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What Is the Role of a Trusted Third Party in Verifying Derivative Contract Hashes?

In traditional finance, a TTP verifies and stores the hash; in DeFi, the blockchain acts as the immutable, decentralized verifier.
Greeks.Live08.11.25

What Is the Role of a Trusted Third Party in Verifying Derivative Contract Hashes?

In traditional finance, a trusted third party (TTP) like a clearing house or a regulator might maintain a database of verified contract hashes to resolve disputes. In decentralized finance (DeFi), the TTP is replaced by the blockchain itself, which serves as a transparent, immutable ledger for the contract hash.

While TTPs are minimized in DeFi, entities like Oracles or decentralized exchanges (DEXs) may still act as a source of truth for the execution of the contract, but not the integrity of the hash itself.

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