stick with it and as with is plenty you stick with it and as with Amazon<00:07:31.890> so<00:07:32.250> it<00:07:32.370> is<00:07:32.490> with<00:07:32.670> Netflix<00:07:33.020> and<00:07:34.020> so Amazon so it is with Netflix and so Amazon so it is with Netflix and so Netflix<00:07:34.980> has<00:07:35.970> gone<00:07:36.180> through<00:07:36.390> several Netflix has gone through several Netflix has gone through several different<00:07:37.140> algorithms<00:07:37.590> over<00:07:37.740> the<00:07:37.920> years<00:07:38.130> they different algorithms over the years they different algorithms over the years they started<00:07:38.610> with<00:07:38.730> cinema<00:07:39.090> and<00:07:39.360> they've<00:07:39.450> they've started with cinema and they've they've started with cinema and they've they've tried<00:07:40.230> a<00:07:40.290> bunch<00:07:40.530> of<00:07:40.620> others<00:07:40.890> there's<00:07:41.100> dinosaur tried a bunch of others there's dinosaur tried a bunch of others there's dinosaur planet<00:07:41.670> there's<00:07:42.000> gravity<00:07:42.450> they're<00:07:42.630> using planet there's gravity they're using planet there's gravity they're using pragmatic<00:07:43.410> chaos<00:07:43.770> now<00:07:44.070> pragmatic<00:07:44.700> chaos<00:07:45.030> is pragmatic chaos now pragmatic chaos is pragmatic chaos now pragmatic chaos is like<00:07:46.320> all<00:07:46.530> of<00:07:46.830> Netflix<00:07:47.220> algorithms<00:07:47.640> trying<00:07:47.850> to like all of Netflix algorithms trying to like all of Netflix algorithms trying to do<00:07:47.970> the<00:07:48.060> same<00:07:48.210> thing<00:07:48.390> it's<00:07:48.540> trying<00:07:48.780> to<00:07:48.840> get<00:07:48.900> a do the same thing it's trying to get a do the same thing it's trying to get a grasp<00:07:49.230> on<00:07:49.530> you<00:07:50.100> on<00:07:50.340> the<00:07:50.400> firmware<00:07:51.330> inside<00:07:51.960> the grasp on you on the firmware inside the grasp on you on the firmware inside the human<00:07:52.350> skull<00:07:52.530> so<00:07:52.920> that<00:07:53.100> it<00:07:53.370> can<00:07:53.610> recommend human skull so that it can recommend human skull so that it can recommend what<00:07:54.900> movie<00:07:55.350> you<00:07:56.010> might<00:07:56.250> want<00:07:56.490> to<00:07:56.550> watch<00:07:56.730> next what movie you might want to watch next what movie you might want to watch next which<00:07:57.660> is<00:07:57.780> a<00:07:57.810> very<00:07:58.230> very<00:07:58.740> difficult<00:07:59.220> problem which is a very very difficult problem which is a very very difficult problem but<00:08:00.450> the<00:08:00.540> difficulty<00:08:01.020> of<00:08:01.050> the<00:08:01.230> problem<00:08:01.260> and but the difficulty of the problem and but the difficulty of the problem and the<00:08:02.220> fact<00:08:02.430> that<00:08:02.460> we<00:08:02.610> don't<00:08:02.940> really<00:08:03.270> quite<00:08:03.750> have the fact that we don't really quite have the fact that we don't really quite have it<00:08:04.380> down<00:08:04.640> it<00:08:05.640> doesn't<00:08:06.000> take<00:08:06.150> away<00:08:06.180> from<00:08:06.540> the it down it doesn't take away from the it down it doesn't take away from the effects<00:08:07.710> the<00:08:08.010> pragmatic<00:08:08.520> chaos<00:08:08.790> has<00:08:09.000> bring effects the pragmatic chaos has bring effects the pragmatic chaos has bring out<00:08:09.630> a<00:08:09.660> chaos<00:08:09.930> like<00:08:10.800> all<00:08:11.040> Netflix<00:08:11.670> algorithms out a chaos like all Netflix algorithms out a chaos like all Netflix algorithms determines<00:08:12.900> in<00:08:13.170> the<00:08:13.320> end<00:08:13.880> 60%<00:08:14.880> of<00:08:15.350> what<00:08:16.350> movies determines in the end 60% of what movies determines in the end 60% of what movies end<00:08:17.040> up<00:08:17.400> being<00:08:17.670> rented<00:08:18.060> right<00:08:18.360> so<00:08:18.570> one<00:08:18.930> piece end up being rented right so one piece end up being rented right so one piece of<00:08:19.410> code<00:08:19.650> with<00:08:19.980> one<00:08:20.280> idea<00:08:20.810> about<00:08:21.810> you<00:08:22.230> is of code with one idea about you is of code with one idea about you is responsible<00:08:24.210> for<00:08:24.240> 60%<00:08:24.720> of<00:08:25.020> those<00:08:25.170> movies<00:08:25.500> but responsible for 60% of