Trust in blockchains: Algorithmic and organizational

Abstract

The recent emergence of blockchains has reconceptualized our understanding of crowdfunding, platforms, organization, and governance. The disruption, and disintermediation made possible by blockchains has rightfully received increasing attention from entrepreneurs, and entrepreneurship researchers alike. In this article, I broaden these perspectives by paying particular attention to trust in blockchains, and contrasting it with perspectives on trust from Transaction Cost Economics, Agency Theory, and the Resource Based View. In sum, I compare perspectives on trust in these traditional theories to the conception of trust in blockchains – a mix of algorithmic, and organizational – to offer new insights into the implications of the rise of blockchains.