Tuesday, December 1, 2015

Blockchain and the Smart Contract



Blockchain and the Smart Contract


A neat piece on how IBM is developing their own version of the blockchain, and smart contracts. 

Smart contracts are computer programs that can automatically execute the terms of a contract. In 2001, legendary cryptographer Nick Szabo spoke of smart contracts that solved the problem of trust by being self-executing, and having property embedded with information about who owns it. For example, the key to a car might operate only if the car has been paid for according to the terms of a contract. Now, Szabo expects emerging “Bitcoin 2.0” smart contracts platforms like Ethereum to have a disruptive impact on financial and legal systems, comparable to that of Bitcoin itself. “[E]ventually more so, since Ethereum’s more flexible and general language can facilitate a much wider variety of commercial and other formal relationships,” said Szabo.

This is just a glimmer of how the  blockchain will be an important building block to the future of auto transportation as we're envisioning.