Smart Contract
Formal
A computer protocol that facilitates, verifies and/or enforces the negotiation or performance of a contract. Smart contracts allow the performance of transactions without the need for 3rd parties.
Practical
Smart contracts allow the performance of transactions without the need for 3rd parties. Many contracts can be partially, or fully self-executing and self-performing. A digital smart contract reduces the transaction costs of traditional contracting.
Smart contracts gained widespread popularity with the rise of cryptocurrencies like Bitcoin, and platforms like Ethereum.
