Blockchain has the potential to revolutionise the way we leverage trust and even the way we think about trust. It is a fundamental good. While largely intangible, it is key to the functioning of practically every meaningful interaction in society.
We tend to think of trust concerning businesses, banking, relationships and finance since the necessity of trust in these areas is clear and undeniable. But it goes a lot further. In fact, without trust, no transaction can go forward. The very idea of even the simplest negotiations becomes implausible without it. Unfortunately, according to the World Economic Forum, trust towards governments, banks, media and institutions is rapidly eroding. Without trust, the law becomes tyranny and business become piracy.
Currently, trust is created across various domains with various means. We have our system of credit, various checks and balances, laws, and regulations, as well as whatever security measures we have in place. We start relationships with or extend credit to people and organisations whom we trust. To establish this, we rely on reputations, proven track records of trustworthiness, and other vague notions.
This allows us to do business with people whom we may not necessarily know. But there are still loopholes in our systems and …