DYOR Crypto Wiki
(Created page with "* A term often used together with decentralized, permissionless and non-custodial. * [https://bankless.substack.com/p/are-we-trustless-yet-market-monday-eb4?token=...")
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Tag: Visual edit
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== Basics ==
* A term often used together with [[decentralized]], [[permissionless]] and [[non-custodial]].
 
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* [https://bankless.substack.com/p/are-we-trustless-yet-market-monday-eb4?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjoxNDUzNjUwOSwiXyI6ImM5eFJuIiwiaWF0IjoxNjAzNzk1ODMzLCJleHAiOjE2MDM3OTk0MzMsImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.5rvi6PDNIFKEBlj762sa_BSkSZho0FEx7piOdtngq4c From] [[Bankless]] (26-10-2020) had a post describing what it meant:
 
 
*A term often used together with [[decentralized]], [[permissionless]] and [[non-custodial]].
 
*[https://bankless.substack.com/p/are-we-trustless-yet-market-monday-eb4?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjoxNDUzNjUwOSwiXyI6ImM5eFJuIiwiaWF0IjoxNjAzNzk1ODMzLCJleHAiOjE2MDM3OTk0MzMsImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.5rvi6PDNIFKEBlj762sa_BSkSZho0FEx7piOdtngq4c From] [[Bankless]] (26-10-2020) had a post describing what it meant:
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"''The lack of required belief that another party will behave in the the manner specified beforehand."''
 
"''The lack of required belief that another party will behave in the the manner specified beforehand."''
   
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''Using this framework for evaluating [[DeFi]] applications, the level of ‘trustlessness’ in the system extends far beyond ‘[[admin key]] risk’."''
 
''Using this framework for evaluating [[DeFi]] applications, the level of ‘trustlessness’ in the system extends far beyond ‘[[admin key]] risk’."''
   
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== Cryptoeconomics ==
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* [https://ercwl.medium.com/whats-wrong-with-the-chainlink-2-0-whitepaper-for-simpletons-d50f27049464 From] [[Eric Wall]] (1-5-2021):
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''"cryptoeconomic security is the concept of making evil actions cost more for the attacker than what the upside is. It is about creating systems that punish evil actors financially for not doing what they’re desired to do, so much that you as a user can rely on them to act faithfully in alignment with a protocol’s mission. In a cryptoeconomic system, you don’t need to trust that people are honest. You just trust that people are economically rational and are doing what’s best for themselves financially. This principle is the core, or atleast it was supposed to be the core, of all that underpins the modern [[Public Blockchains|public blockchain]] invention: the idea that we can build trustless systems and do away with trusted points of failure."''
 
[[Category:Jargon/Various]]
 
[[Category:Jargon/Various]]

Revision as of 07:38, 18 June 2021

Basics

"The lack of required belief that another party will behave in the the manner specified beforehand."

"Maximal, complete, and uncompromising assurances that a counterparty will behave as intended"

So it boils down to this:

  1. You can always access your money
  2. No one else can access your money

Using this framework for evaluating DeFi applications, the level of ‘trustlessness’ in the system extends far beyond ‘admin key risk’."

Cryptoeconomics

  • From Eric Wall (1-5-2021):

"cryptoeconomic security is the concept of making evil actions cost more for the attacker than what the upside is. It is about creating systems that punish evil actors financially for not doing what they’re desired to do, so much that you as a user can rely on them to act faithfully in alignment with a protocol’s mission. In a cryptoeconomic system, you don’t need to trust that people are honest. You just trust that people are economically rational and are doing what’s best for themselves financially. This principle is the core, or atleast it was supposed to be the core, of all that underpins the modern public blockchain invention: the idea that we can build trustless systems and do away with trusted points of failure."