Smart contract execution using distributed coordination

Abstract

The invention relates to distributed ledger technologies such as consensus-based blockchains. Computer-implemented methods for smart contract outcome determination are described. The invention is implemented using a blockchain network, which may be, for example, a Bitcoin blockchain. A set of conditions is determined between counterparties, with the set of conditions having a plurality of possible outcomes that includes a first possible outcome associated with a first distribution of a digital asset and a second possible outcome associated with a second distribution, different from the first distribution, of the digital asset. A counterparty transaction is created that includes, as output, the set of conditions encoded into computer-executable instructions and the digital asset. An outcome is received from a third party, with the outcome corresponding to the first possible outcome or the second possible outcome. An outcome transaction is created to transfer control of the digital asset of the counterparty transaction, the outcome transaction including the outcome as input. As a result of validating the outcome transaction at a node in a blockchain network, the digital asset is distributed, based at least in part on the outcome, to the counterparties in accordance with the first possible outcome or the second possible outcome.