How Do Smart Contracts on a Consortium Blockchain Automate Options Trading Agreements?

Smart contracts on a consortium blockchain automate options trading by encoding the agreement's terms, such as strike price, expiration date, and settlement conditions, directly into the code. These contracts self-execute when the predefined conditions are met, verified by trusted data from oracles.

For instance, a contract can automatically trigger the settlement process once the option's expiration date is reached and the underlying asset's price is confirmed. This automation reduces manual intervention, minimizes counterparty risk, and ensures timely, accurate execution among the consortium members.