Smart Contracts

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FT
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  • Smart contracts were first proposed in 1994

 

  • They are effectively a decentralized digital version of traditional paper contracts – designed to digitally facilitate, negotiate and verify all aspects of a contract

 

  • The use of smart contracts cuts away expensive fees and a middle man in contract negotiations, making the process more transparent, quick and cheap

 

 

  • An example could be buying a house. With smart contracts you can save a lot of money you would usually pay a lawyer to go back and forth in negotiations, with a smart contract on a blockchain you can set certain conditions i.e. only release funds when final paperwork has been signed by both parties. This allows a buyer and seller to have full autonomy of the process in a secure and transparent way and more importantly every part of the negotiation is recorded on the blockchain.

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