Smart Contracts Understoon

Welcome to the new blog ‘Smart Contracts Understood’ which gives a window on the exciting new world of Smart contracts, which are contracts that police and enforce themselves.√جª¬ø

A propert definition of a Smart Contract is a computer program that can automatically execute the terms of a contract. Strictly, it is a computer protocol or algorithm that can self execute, self enforce, self verify and self constrain the performance of a contract.

Someday, these programs may replace lawyers and banks for handling certain common financial transactions. They are often used in conjunction with ‘smart property’, which permits the recording of the ownership of underlying physical devices to allow the object to be atomically traded and loaned via a computer programme.√جª¬ø

Another definition is a ‘distributed contract’, which is a method of using a ‘blockchain’ to form agreements with people in a way that minimizes trust, thus taking human judgments out of the loop to allow complete automation.√جª¬ø

As blockchain 2 gains traction in ‘Fin Tech’ we anticipate the uptake of Smart Contracts in various areas of business. This blog will aim to report on the ‘green shoots’ that appear and will aim to consider the technical and legal pitfalls when the theory starts to be put into practice.