In
Part 1, we looked at smart contracts, and how
"smart" they really are – if you need some
background, start there.
Smart contracts (or "programmatically executed
transactions") have been touted as a possible solution to
a range of business problems, as well as the death knell for
intermediaries. By deploying DLT on a private shared ledger, the
power of the blockchain is harnessed to leapfrog past traditional
intermediaries. This enables more efficient transactions, free from
the constraints and incremental expenses imposed by banks,
auditors, governments, regulators, lawyers, accountants and
others who take a pound of flesh from the transaction workflow.
By shuffling off the intermediaries, the smart contract is free
to move efficiently in the economy, saving time and money for
participants. To adapt a phrase from the Humphrey Bogart
vehicle The Treasure of Sierra Madre:
Intermediaries? We don't need no stinkin'
intermediaries! At least... that's the current
