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   "@id": "https://wulfkaal.github.io/claims/2922176-019",
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   "text": "Platform companies embrace an unmediated, flat, and inclusive culture in which trust and value are generated through the platform itself rather than through the management of workers and physical assets.",
   "abstract": "Most importantly, platform companies embrace an unmediated, flat, and inclusive culture.72 Trust and value are created through platforms, instead of the management of workers and physical assets.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies (2017). SSRN: https://ssrn.com/abstract=2922176",
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   "text": "Inclusive and unmediated stakeholder relationships demand a much higher degree of cooperation, loyalty, and mutual trust than control-oriented, centralized, and vertical organizational forms do.",
   "abstract": "Compared to the more control-oriented, centralized, and vertical organizational forms, inclusive and unmediated relationships among firms' stakeholders require a high degree of cooperation, loyalty, and mutual trust.",
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   "text": "The use of legalese and substantial involvement of the legal department in corporate communications substantially damages the originality and authenticity of those communications, making them mediated and less effective.",
   "abstract": "The use of legalese and any substantial involvement of the legal department in corporate communications can have a substantial detrimental effect on the originality and authenticity of corporate communications, making them mediated and less effective.",
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   "text": "Intermediaries, lawyers among them, are replaced by code, connectivity, crowd, and collaboration.",
   "abstract": "Intermediaries, including lawyers, are replaced by code, connectivity, crowd, and collaboration.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127",
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   "text": "For the parts of dealmaking and other legal tasks that cannot be placed on a blockchain, the role of non blockchainable agents of trust may expand, and blockchain driven disintermediation of law may itself create additional legal tasks requiring human lawyers.",
   "abstract": "For the parts of dealmaking and the other legal tasks that are non-blockchainable, the role for other, non-blockchainable agents of trust may expand. It seems possible that the blockchain-driven disintermediation of law itself creates additional legal tasks that require human lawyer input.",
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   "text": "Blockchain technology lowers transaction costs by eliminating intermediaries, and it substitutes immutability and cryptography for the trust that intermediaries previously supplied.",
   "abstract": "Blockchain technology's elimination of intermediaries removes transaction costs and creates a platform for trust through truth and transparency for parties through its immutability and use of cryptography.",
   "citation": "Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033",
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   "text": "By establishing a network of transacting parties that trust each other despite anonymity, blockchain technology enables unbiased transactions and eliminates prejudices against minorities.",
   "abstract": "By establishing a network of transacting parties that trust each other despite anonymity, the technology enables unbiased transactions and eliminates prejudices against minorities.",
   "citation": "Wulf A. Kaal, Blockchain Technology and Race in Corporate America (2017). SSRN: https://ssrn.com/abstract=3071378",
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   "text": "The crypto economy can continue to develop without falling back on centralized regulating authorities only if two things exist: a system for evaluating reputation and trust, and a fair dispute resolution system that guarantees certainty of outcomes.",
   "abstract": "two requirements in order for the crypto economy to continue to develop while avoiding the inefficiencies of centralized regulating authorities: 1) a system for evaluating reputation/trust; 2) a fair dispute resolution system which guarantees certainty of outcomes.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vlad Andrei, Blockchain Infrastructure for Measuring Domain Specific Reputation in Autonomous Decentralized and A (2018). SSRN: https://ssrn.com/abstract=3125822",
   "datePublished": "2018",
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   "text": "Peer-to-peer transactions are possible because a distributed consensus model has network nodes verify, validate and audit transactions before and after execution, and this is often safer than routing transactions through a single trusted third-party intermediary.",
   "abstract": "\"Peer-to-peer\" transactions are possible because the technology uses a \"distributed consensus model\" where the network \"nodes\" verify, validate and audit transactions before and after they are executed.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018). SSRN: https://ssrn.com/abstract=3227933",
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   "text": "Blockchain technology creates an independent and transparent platform for establishing truth and building trust, replacing intermediaries, bureaucracy and old procedures with what the authors call the four Cs of code, connectivity, crowd, and collaboration.",
