Why we Need Trustless Finance – Cryptocuty

let's go yeah thank you thank you for your patience and I I prefer to stand here so that I I don't block your view is you can see me right all right so actually at the beginning I to say I feel very honored to to be able to do a speech in This Magnificent and historical church um because this setting is particularly meaningful for today's topic Trust uh for centuries the church has brought people together United by Sher beliefs and values and this share framework helped Foster the trust uh between the individuals and inside the community and today we are gathered here also Bound by a shared consensus and belief in how we build trust okay so we live we humans live in trust uh trust with our dear ones with family members co-workers friends business partners companies that offer us services and with uh authorities governing authorities uh trust has been an essential throughout human history a fundamental of human relationship and the foundation for Social Development so actually the social progress comes with the evolution and redefinition of trust when we humans live in small tribes in the past trust was something that was inherently built um we live together and we know each other and people exchange goods favors they transacted with each other uh based on the local and close night trust everyone is everyone and individual's reputation and accountability is quite straightforward as civilization expanded people began to interact and trade with strangers strangers from other tribes and strangers even from remote continents by then trust became something to be built the growing population the advancing society and increasing interconnection within the communities requires systems to build trust to ensure integrity and reliability money for example was originated to facilitate trade among strangers by using a uniform medium of exchange that everyone would want that everyone could trust banking system was developed as layer of legal safeguards on top of the commodity money providing Secure Storage and financial services and legal contracts emerge as formal systems to guarantee that both parties in a transaction will fulfill their obligations and in the context of Civil Life Trust is a social contract between the citizens uh and their governing authority to avoid the chaos of a lawless State individuals agreed to concede some of their freedoms to a governing Authority in exchange for protection and order the church serve as a moral compass upholding social norms and fostering chust by promoting ethical behavior and maintaining peace and Order within a community this system collectively represent the institutional trust with the progress of Technology we are seeing that trust is returning to a peer-to-peer based but this time among strangers the generation of parents used to say don't get in a stranger car but today Uber and bl black car become a transportation mode as normal as any other a BNB enables us to house strangers or sleep in strangers homes and we are doing so with a sense of safety and comfort and of course the cryptocurrency enable bi a decentralized network they enables PE peer-to-peer transactions to be executed safely without the need for intermediaries today we can transact confidently millions of dollars in one goal in one transaction in a pure peer-to-peer and self- custody manner the RS of peer-to-peer trust among strangers without a cenal guarantee is transformative reshaping our interactions with the in traditional institutions and redefining how we connect with each other but how do we reach the peer-to-peer Trust I would say a multiple layers first is the technology so blockchain creates a decentralized ledger where transactions are transparently recorded and cannot be altered without a consensus cryptography ensures data is security encrypted and verifies the Integrity of each transaction improvise individuals with an asymmetric power over cohesion of their private assets only the owner of the private keys can access and transfer the money making the unauthorized assets virtually impossible but technology alone isn't enough we also need a participants in the network and the consensus mechanism they bound them together the consensus is fundamental for the operation of decentralized peer-to-peer Network recently I discovered that the concept of decentralization is often misunderstood some mistakenly believe that decentral means decentralization means everyone can do whatever they like without rules and restrictions however what decentralization really means is everyone in the net n work should adheres to predetermined rules to reach consensus and the decentralized power structure ensures these rules are executed as intended without any single entity having the power to manipulate them and we are here to talk about ethereum which is an excellent example of a highly decentralized and Performing Network it has been running robustly without down time for 9 years and today with a total value lock of around 47 billion dollar a daily transactions of more than 1 million transactions it is leading the game in becoming a Global Financial settlement layer this is feasible because of ethereum is an infrastructure that supports smart contract to build decentralized applications so I mentioned the contract before the classical legal contract and now I want to um say a few words about smart contract and this is important in legal terms a contract is a Biden agreement that is in in foreseeable by law smart contract is no different to it only that it is smart meaning it is automatic and self executing where the terms and conditions are written into the lines of codes unlike traditional contracts they rely on a it takes time are vulnerable and always subject to change arror and capable of doing evil the smart contracts are robotic depri of human factors they can only execute the rules predetermined in the codes they are deterministic predictable and consistent and they should be open Source accessible for everyone to audit and verify by reading into the codes you know what the smart contract can and cannot do these all guarantee by the rules of the centralized consensus the modern trust expert bman defined trust as a confident relationship into the unknown I would say the things to the blockchain and consensus now the unknown becomes the known so trustless is a new paradigm uh enabled by the technology of blockchain what it means is that it reduces or removes human factors from the system and ensure that the system runs as it should without relying on trust in any individual or Central entity and trustless Protocols are very implementable for