Trustless Contract Execution

Definition ∞ Trustless contract execution describes the autonomous and verifiable fulfillment of agreement terms by a smart contract on a blockchain, without requiring reliance on any central intermediary or third-party trust. The execution logic is coded directly into the contract, which runs precisely as programmed when predefined conditions are met. This process minimizes counterparty risk.
Context ∞ Trustless contract execution is a foundational principle of decentralized finance (DeFi) and other blockchain applications, removing the need for traditional legal systems or financial institutions to enforce agreements. This capability allows for peer-to-peer transactions and automated financial services with high degrees of transparency and security. The continued development of robust smart contract platforms is essential for expanding the scope of trustless interactions.