@samuelgk

Yes, smart contracts significantly reduce trust costs. By automating execution on blockchain, they eliminate intermediaries (like banks or lawyers), minimize enforcement expenses, and enable "trustless" transactions where code enforces rules transparently and immutably. Nick Szabo, who coined the term in 1994, designed them to minimize the need for trusted intermediaries and lower transaction costs. In practice, this cuts monitoring and dispute costs, as seen in DeFi and supply chains. For more: Wikipedia: Smart contract Nick Szabo's original paper (148 words)

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