ALL YOU NEED TO KNOW ABOUT BLOCKCHAIN SMART CONTRACTS

LAW AND LEGISLATURE

The most attractive feature of blockchain technology is the SMART CONTRACTS. A smart contract is an executable code that runs on top of the blockchain to facilitate, execute and enforce the terms of an agreement between the untrusted parties without the interference of the trusted third party. In current systems, the transactions are usually conducted in the presence of the trusted third party which is a centralized manner resulting in security issues and high monetary transaction fees. The most relevant example of such contracts are banking transactions. Introduction of the blockchain technology has enabled to tackle the above said issues by allowing the untrusted parties to interact with each other without the interference of the trusted third party in a distributed manner. Blockchain is a distributed and decentralized networking database that keeps a record of all the transactions that has ever happened in the network. It was originally introduced for bitcoin which is a peer to peer digital payment system but evolved to be used for the development of wide range of decentralized applications. The important advantages of these contracts are that they are cost effective and avoid the interference of third party promoting confidentiality and security. This paper explains the basics of blockchain technology, smart contracts, relevant platforms that can be utilized to create smart contracts, application of smart contracts and various issues related to these contracts.

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