Innovations in block chain technology, the system by which cryptocurrencies, such as bitcoin operate, have made possible a new type of contract, the smart contract. Smart contracts are contracts written in computer code that automatically execute when a set of conditions are met.For example, say one party wants to rent an apartment from another.They can set up a smart contract that is coded so that when the landlord sends the renter the digital entry key to the apartment, sufficient funds will automatically be transferred from the renter's bank account to the landlord.If the key does not arrive, no funds are sent.The contract is encrypted and stored digitally on computers, and the contracts code cannot be altered by either party without alerting the other.

Should the business world embrace smart contracts?