A new approach to trust
By Teamspirit on Monday, 12 March 2018
*In the sixth instalment of our trends mini-series, we look at how structural transparency is ushering in a new era for trust. *
Global connectivity is resulting in a flatter world of networks, and a shift from centralised flows to peer-to-peer flows. The sharing of information is no longer based on central ownership, but on our ability to connect to a network to access data and transact.
The technology which has enabled this rapid shift from central to decentralisation is the blockchain, a distributed ledger that operates on a peer-to-peer structure where information and transactions are independently verified by members across the network.
This structural transparency that underpins blockchain is leading to new levels of trust among strangers to transact and create smart contracts on the network.
Mortgages is one emerging area leveraging blockchain to mitigate concerns around failure to deliver assets or the agreed value. While it might seem intangible, using smart contracts for mortgages is the smartest way to remove any trust issues around transactions and eliminate any disputes around consensus on outcomes.
So despite being best known for cryptocurrencies, in particular bitcoin, blockchain is being used globally across all sectors – from healthcare and identity to real estate and land ownership. Levels of trust are on the increase.
Implications for Financial Service brands:
Blockchain, underpinned by structural transparency, is driving new levels of trust among strangers to transact and create smart contracts on the network.
Cryptocurrencies are just the tip of the iceberg; the use cases for blockchain and smart contracts extend far beyond into payments, digital identity, property, mortgages and healthcare.
Communications need to move beyond focusing on the blockchain technology and instead focus on the end benefit of the product or service to the user.
This blog is taken from our whitepaper on trends in financial services, marketing, PR and tech, ‘2018 and beyond’.