Trustless

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In the context of information technology, and especially within the blockchain and cryptocurrency space, trustless describes a system or protocol where participants do not need to rely on the trustworthiness or integrity of a central authority or any single counterparty to facilitate or verify interactions and transactions. Instead, trust is established through cryptographic proofs, transparent consensus mechanisms, and immutable code.

A trustless system operates on the principle of “don’t trust, verify.” Participants can independently verify the state of the system and the validity of transactions using publicly available data and protocols. For example, in a Bitcoin transaction, you don’t need to trust a bank to process it correctly; the Bitcoin network’s decentralized consensus algorithm and cryptographic security ensure the transaction’s validity and immutability once confirmed. Smart contracts are another example of trustless execution, as they automatically enforce the terms of an agreement written in code without needing intermediaries. This paradigm aims to reduce counterparty risk, censorship, and single points of failure, fostering more direct and secure peer-to-peer interactions.

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