The Middleman Is Dead, Long Live the Middleman: The “Trust Factor” and the Psycho-Social Implications of Blockchain

Blockchain is widely regarded as a breakthrough innovation that may have a profound\r\nimpact on the economy and society, of a magnitude comparable to the effects of the\r\nintroduction of the Internet itself. In essence, a blockchain is a decentralized peer-topeer\r\nnetwork with no central authority figure, which adds information to the distributed\r\ndatabase by collectively validating the accuracy of data. Since each node of the network\r\nparticipates in the review and confirmation of the new information before being accepted,\r\nthe need for a trustworthy intermediary is eliminated. However, as trust plays an essential\r\nrole in affecting decisions when transacting with one another, it is important to understand\r\nwhich implications the decentralized nature of blockchain may have on individuals’ sense\r\nof trust. In this contribution, we argue that the adoption of blockchain is not only a\r\ntechnological, but foremostly a psychological challenge, which crucially depends on\r\nthe possibility of creating a trust management approach that matches the underlying\r\ndistributed communication system. We first describe the decentralization technologies\r\nand possibilities they hold for the near future. Next, we discuss the psycho-social\r\nimplications of the introduction of decentralized processes of trust, examining some\r\npotential scenarios, and outline a research agenda.