How Can a Smart Contract on a Blockchain Automate the Execution of a Financial Derivative and Ensure Non-Repudiation? ⎊ Path

How Can a Smart Contract on a Blockchain Automate the Execution of a Financial Derivative and Ensure Non-Repudiation?

A smart contract is a self-executing contract with the terms of the agreement directly written into code. For a financial derivative, the smart contract can be programmed to automatically execute certain actions, such as margin calls or settlement, when specific market conditions are met.

The execution of the smart contract is recorded on the immutable blockchain, providing a permanent and unalterable record of the event. This ensures non-repudiation, as neither party can deny the execution of the contract's terms once the conditions have been met.

What Is a Smart Contract and How Does It Automate the Lifecycle of a Derivative Contract?

What Is the Difference between a Smart Contract and a Traditional Financial Derivative?

How Do Smart Contracts on a Blockchain Automate Financial Derivatives?

What Are ‘Smart Contracts’ and How Do They Enforce the Peg?

How Does the Concept of ‘Settlement’ in Derivatives Relate to Blockchain Finality?

What Are Smart Contracts and How Do They Enable DAOs?

How Do Smart Contracts Govern Asset Control in DeFi Derivatives?

Is It Possible to Automate Regulatory Compliance Checks within a Smart Contract Itself?

Glossar

Smart Contract

Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.