Smart Contracts: the blockchain-based contracts that will end paperwork for good

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Have you ever felt bogged down by crypto jargons like ‘smart contract’ or ‘consensus mechanism?’ If your answer is a ‘yes’ then don’t panic, you’re not alone. Many folks right from laymen to financial wizards keep updating themselves about such crypto news either through blogs, books or other sources. Smart contract has created a digital exodus in the crypto world because of its immutable and decentralized nature.

What is Smart Contract, Really?

Smart Contracts are similar to the existing contracts with an exception that they are digital. To be precise, it is a self-executing computer program stored in a blockchain. It is a general agreement between buyers and sellers written in a digital code, most preferably, Solidity.

Nick Szabo invented these immutable contracts in 1998, exactly ten years before Satoshi's invention. He is rumoured to be the mysterious bitcoin founder Satoshi Nakamoto. 

How Smart Contracts are Unique?

Hope you might have heard the moral of two cats and one monkey story - “When two parties involved in an agreement or conflict, the third party always gets the profit.” The unique nature of smart contract, that separates it from other contracts, is its elimination of third party(middleman business).

Unlike regular contracts, you don’t need a third party. It has been programmed in such a way that the buyers and sellers can initiate transaction once the conditions are met.

For instance, imagine you’re raising funds for your product using a smart contract. If your project got fully funded and met the criteria, the money(fund) will be automatically moved to your side. And the other way around, if your project fails to meet the programmed goals, money will be automatically transferred to the supporters. This is how a smart contract works!

Smart contracts are quite impressive, here are some of their advantages:

Accuracy - Automated contracts are accurate, and they avoid manual errors that may result in heaping up of piles of paperwork.

Lesser human interaction - Automated transactions by their very nature are cheaper, faster and efficient.

Speed -In stock trading business, the settlement process can take up to three days.  With smart contracts, funds can be exchanged quickly and securely.

Immutable - Smart contracts are tamper proof as they are built on a distributed platform called blockchain. Tampering with them is impossible since hacking is a herculean task.

Autonomy - Since an individual makes the contract, there is no need to trust the third party or to rely on a lawyer or broker.

Interested in Creating a Digital Contract?

Every industry is trying to adopt this fad in their future operations such as Banking, Finance, Insurance, Healthcare, Logistics and other sectors. Learn more about the smart contract and its development from one of the esteemed and pioneer company in the field, Blockchain App Factory. With their seamless smart contract development services, you can quickly enter the digital world of contracts!

Read More Services @ https://www.blockchainappfactory.com/smart-contract-development