Abstract: The article is devoted to the definition of the term 'smart contract' and how it is used by civil law. The idea of smart contracts was created in 1994 by Nick Szabo who defined it as a computer protocol of transaction that is made to faciliate a performance of a contract. The blockchain is a limited form of a smart contract. Today the technology of distributed ledgers (including bitcoin blockchain) have revived smart contracts and have made them applicable again. Smart contracts is a next step in developing the blockchain technology allowing an automatic performance of a contract after parties come to agreement. It implies remote, full and quick performance of contractual obligations. In this research Morkhat has used such methods as analysis, comparison, analysis of the history of creation and development of the term, and legal expirement. Smart contracts, in fact, are not that 'smart' in terms of artificial intelligence. Generally speaking, the term 'smart contract' does not necessarily mean attribution to artificial intelligence technologies. However, there are certain points where these technologies interact. Recent findings in the field of crypto currency and smart contracts create new opportunities for using artificial intelligence methods. These economic technologies stand to gain from deeper knowledge and analysis because they will be integrated in everyday trade. Crypto currency and smart contracts can also provide infrastructure for artificial intelligence systems conforming to legal standards and safety regulations as they integrate more and more in a human society.