Trust and NFTs

I think that trust, or the lack thereof, has been responsible for the greatest cost to society overall.

So many (costly) things exist solely with the aim of increasing trust or redirecting it. Millions of salespeople spend most of their working hours building trust with clients so that they can sell products and services. Contracts exist to redirect trust from between two parties to between each party and the legal system. Companies rent expensive (and expensively decorated) offices in city centers to increase their credibility, a form of trust. Companies also ask employees to punch in and punch out at the workplace because they don't trust their employees to show up at work on time (or at all). Celebrity endorsements are so effective because people are known to trust their idols. And so on.

Trust is very valuable to have, and the lack of it can be a huge headwind.

For example, I walked into an Apple Store last week and purchased an iPhone without asking the salesperson any questions or trying out any of the demo phones. Apple has built up enough trust with me that I simply believe what they say about the products they've made.

Conversely, on a real estate app (Anjuke), I recently noticed two apartment complexes that are next to each other - one developed by Vanke and the other by Evergrande. The price per square meter of the Vanke apartments was about 40% higher than the price of the Evergrande apartments, though they're practically in the same location. This price differential probably indicates the complete lack of trust that the public now has regarding Evergrande, which is facing massive debt defaults.

From what I can tell, most people would agree that a lack of trust is warranted in most instances. There's deception everywhere. Workers appear more capable than they really are by "creatively" polishing their CVs. People appear more attractive than they really are by wearing makeup and high heels. Companies appear bigger than they really are by doing any number of things - from renting a nice office to having a slick website to recruiting many seemingly impressive board members and advisors.

In my industry, many consultants have fake education qualifications - because in this field, a good education background is the most important sign of credibility. Many consultants also lie about their track record - because extensive experience is the second most important sign of credibility. Needless to say, most customers have learned to be very skeptical.

I think it would be extremely valuable to solve the trust problem, and it seems that at least in creative industries, non-fungible tokens (NFTs) could represent a solution.

If NFTs are associated to our educational qualifications and former work deliverables, then our professional credibility can easily be verified. It's something to think about, because thus far it seems that NFTs are only being used to enable the trade of collectibles and not yet for any other purposes.

As I've said in another post, major changes to the world can happen very quickly. On this issue, I think I'd come out net ahead if I wagered that NFT technology would be the agent of one such change.