I’ve always laughed when people talk about ‘trust’ and blockchain. Sometimes I honestly question whether blockchain boosters live in the same world as I do; the ‘trust’ they keep on talking about is a feature of life as it currently is, not in a crypto-utopia.

Albert Wenger takes this up in an excellent recent post:

One way to tell that trust was involved in a relationship is when we discover that the person (or company, or technology) acted in a way that harmed us and benefited them. At that point we feel betrayed. This provides a useful distinction between the concepts of trust and reliance. We rely on a clock to tell time. When the clock breaks we will feel disappointed. But when we buy a clock from someone who tells us it is a working clock, we trust them and when it doesn’t work, we feel betrayed (thanks to philosopher Annette Baier for this distinction).

As I keep saying, blockchain is a really boring technology. It’s super-useful for backend systems, but that’s pretty much it. All of the glamour and excitement has come from speculators trying to inflate a bubble, as has happened many times before.

Now some people have been saying that crypto is exciting because it has “trust built in.” I, however, prefer a different formulation, which is that crypto systems are “trust minimized.”

Exactly. What blockchain is useful for is when you have reason to mistrust the person you’re dealing with. Instead of a complex network of trust based on blood ties, friendships, and alliances, we can now perform operations and transactions in a ‘trust minimised’ way.

We live in a world where large corporations (especially ones with scale or network effects) have often abused trust due to a misalignment of incentives driven by short-term oriented capital markets. There are different ways of tackling this problem, including new regulation, innovative forms of ownership and trust minimized crypto systems.

So let’s see blockchain for what it is: a breakthrough for international trading and compliance checking. I’m happy it exists but still, several years later, find it difficult to get too excited about. And I’ll bet you all of your now-worthless Bitcoin that governments around the world will ensure that crypto-utopias turn into crypto-distopias.

Source: Continuations