The concept of smart contract was initially proposed by Nick Szabo in 1995.
The objectives of smart contracts are a safer method which is superior than traditional contracts, as well as the reduction of transaction costs related to agreements.
The digital form of smart contracts means that they have to be written into readable code of computers. Until the parties made a certain agreement with specified rights and obligations involved, a computer or a computer network will automatically execute the smart contract. The principal functions of community governance and incentive mechanisms of CUN are driven and implemented by smart contracts.