‘Smart Contracts’

“Interest in ‘smart contracts’ has exploded in the past few months. These are agreements written using computer code which self-execute in ‘distributed ledger’ networks. A distributed ledger, or ‘blockchain’, is a mechanism for authenticating transactions in a network of computers whereby all participating ‘nodes’ update the complete ledger of transactions and compare results in real time. Thus there is no need to rely on a central ‘trusted’ party to ensure verification: the integrity of the system comes from the fact that all participants separately authenticate every transaction and then cross-refer. Every transaction has a unique identifier, or ‘hash’, and the details are encoded using a key that only the participants can unlock …” (more)

[Sarah Green, Oxford Business Law Blog, 7 March]

First posted 2017-03-07 12:10:27

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