Blockchain: The smart way to make contracts today
Blockchain has the capacity to change the world as we know it. It’s a secure, open technology that makes sure transactions are always validated by a trustless network and gets rid of third parties. However, you don’t have to completely move your database and softwares to Blockchain right now, if you don’t think that would work for your business. You can start with Smart Contracts.
Smart contracts are automated, everything is done by the code written on them. There is no third party, that means no fees need to be paid for them to work. All the information in these contracts is registered on Blockchain so it cannot be altered.
By definition, a smart contract, self-executing contract, blockchain contract or digital contract is a software program that auto-executes established agreements between two or more parties. Some actions happen as a result of a series of conditions being met, whichever they might be. This makes contracts safer, cheaper and can save us a lot of time and fraud threats. By its decentralization, they get rid of the third party that would supervise the agreements on the contract since everything has been programmed to function in an autonomous, trustworthy way.
Smart Contracts help you trade shares, property, assets, money or anything in a transparent way, avoiding the time, cost and services of a middleman. They can be used for government issues, management, supply chains, automobile industry, real estate, healthcare and almost anything you can imagine. They can be your first step for introducing your business into the Blockchain world.
Smart Contracts are:
How do Smart Contracts work?
Smart Contracts are coded into a Blockchain platform, the most common platform is Ethereum. They work in a if/when logic, exactly like a vending machine:
If the vending machine receives $2 and the buyer presses a button, the machine will then provide the selected product. Smart Contracts are a little more complex, but follow the same logic, coded with specific instructions and conditions that automatically take effect when they are met.
The smart contracts facilitate, verify, and enforce the performance of a contract. There is no third party or legal system that needs to write or interpret the contract and the intent of the parties. Code is what makes this an automated, cheaper, more efficient way to make agreements. If you want to know more about Smart Contracts, get in touch for a free consultation ;)