Smart contracts: what you need to know
A smart contract is a contract, reduced to a computer code, which is self-executing. A smart contract can proceed and verify a transaction and its related settlement once any prior agreed conditions are met. In today’s fintech world, a smart contract incorporates:
i) computer program code (which translates the legal text of a contract into an executable program); and
ii) blockchain – a decentralised ledger of data verified by members of a network that therefore allows the validation, monitoring and enforcement of the contract without the need for an intermediary to do so
What do smart contracts mean for Financial Services?
Smart contracts along with blockchain have the potential to be revolutionary in a sector where legacy technologies, such as fax machines, still feature. Here are some key changes which could occur in Financial Services.