Understanding “smart contracts”

Being familiar with the concept of “smart contracts is paramount” to understanding how the “blockchain 2.0” will be used to handle all sorts of value transactions in the future. A general definition of a smart contract would be a computer program that can automatically execute the terms of a contract. By being self-executing and having property ownership information embedded, they can solve the problems of counterparty trust. Smart contracts are trustless, autonomous, and self-sufficient. Instead of reinventing contractual relationships, smart contracts are making their formation and performance more efficient, cost-effective, and transparent.

Read more in this finextra report if you want to know more about how smart contracts will drive all kinds of business-logic in the near future.

This report from Bloomberg looks at smart contracts from a legal perspective: https://bol.bna.com/what-is-a-smart-contract/

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