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The Blockchain and the New Architecture of Trust
How the blockchain—a system built on foundations of mutual mistrust—can become trustworthy.
The blockchain entered the world on January 3, 2009, introducing an innovative new trust architecture: an environment in which users trust a system—for example, a shared ledger of information—without necessarily trusting any of its components. The cryptocurrency Bitcoin is the most famous implementation of the blockchain, but hundreds of other companies have been founded and billions of dollars invested in similar applications since Bitcoin's launch. Some see the blockchain as offering more opportunities for criminal behavior than benefits to society. In this book, Kevin Werbach shows how a technology resting on foundations of mutual mistrust can become trustworthy.
The blockchain, built on open software and decentralized foundations that allow anyone to participate, seems like a threat to any form of regulation. In fact, Werbach argues, law and the blockchain need each other. Blockchain systems that ignore law and governance are likely to fail, or to become outlaw technologies irrelevant to the mainstream economy. That, Werbach cautions, would be a tragic waste of potential. If, however, we recognize the blockchain as a kind of legal technology that shapes behavior in new ways, it can be harnessed to create tremendous business and social value.
The blockchain entered the world on January 3, 2009, introducing an innovative new trust architecture: an environment in which users trust a system—for example, a shared ledger of information—without necessarily trusting any of its components. The cryptocurrency Bitcoin is the most famous implementation of the blockchain, but hundreds of other companies have been founded and billions of dollars invested in similar applications since Bitcoin's launch. Some see the blockchain as offering more opportunities for criminal behavior than benefits to society. In this book, Kevin Werbach shows how a technology resting on foundations of mutual mistrust can become trustworthy.
The blockchain, built on open software and decentralized foundations that allow anyone to participate, seems like a threat to any form of regulation. In fact, Werbach argues, law and the blockchain need each other. Blockchain systems that ignore law and governance are likely to fail, or to become outlaw technologies irrelevant to the mainstream economy. That, Werbach cautions, would be a tragic waste of potential. If, however, we recognize the blockchain as a kind of legal technology that shapes behavior in new ways, it can be harnessed to create tremendous business and social value.
344 pages, Hardcover
Published November 20, 2018
About the author
Kevin Werbach
11 books13 followersKevin Werbach is Professor of Legal Studies and Business Ethics at the Wharton School of the University of Pennsylvania. Founder of the technology consulting firm Supernova Group, he has advised the FCC and Department of Commerce on communication policy. He is the coauthor of For the Win: How Game Thinking Can Revolutionize Your Business.
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Displaying 1 - 11 of 11 reviews
December 18, 2018
I didn't really like this book. The author seemed to be too interested in the potential of blockchain technology that they continued to overlook or minimize legitimate issues. Additionally, they seemed to focus on a handful of anecdotes and repeat those anecdotes many times throughout the progression of the work.
There was a tendency to make a bold claim, like blockchain is revolutionizing trust, but then they'd later give several significant counterarguments, but it didn't seem like they were countering the central argument, leaving the piece in a weird mix of contrarian views.
While the blockchain model is interesting from a technical perspective, it seems to be overhyped in how it can change everything. Trust between individuals is always going to be necessary, and trying to use software to solve human problems seems to be unachievable.
There was a tendency to make a bold claim, like blockchain is revolutionizing trust, but then they'd later give several significant counterarguments, but it didn't seem like they were countering the central argument, leaving the piece in a weird mix of contrarian views.
While the blockchain model is interesting from a technical perspective, it seems to be overhyped in how it can change everything. Trust between individuals is always going to be necessary, and trying to use software to solve human problems seems to be unachievable.
June 5, 2020
This book is intended to survey blockchain technology and the ecosystem around it. The grasp of technology is weak but there are some good points made about regulation and law. This might be the best statement of the thesis: "Significant technologies implemented in the real world are never as pure as their creators intend."
The first half of the book struggles to effectively focus as the author wanders around topics like Tezos and Whoppercoin. Sometimes the author gets tantalizingly close to something significant without quite putting his finger on it. For example, he makes pokes fun at software developers decorating the second floor of a building before the foundation is complete. This comes very close to an important understanding of software project management and the critical difference to construction project management. The author doesn't seem to notice there is something worth discussing and drifts off.
The last couple of chapters get better. The inevitability of the time it will take for social integration and legal structure that will make appropriate accommodation for technology is a valid and important idea. Using the regulation of VOIP as a precedent was insightful.
"The blockchain, like the Internet, was born as a technology of openness. It will not remain so without solid governance mechanisms that produce robust trust."
The first half of the book struggles to effectively focus as the author wanders around topics like Tezos and Whoppercoin. Sometimes the author gets tantalizingly close to something significant without quite putting his finger on it. For example, he makes pokes fun at software developers decorating the second floor of a building before the foundation is complete. This comes very close to an important understanding of software project management and the critical difference to construction project management. The author doesn't seem to notice there is something worth discussing and drifts off.
The last couple of chapters get better. The inevitability of the time it will take for social integration and legal structure that will make appropriate accommodation for technology is a valid and important idea. Using the regulation of VOIP as a precedent was insightful.
"The blockchain, like the Internet, was born as a technology of openness. It will not remain so without solid governance mechanisms that produce robust trust."
