Do You Trust a Trust-Free Technology? Toward a Trust Framework Model for Blockchain Technology
Nadine Ostern · TUbilio (Technical University of Darmstadt) · 2018
Blockchain technology is expected to be an enabler of 'trust-free economic transactions', which implies a frictionless economy without uncertainty and risks. Looking at current use cases of blockchains such as the peer-to-peer payment system Bitcoin, it is striking that expectations seem to be far from reality: significant exchange rate volatility and frequently occurring fraudulent behavior in the context of Bitcoin transfers form a breeding ground for uncertainties. Recent IS research therefore acknowledged that trust-freeness should be interpreted as the shift from trust to persons or institutions to trust in the technological code of the blockchain. This paper explores this trust relationship by applying an explorative research approach yielding a two-sided trust framework model. The model illustrates, how factors foster or impede the formation of trust in blockchains based on a user perspective and given a particular use case scenario, which provides a first step towards a holistic trust framework model.