   "abstract": "In short, blockchain technology creates an independent and transparent platform for establishing truth and building trust. Intermediaries, bureaucracy, and old-fashioned procedures are replaced by the \"4 Cs\" of code, connectivity, crowd, and collaboration.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018). SSRN: https://ssrn.com/abstract=3227933",
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   "text": "The result of this pattern is reputational: lawyers have developed a reputation as the least trusted of professions.",
   "abstract": "As a result, lawyers have developed a reputation as the least trusted of professions.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967",
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   "text": "Because blockchain network nodes verify, validate and audit transactions both before and after execution, the model is safer than a traditional one in which transactions can only be accomplished through third party intermediaries such as a bank, judiciary or notary.",
   "abstract": "verify, validate and audit transactions before and after they are executed. 49 This is safer than a traditional model in which transactions can only be accomplished through third-party intermediaries, such as a bank, judiciary or notary.",
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   "text": "In a digital world trust can be embedded directly in software code, and recent interest in smart contracts suggests this will be a significant growth area in the near future.",
   "abstract": "In a digital world, trust can be embedded in software code. Recent interest in smart contracts suggests that this is going to be a significant growth area in the near-future.",
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   "text": "As machine to machine interaction becomes normal in an Internet of Things environment, trust ceases to be primarily a legal question and becomes a technical and design problem.",
   "abstract": "code is also crucial in machine-to-machine (M2M) based transactions. As M2M interaction becomes normal in an Internet of Things environment, the issue of trust becomes a technical and design problem.",
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   "text": "A reputation verification platform matters because trust created through an eternal reputational record would be open to review and driven by proper incentives.",
   "abstract": "This was considered to be important because if the trust were to be created through an eternal reputational record, it would be open to review and driven by proper incentives.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967",
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   "text": "Coders and developers do not always understand the industry or business environment they target with their software solutions, nor do they always consider the trust or ethical issues raised by the technology based business solutions they implement.",
   "abstract": "Coders, programmers, and other developers do not always understand the industry or business environment they target with their software solutions. Nor do they always consider the trust or ethical issues when implementing technology-based business solutions.",
   "citation": "Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967",
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   "text": "Agency problems originate from the lack of trust between principals and agents, which itself stems from information asymmetries and agents' opportunistic self-interested behavior.",
   "abstract": "Agency problems originate from the lacking trust between principals and agents.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
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   "@type": "Claim",
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   "text": "Blockchain provides an alternative governance mechanism that eliminates agency costs, meaning the principal's cost of supervising agents, by creating trust in the contractual relationship between principal and agent.",
   "abstract": "Blockchain technology provides an alternative governance mechanism that eliminates agency costs - the principal's cost of supervising agents - by creating trust in the contractual relationship between the principal and the agent.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
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   "text": "The immutability of the blockchain and its cryptographic security systems provide transactional guarantees that create trust between principals and agents in the integrity of their contractual relationship, and ensure that no participant can circumvent the rules embedded in blockchain code.",
   "abstract": "The immutability of the blockchain and its cryptographic security systems provide transactional guarantees and create trust between principals and agents in the integrity of their contractual relationship.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
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   "text": "Cryptographic hashes increase blockchain security and remove the trust barriers in agency relationships that otherwise require monitoring of agents and generate agency costs.",