those movies but responsible for 60% of those movies but what<00:08:26.670> if<00:08:26.790> you<00:08:26.970> could<00:08:27.210> rate<00:08:27.810> those<00:08:28.080> movies what if you could rate those movies what if you could rate those movies before<00:08:29.250> they<00:08:29.730> get<00:08:29.910> made<00:08:30.150> right<00:08:30.390> wouldn't<00:08:31.050> that before they get made right wouldn't that before they get made right wouldn't that be<00:08:31.440> handy<00:08:31.800> well<00:08:32.070> so<00:08:32.400> a<00:08:32.430> few<00:08:32.940> data<00:08:33.150> scientists be handy well so a few data scientists be handy well so a few data scientists from<00:08:34.080> the<00:08:34.140> UK<00:08:34.590> or<00:08:34.800> in<00:08:34.830> Hollywood<00:08:35.370> and<00:08:35.520> they from the UK or in Hollywood and they from the UK or in Hollywood and they have<00:08:36.090> story<00:08:36.690> algorithms<00:08:37.470> and<00:08:37.710> company<00:08:38.010> called have story algorithms and company called have story algorithms and company called epic<00:08:38.430> oh<00:08:38.550> jokes<00:08:38.820> and<00:08:39.150> you<00:08:39.510> can<00:08:39.690> run<00:08:39.960> your epic oh jokes and you can run your epic oh jokes and you can run your script<00:08:40.620> through<00:08:41.400> there<00:08:41.670> and<00:08:41.850> they<00:08:42.210> can<00:08:42.360> tell script through there and they can tell script through there and they can tell you<00:08:42.870> quantifiably<00:08:43.800> that<00:08:44.070> that's<00:08:44.220> a<00:08:44.340> 30 you quantifiably that that's a 30 you quantifiably that that's a 30 million<00:08:44.940> dollar<00:08:45.150> movie<00:08:45.510> or<00:08:45.630> a<00:08:45.660> 200<00:08:46.200> million million dollar movie or a 200 million million dollar movie or a 200 million dollar<00:08:46.500> movie<00:08:47.430> and<00:08:47.610> the<00:08:48.000> thing<00:08:48.180> is<00:08:48.270> is<00:08:48.420> that dollar movie and the thing is is that dollar movie and the thing is is that this<00:08:49.170> isn't<00:08:49.440> Google<00:08:49.800> right<00:08:50.400> this<00:08:50.610> isn't this isn't Google right this isn't this isn't Google right this isn't information<00:08:51.900> these<00:08:52.020> aren't<00:08:52.230> financial<00:08:52.980> stats information these aren't financial stats information these aren't financial stats this<00:08:53.610> is<00:08:53.820> culture<00:08:54.480> and<00:08:54.630> what<00:08:55.620> you<00:08:55.740> see<00:08:55.980> here<00:08:56.400> or this is culture and what you see here or this is culture and what you see here or what<00:08:56.760> you<00:08:56.850> don't<00:08:57.090> really<00:08:57.330> see<00:08:57.720> normally<00:08:58.380> is<00:08:58.530> is what you don't really see normally is is what you don't really see normally is is that<00:08:59.220> these<00:08:59.370> are<00:08:59.430> the<00:08:59.670> physics<00:09:00.180> of<00:09:00.360> culture that these are the physics of culture that these are the physics of culture and and and if<00:09:03.060> these<00:09:03.360> algorithms<00:09:04.170> like<00:09:04.620> the<00:09:04.770> algorithms if these algorithms like the algorithms if these algorithms like the algorithms on<00:09:05.340> Wall<00:09:05.640> Street<00:09:05.940> just<00:09:06.150> crashed<00:09:06.510> one<00:09:06.930> day<00:09:07.110> and on Wall Street just crashed one day and on Wall Street just crashed one day and went<00:09:07.500> awry<00:09:08.240> how<00:09:09.240> would<00:09:09.420> we<00:09:09.600> know<00:09:10.130> what<00:09:11.130> would went awry how would we know what would went awry how would we know what would it<00:09:11.370> look<00:09:11.400> like<00:09:11.520> and it look like and it look like and they're<00:09:13.440> in<00:09:13.590> your<00:09:13.740> house<00:09:13.980> right<00:09:14.640> there<00:09:15.540> in they're in your house right there in they're in your house right there in your<00:09:15.900> house<00:09:16.080> right<00:09:16.380> these<00:09:16.590> are<00:09:16.710> two your house right these are two your house right these are two algorithms<00:09:17.250> competing<00:09:17.910> for<00:09:18.060> your<00:09:18.150> living algorithms competing for your living algorithms competing for your living room<00:09:18.540> these<00:09:18.690> are<00:09:18.750> two<00:09:18.990> different<00:09:19.140> cleaning room these are two