Blockchain Architecture First Principles #1 β The Less We Trust, The More We Must Bring in Untrusted Participants
π Explanation
Ironically, when trust is low, we shouldn’t eliminate it β we must bring in untrusted participants as a last resort and reward them well for it.
Instead of relying on a single authority, we distribute validation across a network to prevent any single point of control β not by reducing trust to the most trusted entity, but by spreading it.
Trust exists on a spectrum:
- Full trust: A centralized system where a single authority controls everything.
- No trust: A fully permissionless blockchain where security comes from decentralized consensus.
- Middleground: Permissioned or non-permissioned systems with tradeoffs act as a hybrid, balancing efficiency and decentralization β whether by selecting a limited set of trusted validators or by removing Proof of Work while maintaining security through alternative consensus mechanisms.
Blockchain is defensive by design:
Prevention over correction. The system is built to stop bad transactions before they happen.
- Verification, not enforcement β once a transaction is recorded, itβs final. Thereβs no undo button.
- Decentralization has a price β more verification leads to slower, costlier transactions.
- Incentives drive security β trustless participants need strong incentives to secure the network.
π₯· How to Apply
- If trust exists, use it. Centralized systems are faster and more efficient. If trust is weak, donβt be naΓ―ve β blockchain is costly but necessary when enforcement cannot be delegated.
- Permissioned blockchains are a middle ground. They allow selected validators to maintain efficiency while reducing reliance on a single authority.
- If privacy matters, expect complexity. Trustless systems require additional cryptographic layers for privacy.
- Consensus is a tradeoff. Proof of Work, Proof of Stake, and Proof of Authority optimize for different balances of trust, efficiency, and security.
- Hybrid models work. Permissioned and permissionless networks can coexist, leveraging their respective strengths.
Every Sunday, Iβll propose a blockchain first principle for architects. Not fixed rules, but emerging truths β meant to be ruthlessly challenged, like a scientific hypothesis. If a principle canβt stand up to questioning, Iβll refine or toss it.
π Also shared on LinkedIn