Questions tagged [trust]

Trust is when one party relies upon the representations made by another party such that the relying party would be harmed if the representations were inaccurate. Trust exists between users of crypto-currencies and the developers of the software they use, between mining pool managers and their miners, and between exchanges or e-wallet services and their users.

1
vote
1answer
30 views

How 1 cpu 1 vote works?

How 1 cpu 1 vote works? What is its validity? Does it use IP address or mac address or similar to that? If yes, then it can be changed and can make fool to the network. If it can't, then how is it ...
1
vote
1answer
41 views

off-chain payment channels: Do we need to trust “Payment Service Providers”?

A paper entitled: "Privacy in Bitcoin Transactions: New Challenges from Blockchain Scalability Solutions" has tried to investigate privacy issues of the Bitcoin influenced by the solutions for ...
0
votes
1answer
17 views

Does Multi_Signature transactions enable trust-less payments? (Edited)

This paper: (Link to paper) introduces a blockchain based platform entitled PriWatt claiming (in Section 2.5 MultiSignatures, page 3): "PriWatt provides the means to form agreements or contracts ...
0
votes
1answer
58 views

Is transaction validation in Ripple trust-based or trust-less?

In Ripple consensus, (1) Each validating server maintains a list of trusted servers known as Unique Node List (UNL). (2) Servers only trust the votes issued by other servers which are contained in ...
0
votes
1answer
66 views

Is routing approach of Bitcoin Lighning Network “decentralized” and “trust-less”?

From the Bitcoin Lightning Network: it is possible to find a path across the network similar to routing packets on the internet. Is routing approach of Bitcoin Lighning Network performed in a "...
0
votes
1answer
37 views

Is there a decentralized zk-SNARK (zero-knowledge Succinct Non-Interactive ARgument of Knowledge)?

Normally, in zk-SNARK, we need to generate two public keys: one for prover and one for verifier. However, the input parameter of this generator algorithm must be secret, meaning that it must be hidden ...
0
votes
0answers
38 views

What is the “Oracle Problem” definition exactly and briefly?

What is the Oracle Problem definition exactly and briefly? Does it mean "trusting on a centralized Oracle" ? Or "How to reach a consensus between a group of Oracles" ? Is the matter "centralization" ...
0
votes
1answer
91 views

Is the whole idea of proof of work or proof of stake quite unnecessary and superfluous for cyptocurrencies?

I only have a vague idea of proof of stake, but I think I reasonably understand proof of work. In the case of bitcoin, the whole hash thing business has to be combined with a mechanism to increase the ...
0
votes
1answer
236 views

How does LN solve the liquidity problem?

How do nodes in LN manage to provide 100% collateral to all the outgoing channels? I attached an example below that details my confusion about the lack of liquidity.
0
votes
2answers
59 views

Does blockchain have any value if you trust all nodes?

If we are designing a new project or application whatever it is, and you can trust all nodes, should we still consider blockchains in the architecture? I saw this video of IBM and I was wondering ...
-1
votes
2answers
1k views

Examples of trustworthy ripple paper wallets?

Which are examples of trustworthy ripple paper wallets? I've been reading on the internet and I have found several websites for generating ripple paper wallets: ripply.eu, bithomp.com, gatehub, ...
1
vote
0answers
146 views

Can we trust Aionnext exchange platform? [closed]

I have a general question, if there is a list of regulatory approved exchange for cryptocurrency brokers?
1
vote
2answers
2k views

Ripple paper wallet: is “ripplepaperwallet.com” safe?

I've been reading on the internet and I have found several websites for generating Ripple paper wallets: ripply.eu, bithomp.com, gatehub, etc. I'm not sure if these websites are official Ripple ...
0
votes
3answers
1k views

Exchange Transaction versus Blockchain Verification

I am wondering about a question related to this post. According to bitcoinity, the number of bitcoin-trades at major exchanges per minute is roughly 400. However, as also pointed out by @eponymous in ...
0
votes
1answer
53 views

Is it possible for multisig wallets to have trusted addresses? (Dynamic amount of permissions required)

I've been wondering if it is by design possible to have a multi-signature wallet which has a set of trusted addresses which require less signatures. Let's say I have a 3-of-5 wallet, but all address ...
2
votes
1answer
172 views

Is there an escrow-like mechanism that doesn't involve a trusted 3rd party?

