# kaal:claim:3808867-033

**Claim.** Code based trust lowers transaction costs and simultaneously raises consumer and market confidence and certainty, which facilitates economies of scale that are rarely possible in centralized structures, despite the cybersecurity problems associated with cryptocurrencies.

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

**Holds when.**

- code based decentralized applications
- presence of cybersecurity issues in cryptocurrency markets

**Source quote.**

> code-based trust can help lower transaction costs, but it also increases consumer and overall market confidence and certainty, which facilitate economies of scale that are rarely possible in centralized structures

**From.** Wulf A. Kaal, *How Decentralized Systems Can Upgrade AI* (2021), V. Decentralized Commerce, page 17

**Cite as.** Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867

**Verify.** sha256 of source PDF `eeccf6d0587bd278a96ce6ac8ec5003e26d161c245f6c94b4144d84f374802eb` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20How%20Decentralized%20Systems%20Can%20Upgrade%20AI.pdf

**Topics.** reputation, economics

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

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3782201-007
- 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.