different cleaning room these are two different cleaning robots<00:09:20.640> that<00:09:20.940> have<00:09:21.000> very<00:09:21.450> different<00:09:21.690> ideas robots that have very different ideas robots that have very different ideas about<00:09:22.410> what<00:09:22.620> clean<00:09:22.950> means<00:09:22.980> and<00:09:23.850> you<00:09:23.910> can<00:09:24.060> see about what clean means and you can see about what clean means and you can see it<00:09:24.450> if<00:09:24.600> you<00:09:25.080> slow<00:09:25.380> it<00:09:25.530> down<00:09:25.560> and<00:09:25.980> attach<00:09:26.250> lights it if you slow it down and attach lights it if you slow it down and attach lights to<00:09:27.150> them<00:09:27.330> and<00:09:27.510> there's<00:09:28.320> sort<00:09:28.410> of<00:09:28.500> like<00:09:28.560> secret to them and there's sort of like secret to them and there's sort of like secret architects<00:09:29.820> in<00:09:29.940> your<00:09:30.120> bedroom<00:09:30.570> yeah<00:09:31.290> and<00:09:31.470> the architects in your bedroom yeah and the architects in your bedroom yeah and the idea<00:09:32.310> that<00:09:32.370> architecture<00:09:32.790> itself<00:09:33.750> is<00:09:34.110> somehow idea that architecture itself is somehow idea that architecture itself is somehow subject<00:09:35.100> to<00:09:35.520> algorithmic<00:09:36.090> optimization<00:09:36.750> is subject to algorithmic optimization is subject to algorithmic optimization is not<00:09:37.410> far-fetched<00:09:37.890> it's<00:09:38.400> super<00:09:39.120> real<00:09:39.570> and<00:09:39.810> it's not far-fetched it's super real and it's not far-fetched it's super real and it's happening<00:09:40.440> around<00:09:40.800> you<00:09:41.370> you<00:09:41.700> feel<00:09:41.730> it<00:09:42.060> most happening around you you feel it most happening around you you feel it most when<00:09:43.650> you're<00:09:43.740> in<00:09:43.860> a<00:09:43.950> sealed<00:09:44.310> metal<00:09:44.520> box<00:09:45.330> a<00:09:45.840> new when you're in a sealed metal box a new when you're in a sealed metal box a new style<00:09:47.400> elevator<00:09:47.850> they're<00:09:48.030> called style elevator they're called style elevator they're called destination<00:09:48.570> control<00:09:49.140> elevators<00:09:49.710> these<00:09:50.070> are destination control elevators these are destination control elevators these are the<00:09:50.250> ones<00:09:50.430> where<00:09:50.670> if<00:09:50.970> to<00:09:51.120> press<00:09:51.360> what<00:09:51.570> floor the ones where if to press what floor the ones where if to press what floor you're<00:09:52.050> going<00:09:52.170> to<00:09:52.230> go<00:09:52.350> to<00:09:52.380> before<00:09:52.950> you<00:09:53.130> get<00:09:53.250> in you're going to go to before you get in you're going to go to before you get in the<00:09:53.520> elevator<00:09:53.610> and<00:09:54.090> it<00:09:54.270> uses<00:09:54.420> what's<00:09:54.660> called<00:09:54.720> a the elevator and it uses what's called a the elevator and it uses what's called a bin<00:09:55.110> packing<00:09:55.560> algorithm<00:09:55.800> so<00:09:56.400> none<00:09:56.610> of<00:09:56.640> this bin packing algorithm so none of this bin packing algorithm so none of this mishegoss<00:09:57.120> of<00:09:57.570> just<00:09:57.720> letting<00:09:57.960> everybody<00:09:58.200> go mishegoss of just letting everybody go mishegoss of just letting everybody go into<00:09:58.950> whatever<00:09:59.190> car<00:09:59.430> they<00:09:59.580> want<00:09:59.820> everybody into whatever car they want everybody into whatever car they want everybody wants<00:10:00.930> to<00:10:00.990> go<00:10:01.110> the<00:10:01.260> tenth<00:10:01.500> floor<00:10:01.680> goes<00:10:01.920> into wants to go the tenth floor goes into wants to go the tenth floor goes into car<00:10:02.370> two<00:10:02.580> and<00:10:02.820> everybody<00:10:03.060> wants<00:10:03.240> to<00:10:03.270> go<00:10:03.360> the car two and everybody wants to go the car two and everybody wants to go the third<00:10:03.600> floor<00:10:03.810> goes<00:10:03.990> into<00:10:04.200> car<00:10:04.380> five<00:10:04.620> and<00:10:05.270> the third floor goes into car five and the third floor goes into car five and the problem<00:10:06.720> with<00:10:06.870> that<00:10:07.050> is<00:10:07.350> is<00:10:07.530> that<00:10:07.560> people problem with that is is that