32 Questions
How are smart contracts defined?
Programs stored on a blockchain that run when predetermined conditions are met
What triggers the execution of smart contracts?
Predetermined conditions being met
How do smart contracts work?
By following simple 'if/when...then...' statements written into code on a blockchain
What happens when a smart contract's actions are executed?
The blockchain is updated to reflect the completed transaction
What is essential for participants to establish within a smart contract?
The 'if/when...then...' rules that govern transactions and possible exceptions
What happens to the transaction data within a smart contract?
It is represented and stored on the blockchain
What is one of the benefits of smart contracts?
Speed, efficiency, and accuracy
How are blockchain transaction records secured?
By linking each record to the previous and subsequent records on a distributed ledger
What is a key advantage of smart contracts in international trade?
Reduction of friction and risk
How do organizations simplify structuring smart contracts for business purposes?
By providing templates, web interfaces, and online tools
What is the main purpose of the Pharma Portal blockchain-based platform?
Tracking temperature-controlled pharmaceuticals through the supply chain
How does The Home Depot use smart contracts on blockchain?
To quickly resolve disputes with vendors and build stronger relationships
What is the unique characteristic of blockchain transaction records that makes them hard to hack?
Being linked to the previous and subsequent records on a distributed ledger
What is a notable advantage of smart contracts in reducing time delays and fees?
Removing the need for intermediaries to handle transactions
Why do organizations utilize templates, web interfaces, and other online tools for structuring smart contracts?
To simplify structuring smart contracts for business purposes
What is one of the main features that makes smart contracts execute immediately?
Digital and automated nature of smart contracts
What is the primary function of smart contracts?
Automating the execution of agreements and workflows on a blockchain without the need for intermediaries
How do smart contracts function based on their code on a blockchain?
They follow 'if/when...then...' statements to execute predefined actions when conditions are met and verified
What is a key characteristic of smart contracts' interactions with blockchain transactions?
They ensure that transaction data is immutable and cannot be altered after execution
What is a crucial step for participants in establishing the terms of a smart contract?
Determining how transactions and their data are represented on the blockchain
What is the role of a network of computers in executing actions within a smart contract?
Verifying and executing actions when predetermined conditions are met
What is the primary purpose of automating the execution of agreements using smart contracts?
To provide immediate certainty of outcomes without intermediary involvement or time loss
What is a potential benefit of using smart contracts in international trade?
Reduced need for intermediaries
How do blockchain transaction records contribute to security?
They are encrypted and connected on a distributed ledger
What distinguishes smart contracts from traditional paper-based contracts?
They are digital, automated, and execute immediately
What is a key feature of the IBM Blockchain Transparent Supply Pharma Portal platform?
Reliable and accurate data sharing
How do organizations simplify the structuring of smart contracts for business purposes?
By providing tools like templates and web interfaces
What contributes to the immediate execution of smart contracts?
Digital and automated nature of smart contracts
What is one of the primary benefits of using we.trade for businesses involved in global trade?
Reduced time delays and fees in global trade
How does The Home Depot use smart contracts on blockchain to strengthen retailer-supplier relationships?
By creating more time for critical work and innovation
What is a notable characteristic of blockchain transaction records that contributes to their security?
Their encryption and connection on a distributed ledger
What is an essential aspect of smart contracts that contributes to trust and transparency in transactions?
Absence of third-party involvement in transactions
Test your knowledge about smart contracts, which are programs stored on a blockchain that automate the execution of agreements or workflows based on predetermined conditions. Learn how they work and their impact on eliminating intermediaries.
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