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How Smart is it to Use Smart Contracts

By: NA

Published: 2019-10-01

Overview: Lawyers often enjoy making the “joke” that smart contracts are neither smart nor represent legally binding contracts. Simply put a smart contract is a program/tool that can be used to implement a separate normal legal contract, so it seems that the lawyers and technologists will have to find new ways to work together. So the real question seems to be when is it “smart” to use a smart contract? Smart contracts are self-executing business automation applications that run on a decentralised network such as a blockchain. While the blockchain acts as a database, verifying that transactions have occurred, smart contracts complete pre-determined conditions. Therefore, once specific conditions of a smart contract are fulfilled they can automate the relocation of bitcoin or fiat money etc rooted in a blockchain ledger.

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