Trustless Audit

Definition ∞ A trustless audit refers to a verification process where the correctness and integrity of a system, protocol, or financial operation can be confirmed without relying on a central authority or trusted third party. This is typically achieved through cryptographic proofs and transparent, immutable records on a blockchain. It allows for independent and verifiable assurance of system behavior. Such audits enhance transparency and reduce counterparty risk.
Context ∞ The concept of a trustless audit is a significant advantage highlighted in crypto news, particularly for decentralized finance applications. It enables participants to independently verify the solvency of protocols or the execution of smart contracts, fostering greater confidence. Ongoing development in zero-knowledge proofs and verifiable computation continues to expand the scope and efficiency of these audit mechanisms.