The US Commodity Futures Trading Commission (CFTC) has published a primer on “Smart Contracts” today. The document has been created by the CFTC’s innovation division – LabCFTC.
LabCFTC Director Daniel Gorfine commented that smart contracts are being used to drive automation in markets and may have an impact across a wide range of economic activities:
“This primer is focused on explaining smart contracts, exploring how they may impact our markets and highlighting potentially novel risks and challenges.”
The Smart Contract primer, available below, starts by defining a smart contract. First created by the advent of Ethereum, smart contracts have engendered a wave of innovation in the financial sector as these blockchain based vehicles allow developers to code specific characteristics and requirements into blockchain based transactions.
The primer highlights the potential benefits of smart contract tech while pointing to limitations and possible risks.
The primer is available below.
