What Are Blockchain Smart Contracts? Are They Any Different From A Regular Contract?

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What Are Blockchain Smart Contracts? Are They Any Different From A Regular Contract?

Blockchain technology has expanded rapidly and is now a revolution. It is almost everywhere and states and countries are using this technology for trading, transactions, securing and protecting their assets and documents and also to ensure that work is streamlined to make high-level of efficiency in all the industries possible.

So, blockchain technology is not only restricted to traditional areas but is fast reaching out to even the other non-conventional sectors where even the applications of the internet are limited. And one of the latest fields where this technology is becoming hugely successful is that of Asset Management. Selling or buying an asset or a property involves a lot of paperwork and documentation. But Blockchain-based solutions can let you buy or sell a flat or a property without signing the regular documents such as individual paper contracts.

Smart Contracts Do Not Include Involvement Of A Registrar

In a way, smart contracts are not much different from the one you might have signed for buying a home or a flat. But the major difference is that the deal does not include involvement of a registrar as a third party and you can carry out the transaction without inking long legal contracts. These are the digitally automated contracts in which the agreement is written directly into lines of code.

That is why it does not require central organization’s intervention to find out whether both the parties have completed their agreement duties or not. A smart contract does it with the help of a highly secure, organized, distributed network. The information in smart contracts is protected in a decentralized way similar to the way other blockchain information is secured.

Important Applications Of Smart Contracts

According to experts, smart contracts can be best used to carry out two types of automated transactions that include making payment after certain events happen and imposing financial penalties if conditions or objectives related to transactions are not satisfied. This eliminates the possibility of human intervention including the judicial system or a trusted escrow holder. And the overall contracting process is completed sans any execution and enforcement fees.

Smart contracts can be effectively used in multiple applications including business contracts, educational institutes, and land-based transactions. Using blockchain technology for business contracts can help eliminate the waste of time, effort, and money lost by both the sides whereas educational institutions can define their academic data on blockchain smart contracts and automate the acceptance and selection of the right applications.

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