What Is Trustlessness?
Trustlessness is a concept in the blockchain and cryptocurrency space that refers to the ability of two parties to transact without having to trust each other. This means that no third-party intermediary is needed for transactions, as all data is stored on an immutable public ledger. Trustlessness eliminates counterparty risk, which can be seen as one of the main advantages of using cryptocurrencies over traditional financial systems.
The idea behind trustlessness comes from cryptography and game theory, where it’s possible for two or more people to interact with each other without needing any kind of mutual trust between them. In this way, users are able to securely send money across borders without worrying about their funds being stolen or lost due to fraud or malicious actors. Additionally, since there’s no need for a middleman such as a bank or government agency involved in these transactions, fees associated with sending money are significantly reduced compared to traditional methods.