Understanding Marlowe

Marlowe is a programming language specifically designed for creating financial contracts.

Its purpose is to make it accessible for both programmers and non-programmers to write and verify financial agreements, such as derivatives, loans, and other contracts.

The development of Marlowe was initiated by Input-Output Hong Kong (IOHK), the blockchain research and development company behind Cardano.

A Specialized Language for Financial Contracts

Unlike other programming languages, Marlowe focuses on financial applications and incorporates built-in abstractions based on real-world financial concepts, including time and money.

This distinguishes it from more generic programming languages that utilize concepts like lists, functions, and variables.

Marlowe is based on a theory of financial contracts formalized in the Isabelle theorem prover, which provides unique features not found in other contract languages.

These features include the ability to reason about the expected value of contracts and the ability to formally verify properties of contracts.

Versatile Applications

Marlowe contracts can be executed on the Cardano blockchain, and a live Playground is available for users to model and execute contracts without requiring extensive knowledge of blockchain technology or smart contracts.

Marlowe has various applications, including building interactive financial contracts, defining decision-making protocols and games, simulating business processes, modeling financial markets, and exploring ideas in game theory.

While currently running on Cardano, Marlowe is not limited to this blockchain alone.

In the future, it may also be used to write smart contracts on other blockchains.