Looking into Smart Contracts

Looking into Smart Contracts

As we move into a more digital world, almost everything has an online equivalent. Even legal documents, namely contracts, have started moving there. As such, in the modern-day and age, we have something known as smart contracts

What are smart contracts?

These are not your every day, run-of-the-mill contracts. While they are legal, they are not written or signed on paper. They also do not need another authority to validate them. They are solely between the individuals directly involved with the contract.

 

These are not in traditional human writing, instead, they are in computer code. As such, they have uses in quite specific fields. The main one that you will see is on blockchain platforms.

 

The two parties can exchange traditional assets like money, shares, property, etc.

Why use smart contracts?

So why should you use smart contracts if you are still able to use a traditional one? Well, there are several reasons why you may reconsider a non-traditional contract for you to consider.

 

Firstly, being digital, smart contracts are incredibly fast. Since they are codes, they automise all stages of the deal. Individuals will not have to painstakingly go to the bank, or deal with certain individuals. You can also be certain that the details will be executed just as you expect them to be, as long as the code is written correctly. You also do not need to deal with any outside parties, as we stated earlier, so things tend to go quicker.

 

Speaking of which, the anonymity offered to you by these contracts is unparalleled. You do not at all need to consult anyone other than the person you are trading with. Outside parties cannot meddle in the terms of your agreements, or be aware of your trade when they really do not need to.

 

These contracts are usually also encrypted. This means that you should hopefully not have anyone snoop around in the terms of your contract. You can further rest assured that no-one will be able to know under what terms you have your deal.

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