PROSPECTIVE VECTORS OF PRACTICAL IMPLEMENTATION OF SMART CONTRACT TECHNOLOGY BY DIGITAL BUSINESS-ECOSYSTEMS
Abstract
The article is devoted to the analysis of smart contract technology, which has recently qualitatively transformed traditional business processes in the context of accelerating digitalization processes. Smart contracts allow business structures to automatically fulfill their contractual obligations and exclude the intervention of a trusted third party. The article establishes that it is the development of blockchain technologies that has led to a revolution in the field of digital economy and has given rise to such a tool as a smart contract. Smart contracts operate on an if-then basis, meaning that certain actions will only be performed if certain conditions are met. The term “smart contract” has become quite widespread. It is used not only in the scientific field, but also in practical activities, including international business entities. At the same time, there is no generally accepted approach to determining the essence of this definition. The purpose of the study is to identify the main problems that exist both in modern approaches to defining smart contracts and the difficulties that companies may encounter when applying them in their business practice. To achieve the outlined goal, the article considers the main approaches to understanding the definition of “smart contract”. A retrospective study of the formation of the concept of “smart contract” is conducted. The paper analyzes the essence of the concept of "smart contract", provides the basics of the blockchain mechanisms on the basis of which smart contracts are formed. An analysis of the positive and negative characteristics of smart contracts is made, examples of practical application of smart contracts today are also analyzed, and potential areas of application of the technology are highlighted. The fundamental functions of smart contracts were identified. The implementation algorithm and main components of a smart contract are presented. The article provides an overview of smart contracts and potential options for their practical implementation in business ecosystems in modern highly turbulent development conditions.
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