Blockchain has become one of the disruptive technologies that could transform supply chains around the world. Blockchain technology is being considered as a key measure to solve many issues/problems that cause supply chain risks, such as counterfeit, thefts, shrinkage, unforeseen delays, distrust, costs, etc. These days, many companies have collaborated with several Tech companies, such as IBM, SAP, and Microsoft, to develop their own Blockchain platforms to support their businesses. Especially, smart contracts of blockchains change the way of business in supply chains. Thus, as an SCM major student, it is essential to understand smart contracts and how they affect purchasing and supply management.

Answering the following questions

1. What are smart contracts in Blockchains? Explain their operating mechanisms.
2. Explain how the smart contracts would transform business with other partners with one or two examples.
3. Share your thoughts regarding smart contracts.