As to the security of such an approach, I always wondered what happens with bad players. Without much investigation I simply assumed that:
1. most people are likely good players
2. those few bad players would get caught by an actually functioning police force and the punishment would be so severe nobody wants to risk it
Naive I know :) I don't know about #1 but #2 is starting to become clear to me it's simply not true. Just look at KitSplit, plenty of bad actors and when that happens nobody seems to be caught. I'm starting to think that people trust strangers implicitly as a matter of comfort (it's more stressful to distrust everyone for sure) and culture (they grew up in it) rather than because they have rational reasons to do so (ex. the law is enforced and violations of said trust are severely punished).