Blockchain Technology : A Trust or Control Machine?Theory and Experimental Evidence

It is argued that Blockchain technology can sustain any transaction of value in a manner that is secure and independent of interpersonal trust. Yet, there remains little understanding on whether and how this technology enables trust-free transactions. This paper provides a novel theoretical account on the relationship between trust and Blockchain by suggesting that the Blockchain should be understood as a control machine. Furthermore, the paper tests a set of hypotheses, associated with our conception of Blockchain, through an online experiment in which the properties of Blockchain-based smart contacts are exploited. The results indicate that the presence of Blockchain technology does not eliminate trusting and trustworthy behavior from human interactions. On the contrary, in comparison to the baseline group, the behavior of the participants in the Blockchain treatment exhibited more trusting and trustworthy behavior, indicating support for the claim that this technology should be understood as a “trust-building control machine”