What Is ‘Trustlessness’ in the Context of Blockchain Finance?

Trustlessness means that participants do not need to rely on a specific third party, like a bank or lawyer, to enforce an agreement. Instead, they rely on the transparent, verifiable, and immutable code of the smart contract and the underlying blockchain network.

The system's cryptographic security and decentralized consensus guarantee the execution of the terms, removing the need for interpersonal or institutional trust.