Definition

There is no consensus on a standard definition of smart contracts. It is essential to define what a smart contract is, and the following is the author's attempt to provide a generalized definition of a smart contract.

Note

A smart contract is a secure and unstoppable computer program representing an agreement that is automatically executable and enforceable.

Dissecting this definition further reveals that a smart contract is in fact a computer program that is written in a language that a computer or target machine can understand. Also, it encompasses agreements between parties in the form of business logic. Another key idea is that smart contracts are automatically executed when certain conditions are met. They are enforceable, which means that all contractual terms are executed as defined and expected, even in the presence of adversaries. Enforcement is a broader term that encompasses traditional enforcement in the form of law, along with implementation of certain measures and controls...