   "abstract": "Cryptographic hashes used in blockchain technology further increase blockchain security and removes trust barriers in agency relationships that require monitoring of agents and create agency costs.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
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   "text": "Without a decentralized human backstop to code, the immutability of the blockchain and its cryptographic security systems may not be able to create truly transactional guarantees and trust between principals and agents.",
   "abstract": "Similarly, without a decentralized human backstop to code, the immutability of the blockchain and its cryptographic security systems may not be able to create truly transactional guarantees and trust between principals and agents in the integrity of their contractual relationship.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
   "datePublished": "2019",
   "claim_type": "failure",
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   "is_failure_mode": true,
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405401-014",
   "identifier": "kaal:claim:3405401-014",
   "text": "Trust barometers such as the Edelman report show a radical depreciation of trust in centralized institutions between 2017 and 2018.",
   "abstract": "Trust barometers, such as the Edelman report, assessing the level of trust in centralized institutions suggests radical depreciation in trust between the years 2017 and 2018.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "empirical",
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   "identifier": "kaal:claim:3405401-015",
   "text": "Although smart contracting in decentralized systems is perceived as creating trust through preordained coded coordination without agency problems, decentralized commerce is equally afflicted with trust issues.",
   "abstract": "While smart contracting in decentralized system can be perceived as creating trust through mathematical and coded — preordained coordination without agency problems, several factors suggest that decentralized commerce via decentralized solutions is equally afflicted with trust issues.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
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   "@type": "Claim",
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   "identifier": "kaal:claim:3405401-016",
   "text": "Trust between counterparties in decentralized systems can only limitedly be assured by smart contracts, because the contract cannot verify the underlying qualities or future conduct of the parties.",
   "abstract": "Trust between counterparties in decentralized systems can only limitedly be assured by smart contracts.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "decentralized systems with anonymous counterparties"
   ],
   "source_pdf_sha256": "bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405401-017",
   "identifier": "kaal:claim:3405401-017",
   "text": "Smart contracts leave counterparty information asymmetries unresolved: the tenant of a smart property cannot fully know whether the landlord is providing a worthy property, and the landlord cannot know in advance how likely the tenant is to destroy the premises.",
   "abstract": "In our example above, the tenant of the smart property cannot fully know if the landlord is providing a worthy property. In turn, the landlord cannot know in advance how likely the tenant will destroy the premises.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "smart property rental scenario"
   ],
   "source_pdf_sha256": "bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405401-018",
   "identifier": "kaal:claim:3405401-018",
   "text": "Counterparty trust in the programmed parameters of a smart contract is more justified in simpler contracts, and specifically where the smart contract template has a history of successful executions.",
   "abstract": "In simpler smart contracts such trust may be more justified if the smart contract template has a history of successful executions.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "simpler smart contracts",
    "template has a prior record of successful executions"
   ],
   "source_pdf_sha256": "bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405401-019",
   "identifier": "kaal:claim:3405401-019",
   "text": "In more complex smart contracts the counterparties cannot fully know whether the contract will do what it was programmed to do, or whether it will contain bugs or follow a logic the parties did not anticipate.",
   "abstract": "In other words, in more complex smart contracts, the counterparties to the contract cannot fully know if the contract will do what it was programmed to do and whether it will have bugs or otherwise follow another logic that was not anticipated by the parties to the contract.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "more complex smart contracts"
   ],
   "source_pdf_sha256": "bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405401-021",
   "identifier": "kaal:claim:3405401-021",
   "text": "Solving the trust problem in decentralized commerce requires an intangible value system, not a further transferable store of value.",
   "abstract": "To solve the issues of trust in decentralized commerce, an intangible value system is needed.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "decentralized commerce"
   ],
   "source_pdf_sha256": "bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405401-031",
   "identifier": "kaal:claim:3405401-031",
   "text": "Validated smart contract templates increase trust for counterparties and remove the need for costly back testing and experimentation with smart contract templates.",
