Algorithmic Authority: The Case of Bitcoin
This addresses the issue of algorithmic trust and governance for social scientists and technology users, offering a conceptual framework rather than incremental technical improvements.
The paper tackles the problem of understanding how algorithms influence trust and authority in society by introducing the concept of algorithmic authority, using Bitcoin as a case study to show that users prefer algorithmic authority over conventional institutions but mediate it with human judgment.
In this paper, I propose a new concept for understanding the role of algorithms in daily life: algorithmic authority. Algorithmic authority is the legitimate power of algorithms to direct human action and to impact which information is considered true. I use this concept to examine the culture of users of Bitcoin, a crypto-currency and payment platform. Through Bitcoin, I explore what it means to trust in algorithmic authority. My study of the Bitcoin community utilizes interview and survey data. I found that Bitcoin users prefer algorithmic authority to the authority of conventional institutions which they see as untrustworthy. However, I argue that Bitcoin users do not have blind faith in algorithms; rather, they acknowledge the need for mediating algorithmic authority with human judgment. I examine the tension between members of the Bitcoin community who would prefer to integrate Bitcoin with existing institutions and those who would prefer to resist integration.