Why trust is replaced by verification in crypto

Reimagining Compliance, Trust and TPRM: Could Blockchain End Our Reliance on PDFs, Screenshots and Questionnaires? ⛓️ Why not use proof instead of trust. And what if instead of trusting auditors, we also trust math? 🔢 Who trusts Attestations and Certifications? 📋 SOC 2 provides trust. You also require trust. You trust that: - The vendor implemented what they claimed (lol, sure) - The auditor properly validated those claims (with screenshots, of course) - Controls haven't degraded since assessment (infrastructure never changes) - Documentation reflects reality (boilerplate policies FTW) But in security, trust isn't a strategy - verification is. Blockchain Security Validation: Trust the Proof ⛓️ Imagine replacing subjective assessment with cryptographic verification: - Configuration states are validated and cryptographically signed - Results immutably recorded on blockchain, evidence are now tamper-proofed - Smart contracts can validate controls automatically against predefined criteria - You can check historical record showing continuous compliance, - Easy real-time alerting when controls drift from attested state Rather than an auditor telling you that "encryption is used," the system would cryptographically verify that "TLS 1.3 is correctly implemented on all endpoints with no deprecated ciphers." Documentation Theatre to Verifiable Security 🎭 This transforms security attestation from paperwork exercise to mathematical proof: - Customers verify cryptographic evidence instead of reading through lengthy massaged control language - Vendors can prove continuous compliance, not just during audit cycles - Configuration drift triggers immediate alerts, not annual findings - Technical teams focus on implementation, not documentation - Customers can check control effectiveness without seeing sensitive implementation details, preserving vendor confidentiality The blockchain creates a permanent, verifiable history addressing both trust issues and point-in-time limitations of current attestations. Why This Matters 🎯 By bridging the documentation-reality gap with cryptographic proof, we eliminate the need for sample-based shallow testing. Imagine never having to answer "Do you have MFA?" again because customers can verify your MFA implementation themselves. The Path Forward 🚀 This isn't woo-woo - the building blocks exist today. We have: - Secure enclave technologies for sensitive validation - Smart contract platforms for attestation logic - API-driven cloud environments ready for integration - Zero-knowledge proofs for private verification What's missing is standardisation and ecosystem adoption. The first vendor to implement this model won't just streamline compliance/audit - they'll fundamentally change TPRM/customer trust dynamics. PS: This wouldn't work for all controls, lots of legal liability to work through, etc. #GRCEngineering

For decades, a single number quietly influenced $300 trillion worth of loans, mortgages, and financial deals globally. That number was LIBOR - the London Interbank Offered Rate. Then the scandal broke: Bankers were literally texting each other on Facebook to manipulate this "most important number in finance" for personal gain. Traditional finance tried to fix this with a new benchmark called SOFR. Better? Yes. But still controlled by the same type of central authorities. Meanwhile, deep inside the crypto world, a new kind of interest rate is being engineered — one that doesn't rely on trust, but on verifiable computer code. It isn't trying to patch up the traditional financial system. It's building a parallel one from the ground up — transparent and governed not by banks or committees, but by algorithms anyone can inspect. At its core is the principle that defines much of crypto: don't trust — verify. Instead of relying on a few institutions to set rates behind closed doors, this new approach uses real-time market data and publicly visible computer programs to calculate benchmark rates automatically. No backroom deals. No surveys that can be gamed. Just math, markets, and machines. The question: Can we build a financial system that works without having to trust anyone? Had a fascinating conversation about this future with Darren C.: unhashed.co/darren

🚨 Don’t Trust. Verify. One of the biggest risks in crypto isn’t just volatility—it’s blind trust. Many platforms claim to hold user assets, but without transparency, how can investors be sure? The FTX collapse is a painful reminder of what happens when trust replaces verification. Investors assumed their funds were secure, only to realize too late that reserves didn’t exist. That’s why proof of reserves and liabilities is not just a good practice—it’s essential for the industry's credibility. At BitSave, we don’t ask you to take our word for it. When we say we hold ~$610,000 in custody for our investors, you don’t have to trust us. You can verify it—down to the last dollar—on the blockchain. Transparency isn’t optional. In crypto, trust is earned through verification.