The Future in a trustless world.
Have you ever questioned our need for trust.
Our world has been built on trust. It is trust in the fed and the US economy that gives value to the USD. It is trust in the banks that make us feel safe depositing our money there. It is trust that makes us purchase government bonds, go to a Doctor, gets banks to lend us money. The cycle of life currently runs fundamentally around trust as a main catalyst.
In what will come we will be discussing a trustless world.
And here trustless doesn’t hold the meaning of none worthy of trust.
Here we talk about trust in a trustless manner.
Complicated!!
Not really. Hear me out here.
Our system currently runs around humans, third parties, and plenty of intermediaries.
In other words the fixed standard fool proof process, or processes we run by have plenty of involved parties that posses many variables which by its turn may make the process malfunction for one or may reasons at a time. Imagine any simple process we run currently and the risks in it deriving from those variable.
Lets take the process of lending:
You submit the documents online or in person, a human being receives it, evaluating the file may run through discrimination, ignorance, favoritism, and many other variables that may affect the result, on which the rest of process depends on.
If you are on the other side of the table and you have placed a deposit in a bank which the bank would lend afterwards and pay you a portion of the revenue, simplistically, you will need to trust that the people involved in the lending process are not acting in a way that makes the process malfunction.
Now grow this simple scenario and link it to all other processes that run in our economies, and lives. OOPs! Now that’s complicated.
Now think with me.
What if we remove those variables and get the process to run steady without the possibility of third parties, intermediaries or human intervention.
What if we replace all of this with few lines of code. Yes just simple lines of code, which allow the process to run and bridge different parts of it without any humans.
Again back to using our imagination.
Do you know why pilots and co pilots do a cross check on all elements of how a plane is running prior to take-off or landing.
That is the process created to lessen the risk that is available with one person missing a simple step that can cause a disaster. So what the airlines are doing is distributing how the process tick list is checked and recorded.
Let’s go back to the future. A future where you can trust the process as it runs on a distributed ledger. A decentralized one that no single party can control and has no third party intervention. A future where smart contracts are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss.
Aha what are smart contracts? Ya I hear you. Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. And yes I hear the sceptics talking about the risks in the whole process. who said it is risk free. Yet risks can be mitigated, and when talking tech, they can be mitigated using tech itself.
Here is the simplicity in it.
In the future we are talking about there is no human that you should trust as he is responsible for your money and what happens with it. There is no individual who can exert variables and affect the flow.
Yet you trust the process…
Yes you trust the process, without the need to trust any individual.
It is simply trust in a trustless world.
What does this mean to us. How does it affect our lives.
We will leave this for another article which we will discuss in:
The cultural change
The systematic evolution
The Trust that isn’t really trust
The Risks and fixes
For now just remember that the value, meaning, impact and relevance of concepts change over time. What you call now privacy few years ago was bombardment into your private space.
What you call now conservative in dress used to be ridiculously rejected few years ago.
What you consider as basics used to be a life style.
Tech’s value is in the utility of tech. It is in the amount or convenience, safety, efficiency,.. it adds to our lives. It is never for the fancy advancement of tech.
Fundamentals will prevail. Yes though fundamentals are perpetually evolving.
Till next time, stay well, stay informed.
By Makram H. Hani
If you enjoyed the read access makramhani.com or armsmcgregor.com for more, actually much more.
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by Makram Hani © Copyright Arms &McGregor International Realty. All Rights Reserved.
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