A trustless system is designed so that parties do not need to rely on each other or a central authority to verify transactions or interactions. Instead, the system itself ensures trust through its underlying technology, typically blockchain.In a trustless setup, cryptographic principles provide security and transparency. Transactions are recorded on a public ledger that anyone can access, making it difficult to alter past records. This transparency reduces the risk of fraud.Smart contracts—self-executing contracts with the terms directly written into code—further enhance trustlessness. They automatically enforce agreements when predefined conditions are met, eliminating the need for intermediaries.This system empowers users, as they can transact directly with one another without relying on banks or third parties. It promotes greater efficiency, lower costs, and increased privacy, as users retain control over their assets and data.Overall, a trustless system fundamentally changes how trust is established, shifting the focus from individual reliability to the inherent stability of the technology itself.