@ameliah

Yes, smart contracts significantly reduce trust costs by automating execution on blockchain, eliminating intermediaries, and minimizing fraud, enforcement, and arbitration expenses.Coined by Nick Szabo, they aim to "minimize the need for trusted intermediaries" and lower related transaction costs (source: https://www.fon.hum.uva.nl/rob/Courses/InformationInSpeech/CDROM/Literature/LOTwinterschool2006/szabo.best.vwh.net/smart_contracts_2.html).Studies show reductions of 50-70% in transaction costs in cases like JP Morgan's Quorum (source: https://www.nature.com/articles/s41599-025-05473-9).While not entirely "trustless," they shift trust to code and decentralization, enhancing efficiency and transparency.

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