We know that escrow mechanisms are easy to implement when it involves a trusted 3rd party. For example if A and B don't trust each other they can simply send their goods to C whom they both trust. ...
2
votes
2answers
156 views

How do I know which exchanges are serious actors?

How do I find bitcoin exchanges? How do I know if the exchanges can be trusted?
1
vote
0answers
73 views

Do wallets break trustless character of cryptocurrency transactions?

My question is, whether lite wallets and wallets in general break trustless character of cryptocurrency transactions or not? In case of a lite wallet, even I hold the keys, a blockchain itself is ...
2
votes
2answers
904 views

Why can't timestamps be a substitute for blockchain?

I'm super fascinated by the entire concept of proof of work and how it allows for a trustless, decentralized system. Despite knowing that proof of work (or proof of stake) can be an inevitable ...
5
votes
1answer
321 views

Do we have to trust at least one DNS seed?

If I understand correctly, when new bitcoin node wants to join the network, it must be introduced by guiding nodes -- DNS seeds. DNS seeds can thereafter help new node discover more existing nodes. ...
5
votes
2answers
2k views

Blockchain as a service - is this really just a replacement trusted third party?

One of the key tenets of Blockchain technology is that it is a trustless, distributed ledger which removes the need for a trusted (but hackable) third party to oversee the veracity of transactions (e....
3
votes
1answer
2k views

What exactly does “trustless” mean in terms of Bitcoin?

People often say that Bitcoin is trustless, what exactly does it mean? I know you don't need to trust one of following entities when you transact in Bitcoin, but what don't you need to trust? third ...
1
vote
1answer
84 views

Can a publicly visible but privately mined block chain be trusted?

Outside of Bitcoin, if a company set up a blockchain like structure that can be publicly accessed but only the company itself mines blocks, does that mean the blockchain can't be trusted? I have only ...
2
votes
1answer
198 views

How to avoid “single point of trust” in online bitcoin exchange sites

How do an online service such as a Bitcoin exchange prevent some sysadmin from transferring assets from its users to him self (like in the bitcoin case, a secret wallet of his own) and take off to ...
6
votes
2answers
2k views

Why does the blockchain need blocks?

I think I understand the main parts of the Bitcoin blockchain. While I was explaining the concept to my girlfriend she asked me why groups of transactions are actually stored in a block? Every ...
2
votes
0answers
38 views

How does lighting network ensure all parties cooperate [duplicate]

I somewhat understand the two way channels used in lightning. But I fail to see how trust is avoided. If I'm the middle node I'm perfectly fine with forwarding a payment, if I received the payment ...
4
votes
3answers
252 views

What if Zcash Company turns evil?

The "Company Values" section at the Zcash website states: we are not the controllers or the power-holders, and do not control the mining or distribution of Zcash. Every user of Zcash contributes ...
1
vote
2answers
39 views

Attach and persist identity to address

With Bitcoin, you can sign messages to prove that you are in possession of a private key associated to a public key. Correct me if I'm wrong, but from my understanding this only works with a separate ...
4
votes
2answers
3k views

Who is the certification authority in Bitcoin?

If you would compare Bitcoin with electronic banking there are quite a lot of similarities like the encryption and hashing with private and public keys. In electronic banking though the bank is the ...
1
vote
2answers
294 views

If Blockchain miners weren't paid would there still be trust in all bitcoin transactions?

If Blockchain miners weren't paid to mine would there still be trust in all bitcoin transactions?
3
votes
2answers
78 views

How to create both anonymity privacy and still achieve address reputation for merchants

In what way can a merchant create a payment address that will gain reputation of trust (this address or some information connecting with the payment request will gain reputation over time and will be ...
3
votes
1answer
366 views

How are the assets locked and unlocked trustlessly using sidechains?

I am reading sidechains white paper and in section 3.2 Symmetric two-way peg they mention that: "The parent chain coins are sent to a special output on the parent chain that can only be unlocked by ...
0
votes
2answers
429 views

How to apply blockchaining to data?

I would like to apply blockchaining on unstructured data (any kind of data). I have seen BlockSign use similar concept to sign a document by storing a hash of the document in OP_RETURN block of ...
5
votes
1answer
201 views

Why is everyone encouraging the use of P2Pool as the answer to the 51% problem?

