49 chunks · 38 episodes
Globally consistent state in a decentralized system requires financialization. Coordination costs go up exponentially, and the only way to do that is to make participants incentivized to participate. Financialization is a caustic acid that warps ...
...ategy's success. If you are one company, every additional bet causes additional coordination cost and turbulent flow in the organization. Trying to keep hold of a self-image that is coherent, across a diversity of inputs. If you are an investment ...
...e of actor coordinating. If the actors have even minutely different goals, then coordination costs explode. Reward-driven actors will fundamentally be hard to get to coordinate.
... gravity. But sometimes they're just human decisions. Those are hard to change (coordination costs). But with AI, you don't need to get everyone to coordinate to switch to a new model. A security model that requires software to be rewritten would ...
...e sum of its parts emerges. Smaller organizations also have significantly lower coordination costs. Individuals using agentic leverage can now 10-100x their output… without increasing coordination costs.
...: projects that can be accomplished with one person's effort. Above that point, coordination cost starts rearing its head, at an exponential rate. Anything below that point has no coordination cost. Now LLMs make it so problems that used to requir...
...s. Now all the cats have become extremely fast.[i] Herding cheetahs is way more coordination cost than herding cats.
...nds of services. That would be a huge amount of fiddly labor. So it's largely a coordination cost moat.
...cause bilateral coordination is super-linearly expensive. Centralization lowers coordination costs, and coordination costs are compoundingly expensive. Centralization creates a power structure at the center fundamentally, no matter what you do. So...
...t. You need to wait for the counterparty to unblock you. Sync points expand the coordination cost super-linearly. That's one of the reasons with agent swarms, dangerously-skip-permissions is so freeing. It's also freeing in human organizations, wi...
A lot of coordination costs inside of organizations are not about "is this a feature we want to support long term" but "is this worth even spending the time to think about?" LL...
...the best. As it gets more momentum, more and more others choose to participate. Coordination costs are high, but it's a no-brainer for everyone to join in. An open system that's stagnating is the worst. All the downside, none of the upside.
Coordination cost needs to be paid if there isn't a schelling point. Coordination costs are huge. Schelling points make it go from large to ~zero. All it takes is a po...
...ue to humananities' foibles but just structurally and inescapably. For example, coordination costs go up exponentially for any coordinating entities, human or not.
...ormation sharing in an org. Too much is expensive, since there is a compounding coordination cost. Also, too much sharing creates a monoculture. Overfit, fragile. Too little information sharing leads to local maxima and lack of alignment.
...on the plan with infinite patience. So you get 10x productivity without 10x the coordination cost.
...that goal?" A milestone is a schelling point created by a leader to cut through coordination cost. A milestone is an assertion that "this collection of projects add up to more than the sum of their parts."
...ically where they are useful. Markets are extremely expensive. They introduce a coordination cost, and competition is, from the point of view of the individual, extremely costly. But in some cases, the ability to get components that automatically ...
...xpensive process. Once crossing the single-mind threshold you also start having coordination costs, which can balloon massively.
...a nonprofit. Starting with decentralized systems is hard (they have significant coordination costs, and before getting PMF, coordination costs are death). But once you have PMF, decentralizable systems are great.