A SMART CONTRACT is a self-executing computer code whose pre-set rules run on a distributed and decentralized ledger or blockchain. The terms of agreement are contained in the lines of code which facilitates, verifies, and enforces the negotiation or performance of a contract.
SMART CONTRACTS allow trusted transactions to take place without third parties. These transactions are traceable, transparent and irreversible.
The concept was first proposed by the computer scientist and cryptographer Nick Szabo in 1994. He also coined the term.
These contracts offer to reduce transaction costs and provide higher security to transactions. These are widely used in blockchains supporting different cryptocurrencies and have potential use in banking, insurance, communication, entertainment industries, among others.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.