Yan Teng

This paper argues that the widespread belief that interactions between blockchains and their users are trust-free is inaccurate and misleading, since this belief not only overlooks the vital role played by trust in the lack of knowledge and control but also conceals the moral and normative relevance of relying on blockchain applications. The paper reaches this argument by providing a close philosophical examination of the concept referred to as trust in blockchain technology, clarifying the trustor group, the structure, and the normatively loaded nature of this trust relation. The paper ends by critically reflecting on two of the most promising values (decentralization and transparency) that can invite users’ trust in blockchain technology, arguing that there is a tension between the pressing values that are intended to be achieved by developers and the predicament situations caused by current blockchain implementations.

This paper proposes a novel way to understand trust in blockchain technology by analogy with trust placed in institutions. In support of the analysis, a detailed investigation of institutional trust is provided, which is then used as the basis for understanding the nature and ethical limits of blockchain trust. Two interrelated arguments are presented. First, given blockchains’ capacity for being institution-like entities by inviting expectations similar to those invited by traditional institutions, blockchain trust is argued to be best conceptualized as a specialized form of trust in institutions. Keeping only the core functionality and certain normative ideas of institutions, this technology broadens our understanding of trust by removing the need for third parties while retaining the value of trust for the trustor. Second, the paper argues that blockchains’ decentralized nature and the implications and effects of this decentralization on trust issues are double-edged. With the erasure of central points, the systems simultaneously crowd out the pivotal role played by traditional institutions and a cadre of representatives in meeting their assigned obligations and securing the functional systems’ trustworthy performances. As such, blockchain is positioned as a technology containing both disruptive features that can be embedded with meaningful normative values and inherent ethical limits that pose a direct challenge to the actual trustworthiness of blockchain implementations. Such limits are proposed to be ameliorated by facilitating a shift of responsibility to the groups of people directly associated with the engendering of trust in the blockchain context.