International Business and Trade Law
Volume III, Issue III, 2020
Cryptocurrencies and blockchain technology underpin a rapidly expanding industry and smart contracts are a key area of this blockchain innovation. A smart contract is an agreement in digital form that is self executing and thus. whereas smart contract automatically enforce obligations. Compare signing a contract to purchase an item versus purchasing an item from a vending machine. Like the smart contract, the vending machine will automatically complete the transaction by dispensing the item, whereas a paper contract for the sale of an item does not actually force the sale, and thus can be reneged by breaching the contract.
Smart contracts have the potential to transform supply chain management, contracting, payment and banking services, and perform real estate transactions. It is noted that smart contract technology is still in its nascent stage and that there are few examples of practicable use cases.