This is an excerpt from Empower: How to Co-Create the Future. The full 200+ page book is available by donation!
“Crowd-based capitalism signifies a fundamental shift in how we organize the world’s economic activities”
excerpt from book
David Passiak: One key concept in your approach is the notion of trust. The crowd builds trust through things like relationships and ratings systems, and industrial brands build trust through providing reliability and quality at scale. I read that your interest in trust led you to study the sharing economy. Can you tell us about why trust is so important in crowd capitalism, and explain this revolutionary idea of a new trust infrastructure?
Arun Sundararajan: If you think of trust today, you don’t write a contract when you buy small things like a cup of coffee. Instead, you trust a brand, which signifies a commitment by a company that “I will consistently deliver a high-quality service and stake my reputation and the future of my business on it.” This is why you comfortably drink a Coca-Cola when you’re in a country where you don’t know the food safety rules, or you ride the roller coasters at Six Flags, but hesitate if the roller coaster was on the side of the highway.