people problem with that is is that people freak<00:10:09.360> out<00:10:09.480> people<00:10:10.470> panic<00:10:10.920> and<00:10:10.950> you<00:10:11.160> see<00:10:11.820> why freak out people panic and you see why freak out people panic and you see why right<00:10:12.750> you<00:10:13.050> see<00:10:13.260> why<00:10:13.470> it's<00:10:13.950> because<00:10:14.310> the right you see why it's because the right you see why it's because the elevator<00:10:15.270> is<00:10:15.540> missing<00:10:16.260> some<00:10:16.530> important elevator is missing some important elevator is missing some important instrumentation<00:10:17.730> like<00:10:17.880> the<00:10:18.060> buttons<00:10:18.450> right instrumentation like the buttons right instrumentation like the buttons right like<00:10:20.550> the<00:10:20.730> things<00:10:21.000> that<00:10:21.180> people<00:10:21.480> use<00:10:21.930> all<00:10:22.530> it like the things that people use all it like the things that people use all it has<00:10:23.190> is<00:10:23.670> just<00:10:24.330> the<00:10:24.990> number<00:10:25.440> that<00:10:25.890> moves<00:10:26.130> up<00:10:26.310> or has is just the number that moves up or has is just the number that moves up or down<00:10:26.520> and<00:10:27.000> that<00:10:27.510> red<00:10:27.720> button<00:10:27.930> that<00:10:28.320> says<00:10:28.820> stop down and that red button that says stop down and that red button that says stop and<00:10:30.650> this<00:10:31.650> is<00:10:31.800> what<00:10:31.950> we're<00:10:32.130> designing<00:10:32.550> for and this is what we're designing for and this is what we're designing for we're<00:10:33.060> designing<00:10:33.570> for<00:10:33.960> this<00:10:34.320> kind<00:10:34.710> of<00:10:34.860> machine we're designing for this kind of machine we're designing for this kind of machine dialect<00:10:36.780> all<00:10:37.410> right<00:10:37.500> and<00:10:37.650> how<00:10:37.980> far<00:10:38.310> can<00:10:38.520> you dialect all right and how far can you dialect all right and how far can you take<00:10:38.850> that<00:10:38.910> how<00:10:39.750> far<00:10:40.020> can<00:10:40.200> you<00:10:40.230> take<00:10:40.440> it<00:10:40.530> you take that how far can you take it you take that how far can you take it you can<00:10:41.010> take<00:10:41.190> it<00:10:41.310> really<00:10:41.670> really<00:10:42.000> far<00:10:42.930> and<00:10:43.110> so<00:10:43.230> let can take it really really far and so let can take it really really far and so let me<00:10:43.410> take<00:10:43.560> it<00:10:43.680> back<00:10:43.950> to<00:10:44.460> Wall<00:10:44.670> Street<00:10:45.200> okay me take it back to Wall Street okay me take it back to Wall Street okay because<00:10:46.680> the<00:10:46.950> algorithms<00:10:47.670> of<00:10:47.820> Wall<00:10:48.060> Street because the algorithms of Wall Street because the algorithms of Wall Street are<00:10:48.630> dependent<00:10:49.620> on<00:10:49.800> one<00:10:50.250> quality<00:10:50.640> above<00:10:50.730> all are dependent on one quality above all are dependent on one quality above all else<00:10:51.300> which<00:10:51.570> is<00:10:51.750> speed<00:10:52.140> and<00:10:52.320> they<00:10:53.310> operate<00:10:53.880> on else which is speed and they operate on else which is speed and they operate on milliseconds<00:10:54.870> and<00:10:54.990> microseconds<00:10:55.890> and<00:10:56.040> just milliseconds and microseconds and just milliseconds and microseconds and just to<00:10:56.700> give<00:10:56.850> you<00:10:56.940> a<00:10:56.970> sense<00:10:57.240> of<00:10:57.390> what<00:10:57.510> microseconds to give you a sense of what microseconds to give you a sense of what microseconds are<00:10:58.230> it<00:10:58.320> takes<00:10:58.590> you<00:10:58.950> five<00:10:59.520> hundred<00:10:59.970> thousand are it takes you five hundred thousand are it takes you five hundred thousand microseconds<00:11:01.140> just<00:11:01.500> to<00:11:01.590> click<00:11:01.830> a<00:11:02.010> mouse<00:11:02.280> but microseconds just to click a mouse but microseconds just to click a mouse but if<00:11:03.030> you're<00:11:03.180> a<00:11:03.210> Wall<00:11:03.420> Street<00:11:03.450> algorithm<00:11:04.050> and if you're a Wall Street algorithm and if you're a Wall Street algorithm and you're<00:11:04.320> five<00:11:04.650> microseconds<00:11:05.430> behind<00:11:05.570> you're<00:11:06.570> a you're five