Mediatorless Systems

Definition ∞ Mediatorless systems operate without the need for a central authority or trusted third party to facilitate transactions or enforce agreements. In blockchain, this describes decentralized networks where participants interact directly, and consensus mechanisms maintain integrity. Smart contracts exemplify this concept, executing predefined rules autonomously. Such systems aim to remove intermediaries, reducing costs and censorship risks.
Context ∞ The discussion around mediatorless systems is fundamental to the ethos of decentralization in cryptocurrency and blockchain technology. News frequently highlights new protocols or applications designed to eliminate central points of control. A key debate involves the practical challenges of achieving true decentralization while maintaining scalability and regulatory compliance.