The optimal amount of fraud is non-zero
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The optimal amount of fraud is non-zero
The point is not that all banking is a fraud, but rather the more subtle point that we rely on the judgments of others when we decide whom to trust. For years, Madoff had been a well-respected figure in the investment community. Madoff’s fraud was possible only because so many people trusted him. The more people trusted him, the easier it was for M
... See moreTyler Cowen • The Great Stagnation: How America Ate All The Low-Hanging Fruit of Modern History, Got Sick, and Will (Eventually) Feel Better: A Penguin eSpecial from Dutton
the absence of trust adds immense costs to transactions. When we do business with people we know and trust, we are willing to extend credit, send orders before we receive payment, and otherwise take steps to speed a transaction. When we lack that trust, we invoke intricate mechanisms to prevent bad behavior.
Ethan Zuckerman • Mistrust: Why Losing Faith in Institutions Provides the Tools to Transform Them
We’re experiencing many crises in America right now, but arguably the meta-crisis is one of social trust.
For decades, there has been a building body of evidence that when people trust each other — including literally responding “yes” to the question “Can most people be trusted?” — lots of important, positive things are easier: income inequality go... See more
For decades, there has been a building body of evidence that when people trust each other — including literally responding “yes” to the question “Can most people be trusted?” — lots of important, positive things are easier: income inequality go... See more
Adam Gamwell added
Every company that sells products and services digitally factors in assumed losses due to fraud. Albeit a small percentage of revenue, fraud can add up to millions of dollars over time. It will continue to rise due to fraudsters getting more sophisticated and the patched-up nature of banking infrastructure. I’m excited by the large opportunity to i... See more
Natalie Luu • The Future of B2B FinTech: Enabling the Merchant
sari added
Technology, however, is creating trust between the unlikeliest of characters, even in the nefarious world of the “Darknet” – an encrypted network of secret websites that allows the exchange of illegal assets such as drugs, stolen financial data, and firearms (Reiff, 2020). The great oxymoron is that it is populated by hundreds of thousands of vendo... See more
JENA MARIE ESPELITA • TRUSTING A TRUSTLESS NETWORK. The Paradoxes of Trust in Blockchain Technology
SpaceXponential added
In the past, trust was purely social (think the caveman days). Then it switched to trusted institutions (banks, governments, companies) which was a step up, but we still had to rely on the other parties goodwill, or their incentive to behave in the right way.
The problem today is that institutions have become the sole gatekeepers of trust. We are st
Ali Yahya • Web 3.0 and the Future of Trust
Marcel Mairhofer added