So how do you coordinate this so called decentralized transaction? Over the internet through SSL certs that are centrally signed? You're still putting blind trust in something.
Transactions are broadcast with RPC. Once accepted and written to the ledger (ie: after a number of confirmations), you can verify the state of the transaction via your own local node.
It is impossible to completely remove the need for trust. We trust that our computers work as expected, that our modems and routers are not compromised, that RPC endpoints and software is running as expected, that the internet infrastructure in our country is sending messages correctly.
The blockchain isn’t a catch-all solution to our need to trust things in life. But it does allow us to, say, record and alter global state without placing it in the control of a single centralized intermediary.
You trust the private companies/individuals making your hardware and protecting your communications but suddenly trusting a private escrow is heresy? Seems like a weird double standard.
> record and alter global state without placing it in the control of a single centralized intermediary
A centralized escrow is not heresy; it involves a different set of trade-offs. In some cases the decentralized escrow might be more appealing. To go back to my original example of a domain transfer, the exchange can occur in a matter of seconds or minutes within a blockchain, rather than 1 to 20 business days with escrow.com.
Never heard of Paxos, if it could achieve the same problems I've outlined earlier, I'd be curious to see it implemented.
The 20 days delay is a problem with escrow.com specifically. Domain sales are a trivially automated process that should be instant e.g. literally any domain registrar.
Paxos family of algorithms solves distributed state replication. It is the backbone of the database engines that already power most of the internet.
Namecheap: 10% commission, only works with Namecheap-registered domains, the exchange may take up to 96 hours, and then 5 days later you can withdraw these funds to PayPal (which will incur additional fees).
Compare this to, say, Tezos domains: exchange and transfer of funds settled in ~30 seconds, without any need for currency conversion, across any ".tez" domain in the network, 2.5% commission (or 0% via custom contract), no private data shared with registrar, and very low transaction fees.
Looking at Paxos: it is permissioned, lacks Sybil protection, uses leader-based rather than peer-to-peer data replication, and seems limited in how many nodes it can support. This isn't to say it's useless, but it clearly aims to solve a different set of problems than Nakamoto's consensus mechanism (and, more generally, cryptocurrency networks).
> Namecheap: 10% commission, only works with Namecheap-registered domains, the exchange may take up to 96 hours, and then 5 days later you can withdraw these funds to PayPal (which will incur additional fees).
> Compare this to, say, Tezos domains: exchange and transfer of funds settled in ~30 seconds, without any need for currency conversion, across any ".tez" domain in the network, 2.5% commission (or 0% via custom contract), no private data shared with registrar, and very low transaction fees.
You're not comparing the same products. Namecheap probably doesn't sell .tez, and you probably cannot buy a .com via Tezos. There are big differences between TLDs, I didn't even know about .tez websites until today. If I receive a .xyz link I tend to think it's a scam. If I had received a .tez link before today, I would have thought it was just a weird typo.
Beyond this, assuming equivalent products, there's no technical reason for the Tezos solution to be superior. Consider this: whatever Tezos is doing, Namecheap could do the same using the same technology (they don't have tougher requirements, maybe short of regulations, but I don't think you're talking about regulation arbitrage here anyway). They could just use a blockchain but be the sole entity allowed to interact with it.
Namecheap can get away with higher prices, so they do (it's a business). On the other hand many blockchain-based systems are highly subsidized (I don't know if that's the case for the Tezos domain system), making direct comparisons difficult.
It is impossible to completely remove the need for trust. We trust that our computers work as expected, that our modems and routers are not compromised, that RPC endpoints and software is running as expected, that the internet infrastructure in our country is sending messages correctly.
The blockchain isn’t a catch-all solution to our need to trust things in life. But it does allow us to, say, record and alter global state without placing it in the control of a single centralized intermediary.