Smart contracts: How code Is changing the rules of finance

08.10.2025

Financial transactions have always been built on trust. We signed contracts, relied on notaries, and turned to intermediaries to make sure the terms of a deal would be fulfilled. But technology is changing this system. Today, in many cases, all you need is code — this is exactly how smart contracts work. A smart contract is a program that automatically enforces the terms of a deal. Imagine renting an apartment. Instead of a paper contract, you could use a digital one: funds are transferred from your wallet only after you receive the keys, and vice versa. Everything happens automatically, without third parties and with minimal risk of fraud. The key advantage of smart contracts is transparency. The code is open and cannot be altered after launch, meaning both parties know the rules upfront. This reduces conflicts and speeds up processes. Where lawyers and intermediaries were once necessary, now a single algorithm is enough. These solutions are used far beyond rentals or trade. They are applied in insurance, banking, logistics, and even voting. For example, an insurance company can automatically pay compensation if official data confirms an insured event has occurred. Of course, the technology is still evolving, and smart contracts have their limitations. But even now, they demonstrate that the future of finance can be simpler, faster, and fairer. Code itself is gradually becoming the trusted “middleman” we once relied on institutions to provide.