Centralized Trust
•With the Internet of information, we have to rely on powerful intermediaries to establish trust.
–Banks, governments and even social media companies like Facebook work to establish our identity and ownership of assets. They help us transfer value and settle transactions.
–Limitations.
•Centralized servers, which can be hacked.
•Take high fee for their services—say 10% to send money
•Capture our data, not just preventing us from monetizing it, but often undermining our privacy.
•Sometimes unreliable and often slow.
•Exclude two billion people who don’t have enough money to justify a bank account.
–In sum, they capture a lopsided share of the benefits of the digital economy.
