51 A Smart Contract is a self-executing contract where the terms concluded among its parties are written directly into code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution of the terms and the transactions are trackable and irreversible. In general, a blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. Blockchain is exceptionally innovative; it guarantees the fidelity and security of data including through unique storage capacities. Additionally, blockchain generates trust among the Smart Contract's parties, without the need of a facilitating third party. Smart Contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central supervising authority or an external enforcement mechanism. Smart Contracts could be implemented in common transactions, in areas such as finance, insurance, sales, leasing, and licensing. The Smart Contract can enforce and update itself automatically, including for instance, in connection with the transfer of funds between the parties, according to the parties' determination. Smart Contracts – Legal Aspects and the Israeli Perspective Yossi Ben-Dror, Founding Partner, Y. Ben-Dror Law Firm
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