Definition ∞ A trustless payment is a transaction executed directly between parties without requiring a trusted third-party intermediary to facilitate or verify the transfer of value. These payments rely on cryptographic proofs and decentralized network consensus to ensure validity and finality. In the context of cryptocurrencies, this means funds are transferred directly on a blockchain, removing the need for banks or payment processors. Such systems enhance autonomy and reduce counterparty risk.
Context ∞ Trustless payments are a foundational principle of decentralized finance and blockchain technology, offering an alternative to traditional financial systems. Discussions often highlight the benefits of censorship resistance and reduced transaction costs, alongside challenges such as scalability and user experience. Future developments aim to improve the speed and capacity of trustless payment networks, making them more competitive with conventional payment rails for everyday use.
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