Trustless Technology
At first, the word trustless has a questionable connotation.
However, in Web3 technologies like Blockchains, it’s a core component of what makes them so powerful.
In our daily lives, we often rely on trusted intermediaries to make sure that transactions between different parties are secure and trustworthy. For example, when we buy something online, we use a payment processor like PayPal, Cash App, or a bank to facilitate the transaction and make sure that our money is safe. These intermediaries charge fees for their services and in exchange, we trust them to keep our information confidential and handle the transaction fairly and securely.
However, in blockchain technology, the goal is to create a system that doesn't need trusted intermediaries. Instead, the trust is established through a network of computers that are connected to each other. These computers work together to verify and process transactions, and they keep a record of all the transactions that have happened on the network.
Because the ledger is shared across the network, everyone can see the same information, and there's no need for a trusted intermediary to keep track of things. This is what we mean when we say that the system is "trustless." It doesn't mean that there's no trust at all; it just means that the trust is established through the technology itself, rather than through a third party.
To make sure that the network stays secure and trustworthy, blockchain technology uses something called a consensus mechanism. This is a fancy way of saying that all the computers in the network work together to agree on what the ledger looks like at any given moment. This helps to prevent fraud and ensures that everyone on the network has the same information.
So, in summary, trustlessness in blockchain technology is essential and it means that there's no need for trusted intermediaries to keep track of transactions. Instead, trust is established through the technology itself, ensuring that everyone on the network has the same information and that the ledger is accurate and trustworthy.