Blockchain Architecture First Principles #1 - The Less We Trust, The More We Must Bring in Untrusted Participants

💭 Explanation

Ironically, when trust is low, we shouldn’t eliminate it — 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 — 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 — 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 — once a transaction is recorded, it’s final. There’s no undo button.
• Decentralization has a price — more verification leads to slower, costlier transactions.
• Incentives drive security — trustless participants need strong incentives to secure the network.

🥷 How to Apply

• If trust exists, use it. Centralized systems are faster and more efficient. If trust is weak, don’t be naïve — 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, I’ll propose a blockchain first principle for architects. Not fixed rules, but emerging truths — meant to be ruthlessly challenged, like a scientific hypothesis. If a principle can’t stand up to questioning, I’ll refine or toss it.

🌐 Also shared on LinkedIn