# Trust Minimization ⎊ Area ⎊ Resource 5

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## What is the Principle of Trust Minimization?

Trust minimization is a core principle in decentralized finance, aiming to reduce reliance on human intermediaries and centralized entities. This principle suggests that protocols should operate based on verifiable code and cryptographic proofs rather than requiring users to trust a third party. The goal is to create a more secure and transparent financial system.

## What is the Mechanism of Trust Minimization?

The mechanism for achieving trust minimization involves implementing smart contracts that automate financial processes like collateral management and settlement. These automated mechanisms remove discretionary control from operators and enforce contractual terms programmatically. This approach reduces counterparty risk and enhances the integrity of derivatives trading.

## What is the Architecture of Trust Minimization?

The architecture of a trust-minimized protocol is designed to ensure that all critical operations are executed on-chain. This architecture often utilizes decentralized oracles for price feeds and automated liquidation engines. By minimizing external dependencies, the protocol reduces the potential for censorship or manipulation.


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## [Cryptographic Security Measures](https://term.greeks.live/term/cryptographic-security-measures/)

## [Zero-Knowledge Proofs Computation](https://term.greeks.live/term/zero-knowledge-proofs-computation/)

---

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**Original URL:** https://term.greeks.live/area/trust-minimization/resource/5/