   "abstract": "Validated templates of smart contracts increase trust for counterparties. The validation removes the need for costly back-testing and experimentation with smart contract templates.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "templates have been validated through reputation verification"
   ],
   "source_pdf_sha256": "bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405401-033",
   "identifier": "kaal:claim:3405401-033",
   "text": "Truly increasing counterparty trust in decentralized smart contract based commerce requires that counterparties be able to review a long history of each other's conduct in decentralized commerce and of performance in earlier smart contracts.",
   "abstract": "To truly increase trust for counterparties in decentralized smart contract-based commerce, counterparties need to be able to review a long history of each other's conduct in decentralized commerce and the history of performance in earlier smart contracts.",
   "citation": "Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401",
   "datePublished": "2019",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "decentralized smart contract based commerce"
   ],
   "source_pdf_sha256": "bc2d6f0ddc0852fb4085c4543c7c1dec19aaf8745eb67e3acc637e552bd7fb7d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3406323-012",
   "identifier": "kaal:claim:3406323-012",
   "text": "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.",
   "abstract": "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.",
   "citation": "Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323",
   "datePublished": "2019",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "technology enabled decentralized commerce"
   ],
   "source_pdf_sha256": "6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3406323-036",
   "identifier": "kaal:claim:3406323-036",
   "text": "Decentralized reputation verification is the backstop for smart contracting: it makes mathematically rigid smart contracts more adjustable for business needs and validates smart contract templates, which raises counterparty trust and removes the need for costly back-testing.",
   "abstract": "Decentralized reputation verification systems enable mathematically rigid smart contracts to become more adjustable for the needs of business. Reputation verification becomes the backstop for smart contracting.",
   "citation": "Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323",
   "datePublished": "2019",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "decentralized smart contract based commerce",
    "the code is law standard is retained"
   ],
   "source_pdf_sha256": "6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3409548-024",
   "identifier": "kaal:claim:3409548-024",
   "text": "Because blockchain is transparent, verifiable, self-authenticating and self-enforcing, transactions can settle instantaneously at near zero cost, and it is this combination plus technology-driven democratized trust that drove the financial industry's large blockchain investments out of fear of obsolescence.",
   "abstract": "Blockchain technology is transparent, verifiable, self- authenticating, and self-enforcing, financial transactions can be executed instantaneously at near zero transaction costs, increasing the efficiency for business and individuals exponentially.",
   "citation": "Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548",
   "datePublished": "2019",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "74227ab2656b06bfe4a29c942fc2ba26df9f476917e0a9f85ec038b8c3402c40",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3709041-003",
   "identifier": "kaal:claim:3709041-003",
   "text": "Blockchain's formal immutable guarantees, improved data ownership, transparency, network integrity, and data privacy together generate a form of trust that helps optimize both business and society.",
   "abstract": "Through its formal immutable guarantees, improved data ownership, transparency, network integrity, and data privacy, blockchain technology facilitates unprecedented trust that helps to optimize business and society.",
   "citation": "Kaal, Blockchain Technology for Good (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3709041",
   "datePublished": "2020",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "5216a7bca45a48e3bef11ec524936e66af737c0fd66271e9f6866dc20a4482cc",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782191-021",
   "identifier": "kaal:claim:3782191-021",
   "text": "Independent and autonomous subgroups, formed randomly based on members' ability to contribute to a common cause and characterized by equality and mutual trust, form the backbone of decentralized structures.",
   "abstract": "Independent and autonomous subgroups create the backbone of decentralized structures. Subgroups are formed randomly based on individual members' ability to contribute to the common cause of the group.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Preface to (2021). SSRN: https://ssrn.com/abstract=3782191",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "decentralized collaborative structures"
   ],
   "source_pdf_sha256": "b0bf0529c3cf69839879bc4da476714efee2717a4beb768bd5c859b810e6174e",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782192-039",
   "identifier": "kaal:claim:3782192-039",
   "text": "Money and contracts are worthless in business with counterparties who cannot be trusted to keep a bargain, so decentralized commerce requires a system in which reputation means something.",
