Smart Contracts

Smart contracts are contracts whose transactions run without manual activities and thus save costs and time to a considerable extent. Translated into German, smart contracts mean ‘intelligent contracts’, which can be traced back to digital contracts based on blockchain technology. Smart contracts check whether the terms of the contract are fulfilled and thus automate many activities. These can be classified as self-fulfilling contracts that no longer require human supervision. Here, there is the possibility of concluding a written agreement without the involvement of a notary. A practical example is car sharing, where the money is transferred and the car is registered via smartphone. This means that rights management is also automated here.