Good article but don't understand how you can have authenticated. authorized and secure financial transactions in a "trustless" environment. Would you please explain further??
The security comes from the computer code. We write code that does exactly what we ask it to. There’s no execution error (as long as the code is well-written) like there is with a human operator. “Trustless” in this context means that you and I can interact with this code and receive value from it without relying on any third parties to complete the transaction. Let’s say you’re selling an insurance policy and have created an ethereum smart contract that holds the policy. I can buy that policy, put in my info, the code can check that I have everything needed to start the policy and also manage any payouts or claims all without needing any other human activity. We don’t know each other, never spoke, yet we can exchange value through computer code.
Good article but don't understand how you can have authenticated. authorized and secure financial transactions in a "trustless" environment. Would you please explain further??
The security comes from the computer code. We write code that does exactly what we ask it to. There’s no execution error (as long as the code is well-written) like there is with a human operator. “Trustless” in this context means that you and I can interact with this code and receive value from it without relying on any third parties to complete the transaction. Let’s say you’re selling an insurance policy and have created an ethereum smart contract that holds the policy. I can buy that policy, put in my info, the code can check that I have everything needed to start the policy and also manage any payouts or claims all without needing any other human activity. We don’t know each other, never spoke, yet we can exchange value through computer code.
Thanks for the explanation