   "abstract": "Money and contracts are worthless in business with barbarians who can't be trusted to keep a bargain. To do business, we need a system where reputation means something.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Introduction to Decentralization (2021). SSRN: https://ssrn.com/abstract=3782192",
   "datePublished": "2021",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "decentralized business among parties without prior trust"
   ],
   "source_pdf_sha256": "e7eafd56cb8a8bd15b64cf58216bb655f939bdcc296387e362fd9191976d67ae",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782193-030",
   "identifier": "kaal:claim:3782193-030",
   "text": "The strong trust that sustained Maghribi trade, in which embezzlement was rare despite extreme information asymmetry, cannot be explained by a strong centralized government, since the Maghribis could not form a centralized legal or political hierarchy and the official legal channels were slow and unreliable.",
   "abstract": "In point of fact, the records show that such embezzlement was rare. Instead, a strong sense of trust pervaded. So what mechanism protected the principals from their agents' asymmetric information? The answer was not a strong centralized gov- ernment.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021). SSRN: https://ssrn.com/abstract=3782193",
   "datePublished": "2021",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "Maghribi Jewish traders around 1000 AD under the Fatimid caliphate"
   ],
   "source_pdf_sha256": "74df9cc9a19a098bdacd0424a4174795f6e184f7a31c8ee7541195186701ebd2",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782205-036",
   "identifier": "kaal:claim:3782205-036",
   "text": "News services acting as oracles and information repositories must themselves be decentralized if the decentralized economy is to have a trustworthy information layer.",
   "abstract": "News services (oracles) and information repositories need to be decentralized.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Eight Institutions for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782205",
   "datePublished": "2021",
   "claim_type": "design",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "5ba52c63e81019b6867fb29c4a50821ff574e510d79b31b8ce9f4c726a0ebc71",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782210-002",
   "identifier": "kaal:claim:3782210-002",
   "text": "Markets collapse when opportunistic behavior saps the efficiency of cooperation: once the environment becomes too adversarial and trust is diminished, collaboration is no longer profitable.",
   "abstract": "when the efficiency of cooperation is sapped by opportunistic behavior. When the environment becomes too adversarial, when trust is diminished, collaboration is no longer profitable. The market collapses.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210",
   "datePublished": "2021",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "markets with significant information asymmetries",
    "environments permitting a wide variety of strategies"
   ],
   "source_pdf_sha256": "9cc531ab239f6266c8aeddcc8e54f4c06029c44e825444bee137bbcc0c9d0a8e",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782216-036",
   "identifier": "kaal:claim:3782216-036",
   "text": "The inability of anonymous participants to trust one another is crippling the DeFi market and forces decentralized markets into overcollateralization, giving traditional markets a fundamental advantage.",
   "abstract": "the inability to trust each other due to the requirements of anonymity is crippling the deFi market. So traditional markets have a fundamental advantage. Decentralized markets are overcollateralized.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216",
   "datePublished": "2021",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "current decentralized markets, before decentralized reputation exists"
   ],
   "source_pdf_sha256": "f1739743aa06bbc1641cd65da790d531b69d8628ea3f5cc3fcad1bf5a1242373",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782216-040",
   "identifier": "kaal:claim:3782216-040",
   "text": "The decentralized economy still lacks trustworthy open source decentralized institutions for recording and parsing history, reporting news and guiding attention, without which the average person cannot judge which networks to join or what to invest in.",
   "abstract": "We need trustworthy open source decentralized institutions for recording and parsing history, for investigating and reporting the news, for guiding our attention to the future.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216",
   "datePublished": "2021",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [],
   "source_pdf_sha256": "f1739743aa06bbc1641cd65da790d531b69d8628ea3f5cc3fcad1bf5a1242373",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782217-001",
   "identifier": "kaal:claim:3782217-001",
   "text": "Market liquidity depends on trustworthiness, and trustworthiness depends on observed momentum: isolated instances of motion are insufficient, because the observations must be collected into a history before they carry weight and meaning.",
   "abstract": "To achieve liquidity, marketplaces must be trustworthy. They need momen- tum. It's not enough to achieve motion in any particular instance. Momentum must be observed to give trust to the marketplace. These observations need to be collected in a history to give them weight and meaning.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, The Importance of History In Decentralization (2021). SSRN: https://ssrn.com/abstract=3782217",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [
