Smart Contract | Practical Law

Smart Contract | Practical Law

Smart Contract

Smart Contract

Practical Law Glossary Item w-005-9055 (Approx. 3 pages)

Glossary

Smart Contract

A transaction that self-executes once certain conditions are met. The traditional example of a smart contract is a vending machine that dispenses a can of soda once the correct currency has been inserted. Today, smart contracts typically refer to a set of rules written in computer code deployed onto a blockchain network that enables execution of a pre-programmed transactions once certain conditions are met. A smart contract is self-executing, without the need for further action by the parties.