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Smart contracts have a wide range of possible applications, particularly in the field of the Internet of Things. Imagine a “smart” fridge that could detect when you run out of milk. Upon such detection, your fridge would order a new carton of milk online. Is this order, placed by a fridge, a legally binding contract? Charles Duro, Lawyer at Allen & Overy Luxembourg SCS* is going deeper into details.
(Featured Image: Charles Duro, Lawyer at Allen & Overy Luxembourg SCS / Image Credit © Olivier Minaire)
What are “smart” contracts?
While there is no universally agreed definition of what constitutes a “smart” contract, digital currency and smart contracts pioneer Nick Szabo defined it as “a set of promises, specified in digital form, including protocols within which the parties perform on these promises”(1). Roughly summarised, a smart contract is an “IF-THEN” statement in a piece of code that is executed by each node on the network to automate (potentially) a particular state resulting from a contractual deliverable without further human interaction.
Smart contracts take different forms and can be divided into three main categories: (i) smart contracts which consist purely of a computer code, (ii) contracts in natural language (i.e. regular language as opposed to a computer code), but which rely on a computer code in order to be executed, and (iii) “split contracts”, which contain both coded and natural language.
When is a contract legally binding?
Learn more / En savoir plus / Mehr erfahren:
http://www.scoop.it/t/21st-century-learning-and-teaching/?tag=blockchain
http://www.scoop.it/t/21st-century-learning-and-teaching/?tag=Smart+Contracts
Smart contracts have a wide range of possible applications, particularly in the field of the Internet of Things. Imagine a “smart” fridge that could detect when you run out of milk. Upon such detection, your fridge would order a new carton of milk online. Is this order, placed by a fridge, a legally binding contract? Charles Duro, Lawyer at Allen & Overy Luxembourg SCS* is going deeper into details.
(Featured Image: Charles Duro, Lawyer at Allen & Overy Luxembourg SCS / Image Credit © Olivier Minaire)
What are “smart” contracts?
While there is no universally agreed definition of what constitutes a “smart” contract, digital currency and smart contracts pioneer Nick Szabo defined it as “a set of promises, specified in digital form, including protocols within which the parties perform on these promises”(1). Roughly summarised, a smart contract is an “IF-THEN” statement in a piece of code that is executed by each node on the network to automate (potentially) a particular state resulting from a contractual deliverable without further human interaction.
Smart contracts take different forms and can be divided into three main categories: (i) smart contracts which consist purely of a computer code, (ii) contracts in natural language (i.e. regular language as opposed to a computer code), but which rely on a computer code in order to be executed, and (iii) “split contracts”, which contain both coded and natural language.
When is a contract legally binding?
Learn more / En savoir plus / Mehr erfahren:
http://www.scoop.it/t/21st-century-learning-and-teaching/?tag=blockchain
http://www.scoop.it/t/21st-century-learning-and-teaching/?tag=Smart+Contracts