web3glossaryintermediary
Intermediary

Summary

An intermediary in the web3 context refers to a third party or facilitator that connects two or more parties to facilitate a transaction or interaction, often typically seen in traditional business as brokers or agents, but increasingly eliminated in decentralized systems of web3.

Detailed Description

In the context of web3 and decentralized technologies, intermediaries are often seen as entities that traditionally control or facilitate transactions and interactions between two parties. With the advent of blockchain technology and decentralized applications (dApps), many roles played by intermediaries can be replaced by smart contracts or self-executing agreements coded onto the blockchain. This transition aims to reduce costs, increase efficiency, and enhance trust among parties since blockchain provides an immutable, transparent record of all transactions. Examples of traditional intermediaries include banks, payment processors, and e-commerce platforms, all of which may be bypassed in decentralized finance (DeFi) and decentralized marketplaces.

Category
Web3
Synonyms
Middleman
Agent
Broker
Facilitator
Mediator

Impact Details

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Yirifi's stakeholder, regulatory-compliance, and risk-impact analysis for this term.

Decentralized Finance (DeFi)

Allows users to lend, borrow, and trade assets without traditional financial institutions acting as intermediaries.

Industries:

Finance
Investments

Platforms:

Ethereum
Binance Smart Chain
Avalanche
Decentralized Marketplaces

Enable peer-to-peer commerce without the need for e-commerce platforms as intermediaries.

Industries:

Retail
Art

Platforms:

OpenSea
Rarible
Origin Protocol
Decentralized Finance (DeFi)

Allows users to lend, borrow, and trade assets without traditional financial institutions acting as intermediaries.

Industries:

Finance
Investments

Platforms:

Ethereum
Binance Smart Chain
Avalanche
Terra
Decentralized Marketplaces

Enable peer-to-peer commerce without the need for e-commerce platforms as intermediaries.

Industries:

Retail
Art
Collectibles

Platforms:

OpenSea
Rarible
Origin Protocol
Zora
Crowdfunding Platforms

Facilitate fundraising from a large pool of investors directly using blockchain-based contracts.

Industries:

Startups
Tech

Platforms:

Kickstarter on Blockchain
Ethereum-based ICOs

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FAQs

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