Smart contracts are contracts whose terms are recorded in a computer language instead of legal language. Smart contracts can be automatically executed by a computing system, such as a suitable distributed ledger system. The potential benefits of smart contracts include low contracting, enforcement, and compliance costs; consequently it becomes economically viable to form contracts over numerous low-value transactions. The potential risks include a reliance on the computing system that executes the contract. At this stage, the risks and benefits are largely theoretical because the technology of smart contracts is still in its infancy, and some time away from widespread deployment.
A distributed ledger is a database that can securely record financial, physical or electronic assets for sharing across a network through entirely transparent updates of information. Its first incarnation was ‘Blockchain’ in 2008, which underpinned digital cash systems such as Bitcoin. The technology has now evolved into a variety of models that can be applied to different business problems and dramatically improve the sharing of information.
A shared ledger is essentially a database that keeps track of who owns a financial, physical or electronic asset: a diamond, a unit of currency, or items inside a shipping container, for example. Crucially, every participant can keep a copy of the block chain, which is updated automatically every time a new transaction occurs. The security and accuracy of the information is maintained through mathematics — specifically by cryptography — to ensure that all copies of the ledger match each other. Almost anything that exists on paper today could exist on a shared ledger.
The future of work with DAO (Decentralized Autonomous Organization) and IoP (Internet of People). The DAO may be the work organisation of the future. There will be no hierarchical system within, you are given votes for the work you perform in the interest of the organisation or better said, to the community. The organisations flow will be managed by Blockchain, smart contracts, and may get rewarded for work through Dash. Dash is a secure, blockchain-based global financial network which offers private transactions.