The transformative nature of blockchain-based smart contracts

AS well as providing the backbone of cryptocurrencies such as Bitcoin and Ether, the emergence of blockchain technology has enabled a range of other lesser-known technological advances.

One such development is the emergence of so-called smart contracts - an application that some advocates believe could prove to be even more transformative.

On the surface, smart contracts work like traditional contracts, outlining the terms of an agreement between two or more parties. The "smart" element supposedly comes from the cryptographic code that verifies, executes and enforces the terms of the agreement.