Smart Contracts as a New Technology in the Digital Economy

Irina Glazkova1, Dorota Kozioł-Kaczorek2, Sergey Shmatko3
1, 3 North-Caucasus Federal University, Russian Federation, 2 Warsaw University of Life Sciences – SGGW, Poland
Glazkova, Irina; ORCID: 0000-0001-5721-9300 (North-Caucasus Federal University, Russian Federation)
Kozioł-Kaczorek, Dorota; ORCID: 0000-0001-7582-0810 (Warsaw University of Life Sciences – SGGW, Poland)
Shmatko, Sergey (North-Caucasus Federal University, Russian Federation)
Smart Contracts as a New Technology in the Digital Economy
Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego, 2018, vol.18(33), nr 4, s. 146-151

Słowa kluczowe

smart contract cryptocurrency blockchain

Key words

smart contract cryptocurrency blockchain

JEL Classification

D86 G23 O16 O31

Streszczenie

Digital technologies have a number of advantages that contribute to the development of the economy and make it more transparent. Some of the main features of modern digital technologies are speeding up business processes, reducing costs, eliminating the possibility of fraud, ensuring the transparency of the system and the ability to check and analyze the system. Regardless of whether a commercial or government organization uses the technology, in any case, there is a wide range of possibilities of its application. One of these technologies is blockchain. A blockchain is a distributed database in which storage devices are not connected to a shared server. This database stores an ever-growing list of ordered records called blocks. Each block contains a timestamp and a link to the previous block. The article defines a smart contract, describes the main areas of its application and provides processes similar to smart contracts, but working outside the blockchain. We also consider some of the risks that arise when working with smart contracts.

Abstract

Digital technologies have a number of advantages that contribute to the development of the economy and make it more transparent. Some of the main features of modern digital technologies are speeding up business processes, reducing costs, eliminating the possibility of fraud, ensuring the transparency of the system and the ability to check and analyze the system. Regardless of whether a commercial or government organization uses the technology, in any case, there is a wide range of possibilities of its application. One of these technologies is blockchain. A blockchain is a distributed database in which storage devices are not connected to a shared server. This database stores an ever-growing list of ordered records called blocks. Each block contains a timestamp and a link to the previous block. The article defines a smart contract, describes the main areas of its application and provides processes similar to smart contracts, but working outside the blockchain. We also consider some of the risks that arise when working with smart contracts.