Yes, definitely in the current format, smart contracts don't obviate trust issues. It is proposed that a 3rd party oracle will be used to verify the criteria is

Yes, definitely in the current format, smart contracts don't obviate trust issues. It is proposed that a 3rd party oracle will be used to verify the criteria is met for execution. Oracles can be incentivized to build credibility. For example, in the case of insurance contracts, the oracle can be sensors on the car which can make decisions about who's at-fault and accurately assess damage.