Dear readers,
Thank you for being with us on the first day of a new year, perhaps even while you're still experiencing headaches. We hope this year will be much more peaceful, happy, and prosperous for all of us.
Like many people, I'm planning on making new resolutions for the new year. For example, our podcasts will become more frequent and updated weekly. If you let us know which topics you'd like us to cover, we'll include them in our newsletters! Actually, the purpose of this newsletter has always been to provide accessible and understandable summaries and updates on lesser-known topics . Over the past year, we've published numerous newsletters on Web3, DeFi, NFTs, Project Types, Ethereum Merge, Embedded Finance, Proof-of-Work, and more. This year, I'm taking our goal even more seriously, expanding our scope, and aiming to create a comprehensive library. To achieve these goals, let's stop rambling and get to the point!
When discussing the crypto world, there's a crucial concept we often overlook: trust . The Turkish word "güven" (trust) actually comes from the Middle Ages, derived from the words " küwen " (to boast) and " küwez " (pride). The English word " trust ," on the other hand, derives from the meaning of "strong" and, with its inherent connotation of " shelter ," adds reliability to our sentences and subjects. It seems to have created travelers who won't stray from their paths, and friends who won't hesitate to offer them a place to stay. We've also come to use the concept of trust to understand societies in today's world.
When trust diminishes, our faith in that society also diminishes, as does our loyalty to it.
On Crypto and the Concept of Trust — Decentralized Bulletin
Although we've embarked on many paths based on the concept of trust, we've realized over time that this isn't always the case. While trust is important, we've learned that caution is equally crucial. For those who haven't learned this, we suggest they immediately correct their behavior. Being cautious is good, but we've also realized that we can be safer if we can extend this caution beyond mere thought and apply it more comprehensively to our lives. It is at this point that we encounter the concept of " cryptography, " which can help us live a cautious and therefore safer life.
Where does this distrust come from?
One of the problems reflected in today's world, and which forms the source of our insecurity, is often the centralized ownership of our data and processes . While the data contained within many applications is owned by the data center, the operations and decisions are managed by the application owner(s). This results in users trusting the application owner and only entrusting their data to them in that way . Sometimes we don't even think about this issue, we adapt even if we don't trust, and we ignore the risks. However, the idea that this trust could be abused makes us uneasy. Research shows that a significant number of people believe that political views are being manipulated, especially on social media. Moreover, when we remember that the value of these platforms is directly created by users, we begin to question the fairness of the situation. While the platform has no value without users, users create content that allows the platform to advertise and make money from this value. This brings to mind many Web2 platforms, however cliché it may be, He suggests that it can operate on the principle of "if something is free, then you are the product."
Another point we're overlooking is how critical and legally binding our relationship with the platforms we use actually is. From this perspective, the fault could be interpreted as the user's; after all, we all know there are many "Terms and Conditions" we accept without reading . Even though not reading them is our fault, our shortcoming, should we expect users to read those texts, written in heavy jargon and open to interpretation, which are naturally difficult to understand? Perhaps we shouldn't. Of course, when things are going well, we don't question these things so much; what we sign or accept doesn't matter much. We're content. Hopefully, things won't go wrong, and we can continue without noticing the situations we've put ourselves in.
On Crypto and the Concept of Trust — Decentralized Bulletin
One of the injustices we, as users, may encounter in this regard emerges on the path to legal action. You are aware of how dire the legal options are for a user compared to a large corporation. Users generally lack the time, money, and influence to address the problems they face . There's even an expression in economic jargon to illustrate this.
Too big to go bankrupt!
The company is so big that it can never go bankrupt; nothing can stand in its way.
Another reason our trust is undermined is the sheer number of steps involved. How? If we have to do business with a company we don't fully trust, we need to establish trust by using certain instruments . Examples include using several different companies to send money, working with an insurance company, or using third parties to verify transactions . Ultimately, having transactions handled by a single company without any oversight can create problems, which can be solved with third-party validators. But who wants to deal with all these steps? Such precautions are time- consuming and costly . Imagine sending money to a foreign country; first , the money needs to be transferred from a bank in your country to another bank with which it has an agreement. Then, the recipient receives the money from the other bank. Such transactions usually result in both banks taking commissions and sometimes the money disappearing, which is not a pleasant situation. In our next newsletter, we will explain how crypto can solve these problems.
Now let's take a look at the year's final developments. Last week, OpenSea emphasized that confidence in NFTs has been renewed. Following the price increase in NFTs after Donald Trump 's visit, there is talk of another potential surge.
Gareth Soloway , a well-known figure in cryptocurrency exchanges , suggests that the first month of the year could see some surprising price increases. We are eagerly awaiting to see what happens as he focuses on Cardano , Solana , and Ripple .
As we mentioned in our previous newsletter, Sam Bankman-Fried was released after paying $250 million in bail. A few days later, it was reported that he had made numerous transactions with Alameda Research , which was on the verge of bankruptcy . This turned the spotlight on SBF, raising questions about whether the released former CEO had any involvement in these transactions.
However, according to a statement he made on Twitter the night between Friday and Saturday, such a thing is not possible. Now, regarding the funds… He added that he did not have access to these matters and therefore had no involvement with them, but that he could assist and cooperate with the authorities if requested.
Another development concerns Binance . You can now make purchases from Binance using Google Pay and Apple Pay . You can see the Google Pay or Apple Pay options on the purchase screen, or you can use the guide provided by Binance.
These were the developments of the last week of the year, and we hope to bring you more happy news next Sunday. We hope you have a peaceful and beautiful day and that it inspires you in the days to come.
Once again, see you next week on a much happier Sunday morning.
Decentralized Bulletin
Originally published on Medium on January 07, 2023. English translation of “Kripto ve Güven Kavramı Üzerine”.