Blockchain and Trust: An Inescapable Truth
Financial services professionals must inevitably “[deal] with people,” undoubtedly know their track record of moral failures, and likely cannot help but empathize with Nakamoto’s aim to eradicate the need to trust when transacting with “this kind of creature.” In full view of the risks of fraud and loss plaguing financial systems, Nakamoto promises respite in a new world of logic and objective mathematics, free from the prejudicial and fickle behaviors of man that Carnegie identified.
But is it really possible to eradicate trust from the system? The very whitepaper that claims to have solved the problem of trust in financial services defends its distributed ledger solution with “honest nodes” creating an “honest chain” with “honest” incentives. In fact, the term “honest” appears 16 times in the Satoshi’s 9-page paper. Has he really escaped the necessity of trust in doing business?
And what can financial services professionals take away from this? …