# kaal:claim:3406323-012

**Claim.** Decentralized technologies increase consumer and market trust at unprecedented scale, which lowers transaction costs and raises confidence and certainty, thereby facilitating economies of scale that centralized structures may not be able to achieve.

**Type.** mechanism  **Support.** argued

**Holds when.**

- technology enabled decentralized commerce

**Source quote.**

> Trust can help lower transaction costs but it also increases consumer and overall market confidence and certainty, which facilitate economies of scale that may not be possible in centralized structures.

**From.** Wulf A. Kaal, *Decentralization - A Primer on the New Economy* (2019), IV. Opportunities, page 9

**Cite as.** Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323

**Verify.** sha256 of source PDF `6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20A%20Primer%20on%20the%20New%20Economy.pdf

**Topics.** reputation, economics, decentralization

**Keywords.** trust, transaction-costs, economies-of-scale, decentralized-commerce

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3808867-033
- restated_by: https://wulfkaal.github.io/claims/3782201-007
- extends: https://wulfkaal.github.io/claims/2998033-001

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