    "marketplaces seeking liquidity"
   ],
   "source_pdf_sha256": "358779557d8e7dcd101720ca0fad90b9146d24f1c7c03909eb431fcf1fb7e103",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782217-031",
   "identifier": "kaal:claim:3782217-031",
   "text": "Transparency in a decentralized network is not optional: every function needs to be publicly auditable for people to trust it, because without a central authority to approve code, unexpected malicious behavior can be built into any opaque code.",
   "abstract": "Transparency is crucial in a decentralized net- work. Every function needs to be publicly auditable for people to trust it. Without a central authority to approve it, unexpected malicious behavior can be built into any opaque code.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, The Importance of History In Decentralization (2021). SSRN: https://ssrn.com/abstract=3782217",
   "datePublished": "2021",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "decentralized networks without a central approving authority"
   ],
   "source_pdf_sha256": "358779557d8e7dcd101720ca0fad90b9146d24f1c7c03909eb431fcf1fb7e103",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3808867-009",
   "identifier": "kaal:claim:3808867-009",
   "text": "Decentralism holds that trust in a system should not be controlled by corruptible human constructs and institutions run by a limited number of fallible humans; instead trust rests on technology enhanced individualism and technology facilitated collective human action.",
   "abstract": "decentralism posits that trust in the system should not be controlled by corruptible human constructs and institutions that are controlled by a limited number of fallible and corruptible humans. Rather, trust in decentralism is based on technology-enhanced individualism.",
   "citation": "Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867",
   "datePublished": "2021",
   "claim_type": "definitional",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "contrast with capitalist trusted intermediaries and socialist belief in government infallibility"
   ],
   "source_pdf_sha256": "eeccf6d0587bd278a96ce6ac8ec5003e26d161c245f6c94b4144d84f374802eb",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3808867-010",
   "identifier": "kaal:claim:3808867-010",
   "text": "Legally created trust is limited because it is only indirectly democratically legitimized, and is therefore arbitrary, inflexible, untimely, resistant to change, dependent on fallible human centric decision processes, and confined to human speed.",
   "abstract": "Legally created trust is often limited as it can be arbitrary because it is only indirectly democratically legitimized, inflexible, untimely, resistant to change, with fallible human-centric decision processes, and human speed.",
   "citation": "Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867",
   "datePublished": "2021",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "trust created by legal guarantees and judicial enforcement in capitalist and socialist systems"
   ],
   "source_pdf_sha256": "eeccf6d0587bd278a96ce6ac8ec5003e26d161c245f6c94b4144d84f374802eb",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3808873-042",
   "identifier": "kaal:claim:3808873-042",
   "text": "A decentralized human backstop to code is a core and often overlooked infrastructure requirement, because without it the immutability of the blockchain and its cryptographic security may not create genuine transactional guarantees or trust between principals and agents in the integrity of their contractual relationship.",
   "abstract": "Without a decentralized human backstop to code, the immutability of the blockchain and its cryptographic security systems may not be able to create truly transactional guarantees and trust between principals and agents in the integrity of their contractual relationship.",
   "citation": "Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873",
   "datePublished": "2021",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "decentralized algorithmic systems mediating principal agent contractual relationships"
   ],
   "source_pdf_sha256": "f11493915e6b8c266d421510b5546816e33defb5650aac9d09b20d78549da727",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3981021-011",
   "identifier": "kaal:claim:3981021-011",
   "text": "Distributed ledger technologies are particularly capable of increasing trust among charitable organizations, sponsors, and beneficiaries, because the technology enables real time tracking of the donation supply chain.",
   "abstract": "Distributed ledger technologies (DLT) are particularly capable of increasing trust between charitable organizations, sponsors, and beneficiaries. The technology enables real-time tracking of the donation supply chain.",
   "citation": "Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "charitable donation flows recorded on distributed ledgers"
   ],
   "source_pdf_sha256": "9d8bc78d119c780c96c89ce3e820f4ac8b037d39b3ade59feb4e40d46b048288",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3981021-019",
   "identifier": "kaal:claim:3981021-019",
