Why Trust-Scores Always Fail — And Why Proof-Based Systems Are the Only Scalable Alternative

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Autor principal: Papp, László
Formato: Recurso digital
Lenguaje:inglés
Publicado: Zenodo 2026
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author Papp, László
author_facet Papp, László
contents <p>This paper argues that trust scores — from credit ratings and ESG scores to AI-generated trust metrics — fail not because of poor implementation, but because trust itself is the wrong abstraction. Trust is not a scalar quantity but a contextual, relational, and topological phenomenon. Any attempt to reduce it to a universal numerical score leads to fragility, manipulation, exclusion, and systemic failure. We identify five structural failure modes (context collapse, Goodhart's Law, epistemic centralization, irreversibility, and metric substitution for truth), supported by historical case studies (Enron, Wirecard, Volkswagen Dieselgate, the 2008 subprime crisis, ESG rating failures). A formal impossibility argument demonstrates that no universal trust score can simultaneously satisfy context independence, temporal stability, observer neutrality, and manipulation resistance. We propose proof-based systems as the alternative paradigm, where trust is not measured but rendered unnecessary through local, irreversible verification. Examples include Bitcoin Proof-of-Work, zero-knowledge proofs, and blockchain-based supply chain traceability.</p>
format Recurso digital
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publishDate 2026
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spellingShingle Why Trust-Scores Always Fail — And Why Proof-Based Systems Are the Only Scalable Alternative
Papp, László
trust systems
proof-based verification
Goodhart's Law
epistemic infrastructure
fractal scaling
impossibility theorem
<p>This paper argues that trust scores — from credit ratings and ESG scores to AI-generated trust metrics — fail not because of poor implementation, but because trust itself is the wrong abstraction. Trust is not a scalar quantity but a contextual, relational, and topological phenomenon. Any attempt to reduce it to a universal numerical score leads to fragility, manipulation, exclusion, and systemic failure. We identify five structural failure modes (context collapse, Goodhart's Law, epistemic centralization, irreversibility, and metric substitution for truth), supported by historical case studies (Enron, Wirecard, Volkswagen Dieselgate, the 2008 subprime crisis, ESG rating failures). A formal impossibility argument demonstrates that no universal trust score can simultaneously satisfy context independence, temporal stability, observer neutrality, and manipulation resistance. We propose proof-based systems as the alternative paradigm, where trust is not measured but rendered unnecessary through local, irreversible verification. Examples include Bitcoin Proof-of-Work, zero-knowledge proofs, and blockchain-based supply chain traceability.</p>
title Why Trust-Scores Always Fail — And Why Proof-Based Systems Are the Only Scalable Alternative
topic trust systems
proof-based verification
Goodhart's Law
epistemic infrastructure
fractal scaling
impossibility theorem
url https://doi.org/10.5281/zenodo.19959442