Smart Contracts and the Cost of Inflexibility

The blockchain revolution is upon us. In a seemingly endless wave of coverage focusing on everything from financial services to healthcare to supply chain management, commenters are predicting fundamental changes to technology and business models.

Smart contracts – electronic contracts executed on a blockchain – are an important part of this story. Though electronic contracts have been common for some time, smart contracts are radically different.

A smart contract contains the terms and the enforcement mechanism for a transaction. Parties to a smart contract translate the terms of their agreement into a series of if-then rules built into computer … Read more