Blockchains & Crypto: Trust
"You saying that crypto is going to be the future? \ This 'Ethereum' thing is a world computer?" That's lame. Maybe I should give you a name...
But that's a slippery slope.
You're only in my head.
We have to remember that...
It's actually happened.
I'm talking to an imaginary person.
— People Who Don't Understand Crypto
Cryptocurrency and Blockchain technology are integrating trust into digital ecosystems. Most people who are in crypto/blockchain right now don't realise this. The world we live in is built upon trust. So it isn't a surprise when trust is also one of the key factors in deciding on your engagements with other people.
Crypto / Blockchain enable users to trust each other, given that they are adhering to a set of rules already. Blockchains bootstrap this trust, and create new forms of markets and dynamics.
Fundamentally, crypto is tied into globalization and the need for a proper means of payment online. Before bitcoin, most online payment platforms were fragmented. We now have one network(bitcoin) that can be used worldwide without any hassles(well, not everybody needs to run a full node).
We are not witnessing the infrastructure for alternative finance being built out. Projects such as Compound, dYdX, MakerDAO are going to become the base layer for alternative finance, and the growing DeFi landscape.
The beauty of this ecosystem is that people don't necessarily need to trust each other. This implies that the number of interactions within DeFi will soon outpace other platforms, given the fact that the barrier to entry is not that high(trust embedded in the system)