Transactions and Trust in Blockchain

Transactions & Trust

Ashok Vanga's photo
Ashok Vanga
·Sep 7, 2022·

2 min read

What typically mean a Transaction in real world?

eg: Stock market transactions , purchase of jewelary , property , In all these transactions there is an exchange or transfer of goods , services or funds and it also involves transfer of ownership.

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In Stock market transactions there is a transfer of ownership and money, In gold there is exchange of gold and money and in property purchase there is a exchange of ownership and money.

TRUST : Why do we need it ? Can we Build trust ? Why would you trust one more than the other? eg: reviews of a product

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Trust is an important element in a Transaction , In a Business no two parties would engage in a transaction if they do not trust each other or involve a third party to improve any trust deficit

A transaction could be trust based on in general terms based on How is it recorded Where do you record it,Who owns the record, How is it shared , Who accesses what records, Who are the parties When is it necessary

Trust can be in Physical vs DIgital , Over the last 20 years the world has been steadily moving from a physical centric economies to a digital centric one eg: Kirana store vs Ecommerce seller

As per the Largest internet security and trust survey [ The CIGI-Ipsos survey, now in its fifth year, is the world’s largest and most comprehensive survey of internet security and trust, covering over two dozen countries across North America, Latin America, Europe, the Middle East, Africa and the Asia-Pacific region.

A staggering 75% of those surveyed who distrust the internet cited Facebook, Twitter and other social media platforms as contributing to their lack of trust , It says people don't trust the Internet, So what needs to change?

More trust in the internet is needed if the digital economy is to become a viable development tool for developing nations.

So how the trust can be built

  1. Transparency - No Chinese walls , all transactions are recorded and open for all to see
  2. Accessibility - No external dependency, no authority controls access to information
  3. Immutability - Information is authentic; no one can change data already distributed
  4. Reliability - Audit & Traceability; enough checks and balances are there to trace transactions at every stage
  5. Anonymity - Builds confidence , anonymity encourages everyone to be truthful , assuming no malicious actors

In the End , Finally What it means is you need to build systems with zero trust.

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