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 blockchainAs a distributed ledger technology (DLT), a blockchain is a digital ledger that can create an immutable record of transactions.... 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 contract” outlining the conditions of that agreement. The contract self-monitors agreement conditions, triggering appropriate actions automatically in accordance with the contract.
