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Doesn't trust here only apply to things happening 100% within the chain?

Such that a currency created and traded only on a blockchain is trustworthy because everything is traceable on the chain. A bit like software without IO being quite easy to reason about.

But the moment we get externally created data (sensor readings etc), we need to trust the source.




Definitely. That’s a good point that the ledger is only a trustworthy account of what has happened on the chain, and we should never get fooled in to thinking that placing untrustworthy records on a trustworthy chain makes them trustworthy.




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