In game theory, there is a puzzle called The Byzantine General’s Problem. The scenario is simple: a military general has developed a strategy for an attack. But he is pretty certain that there are traitors in the midst of his rank and file. He does not know who to trust. So, how does he can get the plans disseminated to his troops without them being sabotaged by the traitors? Who can he trust and how can he figure out who to trust?
Trust is a big issue. That is why we have lawyers, use banks, and get our documents and contracts witnessed and notarized. But what if there was a way to eliminate the trust issues with a technology that is virtually infallible? This is the potential of blockchain technology applications for any sector that has traditionally relied upon some authority who can be trusted – the financial industry or the insurance market, for example.
