What is a Smart Contract?
Smart Contract is a computer protocol designed to promote, check or execute the execution of a contract digitally. The word “smart contract” was first coined in 1994 by Nick Szabo, an American cryptographer, and computer scientist.
Smart Contracts help you share assets in an open, conflict-free Blockchain-based ecosystem. The smart contract is being built and further deployed on top of the blockchain. They are the automated or digital versions of the traditional contracts.
How do Smart Contracts work?
The smart contract can be compared to the vending machines. One will go to the lawyer or a notary, pay their charges, and then wait to obtain the certificate. However, in the case of smart contracts, it is required to just drop bitcoin into the ledger. After which, your license, escrow, or else drops into your account.
Similar to the traditional contract, smart contracts also define some rules and penalties around an agreement. In addition, they also automatically enforce those obligations. The smart contracts can work on their own, and can also be enforced along with any number of other smart contracts.
Benefits of Smart Contracts
Security: The smart contract provides entirely safe websites for the user’s documents. That makes cracking and hacking practically impossible. And they will be one of the best locations for your papers.
Interruption free: There will be no interruption or involvement of any third person in the smart contracts. There is no need to wait for any lawyer or broker to offer confirmation. Therefore the whole process is absolutely free of any coercion.
Fast Performance: It normally takes time to manually process. Smart blockchain contracts do work digitally. Through the software code and the internet, they process all the tasks automatically which saves time.
Profits: You will have to pay some commission or fees when there is any broker or third party involved. Smart contract blockchain eliminates this and helps in saving money efficiently.
Error Free: There are many errors associated when it comes to manual processing. But in the automated smart contract, there will be no single mistake, as they automatically conduct the entire process.
Smart Contracts Applications
The smart contracts find their extensive applications in different industries which can be described in detail as below:
Real Estate Market: One of the major applications of smart contracts is the real estate market. The real estate industry has become a lot simpler and easier with the use of this method. No need to meet face to face to finalize some contract. That’s because digitization of this smart blockchain technology is complete.
Supply Chain Management: Starting from the material collecting to the product delivery, the entire records are being