Smart Contracts Serve as the basis for the Eternal Trusts Platform
If you’re interested in cryptocurrencies or blockchain, you might have heard the term “smart contract”. Let’s discuss how this concept applies to our platform.
So, a smart contract is a digital algorithm or a set of conditions that, upon triggering, allow parties to exchange funds, shares or other assets. Usually this asset is a cryptocurrency of some sort.
How does it work? Here’s an example.
Have you ever bought real estate? If yes, you probably know that you need to use the service of a notary to make the transaction, which means additional expenses for the buyer. Smart contracts allow to forego the services of middlemen such as banks, lawyers, notary officers etc. because the contract itself checks the contractual obligations before approving a transaction. The fulfillment of the contract is supervised by the program. As soon as the conditions are fulfilled, the parties exchange assets. The seller receives a specific sum of money while the buyer receives the good. In other words, everything is done automatically.
