Intermediary Reduction

Definition ∞ Intermediary reduction refers to the process of removing or minimizing the number of third-party entities involved in a transaction or process. In the context of blockchain and digital assets, this often means directly connecting transacting parties without banks, brokers, or other traditional financial institutions. The objective is to decrease costs, increase efficiency, and enhance transparency. This disintermediation is a core tenet of decentralized systems.
Context ∞ Intermediary reduction is a frequently discussed concept in crypto news, particularly regarding the transformative potential of blockchain technology across various industries. Its application in payments, supply chains, and digital identity aims to streamline operations and remove rent-seeking entities. A key discussion involves the regulatory implications of removing established intermediaries and the challenges of building trust in decentralized alternatives. Future developments will focus on creating robust, user-friendly decentralized solutions that can effectively compete with traditional, intermediary-heavy systems.