In blockchain we trust? Demystifying the “trust” mechanism in blockchain ecosystems

Abstract

The purpose of the paper is to conceptualize and redefine trust within the blockchain ecosystem by exploring the trust construct across academic disciplines and its applicability in the blockchain context. We develop a conceptual model and testable propositions that extend the work of McKnight et al. (2001, 2002, 2011) to the blockchain ecosystem based on an integrative literature review. We conceptualize trust as a multidimensional, multi-object construct combining three major objects of trust: algorithmic trust in the blockchain protocol (platform), trust towards peers and services providers, and trust in decentralized applications (product). The model reflects the process of building a trust layer for users and institutions on top of the trustless technology. The paper demystifies the trust building process, from initial trust to knowledge-based trust, and its dimensions within the blockchain ecosystem, and, consequently, helps practitioners to build strategies that increase users' trust. The contribution to the academic literature resides in the unification of multiple perspectives on trust within an integrative conceptual framework to point out the mechanisms of trust building process, as well as to identify future research directions.