Definition ∞ Locally defined trust refers to a system where confidence in a transaction or entity is established and maintained within a specific, limited scope or community, rather than relying on a global, universally accepted authority. In distributed systems, this might involve participants verifying each other based on direct interactions or shared reputation within a subgroup. It contrasts with global trust models found in public blockchains. This approach optimizes for specific use cases or smaller networks.
Context ∞ The concept of locally defined trust is relevant in permissioned blockchain networks or certain decentralized applications where participants operate under specific agreements. A key debate concerns balancing the benefits of localized verification with the broader need for interoperability and global security standards. Future applications may see this model employed in supply chain management or inter-organizational data sharing, where trust relationships are inherently bounded.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
