Mon. Jan 21st, 2019

How Distributed Ledger Technologies (DLTs) Promote Trust and Why is it Important – Suril Desai | Guest Article

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The following is an Article written by our Guest – Mr. Suril Desai, Lawyer, Associate at Nishith Desai Associates. He carries extensive experience in the legal segment for Blockchain and DLTs. His write-up explains a good deal about how new DLTs will promote trust and already existing frameworks promoting trust. 

 

Trust has been at the pinnacle of our society. It is the way in which all decisions are enacted throughout our everyday life. Early in human evolution, dominant figures were the head of the household. A family was a unit, a means of protection, proliferated by a leader who was bestowed upon the trust to protect one’s unit. Eventually, this evolved into kingdoms into which a leader was given the trust to protect, decide, and govern over a collection of families. This basic change allowed for the better management of resources, improved protection, and a trusted environment for the enforcement of rules in which societies lived.

Trust lived in these kinds of silos until the advent of representative democracy by the Greeks a few thousand years ago. This was the first time, in any large capacity, a society placed their trust distributed amongst a group of individuals. The thought to be that central powers corrupt trust and do not act in the best interest of the group, but instead themselves. By distributing this power, a system of checks and balances would help bring about the current best form of government, that simultaneously benefits the largest majority of society.

Today this type of trust is still the basis on which we run our countries. Democracies are the best form of government that exists and is placed solely on the principle of distributed trust. But why have democratic principles not seeped into all aspects of our daily lives? Why are daily interactions still controlled in a kingdom like manner? Or even worse, put people in situations where their personal benefit contradicts with their duty of trust. Until now, the burden of creating democratic processes was too expensive in both process and manpower. It was infeasible to use this mechanism to run our everyday lives. But, technology has finally caught up to us.

With the advent of a variety of different types of DLTs (distributed ledger technologies), the concept of moving trust away from human decision making and into programmable outcomes destroys a remaining vestige of human oligarchical tendencies: corruption. Blockchains, hash graphs, and other DLTs that are arising from all over the world have so many promises with a variety of life-changing properties that can affect all aspects of how we run our societies.

The most astounding part is that these opportunities are no longer centered in the world’s economic epicenters. While amazing talent and ideas are pouring out of places like the US and Switzerland, these countries are bogged down with centralized processes and legacy systems that require governmental action in order to change. That is why Mauritius is poised to become the beacon for DLT and specifically blockchain experimentation, research, and implementation to be used around the globe. We have aligned our centralized systems, our government, and our parliament to adapt to these new technologies and to show the rest of the world that there is a better way to enact trust. Just as cell phones changed the lives of billions around the world, DLTs are going to have an even more profound effect on others especially in places where deep-seeded corruption has held back so many.

This evolution of trust is not 100% perfect. We understand that fundamental shifts in society have their costs and tribulations. But we also know that opportunities of such fundamental change come around every millennium or so. We have positioned Mauritius to be that gateway for minds all over the world to come and innovate in the new sense of democracy. Just as the first king, or the writers of the Magna Carta, we are at an evolutionary pivot in the way in which we trust. It is now up to you, the great minds of this world, to tackle these problems one block at a time.

We believe blockchainS have the potential to change the world. Blockchain’S’, not one single blockchain. We are committed to promoting an ecosystem where everyone can have access to it, anywhere on the planet.

Ending Note – 

 

We hope that was a refreshing read and had an impact on your thinking about Trust. You can learn more about Mr. Suril Desai’s  journey here – Interview with Mr. Suril Desai

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