Blockchain and Trust: An Inescapable Truth
The elusive creator of blockchain technology, Satoshi Nakamoto, opens his landmark whitepaper about Bitcoin with these words:
“Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust-based model.” (Nakamoto 2008)
The impetus of his revolutionary new technology was his fundamental distrust in the “system.” He finds fault with the prevailing model, desiring to free man from the risks inherent to trust by replacing the “trust-based” system with a new, trustless, one. The whitepaper concludes with the ambitious claim that he has achieved his objective…
But is it really possible to eradicate trust from the system?