Like traditional contracts, a smart contract refers to an agreement between a buyer and seller; however, the difference here is that it’s a self-executing contract on a blockchain platform. As the smart contract makes it possible to execute a secure and automated transaction, mediators are not required to facilitate the completion of transactions. In addition, it is a faster, more economical, and reliable option for managing agreements, and using it makes the transaction irreversible.
Benefits of Smart Contracts:
These contracts are fast because they will execute directly after a condition is met. As they are digital and computerized, the potential errors that emerge while filling out the forms and documents are eliminated. Considering other advantages of smart contracts, the most significant benefit for many businesses like Domchain is their nature to remove brokers or other intermediates to confirm the agreement. Hence, the transactions are safe enough to be altered by third parties. Moreover, smart contracts remove the need for mediators, which will result in saving fees and time. In Domchain we leverage smart contracts to operate all domain transitions quickly and securely. All the processes like domain verification, domain transitions, and payment transactions are executed through smart contracts.
Smart Contracts Perspective:
Smart contract indeed needs to develop more before businesses embrace this technology, but it has the power to disrupt the industry soon. Considering the future of smart contracts, it is crucial not to only focus on how the existing concepts can be consistent with this technology. Instead, the true revolution of smart contracts may come from entirely new patterns that we have not yet pictured.
It was an illuminating perspective on smart contracts. I find it very interesting and insightful. Just to add, smart contracts often described as self-executing agreements that are written in code and run on a distributed ledger, such as a blockchain. They have the potential to reduce transaction costs, enhance trust, and enable new forms of collaboration and innovation.