2.2 Ethereum (ETH) Smart Contracts
The blockchain allows us to eliminate intermediaries, but the promises
and trust boundaries between contributing parties often require what is
called a smart contract39.
Smart contracts are contracts that can be completed automatically
without human interaction. Smart contracts allow anyone to exchange
money, property, or shares in an easy and transparent way, without the
need for a middleman40.
The need for a middleman is eliminated through the use of computerized
transaction protocols that implement the terms of a contract. These
contractual clauses are converted into code and integrated into hardware
or software so that the code gets implemented by itself (without trusted
intermediaries). Figure 5 shows how smart contracts enable commodities
to be transacted across a supply chain without needing third party
intervention41.