In this lecture, we introduce smart money, one of the capstone topics. It takes its outset in the future when we can design money, smart money. The fundamental question you will be exploring in this capstone project is the role of smart money in the future, not only as individuals but also as organizations and societies. But before we continue, let's review some key concepts. Money has three roles in society: medium of exchange, unit of account, and storage of value. For the capstone project, the role as a medium of exchange and store of value are essential. So what is smart money? I view it as value exchange instruments that are based on computer protocols, which facilitate, verify, or enforce present conditions for its appropriation as payment. This is the basic function as medium of exchange. Smart money can be applied on central bank money and commercial bank money. How can it then be used? It can be used to control what product and service that can be bought, who can purchase, when someone or something can be purchased, where something can be bought, whom can be the payee, why something can be purchased. So smart money can enforce conditions that you or any possessor of money can add to the appropriation as a medium of exchange or store of value. In the reminder, I will present three hypothetical illustrations of smart money. I have tried to make them as realistic and general as possible. So I believe you're going to understand the concept of smart money. You might be familiar to the first illustration, either as parent or as teenager. As a parent, I'm one, you want to protect your kids from the dangers in the world. For instance, you might prefer them buying healthy products instead of unhealthy, or even worse, illegal products. With smart money, you, as a parent, could control what your teenagers are buying. The second illustration focus on the use of smart money in banking context. One of the key task of today's financial institutions is to ensure where the money comes from. For these numerous legislations, such as anti-money laundering, have been put in place. With smart money, you could include information about where the money comes from or where it's going. Then the burden of bank's compliance work would be reduced. The final illustration grows upon a very true story involving Sweden and South Africa. South Africa bought a number of air fighters from Sweden, but afterwards, some issues emerged. But with smart money, bribes would be much more difficult since money flows would be traceable. Furthermore, smart money could enable citizens to control how the government spends its money. So the task of the capstone project is to identify scenarios where smart money could be useful.