Smart contracts : changing the way SMEs conduct business

Abstract

During the past few decades, technology has taken the world by storm. It is found in almost every aspect of human life, with Blockchain being one such technology. Smart contracts are key enablers in this construct. Smart contracts are promising to revolutionise the way business is conducted by proposing a secure and efficient system to handle transactions and honour commitment, based on the Blockchain system. The Maltese Government’s plan to promote Malta as the “Blockchain Island” is a move that puts the Maltese islands at the forefront of such a technology. This study focuses on the current level of knowledge and understanding of the technology within Maltese SMEs, in order to establish a realistic overview of the situation – that of the implementation of the technology within Maltese SMEs. To reach a conclusion, a sample of 11 SMEs operating in the Maltese islands was chosen to participate in a semi-structured interview to establish their understanding of the technology. A poor level of awareness regarding Blockchain and Smart Contract technologies was found. Overall, respondents remarked that much needs to be done in terms of raising the level of education and awareness regarding the technologies.