Smart contracts are computer programs that facilitate self-execution and self-enforcement of digital contracts and agreements without third-party intermediaries (such as a bank, broker, or notary). Smart contracts use blockchainA Blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a... Read More technology to be transparent, irreversible, and tamper-proofTamper-proof refers to the immutability of data on a blockchain ledger. Blockchains utilize cryptographic hashing and consensus mechanisms, making it... Read More. Parties negotiate an agreement (i.e., for a transactionA transaction is a record of an event that occurred in the past. Transactions typically occur during the course of... Read More) and create a “smart contractA smart contract is a piece of computer software that is designed as an automated self-enforcing contract, which means it triggers certain... Read More” outlining the conditions of that agreement. The contract self-monitors agreement conditions, triggering appropriate actions automatically in accordance with the contract.