April 28, 2020
The blockchain and related technologies are in a rapid state of development and evolution. The author, Kevin Werbach, explores the notion of trust in general, and how the blockchain and related technologies fit in that notion and improve its implementation and availability. He provides a thorough account of who is who in this new and exciting set of technologies; what are they each doing; how is one different from the others; what are the noteworthy events so far: successes, failures, and lessons learned. He clarifies the ingredients that form the basis of trust, which in turn show how some aspects of it (trust) may be facilitated by blockchain technologies, while others might continue to require external influences. He talks about the role of regulation, as something necessary and desirable when done right, and that without it blockchain and related technologies are in no better position to bring about a good revolution than the Internet was in the 1990s. He concludes that the blockchain is a foundational technology whose impacts could reach every corner of the world, once the dust has settled: It will be implemented in different ways along multiple tracks. Some will prove to be dead ends, some will be abused, some will reduce the transaction costs a bit, and some might just change the world significantly for the better.
May 31, 2021
Interesting but long winded.
This books takes the legal view as paramount in looking at Blockchain-based technologies. I found the most interesting aspect of the book being stories about the early days of the crypto economy. Stories about ICOs gone wrong, hacks and the purposes behind some of the crypto assets you probably hear about today.
I came about with a greater appreciation for the value of governance, and the incredible challenge the crypto economy faces in defining governance and trust relationships. The idea of a completely autonomous organization may be appealing, however can it actually happen?
Creating law as software code is fallible. Who is writing the code? What if the laws are not complete? How do you handle disputes? I came away wondering if we can ever have a truly autonomous economy built on the block chain. No doubt that block chain technology can support life in many ways, even if it is not absolute.
Why 2 stars? This book was repetitive at times, and I found myself skimming ahead frequently. It’s definitely not a nailbiter!
This books takes the legal view as paramount in looking at Blockchain-based technologies. I found the most interesting aspect of the book being stories about the early days of the crypto economy. Stories about ICOs gone wrong, hacks and the purposes behind some of the crypto assets you probably hear about today.
I came about with a greater appreciation for the value of governance, and the incredible challenge the crypto economy faces in defining governance and trust relationships. The idea of a completely autonomous organization may be appealing, however can it actually happen?
Creating law as software code is fallible. Who is writing the code? What if the laws are not complete? How do you handle disputes? I came away wondering if we can ever have a truly autonomous economy built on the block chain. No doubt that block chain technology can support life in many ways, even if it is not absolute.
Why 2 stars? This book was repetitive at times, and I found myself skimming ahead frequently. It’s definitely not a nailbiter!
February 2, 2022
Kevin WERBACH Blokzinciri teknik detayından çıkıp işin felesefesinin anlaşılması ve şu an ve gelecekte karşımıza çıkan mevcut yasal çatışmalarla ortak noktaya varılması konusundaki görüşlerini paylaşmış.
Benzeri görüşlerin güç karşısında ne durumda olduğu ve nereye varacağının konuşulması geciktikçe ve geciktirildikçe kabul edilme ve kullanamama sorunsalı da doğal olarak büyüyor.
Blokzinciri ile ilgilenen herkesin okuması ve anlaması gerkeen bir kitap. Çeviri için de Ahmet USTA ya ayrıca teşekkür etmek gerek.
Benzeri görüşlerin güç karşısında ne durumda olduğu ve nereye varacağının konuşulması geciktikçe ve geciktirildikçe kabul edilme ve kullanamama sorunsalı da doğal olarak büyüyor.
Blokzinciri ile ilgilenen herkesin okuması ve anlaması gerkeen bir kitap. Çeviri için de Ahmet USTA ya ayrıca teşekkür etmek gerek.
February 14, 2021
The starting of the book is very well written with many use cases that I find interesting. Very scientifically substantiated, which makes it a bit hard to read sometimes. I think the ending of the book is alot about how to combine blockchain with current law enforcements. This is not a part that I am that interested in, so therefore the rating is 4 stars.
March 17, 2022
Kenapa bintang 5, karena akhirnya saya menemukan buku tentang blockchain yang membahas aspek-aspek dari perspektif yang cukup luas: sejarah, hukum dan sedikit ekonomi. Beberapa buku tentang blokchain terasa terlalu teknis, beberapa terlalu fokus pada dunia kripto, tapi tidak pada buku ini. Buku ini sangat pas untuk membawa aspek legal dan ekonomi ke dunia blokchain melalui topik terkait Trust.
March 20, 2022
A great read and study about trust and Law vs Blockchain. I appreciate the authors commitment to explaining how Blockchain has proven successful and failed, both as a technology and an integrated part of our global societies who have/attempt to adopt it.
June 29, 2019
I found this really hard to read and understand, although I now know not to buy any Bitcoin.
April 24, 2020
DNF at page 200 and I didn't consciously read most of the book. It was very informative I was just bored out of my mind reading it.
August 26, 2021
故事挺多，讲述一般般。以信任的不同形式为本书核心，不过这一章只有短短六页半。优点是把区块链的各种原理都讲地很透彻。缺点嘛就是作者字自己对于信任的理论理解就是东拼西凑（比方把福山和普特南放一块）
Displaying 1 - 11 of 11 reviews