It all began with a cup of coffee I shared with my two best buddies in Michigan. One was a real estate agent and other an IT consultant. Sitting around the vintage table, our informal talk was diverted to a work-related conversation – turning severe. My IT friend with all his expertise in the blockchain development trying to convince the real estate man to do business more securely and efficiently.
I heard about the cryptocurrency and blockchain technology lately. But, the term ‘smart contract’ he repeatedly used during the conversation was new for me. I knew about all the buzz surrounding crypto trading. But, he needed to explain the whole thing; from the definition or how these contracts are stored and implemented on the blockchain. Finally, we agreed that blockchain and smart contracts are revolutionary technologies every business should think to invest in this innovative technology.
With all the blockchain info my friend shared with us, it became evident that blockchain is the underlying technology that adds a lot of value to the smart contracts.
Must watch this video to know all about Smart Contracts:
Smart Contracts – Picking Up Velocity:
Smart contracts have provided a remarkable edge to the blockchain-based digital trading and the way all sorts of businesses operate. The demand for blockchain and smart contracts is colossal at this point in time. As the future of the world will be far more decentralized than today, the benefits of smart contracts seem are more than enough to sustain its relevancy for businesses.
Enlisted below are the smart contract’s benefits any business involving massive transactions will feel attracted.
- Direct Customer Dealing:
The smart contracts replace the need of the third party that could be a bank or any person – acting as an intermediator. You can directly deal with your target consumer base with the help of blockchain-supported contracts. Ethereum is considered a standard framework to generate and implement these contracts. With smart contracts blockchain, you can build direct and transparent relationships with customers.
- Immutable and Trustworthy:
Every single business wants to gain more trust which comes from providing efficient, transparent and secure services to the customers. Smart contracts will automatically create and enforce immutable business agreements. It means these digital agreements are unbreakable and unbreachable. It makes your business operations more secure and reliable.
- Efficiency and Cost Control:
Smart contracts eliminate the concept of intermediaries. Therefore, the end users don’t need to pay additional fees to any third party. It helps businesses with increased efficiency and cost control. These contracts allow them to interact and transact directly without breaking their banks – little to no charges for digital transactions while operating in blockchain networks.
- Chronological Record Keeping:
It’s for the businesses where big data is involved. Well, small to medium enterprises can also benefit from it because regardless of data size, every company wants to keep the records straight and sequential. All transactions made through smart contracts are stored in chronological order in blockchain network. You can access the record any time you need and along with a complete audit trail if required.
- Decentralization Resists Failure:
Smart contracts reduce the chances of frauds because they are stored and implemented in a distributed, decentralized ledger – blockchain network. Each participant in the network validates the outcomes for these contracts. So, no one can hack and release any data or funds because anyone in that network can spot any such activity and mark it as invalid.
Moreover, smart contracts resist the failure because no single entity controls data and funds. Even if a participant leaves the network, the blockchain continues to function without any loss of data and integrity.
In brief, that one dialogue made me realized the importance of smart contracts and how they are going to change the business operations – making them more safe and efficient.