Smart Contracts

Extracted Attributes

• Mechanism

  If/then logic executed on a blockchain

• Applications

  DeFi, NFTs, Supply Chain Management, Real Estate, Clinical Trials

• Key Platform

  Ethereum

• Core Objective

  Reduction of trusted intermediaries, arbitration costs, and fraud losses

• Year of Origin

  1994

• Primary Language

  Solidity

• Conceptualized by

  Nick Szabo

• Technical Property

  Turing complete (Ethereum implementation)

Timeline

• Nick Szabo first proposes the concept of smart contracts as computerized transaction protocols. (Source: Wikipedia)

  1994-01-01

• Vitalik Buterin publishes the Ethereum white paper, proposing a stronger, Turing-complete version of smart contracts. (Source: Wikipedia)

  2014-01-01

• Launch of the Ethereum blockchain, applying the term smart contract to general-purpose computation on a blockchain. (Source: Wikipedia)

  2015-07-30

• Financial regulators and industry experts discuss the convergence of AI and smart contracts to enable instantaneous settlement and autonomous financial agents. (Source: Document 769fe41a-58ac-48ee-ad72-b08846b1e84c)

  2024-01-01

Smart contract

A smart contract is a computer program or a transaction protocol that is intended to automatically execute, control or document events and actions according to the terms of a contract or an agreement. The objectives of smart contracts are the reduction of need for trusted intermediators, arbitration costs, and fraud losses, as well as the reduction of malicious and accidental exceptions. Smart contracts are commonly associated with cryptocurrencies, and the smart contracts introduced by Ethereum are generally considered a fundamental building block for decentralized finance (DeFi) and non-fungible token (NFT) applications. The original Ethereum white paper by Vitalik Buterin in 2014 describes the Bitcoin protocol as a weak version of the smart contract concept as originally defined by Nick Szabo, and proposed a stronger version based on the Solidity language, which is Turing complete. Since then, various cryptocurrencies have supported programming languages which allow for more advanced smart contracts between untrusted parties. A smart contract should not be confused with a smart legal contract, which is a traditional, natural-language, legally binding agreement that has selected terms expressed and implemented in machine-readable code.

Web Search Results

• 10 Examples of Smart Contracts on Blockchain - Kaleido

  ## Put Smart Contracts to Work for You Smart contracts have diverse applications, including peer-to-peer transactions, product development, supply chain management, and stocktaking. By leveraging blockchain platforms, businesses can create smart contracts that automatically enforce business logic, leading to significant time and cost savings. While there is room for improvement and innovation, the growing adoption of smart contracts highlights their intended benefits of transparency, accountability, and efficiency. [...] Smart contracts can significantly enhance clinical trials by automating the management and execution of trial protocols. They ensure data integrity and transparency, streamline patient consent processes, and automate payments to participants. This technology helps maintain compliance with regulatory requirements, reduces administrative overhead, and accelerates the overall trial process, making it more efficient and trustworthy. [...] Smart contracts eliminate intermediaries by automatically enforcing terms once conditions are met. Think of a smart contract like a vending machine. When you insert a dollar, you get a Coke. The machine follows built-in rules, similar to if-then statements in code. When one party fulfills their obligation (inserting a dollar), the resulting action (dispensing a Coke) is triggered. This automation ensures that agreements are executed precisely and without the need for third parties. ### Why Are Smart Contracts Useful? Smart contracts offer several advantages:

• Smart contract - Wikipedia

  Since the 2015 launch of the Ethereum blockchain "Blockchain (database)"), the term "smart contract" has been applied to general purpose computation that takes place on a blockchain. The US National Institute of Standards and Technology describes a "smart contract" as a "collection of code and data (sometimes referred to as functions and state) that is deployed using cryptographically signed transactions on the blockchain network". In this interpretation a smart contract is any kind of computer program which uses a blockchain. A smart contract also can be regarded as a secured stored procedure, as its execution and codified effects (like the transfer of tokens between parties) cannot be manipulated without modifying the blockchain itself. In this interpretation, the execution of contracts [...] A smart contract is a computer program or a transaction protocol that is intended to automatically execute, control or document events and actions according to the terms of a contract or an agreement. The objectives of smart contracts are the reduction of need for trusted intermediators, arbitration costs, and fraud losses, as well as the reduction of malicious and accidental exceptions. Smart contracts are commonly associated with cryptocurrencies, and the smart contracts introduced by Ethereum are generally considered a fundamental building block for decentralized finance (DeFi) and non-fungible token (NFT) applications. [...] Smart contracts are not legal agreements, but instead transactions which are executed automatically by a computer program or a transaction protocol "Protocol (computer science)"), such as technological means for the automation of payment obligations such as by transferring cryptocurrencies or other tokens. Some scholars have argued that the imperative or declarative nature of programming languages would impact the legal validity of smart contracts.

