Smart Contracts: The Potentiality Of Contracts Based On The Blockchain Technology.

The blockchain technology

The blockchain (or Distributed Ledger Technology) has been one of the most discussed technological advancements in recent years, as well as its applications in financial services and other fields: it is a distributed (and open) database, structured in "nodes" or "blocks", containing transactions records, with which users can interface through dedicated applications. To be consolidated within a block, each piece of data, and subsequently each block before being inserted into the "chain", undergoes a validation process.

The main characteristics of this system is that every operation is traceable, and that there is, now, no regulation, authority or central entity recognized by the users, who therefore carry out transactions autonomously and directly among themselves. A cryptographic encryption process ensures that any potential human influence is eliminated and that the recorded transactions are kept confidential.