ntr109-C_2021525EN.01000101-E0109
(109) This principle is also valid for transactions where the so-called ‘smart contracts’ are used. The term ‘smart contract’ describes a computer program or a transaction protocol, which is intended to automatically execute, control or document legally relevant events and actions. A consensus definition of ‘smart contracts’ is yet to be reached. According to the Report on the legal and regulatory framework of blockchains and smart contracts, produced by ConsenSys AG on behalf of the European Union Blockchain Observatory Forum, the term generally means computer code that is stored on a blockchain and that can be accessed by one or more parties (https://www.eublockchainforum.eu/sites/default/files/reports/report_legal_v1.0.pdf). These programs are often self-executing and make use of blockchain properties like tamper-resistance, decentralised processing, and the like. Therefore, whereas a ‘smart contract’ operates according to the terms of a specific contract which it executes, the term should not be used as a synonym for the contract itself.
Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.