Summary

Definition one

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  1. A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
  2. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.
  3. The code controls the execution, and transactions are trackable and irreversible.

Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.

Definition two

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  1. A smart contract is a computer program designed to facilitate, verify and enforce an agreement.
  2. When implemented, a smart contract can very well replace the need for an attorney or a notary to sign a document which then can be upheld in the court.

JAK