Smart contracts are contracts with terms and agreements between 2 parties which are written with lines of codes.
The code and agreements can be submitted through a decentralized ledger like blockchain.
Smart Contracts doesn’t require an intermediary, in fact, the proposed plan for smart contracts was to cut the intermediaries such as authorities and banks.
Smart contracts still render agreements, contracts or transactions as transparent, traceable and impossible to tamper with.
Also, this technologic advancement ensures obligational clauses in a contract as it automatically penalizes the offender if the contract is broken.
Smart contracts are the proof that Blockchain technology is not just the cryptocurrencies network.
Benefits of being Smart – Contracts User
Since the smart contracts will be written into every little detail and contract as it is required from the network itself, it will make the agreement itself more accurate and clear understanding of communication.
Thanks to the internet speed, using smart contracts will remove any delays that traditional contracts may have as there will be no manual document processing.
Smart contracts also have a layer of security in the blockchain, the same security transfer of cryptocurrencies has. This way smart contracts can keep being used efficiently from the relevant parties.
The obvious benefit is that since it is stored on the internet permanently, there is no need to have any hard copy of the contract as it will be backed up securely and forever in the blockchain.
The best thing about smart contracts, however, is that you reduce costs whether you are a company or an individual since you don’t need an intermediary which is completely cut from the equation with Smart Contracts.
Real Estate Agencies
When a client is selling or buying a car, the load of paperwork is huge which can be costly and time consuming for Real Estate Agencies.
Thanks to smart contracts the details and the records of the sale can be put in the blockchain and kept securely and removing the cost of paperwork.
Suppliers and Medical Institutions can store records of transactions of medicines into the blockchain through smart contracts which would help the research on the particular medicine and also the stock taking.
With the Medical Cannabis industry growing steadily, smart contracts surely is a way forward to the industry to control the efficiencies of the medicine.
Malta had the Medical Cannabis World Forum 2018 this year to talk about blockchain and its uses in the medical cannabis industry.
Needless to say, the smart contract is an added layer on cryptocurrencies. The smart contracts will make cryptocurrencies transaction between 2 persons transparent and secure.
Smart contracts and cryptocurrencies can be used in conjunction in the gambling industry and other transactional industries where the government needs to keep tabs in.
Smart Contracts is not going to but it already started to revolutionize the way we handle agreements, contracts or transactions.
In contrary to people presumptions, with Smart Contracts, jobs for lawyers and financial institutions won’t be challenged but improved, if the change is duly embraced and controlled.
The growth of smart contracts is unpredictable as some business might yet need to understand the idea, however, there is already a few successes.
For example, flight company Fizzy AXA already implemented smart contracts so that if the client has lost the flight, if the insurance permits it, the client will be notified with the reimbursement options and once selected reimbursement transfer is done at that moment and time.
If the right information is given to business about this platform from the government, be sure that Smart Contracts are the next step of doing business.