By Dr. Mohammad Al-Thunibat
What is a smart contract?
What is a smart contract?
Smart contract is a:
Coded instructions which execute
on the occurrence of an unequivocal event. The common example of a “primitive”
smart contract is the simple vending machine. On the insertion of sufficient
funds, the machine will release the requested item.
Note: It is
questionable whether these are truly contracts or not!
Clarification
1. An
option contract between parties is written as code into the blockchain. The
individuals involved are anonymous, but the contract is the public ledger.
2. A
triggering event like as expiration date and strike price is hit and the
contract executes itself according to the coded terms.
3. Regulators
can use the blockchain to understand the activity in the market while
maintaining the privacy of individuals actors' positions.
How smart contracts work?
I hope this has been useful
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