Who Can You Trust?

“How is trust evolving in the digital age, and what does that mean for the future of our society?”

1. Trust as the Foundation of Modern Society

Trust shapes everything from our daily decisions to large-scale systems. It fuels interactions, enabling transactions and relationships.

Trust allows us to perform ordinary actions like getting on a plane or purchasing items online. Without it, the modern world would falter. Trust expands our horizons by making the unfamiliar feel accessible. Actions like shopping online or riding in someone else’s car depend on unseen networks of reliability and shared confidence.

The Maghribi traders of the eleventh century created a system of trust that continues to resonate today. Their simple rating mechanism — where untrustworthy partners were excluded from future opportunities — became the basis for modern business practices. Trust wasn’t one-sided; those who betrayed it faced long-term consequences, not short-term gains.

Examples

• Buying plane tickets involves an inherent trust in complex safety systems.
• The Maghribi traders punished dishonest merchants by excluding them from trading networks.
• Credit card use online reflects trust in encryption and shared global agreements.

2. Three Ages of Trust: Local, Institutional, and Distributed

Trust has evolved in stages throughout history, reflecting societal changes and technological advancements.

In early tight-knit communities, “local trust” governed relationships. People relied on direct, personal connections for trade and collaboration. Later, as societies industrialized, systems like banks and governments became the arbiters of “institutional trust.” These institutions mediated trust in transactions between distant parties.

Today, the “distributed trust” era is defined by peer-to-peer systems like Airbnb and Uber. This model replaces hierarchical institutions with networks of equals. Instead of relying on a bank or corporation, we assess and trust individual sellers or service providers based on ratings, reviews, and shared platforms.

Examples

• Pre-industrial villages depended entirely on localized relationships.
• Banks emerged as essential trust intermediaries during the industrial age.
• Airbnb demonstrates distributed trust, where host reviews carry weight over large hotel brands.

3. Institutional Trust Falters as Transparency Rises

The trust placed in traditional institutions has eroded, partly due to increased transparency and the exposure of malpractice.

The 2008 financial crisis revealed systemic flaws and unethical behavior in trusted organizations. Revelations like the Panama Papers and Wikileaks have further damaged institutional trust by exposing tax evasions and backdoor dealings of influential figures. Meanwhile, social media amplifies false information, making it even harder to discern what’s trustworthy.

This declining confidence highlights a mismatch: people see institutions as self-serving and opaque, while tools like the internet expose deep flaws. Once trust in an institution is broken, rebuilding it becomes staggeringly difficult.

Examples

• The collapse of key financial institutions during the 2008 market crash.
• The Panama Papers revealed hidden wealth and tax abuses of powerful figures.
• Wikileaks spotlighted government secrecy, undermining public confidence.

4. Peer Ratings and the Rise of the Sharing Economy

Rating systems now underpin trust in the sharing economy, powering companies like Uber and Airbnb.

These platforms allow individuals to turn unused resources into income streams by linking them directly to consumers. But trust is essential. To create it, platforms use mechanisms like review systems, policies, and mutual accountability. Both Uber’s riders and drivers, for example, rate each other after each ride.

The sharing economy thrives because these layers of accountability formalize peer-to-peer trust. Platforms also implement strict measures to remove bad actors, reinforcing reliability and encouraging higher trust leaps among users.

Examples

• Uber’s mutual rating system keeps both drivers and customers in line.
• Airbnb ensures its quality by expelling poorly rated hosts and guests.
• Alibaba requires online buyers and sellers to comply with strict verification processes.

5. Reputation Trails Lead to Accountability

The digital footprint we leave behind forces individuals to maintain trustworthiness due to visible, lasting reputation systems.

Whether it’s an Uber driver, a darknet vendor, or a babysitter on UrbanSitter, today, everyone is rated. A negative review can affect one’s ability to transact in the future. Consequently, people are incentivized to act honestly. While rating systems ensure increased trust, this also introduces the pressure of constantly managing reputations, impacting personal and professional lives.

These mechanisms make even profoundly personal transactions — such as trusting a babysitter — possible between strangers. As long as trust ratings are transparent and reliable, individuals are willing to take unprecedented trust leaps.

Examples

• Babysitters on UrbanSitter use video profiles and friend networks to build parental confidence.
• Darknet vendors on drug marketplaces maintain high honesty levels due to ratings.
• Uber drivers with low reviews risk losing access to the platform altogether.

6. China’s Social Credit System and Extreme Score-Based Trust

China’s Social Credit System takes the concept of ratings to a national level, with both unsettling and powerful implications.

The system rates citizens’ trustworthiness by monitoring credit, behavior, and relationships. Scores encompass everything from traffic violations to social-media posts. A low score can limit opportunities – such as denied visas or restricted job options. The program incentivizes conformity by punishing criticism, with scores influenced even by friends’ online activities.

While practical in theory, this creates ethical dilemmas. Is a centralized system capable of fairly judging “trust” for millions of citizens without misuse? By 2020, this system pushes trust into Orwellian territory, raising global ethical concerns.

Examples

• Critiquing the Chinese government online can lower your Social Credit score.
• Citizens with low ratings face penalties such as employment and travel restrictions.
• Behavior in public, like jaywalking, can also affect the scorecard.

7. Blockchain’s Promise to Revolutionize Trust

Blockchain technology, a digital ledger system, is revolutionizing how individuals and businesses manage trust.

Where institutions once mediated trust, blockchain offers transparency. Every transaction, change, or movement is recorded permanently. For example, a diamond’s history, from mine to jewelry store, can now be verified. Without reliance on middlemen, blockchain promises direct, trustworthy interactions for even complex processes.

Beyond individual products, this technology could address broader issues like misinformation. Storing immutable information would help separate truth from rumor, especially in mismanaged areas like fake news or ownership disputes.

Examples

• Blockchain verifies diamond provenance to limit illegal blood diamond sales.
• Cryptocurrency records show immutable transaction histories to users.
• Innovative startups like Everledger use blockchain to ensure authenticity in tangible goods.

8. Eroding Third-Party Roles Through Technology

Blockchain and trust platforms challenge traditional intermediaries like lawyers or agents.

In older systems, middlemen provided expertise or validated agreements. With blockchain offering instant, transparent records, individuals no longer require costly mediators. Buyers, sellers, and negotiators now engage directly. This could change industries from law to real estate, where verified digital trails reduce dependency on experts.

As these systems expand, everyday users become empowered decision-makers, accessing accurate records instantly. This flips established hierarchies and allows unprecedented self-reliance.

Examples

• Blockchain provides past records for homes, eliminating real estate verification middlemen.
• Cryptocurrency trades occur transparently without needing bank intermediaries.
• Digital smart contracts facilitate autonomous transactions without legal experts.

9. The New Era of Self-Research and Decision-Making

The technologies behind decentralized trust fuel self-reliance in decision-making.

By making critical data available online — from credibility scores to blockchain verifications — people are equipped to verify claims themselves. But this freedom also brings responsibility. Users must be proactive, distinguishing reliable data from inaccurate information. Trust leaps become refined by personal initiative.

This ethos transforms how we interact with the digital and real world: trust, once delegated to institutions, is now ours to manage. Such empowerment demands vigilance and information literacy.

Examples

• Fake news headlines tested against verified sources reveal underlying bias.
• Buying a car using blockchain ensures an untampered mileage history.
• Online marketplaces offer complete seller histories for increased buyer confidence.

Takeaways

1. Take charge of your trust decisions by cross-checking sources, whether online or offline.
2. Use rating systems wisely, being mindful of their benefits and potential biases.
3. Learn about blockchain to better understand future tools that will shape trust in everyday life.