Trust is Risk

A decentralized financial trust platform

Orfeas Stefanos Thyfronitis Litos

Dionysis Zindros

Financial Cryptography 2017

Motivation

  • Decentralized marketplaces like OpenBazaar need a decentralized reputation system
  • Multisigs give new context to money
  • Intuition that maximum flows and risk taking are connected
  • Trustless currencies like Bitcoin permit for novel uses of trust

Mechanics (1)

  • Initially Bob and Charlie are part of Trust Is Risk, while Alice isn't.
  • Alice decides to entrust 2BTC to Bob and 5BTC to Charlie through her newly installed Trust Is Risk wallet. She is risking 7BTC in exchange for being part of the network.

Mechanics (2)

  • Initially Bob and Charlie are part of Trust Is Risk, while Alice isn't.
  • Alice decides to entrust 2BTC to Bob and 5BTC to Charlie through her newly installed Trust Is Risk wallet. She is risking 7BTC in exchange for being part of the network.
  • The next day, she discovers a pair of shoes sold by Dean for 1BTC.
  • Through her new wallet, Alice checks Dean's trustworthiness.
  • Let Tr_{Alice -> Dean} = 5BTC.
  • Since 1BTC < 5BTC (shoes value < Tr_{Alice -> Dean}), Alice buys.

Multisig trust

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Trust graph and rounds

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Trust flow theorem

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Risk invariance

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Sybil resilience

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Thank you!

Questions?

https://github.com/decrypto-org/TrustIsRisk

https://github.com/decrypto-org/TrustIsRisk.js

 

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