What is blockchain? What makes a good blockchain? Is blockchain just a buzzword? Is a blockchain really trustless?
Let's start with the last one. The word trustless is often used to describe blockchain, however it is not really trustless — it would be better described as decentralised trust or systemic trust (trust in the system).
Rather than trust an individual (person or organisation) the trust is provided by the very system itself.
You do need to trust the transaction processors (aka miners) for the chain, and also the programmers that wrote the software being used. However you don't need to trust the individual processors or software, only that the majority are truthful. A characteristic of blockchain is that an individual bad actor, controlling only a small portion of the network, cannot take the network down.
A blockchain network can increase systemic trust through:
- A large number of processors (e.g. public chain)
- Multiple clients (i.e. multiple development teams)
- Open source (allow visibility and the option to reject changes and go a different direction)
Only two major blockchains rate highly on these trust criteria: Bitcoin (BTC) and Ethereum (ETH). There are strong reasons why these have strong support.
Some of the others are trying, but not yet there, and worryingly some of the type cryptocurrencies are not decentralised at all, but actually controlled by a single central organisation.
Continue reading Evaluating blockchain networks(5 min read)