Characteristics of Smart Contracts

Abstract

The Bank of Italy, Università Cattolica del Sacro Cuore of Milan and Roma Tre University have launched a research project on the characteristics of smart contracts for the provision of banking, financial and insurance services. This paper aims to identify and analyse the legal and technical issues related to smart contracts, to then develop guidelines derived from best practices. It examines the concept of smart contract defined as: a) smart contract code, i.e. a software program stored, verified, and executed on a blockchain; b) smart legal contract, i.e. a means of articulating, verifying, and enforcing an agreement between parties that relies on blockchain technology. Additionally it offers an in-depth analysis of the characteristics of blockchain technology. 

Keywords: smart contracts, DLT/blockchain, governance, tokenomics

JEL Classification: O33