Many public institutions, government bodies, municipalities are experimenting with blockchain based systems, decentralized ledgers, smart contracts to deliver new innovative services to citizens, or improve the speed, efficiency, accuracy of existing ones. This short policy analysis looks at the potential mismatch between usually high-trust public institutions, and trust-minimizing technological infrastructures. We warn that, in general, we should avoid replacing a high-trust environment with a trust-minimizing technology. Pre-existing trust is very valuable, and no new technology should endanger trust which is extremely hard to build but very easy to destroy ….
Bodó, Balázs, Trust, Blockchain-based Technologies, Public Sector, and the Social Good (July 2, 2020). Blockchain & Society Policy Research Lab Research Nodes 2020/1; Amsterdam Law School Research Paper No 2020-40; Institute for Information Law Research Paper No 2020-06.