For those not familiar with smart contracts they are contracts written as computer code which can be stored on the Blockchain – rather than in legal language on a printed document. This code can define strict rules and consequences in the same way that a traditional legal document would, stating the obligations, benefits and penalties which may be due to either party in various different circumstances. But unlike a traditional contract it can also take information as an input, process that information through the rules set out in the contract, and take any actions required of it as a result.
Blockchain technology has the ability to increase secure data exchange for governmental bodies, various industries and the private sector. It also makes that data transfer simpler, more transparent and easier between entities.