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Smart Contracts - It Executes Itself

As a society we have developed laws and legal systems to govern ourselves. In the area of contract laws we have notaries, courts and judges to try and adjudicate contracts in disputes.

Then we have bitcoin and the blockchain and a whole new area of smart contracts is upon us. A smart contract is one that executes itself if all the conditions are met. Bitcoin is smart money. Within it's code Alice can send Bob a bitcoin if date is after XXYYZZ, and when that date arrives the bitcoin will appear in Bob's wallet. This is the simplest example of a smart contract. Contract law has been embedded into code and there is no ambiguity.

Bitcoin code can only handle very simple scripts and so Ethereum was invented to include turing complete languge.


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