Why Does Digital Trust Matter

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By Hadrian Israël

In a survey done in 2017, ninety-two (92%) of Millennials don't trust banks. Why? Well banks, and governments are essentially allow to print money out of thin air, with nothing to back them. It's not surprising then that having seen their parents and others, lose their homes and their livelihoods to failing banks, that they would not have the same faith in centralised institutions as their parents did before them.

Things are changing fast. The old centralised systems simply don't work very well in the new digital world. Which is causing the old financial systems to adopt the new technologies, even when the overall scope of those technologies, and what they represent is not fully appreciated.

Trust is a fundamental issue underlying every business relationship and transaction. Without some form of trust all businesses would go bankrupt. That’s because trust is never a given in human societies - it has to come from somewhere. Knowing to a certain extent equals trusting, but most people are limited to knowing about a hundred and fifty people personally - this is known as the "Dunbar's Number". The number of people in this world who exceed your personal Dunbar’s Number is in the billions.

It used to be that in order to have trust, we had to rely on a third party, such as a government to make sure that people behaved in an equitable way. Is their paper good? Are they lying? Is their financial accounting honest? Is this even their car to sell?

Reliance on third parties and on government participation in the economic system has always with certain caveats which are often undesirable, including price manipulation, cronyism, et cetera. By allowing governments to issue and control the currency supply, people are trusting that the money they are using represents an equitable exchange for the goods they buy. But quite often the manipulations of the third parties mean that the money itself could not be trusted.

Now the technology makes it possible to track the real value of assets, and corporations in real time, without the intervention of third parties to verify the data. That's because it is the technology itself which produces that data, independently of the corporation or government. The information is there, as an inherent part of the technology; creating a built in system of trust that is beyond what any third party could actually provide.

It's time for us to move past the 19th century models on which our economic systems are presently based, and move instead to a system of trust, and open information. It't time to move to blockchain.