• What Are Smart Contracts in Blockchain? - Chainlink

  ## How Smart Contracts Work Smart contracts are tamper-proof programs on blockchains with the following logic: “if/when x event happens, then execute y action.” One smart contract can have multiple different conditions and one application can have multiple different smart contracts to support an interconnected set of processes. There are also multiple smart contract languages for programming, with Ethereum’s Solidity being the most popular. [...] ## What Is a Smart Contract? Smart contracts are computer programs that are hosted and executed on a blockchain network. Each smart contract consists of code specifying predetermined conditions that, when met, trigger outcomes. By running on a decentralized blockchain instead of a centralized server, smart contracts allow multiple parties to come to a shared result in an accurate, timely, and tamper-proof manner. [...] Smart contracts were first coined by American computer scientist Nick Szabo in 1994. In his seminal writing, he gave a broad smart contract definition as follows: “a computerized transaction protocol that executes the terms of a contract,” with general objectives to “satisfy common contractual conditions, minimize exceptions both malicious and accidental, and minimize the need for trusted intermediaries.”

• Smart Contracts in Action: Real-World Use Cases | Onchain Magazine

  In this article, we’ll break down how they work, where they’re making a difference, and what they mean for the future of business, from startups to global industries. ## What are smart contracts? Smart contracts are self-executing programs that live on the blockchain and carry out actions automatically when certain conditions are met. Think of them as digital vending machines. If the input is right, the output happens instantly, without needing a middleman. These contracts define rules, verify terms, and enforce outcomes all on their own. Whether facilitating payments, transferring ownership, or automating agreements, smart contracts bring transparency, efficiency, and trust to digital transactions across various industries, including finance, real estate, and beyond. [...] Lending: Protocols like Aave utilize smart contracts to enable users to deposit crypto and earn interest, or borrow against collateral, all without the need for a bank. Insurance: Smart insurance contracts can trigger automatic payouts when conditions are met (e.g., flight delay or weather events). Derivatives: Platforms like Synthetix use smart contracts to manage synthetic assets, tracking the value of real-world commodities or currencies. Imagine removing the need for banks, brokers, or middlemen — smart contracts make that possible by replacing trust with code. Image source: rapidinnovation.io ## Supply chain management and smart contracts To put it in no-nonsense terms: in supply chains, smart contracts act as digital truth-keepers. [...] Cart (0) Wishlist (0) VAT included Continue # Smart Contracts in Action: Real-World Use Cases Article Web3 Reading Time: 4 minutes Smart contracts aren't just for crypto; they're reshaping industries. From streamlining real estate deals to securing healthcare data, this article explores real-world use cases that show how Web3 tech is solving business problems with automation, transparency, and trust. ### Onchain Research 11 upvotes What if the world ran on code instead of contracts? From tracking goods across oceans to unlocking insurance payouts without paperwork, smart contracts are quietly becoming the invisible engine behind real-world innovation.

• Smart Contracts on Blockchain: Definition, Functionality, and ...

  ## The Evolution of Smart Contracts Smart contracts were first proposed in 1994 by Nick Szabo, an American computer scientist who conceptualized a virtual currency called "Bit Gold" in 1998, 10 years before Bitcoin was introduced. Szabo is often rumored to be the real Satoshi Nakamoto, the anonymous Bitcoin inventor, which he has denied. Szabo defined smart contracts as computerized transaction protocols that execute the terms of a contract.1 He wanted to extend the functionality of electronic transaction methods, such as POS (points of sale), to the digital realm. [...] ## What Is a Smart Contract? A smart contract is a self-executing program that automates the actions required in a blockchain transaction. Once done, these transactions are traceable and cannot be undone. The best way to envision a smart contract is to think of a vending machine—when you insert the correct amount of money and push an item's button, the program (the smart contract) activates the machine to dispense your chosen item. Smart contracts allow for secure transactions and agreements between anonymous parties without needing a central authority or legal system. While blockchain technology has come to be thought of primarily as the foundation for Bitcoin​, it has evolved far beyond underpinning a virtual currency. ### Key Takeaways [...] ### Key Takeaways Smart contracts are self-executing programs on the blockchain that automatically carry out transactions when specific conditions are met, eliminating the need for a central authority or intermediary. Originally proposed by Nick Szabo in 1994, smart contracts have become crucial for various applications, including real estate, trading, and supply chain management. Smart contracts streamline processes by automatically executing agreements between parties, but their connection to real-world actions—such as physical goods delivery—remains under development. The primary advantage of smart contracts is the reduction of third-party involvement, though this technology also faces challenges and limitations that need addressing. ## The Evolution of Smart Contracts

• Instance Of

  Q1980247