Smart Contracts
Smart Contract Due to the cost-saving benefits that smart contracts can bring to the financial services industry by reducing the cost of transactions and simplifying complex contracts, rigorous research is being carried out by various commercial and academic institutions to formalize and make the implementation of smart contracts easy. History Smart contracts were first theorized by Nick Szabo in the late 1990s in an article named Formalizing and Securing Relationships on Public Networks. As described by Szabo “ A smart contract is an electronic transaction protocol that executes the terms of a contract. The general objectives are to satisfy common contractual conditions (such as payment terms, liens, confidentiality, and even enforcement), minimize exceptions both malicious and accidental, and minimize the need for trusted intermediaries. Related economic goals include lowering fraud loss, arbitrators and enforcement costs, and other transaction costs. ” The original article written b...