Which type of blockchain enables automated execution of contract terms by the counterparties?

The type of blockchain that enables the automated execution of contract terms by the counterparties is a Smart Contract. Smart contracts are self-executing contracts where the terms of the agreement between buyer and seller are directly written into lines of code. This technology allows for automation because once the predetermined conditions are met, the contract automatically executes without the need for intermediaries or manual enforcement.

Smart contracts operate on blockchain platforms, ensuring transparency, security, and immutability of the agreements. They can facilitate various applications, such as financial transactions, supply chain management, and more, by automatically carrying out actions like transfers of assets or triggering services when specific conditions are satisfied. This innovation significantly reduces the risk of disputes and increases efficiency within the contractual process.

Other types of blockchain, such as public, private, or consortium blockchains, provide various degrees of access and governance but do not inherently possess the functionalities of smart contracts. Thus, while they may serve as platforms where smart contracts can be executed, they do not autonomously enable contractual automation.