microseconds behind you're a you're five microseconds behind you're a loser loser loser so<00:11:09.510> if<00:11:09.630> you<00:11:09.750> were<00:11:09.870> an<00:11:09.990> algorithm<00:11:10.650> you'd<00:11:11.250> look so if you were an algorithm you'd look so if you were an algorithm you'd look for<00:11:11.610> an<00:11:11.670> architect<00:11:12.150> like<00:11:12.360> the<00:11:12.480> one<00:11:12.600> that<00:11:12.750> I<00:11:12.780> met for an architect like the one that I met for an architect like the one that I met in<00:11:13.080> Frankfurt<00:11:13.590> who<00:11:13.830> was<00:11:13.980> hollowing<00:11:14.610> out<00:11:14.730> a in Frankfurt who was hollowing out a in Frankfurt who was hollowing out a skyscraper<00:11:15.420> throwing<00:11:15.840> out<00:11:15.960> all<00:11:15.990> the skyscraper throwing out all the skyscraper throwing out all the furniture<00:11:16.470> all<00:11:17.160> the<00:11:17.460> infrastructure<00:11:18.030> for furniture all the infrastructure for furniture all the infrastructure for human<00:11:18.660> use<00:11:18.690> and<00:11:18.990> just<00:11:19.080> running<00:11:19.560> steel<00:11:19.950> on<00:11:20.220> the human use and just running steel on the human use and just running steel on the floors<00:11:20.880> to<00:11:21.090> get<00:11:21.210> ready<00:11:21.390> for<00:11:21.570> the<00:11:21.690> stacks<00:11:21.960> of floors to get ready for the stacks of floors to get ready for the stacks of servers<00:11:22.590> to<00:11:22.620> go<00:11:22.920> in<00:11:23.130> all<00:11:24.120> so<00:11:24.690> that<00:11:24.840> an servers to go in all so that an servers to go in all so that an algorithm<00:11:25.320> could<00:11:26.010> get<00:11:26.190> close<00:11:26.610> to<00:11:27.210> the algorithm could get close to the algorithm could get close to the internet<00:11:27.690> and internet and internet and you<00:11:29.610> think<00:11:30.000> of<00:11:30.180> the<00:11:30.300> Internet<00:11:30.660> as<00:11:30.840> this<00:11:31.080> kind you think of the Internet as this kind you think of the Internet as this kind of<00:11:31.529> distributed<00:11:32.070> system<00:11:32.700> and<00:11:32.850> of<00:11:32.940> course<00:11:32.970> it of distributed system and of course it of distributed system and of course it is<00:11:33.330> but<00:11:33.510> it's<00:11:33.660> distributed<00:11:34.260> from<00:11:34.950> places is but it's distributed from places is but it's distributed from places right<00:11:35.730> in<00:11:35.850> New<00:11:36.000> York<00:11:36.300> this<00:11:36.480> is<00:11:36.630> where<00:11:36.750> it's right in New York this is where it's right in New York this is where it's distributed<00:11:37.200> from<00:11:37.350> its<00:11:37.560> carrier<00:11:38.190> hotel distributed from its carrier hotel distributed from its carrier hotel located<00:11:39.570> on<00:11:39.839> Hudson<00:11:40.260> Street<00:11:40.470> and<00:11:40.710> this<00:11:41.610> is located on Hudson Street and this is located on Hudson Street and this is really<00:11:41.940> where<00:11:42.150> the<00:11:42.180> wires<00:11:42.630> come<00:11:43.140> right<00:11:43.470> up really where the wires come right up really where the wires come right up into<00:11:43.800> the<00:11:44.010> city<00:11:44.220> and<00:11:44.870> the<00:11:45.870> reality<00:11:46.650> is<00:11:46.740> is<00:11:46.860> that into the city and the reality is is that into the city and the reality is is that the<00:11:47.130> further<00:11:47.430> away<00:11:47.730> you<00:11:47.760> are<00:11:47.940> from<00:11:48.089> that the further away you are from that the further away you are from that you're<00:11:48.600> a<00:11:48.630> few<00:11:48.960> microseconds<00:11:49.680> behind<00:11:49.800> every you're a few microseconds behind every you're a few microseconds behind every time<00:11:50.339> these<00:11:50.910> guys<00:11:51.210> down<00:11:51.570> a<00:11:51.630> Wall<00:11:51.960> Street<00:11:51.990> Marco time these guys down a Wall Street Marco time these guys down a Wall Street Marco Polo<00:11:53.010> and<00:11:53.040> Cherokee<00:11:53.580> Nation<00:11:53.910> they're<00:11:54.210> eight Polo and Cherokee Nation they're eight Polo and Cherokee Nation they're eight microseconds<00:11:55.620> behind<00:11:55.860> all<00:11:56.580> these<00:11:57.420> guys<00:11:57.690> going microseconds behind all these guys going microseconds behind all