Blockchain smart contracts need a new kind of due diligence

Many issues can arise when recording smart contracts in an immutable system, meaning that enhanced due diligence may be necessary before any transactions are written in "blockchain stone".

More than 20 years ago, Nick Szabo proposed the use of a 'smart contract' to reduce fraud and enforcement costs associated with traditional paper contracts. His smart contract would be implemented as a "computerized transaction protocol that executes the terms of a contract" – in other words, a computer program. Like any other software, a 'smart contract' computer program would receive inputs, run a series of program steps, and supply outputs.

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