With the advance of the new technologies there arise applications, ideas and disruptive projects that displace the methods and traditional actions. Such it is the case of the Smart Contract and of his potential fort in the area of the business, commercial and juridical.
A Smart Contract allows that the terms of a transaction should register in an IT code (Script) inscribed in a chain of blocks or Blockchain, his potential takes root in that it cannot be edited, in being modified or in resigning, they are codes opened that can be audited of external form, so that any user can check it to verify that everything approved is programmed. The Smart Contract are signed cryptographically and will act when the agreed conditions are automatically and autonomously granted without the intervention of third parties. This allows the contract to be executed independently of the interpretation of any of the parties, so that, if event A happens, it automatically occurs B.
Let's give an example to understand it better. Suppose that A wants to buy B's house and perform a Smart Contract to agree on payments and conditions. When A has made all the payments, the Smart Contract will act automatically and B will renounce the title of the property.
BBVA made an infographic that clearly and simply explains the functionality of these contracts:
At practical levels the Smart Contract provide many advantages, in addition to those mentioned above, are transparent contracts for both parties, reduce paperwork, bureaucracy and managements so you save time and money, also significantly reduce the chances of errors, fraud and scams.
Currently it is an incipient and evolving technology, however, the general rules of contracts of the Spanish legal system provide standarts to verify the legal validity of Smart Contract as well as its enforceability.
Certainly Smart Contract is a powerful tool that can revolutionize the world, not only on a legal or commercial level but also on a social, technological and cultural level ...