these guys going in<00:11:58.800> to<00:11:59.310> the<00:11:59.400> empty<00:11:59.730> buildings<00:12:00.210> being<00:12:00.540> hollowed in to the empty buildings being hollowed in to the empty buildings being hollowed out<00:12:01.370> up<00:12:02.370> around<00:12:03.000> the<00:12:03.570> carrier<00:12:03.870> hotel<00:12:04.520> right out up around the carrier hotel right out up around the carrier hotel right and<00:12:05.700> that's<00:12:06.360> going<00:12:06.480> to<00:12:06.600> keep<00:12:06.810> happening<00:12:07.430> we're and that's going to keep happening we're and that's going to keep happening we're going<00:12:08.550> to<00:12:08.610> keep<00:12:08.790> hollowing<00:12:09.330> them<00:12:09.510> out<00:12:09.660> because going to keep hollowing them out because going to keep hollowing them out because you<00:12:11.250> inch<00:12:11.670> for<00:12:12.210> inch<00:12:12.240> and<00:12:12.750> pound<00:12:13.380> for<00:12:13.650> pound you inch for inch and pound for pound you inch for inch and pound for pound and<00:12:14.190> dollar<00:12:14.339> for<00:12:14.610> dollar<00:12:14.930> none<00:12:15.930> of<00:12:16.080> you<00:12:16.350> could and dollar for dollar none of you could and dollar for dollar none of you could squeeze<00:12:17.010> revenue<00:12:17.520> out<00:12:17.730> of<00:12:17.790> that<00:12:18.000> space<00:12:18.360> like squeeze revenue out of that space like squeeze revenue out of that space like the<00:12:19.050> Boston<00:12:19.440> shuffler<00:12:19.860> could the Boston shuffler could the Boston shuffler could but<00:12:22.230> if<00:12:22.350> you<00:12:22.440> zoom<00:12:22.680> out<00:12:23.120> if<00:12:24.120> you<00:12:24.630> zoom<00:12:24.839> out<00:12:25.050> you but if you zoom out if you zoom out you but if you zoom out if you zoom out you would<00:12:26.040> see<00:12:26.280> an<00:12:26.370> 825<00:12:27.240> mile<00:12:28.230> trench<00:12:28.970> between<00:12:29.970> New would see an 825 mile trench between New would see an 825 mile trench between New York<00:12:30.450> City<00:12:30.839> and<00:12:31.080> Chicago's<00:12:31.890> been<00:12:32.190> built<00:12:32.430> over York City and Chicago's been built over York City and Chicago's been built over the<00:12:32.700> last<00:12:32.820> few<00:12:33.060> years<00:12:33.089> by<00:12:33.570> a<00:12:33.600> company<00:12:34.080> called the last few years by a company called the last few years by a company called spread<00:12:34.589> networks<00:12:35.390> this<00:12:36.390> is<00:12:36.540> a<00:12:36.570> fiber-optic spread networks this is a fiber-optic spread networks this is a fiber-optic cable<00:12:37.860> that<00:12:38.040> was<00:12:38.130> laid<00:12:38.460> between<00:12:39.120> those<00:12:39.330> two cable that was laid between those two cable that was laid between those two cities<00:12:39.870> to<00:12:40.460> just<00:12:41.460> be<00:12:41.700> able<00:12:41.850> to<00:12:42.030> traffic<00:12:42.390> one cities to just be able to traffic one cities to just be able to traffic one signal<00:12:43.310> 37<00:12:44.310> times<00:12:44.490> faster<00:12:44.970> than<00:12:45.120> you<00:12:45.210> can signal 37 times faster than you can signal 37 times faster than you can click<00:12:45.570> a<00:12:45.600> mouse<00:12:46.190> just<00:12:47.190> for<00:12:47.790> these<00:12:48.270> algorithms click a mouse just for these algorithms click a mouse just for these algorithms just<00:12:49.410> for<00:12:50.070> the<00:12:50.160> carnival<00:12:50.670> and<00:12:50.820> the<00:12:50.880> knife<00:12:51.450> and just for the carnival and the knife and just for the carnival and the knife and when<00:12:52.800> you<00:12:52.920> think<00:12:53.250> about<00:12:53.339> this<00:12:53.730> that<00:12:54.300> we're when you think about this that we're when you think about this that we're running<00:12:55.170> through<00:12:55.950> the<00:12:56.100> United<00:12:56.610> States<00:12:56.640> with running through the United States with running through the United States with dynamite<00:12:57.690> and<00:12:57.930> rock<00:12:58.620> saws<00:12:59.180> so<00:13:00.180> that<00:13:00.360> an dynamite and rock saws so that an dynamite and rock saws so that an algorithm<00:13:00.839> can<00:13:01.230> close<00:13:01.530> the<00:13:01.770> deal<00:13:02.010> three algorithm can close the deal three algorithm can close the deal three