Description: The Trusted Third Party is an entity that acts as an intermediary in transactions between two parties, providing a level of trust that facilitates interaction. Its main function is to verify the identity of the parties involved and ensure that the terms of the agreement are met. In the context of Public Key Infrastructure (PKI), the Trusted Third Party manifests through Certificate Authorities (CAs), which issue digital certificates that validate the identity of users and devices. This is crucial in environments where security and authenticity are paramount, such as in financial transactions or secure communication over the Internet. Additionally, in the realm of smart contracts, the Trusted Third Party can be represented by oracles that provide external data necessary for the execution of contracts, ensuring that conditions are met automatically and without human intervention. The relevance of the Trusted Third Party lies in its ability to reduce the risk of fraud and increase transparency in transactions, which is essential in an increasingly digital and connected world.
History: The concept of Trusted Third Party has evolved with the development of digital technology and the need to secure online transactions. In the 1990s, with the rise of the Internet, Certificate Authorities emerged as a solution to validate identities in digital environments. These entities began issuing digital certificates that allowed users and organizations to authenticate their identity online. As blockchain technology emerged in the 2010s, the role of the Trusted Third Party transformed, as smart contracts and cryptocurrencies began to operate in a decentralized environment, although oracles were still needed to provide external data.
Uses: Trusted Third Parties are primarily used in validating identities in digital transactions, such as in online purchases, where verification of the buyer’s and seller’s identity is required. They are also essential in the electronic signing of documents, where they ensure that the parties involved are who they claim to be. In the realm of smart contracts, oracles act as Trusted Third Parties by providing real-world data necessary for the execution of contracts.
Examples: An example of a Trusted Third Party is a Certificate Authority like DigiCert, which issues digital certificates to ensure the authenticity of websites. In the realm of smart contracts, Chainlink is an example of an oracle that provides external data to contracts on the blockchain, allowing them to execute automatically when certain conditions are met.
