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Trustless System

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    Glossary
    Dec 18, 2020
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    What Is a Trustless System?

    Trust is vital for any transaction, especially one that involves money. Money cannot move without trust. Neither can it exist. 

    Currently, with centralized systems, participants in a transaction need to trust each other or a third party for transactions to be successful. With blockchain, a decentralized system, things take a different route. The revolutionary technology introduces a trustless system.

    This new technology does not require participants to know or trust each other for it to function. It also does not need a third party. The system has no single authority in control of everything. The consensus is achieved through the trust of the system.

    Bitcoin, the first cryptocurrency, introduced the concept of trustless transactions way back in 2008, with blockchain technology powering the new wave of digital coins.

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