Smart Contracts on Distributed Ledger Technology and its applications in small banking sector

Smart contracts, enabled by blockchain or distributed ledgers technology (DLT), have been held up as a cure for many of the problems associated with traditional financial contracts, settlement or intermediaries, which are simply not geared up for the digital age. But small banks like VP Bank are not involved in this effort nor analysed the impact of such technologies on their banking processes. This work will try to assess the necessity and the impact of using DLT along the bank system Avaloq. The paper also presents the theoretical background of blockchain and in the end practical recommendation for small banks.