The principle-agent problem can be compared to a scenario where a captain is tasked with navigating a ship to its destination, but the crew members who carry out the instructions may have incentives that deviate from the captain's ultimate goal. In the same vein, an organization may have a principal (e.g. a company's shareholders) who has a certain objective, but the agents (e.g. employees) tasked with carrying out the objective may have personal interests that don't align with the principal's objective.

Nostr operates as the trusted third party, serving as the compass that ensures all parties stay aligned towards the shared objective. Like a lighthouse guiding ships to shore, Nostr sheds light on the path towards the shared goal and helps to ensure that everyone is moving in the same direction, mitigating the principle-agent problem.