A ‘third-party’ in the cryptocurrency ecosystem is an entity or individual that is not directly involved in a specific transaction or protocol interaction but plays a role in facilitating or verifying it. Examples include custodians holding digital assets, oracle services providing external data to smart contracts, or regulatory bodies overseeing the industry. Their involvement introduces varying degrees of trust and centralization.
Context
Current discussions concerning ‘third-parties’ frequently address the trade-offs between decentralization and the need for trusted intermediaries in areas like compliance, security, and user support. Regulatory bodies are increasingly focusing on the responsibilities of these entities. Future developments will likely involve greater scrutiny of third-party risk and the exploration of decentralized alternatives to traditional intermediaries.
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