Current Problem with “Trust-Based” Relationships
The present downside to sitting on ‘trust-based’ relations with, say, insurance, financial houses, or casino-gambling systems is that it allows potential fraud, bias, and no transparency. Customers are expected to take it on faith that these are companies above board, a situation that can be let down. Problems such as hidden fees, unfair practices in conducting the transactions, and unequal treatment in the process could arise, giving birth to distrust and satisfaction for many consumers.
Math-Based Trust
Math-based trust lacks the need for blind faith in a company’s honesty. It relies primarily on algorithms and cryptographic methods to ensure that all transactions and interactions are conducted in a mere, transparent way. This, therefore, can offer verifiable, immutable records of all kinds of activity using mathematical proofs and protocols—minimal risks of fraud and manipulations. The higher the level of transparency and fairness, the more confident and satisfied the consumers become.