what are 'smart contracts'?
Smart contracts are digitally immutable self-executing contracts, considering all conditions approved by all involved parties. They were firstly introduce in the Ethereum project and are considered to be a milestone in enhancements of decentralized networks.
The history of 'smart contracts'
The original inventor and proposer of smart contracts was cypherpunk Nick Szabo in 1994. He considered to implement smart contracts into his, later failed, cryptocurrency Bit Gold. His primary aim was to alter and digitalize the approach how contracts were agreed between individuals. Szabo not only considered smart contracts as an alternative option to automize transaction agreements within its own Blockchain. He further articulated that the use of self-audited transaction agreements would be valuable in derivative markets. Today plenty of major stock markets have began to automize transaction models using smart contracts models.
'Smart contracts' in Ethereum
Despite Nick Szabos efforts, Ethereum is the most prominent Blockchain example using smart contracts. As Ethereum was getting introduced in 2015 many considered their new application field as a new milestone in the history of cryptocurrencies. Decentralized Autonomous Agents (DAOs) are businesses creating value, without any human interference needs through the integration of self-automated smart contracts.