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'Trust' is sort of mangled here: what it means is that you 'trust' a single company on the other side of the transaction that makes up their rules/regulations and has their own customer service department, etc, i.e. VISA or MASTERCARD, that you have to deal with, as well as middlemen (i.e. the company that maybe issues the card to you like a bank or otherwise). They have the power to change their rules, raise your rates, close your account, etc.

With the distributed system, essentially we are trying to hardcode all of the rules, so there isn't any wiggle room for fraud, or a single person changing the rules on you, etc.

The downside to this, is that it means that it essentially becomes goverened by the software devs (or controlling body) of the altcoin. However, it sort of protects the consumer a little more by making it harder for a single governing body to make singular changes, because they'll want everyone who runs a type of exchange for the coin to participate as well so as not to alienate the coin and userbase...

Additionally, it is governed by the structures of code. Technical tools like programs operate in very precise deterministic fashions which do not map cleanly to the world of human contracts and other agreements. So it’s sort of a tough problem to have automatically executing programs that can be exploited by people who have a more sufficiently sophisticated technical understanding of a “smart contract” where there is no superior entity to resolve disputes of understanding.

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