   "text": "By giving the power of the endowment to the DAO the donor relinquishes control over the assets in exchange for community governance, and that relinquishment builds trust and community buy in, which in turn secures growth and legacy for the donor's purpose.",
   "abstract": "The donor can help mold the community to some extnt but at the same time the donor releases the control to the community. The relinquishment of control builds trust and community buy in. This in turn, ensures growth and legacy for the respective purpose of the donor and the associated DAO.",
   "citation": "Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "donors willing to cede asset control to a community of experts"
   ],
   "source_pdf_sha256": "9d8bc78d119c780c96c89ce3e820f4ac8b037d39b3ade59feb4e40d46b048288",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4900878-036",
   "identifier": "kaal:claim:4900878-036",
   "text": "A reputation governance layer that awards reputation tokens for contributions and behavior fosters trust and drives positive engagement within a token community, complementing DAO based token holder voting.",
   "abstract": "the VOW ecosystem incorporates a reputation governance system, which rewards users with reputation tokens based on their contributions and behavior.",
   "citation": "Wulf A. Kaal, Quantum Economy and Tokenomics (2024). SSRN: https://ssrn.com/abstract=4900878",
   "datePublished": "2024",
   "claim_type": "design",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [
    "the VOW ecosystem as a case study"
   ],
   "source_pdf_sha256": "75bf96d3b751b4ad0a6ca4a32591cf026094f113e3a372aa6c61790941b391f7",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4941807-008",
   "identifier": "kaal:claim:4941807-008",
   "text": "The opacity of deep learning models obstructs debugging, obscures the detection and mitigation of bias, and prevents comprehension of how AI decisions are reached.",
   "abstract": "This opacity can obstruct the debugging process, obscure bias detection and mitigation, and hinder comprehension of AI decision-making.",
   "citation": "Wulf A. Kaal, AI Governance Via Web3 Reputation System (2024). SSRN: https://ssrn.com/abstract=4941807",
   "datePublished": "2024",
   "claim_type": "failure",
   "confidence": "evidenced",
   "is_failure_mode": true,
   "scope_conditions": [
    "particularly in deep learning models whose internal decision mechanisms are not transparent"
   ],
   "source_pdf_sha256": "ab66c1e99a88da1fa36b0c6b536df5184231fe6aa427f3dd53287a4e0ac79853",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4941807-009",
   "identifier": "kaal:claim:4941807-009",
   "text": "Concrete cases show the cost of AI opacity: Nvidia self driving cars that learn from human behavior might confuse the moon for a traffic light, and the DeepPatient project predicted disease onset accurately from medical records while offering no explanation for its predictions.",
   "abstract": "For example, Nvidia's self-driving cars learn from human behavior but might confuse the moon for a traffic light, and the DeepPatient project accurately predicted disease onset from medical records without providing explanations for its predictions",
   "citation": "Wulf A. Kaal, AI Governance Via Web3 Reputation System (2024). SSRN: https://ssrn.com/abstract=4941807",
   "datePublished": "2024",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": true,
   "scope_conditions": [
    "in deep learning systems deployed in driving and medical prediction"
   ],
   "source_pdf_sha256": "ab66c1e99a88da1fa36b0c6b536df5184231fe6aa427f3dd53287a4e0ac79853",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5095633-022",
   "identifier": "kaal:claim:5095633-022",
   "text": "Centralizing annotation data inside a small number of vendor firms creates a standing risk of breach or misuse that can produce legal liability and loss of trust in AI technologies.",
   "abstract": "As data is centralized in these companies, there's always a risk of data breaches or misuse, which could lead to legal issues or loss of trust in AI technologies.",
   "citation": "Wulf A. Kaal, Artificial Intelligence The Final Frontier (2025). SSRN: https://ssrn.com/abstract=5095633",
   "datePublished": "2025",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "data aggregated and held by centralized annotation vendors"
   ],
   "source_pdf_sha256": "cbb484711f89bcefc9fc6a5730a1ed0a3f764d7999ad9b6f7d8ea05634c26c63",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/6244278-035",
   "identifier": "kaal:claim:6244278-035",
   "text": "Decentralized institutional alignment is a competitive advantage and not merely an ethical one, because the most aligned system will be the most trusted and the most trusted will command the largest market.",
   "abstract": "The most aligned system will be the most trusted, and the most trusted will command the largest market. Decentralized alignment is not merely an ethical advantage. It is a competitive one.",
   "citation": "Wulf A. Kaal, AI's Mother's Instinct Engineered Consequence Emergent Ethics and the Institutional Trajectory Toward Agentic Alignment (2026). SSRN: https://ssrn.com/abstract=6244278",
   "datePublished": "2026",
   "claim_type": "predictive",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "assumes trust translates into market share in agentic AI"
   ],
   "source_pdf_sha256": "53533cdcc081184e7a376516ad4fece0a64ce49f6c8931b6a2c2e98ed914a84b",
   "status": "current"
  }
 ],
 "description": "53 claims in the published works of Wulf A. Kaal carry the concept tag 'trust'. Derived node: a roster, not an adjudicated definition."
}