Smart Contracts are a twist of traditional contracts
with blockchain as its foundation.
Smart contracts can be defined as Blockchain-based computer protocols which are virtual versions of regular contracts and are coded with predefined conditions. Smart contracts aim to offer high security while reducing transaction costs associated with conventional methods– traits that make them favorable alternatives to regular contracts.
It can function as joint account so that funds can be spend only when all the parties agree unanimously.
Since Smart Contracts operate on validation of conditions, they can automate various procedures and operations in a business. A decentralized and verifiable network allows a minimum margin of error and excludes the need for third-party agents. Lesser human administration also means cheaper, faster, and efficient operation.
Automation of tasks with code based Smart Contracts with minimum or no human intervention reduces processing cost and conventional contract costs.
A decentralized process eliminates the risk of fraud since the network is managed by the entire network, as opposed to an individual or party.
Smart Contracts are immune to human error and facilitate faster business operations.
Smart contracts are forever. Once it is in place, the code does not change. This provides a trusted environment for the users.
Smart contracts work well in any data driven businesses model. They can efficiently track time, date, weight, temperature, payments and other quantitative variables and respond with predetermined conditions.
The blockchain-based autonomous system lets you automate your business process and respond accurately right on time.