microseconds<00:13:03.450> faster<00:13:04.080> all<00:13:04.350> for<00:13:05.130> a microseconds faster all for a microseconds faster all for a communications<00:13:05.880> framework<00:13:06.270> that<00:13:06.540> no<00:13:06.780> human communications framework that no human communications framework that no human will<00:13:07.530> ever<00:13:07.560> know will ever know will ever know that's<00:13:11.040> a<00:13:11.160> kind<00:13:11.400> of<00:13:11.490> manifest<00:13:12.030> destiny<00:13:12.150> and that's a kind of manifest destiny and that's a kind of manifest destiny and we'll<00:13:13.440> always<00:13:13.650> look<00:13:14.070> for<00:13:14.339> a<00:13:14.370> new<00:13:14.550> frontier<00:13:15.180> and we'll always look for a new frontier and we'll always look for a new frontier and fortunately<00:13:16.620> we<00:13:17.190> have<00:13:17.339> our<00:13:17.490> work<00:13:17.640> cut<00:13:17.880> out<00:13:17.910> for fortunately we have our work cut out for fortunately we have our work cut out for us<00:13:18.300> this<00:13:18.860> is<00:13:19.860> just<00:13:19.980> theoretical<00:13:20.640> this<00:13:20.940> is<00:13:21.089> some us this is just theoretical this is some us this is just theoretical this is some mathematicians<00:13:22.020> at<00:13:22.440> MIT<00:13:22.709> and<00:13:23.100> the<00:13:23.910> truth<00:13:24.180> is<00:13:24.390> I mathematicians at MIT and the truth is I mathematicians at MIT and the truth is I don't<00:13:24.810> really<00:13:25.170> understand<00:13:25.920> a<00:13:26.130> lot<00:13:26.370> of<00:13:26.490> what don't really understand a lot of what don't really understand a lot of what they're<00:13:26.790> talking<00:13:27.180> about<00:13:27.209> it<00:13:27.750> involves<00:13:28.290> light they're talking about it involves light they're talking about it involves light cones<00:13:29.220> and<00:13:29.550> quantum<00:13:29.970> entanglement<00:13:30.780> and<00:13:30.930> I cones and quantum entanglement and I cones and quantum entanglement and I don't<00:13:31.140> really<00:13:31.560> understand<00:13:32.160> any<00:13:32.280> of<00:13:32.310> that<00:13:32.370> but don't really understand any of that but don't really understand any of that but I<00:13:32.610> can<00:13:32.960> this<00:13:33.140> map<00:13:33.380> and<00:13:34.010> what<00:13:34.790> this<00:13:34.940> map<00:13:35.210> says<00:13:35.630> is I can this map and what this map says is I can this map and what this map says is is<00:13:36.350> that<00:13:36.529> if<00:13:36.680> you're<00:13:36.920> trying<00:13:37.250> to<00:13:37.430> make<00:13:37.610> money is that if you're trying to make money is that if you're trying to make money on<00:13:38.089> the<00:13:38.210> markets<00:13:38.660> where<00:13:38.839> the<00:13:38.960> red<00:13:39.170> dots<00:13:39.500> are on the markets where the red dots are on the markets where the red dots are that's<00:13:39.980> where<00:13:40.160> people<00:13:40.550> are<00:13:40.850> where<00:13:41.000> the<00:13:41.149> cities that's where people are where the cities that's where people are where the cities are<00:13:41.630> your<00:13:41.990> going<00:13:42.110> to<00:13:42.170> have<00:13:42.260> to<00:13:42.320> put<00:13:42.529> the are your going to have to put the are your going to have to put the servers<00:13:43.160> where<00:13:43.399> the<00:13:43.520> blue<00:13:43.700> dots<00:13:43.970> are<00:13:44.270> to<00:13:44.779> do servers where the blue dots are to do servers where the blue dots are to do that<00:13:45.170> most<00:13:45.380> effectively<00:13:45.589> and<00:13:46.339> the<00:13:46.700> thing<00:13:46.880> that that most effectively and the thing that that most effectively and the thing that you<00:13:47.330> might<00:13:47.510> have<00:13:47.630> noticed<00:13:47.839> about<00:13:48.200> those<00:13:48.560> blue you might have noticed about those blue you might have noticed about those blue dots<00:13:49.100> is<00:13:49.339> that<00:13:49.490> a<00:13:49.520> lot<00:13:49.730> of<00:13:49.760> them<00:13:49.970> are<00:13:50.120> in<00:13:50.690> the dots is that a lot of them are in the dots is that a lot of them are in the middle<00:13:51.050> of<00:13:51.110> the<00:13:51.170> ocean middle of the ocean middle of the ocean so<00:13:53.060> that's<00:13:53.300> what<00:13:53.510> we'll<00:13:53.660> do<00:13:53.810> we'll<00:13:54.020> build so that's what we'll do we'll build so that's what