Trust Minimized Agreements? How so?
Trust minimized agreements, also known as trustless agreements or trustless smart contracts, refer to the use of smart contracts in a way that reduces the need for trust between parties. In a traditional contract, trust is required between the parties to ensure that they will fulfill their obligations. However, with trust minimized agreements, trust is replaced by code and mathematics, which automate the execution of the contract and eliminate the need for intermediaries.
How is it even possible to remove "trust"?
Trust minimized agreements are made possible by the use of blockchain technology, which provides a decentralized, distributed ledger for the storage and execution of smart contracts. The use of blockchain ensures that the contract's terms and execution are transparent, immutable, and visible to all parties on the network. This means that once a contract is executed, it cannot be altered or tampered with, providing a high level of security and trustworthiness.
What do these "Smart Contracts" offer?
One of the key benefits of trust minimized agreements is their ability to eliminate intermediaries. In traditional contracts, intermediaries, such as lawyers or banks, are needed to verify and enforce the contract. However, with trust minimized agreements, the contract is self-executing, reducing costs and increasing efficiency.
Trust minimized agreements have a wide range of potential use cases, such as supply chain management, digital identity, and voting systems. For example, a smart contract can be used to automate the tracking and management of goods in a supply chain, eliminating the need for intermediaries such as logistics companies. Additionally, smart contracts can be used to create digital identities that are transparent and immutable, making them suitable for use in voting systems.
To sum it all up...
In summary, Trust minimized agreements are smart contracts that rely on technology to minimize the trust required between parties. Blockchain technology provides the necessary decentralization and immutability for the smart contract's terms and execution. Trust is replaced by code and mathematics, which automates the execution and eliminates intermediaries. This leads to more efficient, secure and transparent agreements. The use cases are vast such as supply chain and digital identity.
"The main advantage of blockchain technology is supposed to be that it's more secure, but new technologies are generally hard for people to trust, and this paradox can't really be avoided."