One advantage of the block chain is that since it’s decentralized and exists among multiple permitted entities, there is no reason to pay an intermediary which saves both time as well as conflict. Blockchains aren’t perfect by any means, but they are faster, more secure and cost effective than classical systems, which is why even governments and major banks are adopting them. In the 1990s cryptographers discovered that ledgers which are decentralized could be used to foment smart contracts.
Smart contracts will assist you in the exchange of properly, money, shares and anything that has value in a manner that is transparent and free of conflict. Unlike traditional transactional systems, there is no need to depend on a middleman. To understand smart contracts you must know how things were done in the past.
Traditionally, you would schedule an appointment with an attorney, pay them a fee, and then wait for them to process the required documents. With a smart contract, you would basically place Bitcoins inside a machine (the ledger) and your driver’s license, escrow or whatever document you need would be placed inside your account. Additionally, smart contracts will define the terms and penalties of agreements in the same manner as standard contracts do, but would be able to enforce the obligations automatically.
Smart contracts allow transactions, whether digital or physical, to be carried out directly between parties without an intermediary. As such this makes the transactions faster and less complex. It factors in human nature and is designed to ensure that each party gets what it wants. For example, let’s say you want to rent an apartment from someone. You want a place to stay and the landlord wants a monthly fee for it.
With a Blockchain you could pay the rent/deposit using crypto currency. You would receive a receipt that is contained within the virtual contract, and you’d also be provided a key for digital entry which would arrive by a certain date. Should the key not arrive, the Blockchain would automatically give you a refund. If the key is sent by the deadline, the function will provide the key to you and the fee to the landlord. The system utilizes an “If then” mechanism that will be witnessed by hundreds of individuals, so the delivery would be faultless and the code cannot be modified by either the landlord or renter. As you can see, smart contracts will revolutionize transactions and contracts, reducing complexity in regards to commerce.
Our smart contracts can be used for all types of scenarios which include insurance, financial derivatives, credit enforcement, and crowd funding, property law and various legal processes. They make transactions far easier than in the past and are set to change the way people do business, both on and off the web. Our Blockchain is much faster, secure and more efficient than anything you’ll experience with anyone else. Contact us today to learn more about our smart contracts and how they will benefit you.