Bankless 6 - DeFi Trust Spectrum
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Apr 6, 2020 Discover the intriguing DeFi trust spectrum, where Ethereum applications range from fully trustless to those needing human oversight. Explore how human and machine trust intersect in finance, along with the complexities of selling cryptocurrencies. The discussion highlights the importance of trust in DeFi, contrasting automated platforms like Uniswap with human-operated ones. Learn about the role of neutral protocols and the significance of transparency, flexibility, and accessibility in reshaping financial systems.
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DeFi Trust Spectrum
- Ethereum applications range in trustlessness based on human involvement.
- Trustless applications, like Bitcoin, operate primarily through code, minimizing human intervention.
Trust in Applications
- Some apps, like Wikipedia, are open and trustless, while others require logins and permissions.
- Realty, for example, uses a whitelist, increasing trust compared to open platforms.
Gravitating Towards Trustlessness
- Applications tend to gravitate towards trustlessness over time.
- More trustless applications facilitate building further trustless applications on Ethereum.