As I understand, P2Pool has some problems, since it's just a separate blockchain with a shorter time between blocks, small miners still have more variance, and, hypothetically, if the time between ...
0
votes
1answer
675 views

Using blockchain to publish downloadable software verification codes

What is the point of comparing sha256 of downloaded file with published on the same website code? Why can't developers of currencies publish file version and sha256 hash on blockchain as alias or ...
1
vote
3answers
504 views

Can the Bitcoin blockchain eliminate the need for Trusted Computing in Smart Contracts?

Let me preface this by saying that I'm a novice, but this is my rough understanding of how Bitcoin's blockchain works. (This is largely based on blog posts like this one.) If person A wants to ...
8
votes
4answers
748 views

How can a bitcoin exchange prove its solvency while maintaining privacy?

What methods can an exchange website use to prove that it actually has all its users' bitcoins? These are the requirements: User privacy is a must. No one should be able to tell how many bitcoins an ...
8
votes
2answers
464 views

How much trust is placed on Satoshi Nakamoto?

Is the safety of bitcoin dependent on the creator of it being a trustworthy person? Or would it be safe to use even if it turned out the creator's day job was working at the NSA?
0
votes
1answer
63 views

Are there decentralized bitcoin asset management systems out there?

Are there any decentralized/shared bitcoin asset/investment management systems out there? It should be applicable to the following case: Many peers and nobody trusts each other. But trust is gained ...
5
votes
3answers
235 views

Are there any mining pools that publish what transactions they will include?

If some large number of the mining pools started publishing what transactions they are planning on including the danger of accepting a zero confirmation transaction would be reduced dramatically. Has ...
2
votes
1answer
370 views

What trust am I placing where when I use Electrum?

I have read that Electrum never is given your private keys (which makes sense), but I'm still unsure what sacrifices it makes in order to not require you to not store the entire ~14GB blockchain. So ...
0
votes
2answers
867 views

Is the Trusted Third Party an advantage or disadvantage in regards to wallet security?

I'm new to bitcoin and have been reading some intros and FAQs. Most features of bitcoin seem better than our current currency systems. However, the one thing that strikes me is the ability to have ...
4
votes
1answer
103 views

Trustworthy url address for bitcoin download?

I would like to download install some bitcoin software and create a wallet. I know there are some programs like Bitcoin-QT or Multibit. There are more sources to download these programs. I want to be ...
-2
votes
2answers
434 views

Who provides the computers and infrastructure for bitcoin transactions to happen? [duplicate]

I am new to bitcoin. I have some fundamental questions. If bitcoin does not have any centralized entity controlling it, who provides the infrastructure for the trades to happen? Does this has ...
2
votes
2answers
135 views

How does the architecture prevent someone taking over by running a several billion clients?

I'm new to bitcoin and was wondering: As far as I know, bitcoin relies that the majority of the users is to be trusted. Why is it not a problem then if someone starts up billions of clients, eg. a ...
8
votes
6answers
2k views

Traditional VC investment vs. bitcoin IPO

There are few Bitcoin "stock exchanges" trading mainly BTC mining company pass-through shares, like https://btct.co/ https://bitfunder.com/ We are planning to get investment for our Bitcoin-...
5
votes
1answer
281 views

How can we trust big exchanges? [closed]

After reading the question What are ways a BTC Exchange could steal from its customers, and how can they protect themselves?, it would seem that you can't really trust the big exchanges (or anyone) ...
9
votes
2answers
334 views

Mediated transfer of funds between three parties

Alice wants Bob to transfer 10btc to Carol, and is willing to pay Bob 11btc for the transfer. They both entrust Trent to mediate the transaction, and Alice is willing to pay Trent 1btc as commission. ...
2
votes
1answer
203 views

Is it possible to see how much trust a certain wallet/user has extended in Ripple?

I can use the Ripple Live Network graph to see the balances of any given wallet on Ripple, but in order to know whether to trust someone (even a close friend), I might want to know how much trust they ...
3
votes
1answer
148 views

Is Trust public in Ripple?

If I trust someone, does everybody see exactly how much I trust them? At some point, a public directory of Ripple addresses might emerge, and people will know exactly how much their friends trust ...