Blockchain technology is great because it cuts out the middleman, removes the need to trust third parties, and gives users full agency over their finances, or true ownership of their wealth. From Bitcoin (BTC) to decentralized finance, blockchain technology has been delivering on this promise for quite some time now — but just how trustless is crypto really?
Cryptocurrencies were created as a result of a lack of trust in the legacy financial system, but as crypto continues to evolve and change, more trust is required: in the developers, miners, exchange operators and other network participants. To some degree, crypto is changing the recipients of trust rather than eliminating the need for it.
Ilya Abugov, lead analyst at DappRadar, told Cointelegraph: “There are still a lot of centralized elements, where users need to trust a particular entity or a group of entities. Even things like delegated voting relies on the delegates acting in the best interest of the community.”