Smart contracts and blockchain technology

The smart contract concept in the historical context is studied. Smart contracts are classified into «classical» and «blockchain». An example of «classical» smart contract is analyzed. The study shows that «classical» smart contract has wide use in the economy. The study shows that blockchain smart contract doesn’t execute the basic contract objectives, such as observability, verifiability, privity, that’s why blockchain smart contract is unable to execute contract functions in the economy.