A Trusted Third Party (TTP) refers to an entity that facilitates interactions between two parties in a way that assures trust and security. In cryptocurrencies, TTPs can play an essential role, especially in transactions or processes where direct peer-to-peer reliance may not be feasible or secure.For instance, exchanges act as TTPs by holding users’ funds while facilitating trades. Users trust these exchanges to handle their transactions transparently and securely. Similarly, some platforms offer escrow services, where a third party holds funds until certain conditions are met, ensuring that neither party can back out unexpectedly.TTPs help bridge gaps in trust that can arise from the decentralized nature of cryptocurrencies. By providing verification, security, and oversight, they enhance user confidence. However, the reliance on such parties can also contradict the foundational ethos of decentralization, where self-sovereignty and peer-to-peer interactions are prioritized. Ultimately, while TTPs can enhance usability and security, they also introduce a level of centralization in an otherwise decentralized framework.