How Do Smart Contracts Reduce the Need for Intermediaries?
Smart contracts automate the execution of an agreement directly on a blockchain. This automation removes the need for traditional third parties like banks, lawyers, or brokers to verify or enforce the terms.
The code itself acts as the trusted intermediary, executing transactions automatically when pre-defined conditions are met. This increases trust and reduces costs and settlement times.
Glossar
Immutability
Provenance ⎊ Immutability within cryptocurrency, options, and derivatives signifies the unalterable record of transaction history and contract terms, crucial for establishing trust and mitigating counterparty risk.
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.