One of the key social and economic problems that blockchain solves is
What are Smart Contracts?
Smart contracts are pieces of code (software), containing a set of rules and terms, that lives on a blockchain network.
They are self-executing contracts containing the terms of the agreement between the parties involved in the transaction, directly written into lines of code. This code is and the agreement is distributed across the whole decentralized blockchain network.
Smart contracts allow executing trusted transactions and agreements, between anonymous parties, without the need of a central authority, trusted third party, middlemen, legal system or another external enforcement mechanism. Stored on a blockchain network, transactions are rendered transparent, traceable and irreversible.
Smart contracts can find their use case in a large portion of our every-day life. They can be used for storing patent records, ownership and verification of digital assets, exchanging value (money), shares, data, property or anything else in a transparent way without involving third-party services like a middleman.
Relying on a smart contract to execute a transaction is much quicker compared to the real-world contracts, which require man-hours for paperwork and. documentation.
Key take aways
Smart contracts contains the following characteristics:
- Self-executable and auto-enforcing – as agreement terms are stored in the code, the smart contract automatically enforces the execution of the rules after being triggered by action from parties involved
- Immutable – being stored on a blockchain they are immutable and
- Verifiable and Safe – the code is transparent and can be verified and it is cryptographically safe
- Cost saving – removing intermediaries leads to saving costs and fees
- Speed – smart contracts can be used for automating business tasks, thus saving hours of paperwork
- Autonomy – removes the need of third parties or escrow/broker agents
How can we help you?
We are providing full-stack smart contracts development, auditing, and consulting.
So if you are wondering how smart contracts can help your business, or you are just curious about their potential, use-cases and capabilities and you need expert advice, development or consulting – our services are just what you need.