Smart contract

Programmable and auto-executable agreements, built on the template "if this than that".

The metaphor often used to understand smart contracts is a vending machine: it is programmed to spit out a bag of chips as soon as the required payment is introduced. This metaphor makes evident one important property of smart contracts, which is the inevitability of the outcome once the trigger conditions are met. This leads to agreements that don't need reinforcement or a justice system to protect them, unlike written agreements or contracts between two individuals for example, one promising the other to do something if and when stipulated conditions are met. In this traditional case, one party may decide not to fulfill the agreement, in which case the other party can rely on the justice system for reparations. In the case of smart contracts the outcome is guaranteed when the conditions are met, the contract cannot be breached by any party, therefore there is no need for a third party to guarantee the agreement.

Applications to makers movement

Contracts between local makers, in the digital humanitarian sector by MakerNet, Contracting using Blockchain. Scalable of contracting so as many makers as possible can use the contracting model. MakerNet project to build proof of concept for contracting system on a contracting standard over the next two years. MakerNet

Can be applied to gain access to financial tools, insurance, which can be onchain services.

See also

Contract