How Digital Trust Powers the Sharing Economy

Over the centuries, each significant economic expansion has been enabled by the accompanying creation of new trust systems -- from village-based trade and informal trader networks, through contracts, government standards and financial institutions, to today's corporate brands. Emerging digital platforms are catalyzing a new expansion that will reintegrate into our economic interactions the social aspects of commerce that were marginalized by 20th century capitalism, creating a new form of crowd-based capitalism powered by the digital trust grid. This article shares the findings of an ongoing research collaboration between New York University and BlaBlaCar. The authors identify the mechanics of online trust and the resulting level of trust created. They show that, with the right digital tools, many of which are encapsulated in their D.R.E.A.M.S. framework, individuals can achieve high levels of trust without ever having met in person. This signals a radical move toward a friendlier, more personal, more connected, more empowered world of trust.