Trustless Technologies Versus Intermediaries

With the central theme within the presentation being trust, the presentation will seek to elucidate, when and why an intermediary role is required. The “old” world, structured around intermediaries, might soon be replaced by a trustless “new” economy with less or no intermediaries. However, there are still situations in which an intermediary has a role to play. Through an introduction to the Blockchain Act (TVTG) in Liechtenstein, its drafting process, and the roles defined therein, the approach in addressing these points will be considered. The Blockchain Act does not seek to regulate a blockchain ecosystem built around “trustless” transactions and systems. Instead, it considers specific scenarios in which intermediaries have a role to play and ensures that these intermediaries do not misuse the trustless system. The Blockchain Act thus guarantees that the ecosystem can continue operating on the basis of trust in every situation. This can be based on the trust deriving from its decentralized nature, or from the trust derived from the regulation of intermediaries in situations in which an intermediary has a role to play. The legislation represents an alternative, and an option, for individuals to transact in a system that provides legal certainty, and introduces trust in situations. Specific service providers, such as the Physical Validator, will be considered, in order to exemplify the need for the bridge to a real-world asset. This will further show that some parts of this new world remain untouched and unregulated. Finally, the presentation will also consider, whether exposure to financial surveillance remains relevant, and the impact which the legal framework has had.