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/

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s