What is a Smart Contract and What is it Used For?

What is a Smart Contract and What is it Used For?
What is a Smart Contract and What is it Used For?

why use a contract when you can use a smart contract is a computer program that automatically executes the terms of an agreement when certain conditions are met smart contracts aka crypto contracts run on blockchain technology the same tech that underpins cryptocurrencies like bitcoin the notion of smart contracts has been around since 1994 but couldn’t be fully realized until a platform like a blockchain was developed to support the digital activity.

What is a Smart Contract?

a smart contract is like a traditional contract in the sense that it defines the rules actions and expectations of an agreement between two parties but these terms are written directly into the code and automatically executed when certain events occur for instance.

What is it Used For?

a smart contract might release funds from person a to person b on person b’s birthday the condition being the date of person b’s birthday but smart contracts are complex and there can be as many stipulations as needed for the contract to complete tasks successfully and securely in one smart contract application an invoice is automatically filled out and payment sent once the terms of a shipping contract are met and specified goods delivered on time.

they can execute transactions in a wide range of fields from legal processes to insurance premiums to financial derivatives in fact smart contracts may shift the role of lawyers in the future as they simplify and automate repetitive processes people pay lawyers to do but it’s important to know that today’s smart contracts aren’t legally binding they are often confused with smart legal contracts a type of legally enforceable partially automated digital agreement.

because smart contracts are stored on the blockchain they cannot be altered or lost and because of blockchain’s flexibility to store almost any type of data developers have the flexibility to choose from a wide variety of transaction options during smart contract deployment does your organization use smart contracts what business advantages have you seen share your thoughts in the comments below and be sure to hit that like button you