Trust in Blockchain: Building Confidence in the Digital World
Trust is a trust relationship in which one party, known as the settlor, grants another party, the trustee, the right to hold property or assets for the benefit of a third party.
What is trust?
A trust is a relationship of trust in which one party, known as the settlor, gives another party, the trustee, the right to hold property or assets for the benefit of a third party, the beneficiary. Trusts are created to provide legal protection for the assets of the settlor, to distribute them according to the wishes of the settlor, and to save time, reduce paperwork, and, in some cases, to avoid or reduce inheritance or estate taxes. A trust is a legal entity used to hold property so that assets remain in a safe environment.
In the digital economy, many trust companies are able to provide an institutional level of control over the custody of various assets, including additional security and protection from counterparties, hacking and theft, as well as providing greater transparency and accountability. Trust companies are brought in as fiduciaries, and so they can make all investment decisions and work in their client’s best interest. This can be helpful for those without experience or knowledge of the digital economy.