we'll do we'll build bubbles<00:13:55.010> or<00:13:55.250> something<00:13:55.610> or<00:13:55.730> or<00:13:55.990> platforms bubbles or something or or platforms bubbles or something or or platforms will<00:13:57.200> actually<00:13:57.649> part<00:13:58.250> the<00:13:58.459> water<00:13:58.700> right<00:13:59.600> to will actually part the water right to will actually part the water right to pull<00:14:00.170> money<00:14:00.890> out<00:14:01.220> of<00:14:01.580> the<00:14:01.640> air<00:14:01.820> because<00:14:02.180> it's<00:14:02.330> a pull money out of the air because it's a pull money out of the air because it's a bright<00:14:02.779> future<00:14:03.380> if<00:14:03.770> you're<00:14:04.520> an<00:14:04.760> algorithm<00:14:05.380> and bright future if you're an algorithm and bright future if you're an algorithm and it's<00:14:07.970> not<00:14:08.089> the<00:14:08.240> money<00:14:08.540> that's<00:14:09.230> so<00:14:09.500> interesting it's not the money that's so interesting it's not the money that's so interesting actually<00:14:10.250> it's<00:14:10.670> what<00:14:10.850> the<00:14:11.000> money<00:14:11.209> motivates actually it's what the money motivates actually it's what the money motivates right<00:14:12.709> that<00:14:13.040> we're<00:14:13.190> actually<00:14:13.870> terraforming right that we're actually terraforming right that we're actually terraforming the<00:14:15.320> earth<00:14:15.589> itself<00:14:16.220> with<00:14:17.000> this<00:14:17.089> kind<00:14:17.360> of the earth itself with this kind of the earth itself with this kind of algorithmic<00:14:17.839> efficiency<00:14:18.140> and<00:14:18.830> in<00:14:19.520> that<00:14:19.700> light algorithmic efficiency and in that light algorithmic efficiency and in that light you<00:14:20.390> go<00:14:21.020> back<00:14:21.260> and<00:14:21.620> you<00:14:21.770> look<00:14:21.920> at<00:14:22.040> Michael<00:14:22.370> no you go back and you look at Michael no you go back and you look at Michael no jars<00:14:22.760> photographs<00:14:23.450> and<00:14:23.870> you<00:14:24.649> realize<00:14:24.980> that jars photographs and you realize that jars photographs and you realize that they're<00:14:25.370> not<00:14:25.490> metaphor<00:14:26.089> they're<00:14:26.779> prophecy they're not metaphor they're prophecy they're not metaphor they're prophecy right<00:14:28.220> they're<00:14:28.430> prophecy<00:14:29.029> for<00:14:29.540> the<00:14:29.600> kind<00:14:29.779> of right they're prophecy for the kind of right they're prophecy for the kind of seismic seismic seismic terrestrial<00:14:32.660> effects<00:14:33.230> of<00:14:33.380> the<00:14:33.770> math<00:14:34.010> that terrestrial effects of the math that terrestrial effects of the math that we're<00:14:34.850> making<00:14:35.000> and<00:14:35.390> the<00:14:36.350> the<00:14:36.740> landscape<00:14:37.250> was we're making and the the landscape was we're making and the the landscape was always<00:14:37.970> made<00:14:38.270> by<00:14:38.630> this<00:14:38.690> sort<00:14:39.110> of<00:14:39.170> weird<00:14:39.920> uneasy always made by this sort of weird uneasy always made by this sort of weird uneasy collaboration<00:14:41.300> between<00:14:41.540> nature<00:14:42.020> and<00:14:42.440> man<00:14:43.180> but collaboration between nature and man but collaboration between nature and man but now<00:14:44.330> there's<00:14:44.600> this<00:14:44.720> kind<00:14:44.870> of<00:14:44.990> third now there's this kind of third now there's this kind of third co-evolutionary<00:14:46.400> force<00:14:47.050> algorithms<00:14:48.050> the co-evolutionary force algorithms the co-evolutionary force algorithms the Boston<00:14:48.980> shuffler<00:14:49.459> the<00:14:49.940> carnival<00:14:50.480> and<00:14:50.630> we<00:14:51.380> will Boston shuffler the carnival and we will Boston shuffler the carnival and we will have<00:14:51.680> to<00:14:51.800> understand<00:14:52.310> those<00:14:52.580> as<00:14:52.820> nature<00:14:53.209> and have to understand those as nature and have to understand those as nature and in<00:14:54.050> a<00:14:54.140> way<00:14:54.320> they<00:14:55.130> are<00:14:55.240> thank in a way they are thank in a way they are thank [Applause] [Applause] [Applause] [Music]

Kevin Slavin, TEDEducation, TED-Ed, TED, Ed, code, algorithms, math mathematics computer

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