29th May Learning summary of Blockchain

The trust train is moving to a new destination, it is shifting from humans and centralized organizations to computers and decentralized organizations. It uses blockchain-based consensus protocol to make its delivery.

The previous paradigm was to channel our attention to trusted organizations, make them handle our transactions, our data, our legal status, our possession and our wealth.

In the new paradigm, the central trust process maybe relegated to blockchain that can provide that function. If the traditional trust intermediaries become costly and inefficient. Then blockchain can offer the solution.

The central question is, can blockchain become trust 2.0 when traditional intermediaries become too big to fail, too bureaucratic to see risk and too slow to change.

Here are 7 principles we need to trust, when  we are to believe in the future of decentralized trust.

It is inaccurate to label blockchain as disintermediation of trust. It can only enable reintermediation of trust.

Blockchain offers a degree of trust unbundling. It reassigns the roles of existing trust players and sometimes weakening their authority.

The blockchain does not eliminate trust, it shifts it. It moves around.

Trust is always needed. What changes with blockchain is how and what trust is earned. Whoever earns that trust earns the relationship and that includes trusting the blockchain.

Blockchain decentralizes trust and make them to multiple, singular harmless but collectively entities that authenticates it.

The blockchain disrupts the trust of existing intermediaries because the cost of trust are now distributed.

Whereas central trust distanced us, the distributed trust will bring us together.