As the study of ‘sma
rt contracts’ went from strange academic curiosity to the cutting-edge of FinTech, most market observers are still wondering just how this revolution in value transfer works.
Smart contracts, for those who still don’t know, are small bits of code attached to an asset, which determines where and how the underlying asset will perform based on events in the network. The promise of financial instruments that are routed through the economy autonomously, and without need for intervention by a custodian, is immense.But exactly how does such a technology work? And what makes a smart contract different from similar solutions for financial logic that have been commonplace for decades in our modern banking system?
Source: CoinDesk