# kaal:claim:3782201-007

**Claim.** Code based trust in decentralized applications lowers transaction costs and simultaneously raises consumer and market confidence and certainty, which facilitates economies of scale that are only occasionally and temporarily possible in centralized structures.

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

**Holds when.**

- holds despite the cybersecurity issues associated with cryptocurrencies

**Source quote.**

> code-based trust can help lower trans- action costs, but it also increases consumer and overall market confidence and cer- tainty, which facilitate economies of scale that are only occasionally and temporarily possible in centralized structures.

**From.** Craig Calcaterra, Wulf A. Kaal, *Future of Decentralization* (2021), Decentralized Commerce, page 9

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Future of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782201

**Verify.** sha256 of source PDF `bedf7bcfbb7a9b0112b5848cb0d941b1d41f330dafeee0143a30ff5e8aa53700` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Future%20of%20Decentralization.pdf

**Topics.** economics, reputation

**Keywords.** transaction-costs, code-based-trust, dapps, economies-of-scale

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3808867-033
- restates: https://wulfkaal.github.io/claims/3406323-012

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.