Blockchain and the Concept of Trust in Decentralized Futures

Blockchain and the Concept of Trust in Decentralized Futures

Authors: Jhinger, B. K.

Open Access

This chapter explores the transformative impact of blockchain technology on the concept of trust in decentralized systems. It examines how blockchain shifts trust from centralized institutions to distributed, algorithmic consensus mechanisms, challenging traditional models of authority and verification. The chapter traces the evolution of blockchain from its origins in cryptocurrency to its broader applications across various sectors. It analyzes the theoretical foundations of blockchain-mediated trust, drawing from institutional economics, sociotechnical systems theory, and cryptography. The authors discuss key debates surrounding blockchain, including the myth of complete decentralization, regulatory challenges, and environmental concerns. Through case studies like India’s e-RUPI system, the chapter illustrates how blockchain principles are being adapted in real-world contexts. The authors argue that blockchain engenders a ‘post-institutional trust paradigm,’ reconfiguring credibility through cryptographic processes rather than traditional relationships. While acknowledging blockchain’s potential to democratize systems and enhance transparency, the chapter also cautions against techno-utopianism, emphasizing the need for critical examination of power dynamics and inclusivity in these new trust architectures. The conclusion calls for interdisciplinary approaches to navigate the complex socio-technical implications of blockchain in shaping decentralized futures.

Cite this chapter:

Jhinger, B. K. (2025). Blockchain and the Concept of Trust in Decentralized Futures. In Reframing Futures: Concepts and Challenges in a Rapidly Changing World (pp. 130-145). Indian Institute of Industrial and Social Research.

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