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/