Stellar can be used to build sophisticated smart contracts. Smart contracts are computer programs that can automatically execute an agreement based on programmed logic.
The concept of integrating technology and legal contracts dates back to the 1950s when scholars built computational methods that could enforce legal rules without involving traditional legal processes. Smart contracts were formally defined by Nick Szabo in 1997:
Smart contracts combine protocols with user interfaces to formalize and secure relationships over computer networks. Objectives and principles for the design of these systems are derived from legal principles, economic theory, and theories of reliable and secure protocols.
In recent years, blockchain technology has enabled a new breed of smart contracts with immutable storage of agreement terms, cryptographic authorization, and integrated transfers of value.
For the Stellar Network, smart contracts are manifested as Stellar Smart Contracts. A Stellar Smart Contract (SSC) is expressed as compositions of transactions that are connected and executed
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