A Smart Contract (SC) is a digital / virtual contract created by code that, upon the occurrence of one or more conditions defined, is able to be automatically executed.
The contract code can be stored and processed in a DLT (Distributed Ledger Technology) system with all conditions written in that same DLT.
These contracts came to revolute commercial and legal exchanges between two or more stakeholders, because of the speed and security information is transmitted, against a traditional contract that would't be able to do so. Smart Contracts are capable of deliver money, content, company shares, real estate, or any other asset that has value for the stakeholders involved.
Benefits of Smart Contracts:
- The contract details accuracy is explicit; if you do not meet all the operational conditions in question, it will be canceled, as there is no ambiguity or subjectivity in terms and conditions.
- Full transparency of terms and conditions for all participants, highlighting all updates and registering them with full visibility to all participants.
- Execution speed, smart contracts work 24x7
- At the Security Level, SC use cryptography with an high level standards of security used on the web.
- 100% digital, born and living in the virtual / digital world.
- It is more economic because it avoids intermediaries, which means less spending.
- Executing a commercial agreement based on transparency and automation of execution based on the conditions that have been established, removes any possibility of manipulation.
What does it take for an organization to adopt Smart Contracts?
- Need to know about programming languages adapted to Blockchain platform/systems;
- Digital economy and cryptography know how;
- Digital wallets know how (Crypto Wallets);
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