Smart Contracts
science
The rise of smart contracts, or automated implementation of portions of real-life contracts by transferring assets between parties, is one of those interesting implications.
A smart contract is neither smart, nor a contract, but can be regarded by lawyers as a technological solution that automates some transfer between parties to a contract, such as payment or release of information, upon the occurrence of a triggering event.
They are not an embodiment of legal logic or terms of a contract. Put simply, contracts are effectively a data reconciliation workflow on a database that corresponds to a business process.
Blockchain networks are secure from hacking attempts but smart contracts are not! Contact us for a security audit for your smart contract!
A smart contract is a script whose inputs and outputs are data stored in a distributed database.
The logic of the contract can be interacted with through transactions and can run complex logic that processes read and write to the database. Smart contracts, unlike blockchain, are vulnerable to hacking, so a security audit is essential in maintaining system safety.
Smart contracts can model a specific process associated with a real-world financial instrument or contract but are only a subset of the logic which involves counterparty communication and settlement.
They are not an embodiment of legal logic or terms of a contract.
In a nutshell: Smart contracts are effectively a data reconciliation workflow on a database that corresponds to a business process.
