Blockchain

2The Dynamics of Disintermediation

The disintermediation dynamics linked to the blockchain, beyond the strictly monetary domain, were only really perceptible and envisaged with the appearance of the second generation of the blockchain carried from 2014 by Ethereum with the generalization of smart contracts.

Smart contracts, pieces of code recorded on the blockchain, are used to set up conditions and rules of interaction (section 2.1) and serve as a basis for creating Decentralized Applications (dApps) using several smart contracts and generally equipped with user interfaces (section 2.2). These smart contracts, integrated into the blockchain ledger and operating from the data recorded therein, act as vectors for disintermediation and, therefore, for reducing transaction costs (section 2.3).

2.1. Self-execution of smart contracts

2.1.1. The notion and origins of the smart contract

The notion of the smart contract could be defined as a set of contractual clauses transcribed in the form of a code written in a computer language, the execution of which is programmed to be automatic when the conditions are met.

The idea of intelligent contracts based on cryptographic protocols was conceptualized by Nick Szabo in the 1990s [SZA 96, 97]. Szabo concluded an article on this subject in 1997 as follows: “Smart contracts combine protocols, users’ interfaces, and promises expressed via those interfaces, to formalize and secure relationships over public networks. This gives us new ways to ...