Define ‘Trustless’ in Financial Technology

'Trustless' describes a system or protocol that allows two or more parties to transact or interact without the need for an intermediary, such as a bank or broker, and without having to trust the counterparty's intentions. The security and integrity of the interaction are guaranteed by the underlying cryptographic code and consensus mechanism of the network.

This eliminates the risk of human error, corruption, or single points of failure associated with trusted third parties.