4min chapter

The "What is Money?" Show cover image

Regulated Bitcoin vs. Real Bitcoin with Obi Nwosu (WiM233)

The "What is Money?" Show

CHAPTER

Building a Culture Around Verification

We can't verify everything everyone does all the time. That would just be too expensive and sort of defeat the purpose of social coordination in the first place, which is the economic division of labor. But at the same time, that trust opens up the system to being game. If you just trust someone blindly without any option of verification or option, I guess we'll do thatYou run the risk of making the system unstable, right? People just violate the trust effectively. So you need verification as a necessary counterforce to that trust to expose violations of that trust. And it's that balance that makes a system coherent and stable.

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