Verifiable Truth
Trust is replaced with onchain Verifiable Truth to run a deterministic internet of intent.
Trust is foundational to open trade.
Web3 Principles
Centralised Power
Centralised authorities can change the rules on you.
Corridors of power become channels for corruption
With modern technology far too much power in the hands of the few.
Code is Law
Web3 transactions are trustless in that logic is written into immutable smart contracts that will process inputs without bias.
When you understand Smart Contract code, you don't need to trust outcome for given set of inputs will be as expected, but know the results will be as expected.
Challenges
There are still risks that the integrity of the Smart Contract code could be compromised.
Innovation on the blockchain is permisssionless. That means that anyone can launch a smart contract that could be exploitable by error or by design.
To enable trustless transactions we first need to establish fair regulations that are enforced by engineering standards.
You still need humans you trust: Vitalik on strategy for managing wallets