The Smart Journey – From Contract Hype to Insurance Reality
Akber Datoo · 2018
Blockchain technology and "smart contracts" are often accused of hype. The distributed ledger architecture of blockchain is used by adding the code that combine the smart contract into part of an entry to a blockchain application. The smart contract code could limit any payout to specific designated third parties who are also on the relevant blockchain underpinning the smart contract. The primary differentiator of smart contracts as deterministic or non-deterministic is by whether the network would have sufficient information to determine an outcome, or whether outside information is required. Information can be divided into two types: syntactic and semantic. Smart contracts certainly are on the way to helping the management of uncertainty better than the current traditional contractual forms and regulation will simply be forced to keep up as the potential of insurance smart contracts is realized.