Blockchain & Cryptocurrency: New trusted third party or danger for its users?

Abstract:

Purpose: This paper explores whether blockchain and cryptocurrencies serve as a new trusted intermediary or pose risks to users. By examining their fundamental characteristics, it assesses how these technologies impact trust in economic and financial systems. Method: A qualitative analysis is conducted, combining a literature review with case studies of blockchain applications across different industries. The study also draws on theoretical perspectives on trust and digital transformation to evaluate the implications of blockchain adoption. Results: Findings highlight blockchain’s potential to enhance trust through decentralization, transparency, and security. However, they also reveal significant risks, including regulatory challenges, cybersecurity threats, and the speculative nature of cryptocurrencies. The study emphasizes the dual nature of blockchain: as a tool for trust-building but also a source of uncertainty and disruption. Originality: While existing research often focuses on either the technological aspects of blockchain or its financial applications, this paper provides a comprehensive perspective by analyzing its role as a trust mechanism. By framing blockchain within the broader concept of “trustnomics,” the study offers insights into its long-term implications for business models, governance, and society.