The term 'smart contracts' has come to the fore very
recently and is often used in many discussions relating to
blockchain. It may therefore be surprising to know that the term
has been coined over twenty years ago by computer scientist Nick
Szabo.
What are smart contracts?
Smart contracts are self-executing contracts with the terms of
the agreement between the parties being directly written into lines
of code. In simple terms, a smart contract is a contract drafted in
computer code with specific triggers leading to predetermined
outcomes. A common example of a smart contract utilised in the
blockchain industry can be found in initial coin offerings and
token generation events. A prospective purchaser of a coin
typically sends the subscription amounts to the address of the
smart contract. Most coin offerings will have a minimum
subscription amount, below which the offered would be deemed to be
unsuccessful. The smart contract would be programmed in such a
manner
