Category: Articles Smart Contract (Page 5 of 6)

Smart Contract, a Gartner definition

November 9, 2020 / SC-Admin

A smart contract is a type of blockchain record that contains externally written code, and controls blockchain-based digital assets. When triggered by a specified blockchain write event, a smart contract immutably executes its code and may result in another blockchain event.

Smart contracts are neither smart nor contracts, and can only read from, and write to, the blockchain. All off-chain interactions with smart contracts must be handled by agents that map between off-chain assets and on-chain digital assets.

What are the applications of Smart Contracts?

November 7, 2020 / SC-Admin

Smart contracts are perfectly suited for agreements between two parties without third-party validation, such as trading in over-the-counter derivatives and the execution of contracts when the triggering event can be measured digitally, eg digital payments, changes in public registries and weather information as published by an official source.

Is a ‘smart contract’ really a smart idea?

November 5, 2020 / SC-Admin

Swift developments in the emerging field of blockchain technology have facilitated the birth of ‘smart contracts’: computerised transaction protocols which autonomously execute the terms of a contract.

Smart contracts are disintermediated and generally transparent in nature, offering the promise of increased commercial efficiency, lower transaction and legal costs, and anonymous transacting.

Getting smart about smart contracts

November 3, 2020 / SC-Admin

Business leaders who may not be closely following blockchain developments should consider examining the technology and evaluate how it can be paired with smart contracts to drive efficiencies or new business capabilities. Operations executives should look to their own processes to evaluate where smart contracts may be applicable.

Smart Contrat definition

October 31, 2020 / SC-Admin

Abbreviation(s) and Synonym(s): none

Definition(s):

A collection of code and data (sometimes referred to as functions and state) that is deployed using cryptographically signed transactions on the blockchain network. The smart contract is executed by nodes within the blockchain network; all nodes must derive the same results for the execution, and the results of execution are recorded on the blockchain.
Source(s):
NISTIR 8202

What do smart contracts do?

October 29, 2020 / SC-Admin

The easiest way to explain what a smart contract does is through an example. If you’ve ever bought a car at a dealership, you know there are several steps and it can be a frustrating process. If can’t pay for the car outright, you’ll have to obtain financing. This will require a credit check and you’ll have to fill out several forms with your personal information to verify your identity. Along the way, you’ll have to interact with several different people, including the salesperson, finance broker and lender. To compensate their work, various commissions and fees are added to the base price of the car.

Smart contract: an entirely paperless contract

October 25, 2020 / SC-Admin

The smart contract is an “intelligent contract” generated by an automated computer program. This computer protocol automates an action when prerequisite conditions are met.

The objective of the smart contract is to make it possible to carry out all types of transactions, mostly financial (not exclusively).

Smart Contract, a Self-Enforcing Agreements

October 23, 2020 / SC-Admin

Would you enter into a contract with someone whom you’ve never met, and therefore don’t know and don’t trust? Would you become an investor in a small company in a foreign country? Would you agree to lend money to a stranger, like a farmer in Guatemala, a teacher in China, or to a cashier in the UK? Or would you set up a legally binding contract for a 1 EUR-purchase over the Internet, like buying a song from an artist? The answer in all of the above-mentioned cases is probably no, as the cost of setting up the necessary legal contract to secure your transaction is too high. We either don’t enter into such a contract at all or use trusted intermediaries to settle such contracts, paying them substantial settlement fees for their services.

How does a Smart Contract work?

October 21, 2020 / SC-Admin

Smart contracts are potentially one of the most useful tools associated with blockchain, and they can enable the transfer of everything from bitcoin and fiat currency to goods transported around the world. Here’s what they do and why they’re likely to gain traction.

What smart contracts give you?

October 19, 2020 / SC-Admin

Autonomy — Smart contracts eradicate the need for a third-party intermediary of facilitator, essentially giving you full control of the agreement.

Trust — No one can steal or lose any of your documents, as they are encrypted and safely stored on a secured, shared ledger. Moreover, you don’t have to trust people you’re dealing with or expect them to trust you, as the unbiased system of smart contracts essentially replaces trust.