FairWin: Smart contracts for Dummies
What we like about the blockchain is that, because it is a decentralized system that exists between all the people concerned, there’s no need to pay agents (mediators). Blockchains have their problems, but they are considered, with good reason, faster and cheaper than ordinary systems. One of the main advantages of the blockchain is the use of smart contracts. This article deals with what they are, what they do and why we need them.
In a nutshell, smart contracts are ordinary contracts converted to computer code. As they are duplicated on the decentralized system, they can be considered more secure than ordinary contracts, which saves people time and nerves.
What they are
The best way to describe smart contracts is by comparing the technology to a slot machine. Normally, people go to a casino, pay them, and wait to get the chips. With smart contracts, you simply drop a bitcoin into the slot machine, and your money goes into your account. More than that, smart contracts not only set the rules and penalties of an agreement just like an ordinary contract does, but also automatically enforce those conditions.
What they do
Government
With all those talks about election interference and rigging some might like to use a thing like a blockchain technology to protect the election process, for only super powerful computers can crack such a system.
Besides, this may help with the low turnout as many more people would prefer voting online to standing in lines and filling in forms.
Supply Chain
Smart contracts use the If-Then algorithm which will accelerate the product delivery process. The logistical management will become easier through making it automatic, secure and less hindered by paperwork.
Real Estate
Smart contracts can mean larger benefit. Now there is no need, if you want to rent your apartment, to pay a mediator or a newspaper for advertising or to pay some other person to confirm that the tenant paid rent and so on. Now all you have to do is pay with bitcoin and the data will be stored on the database. Everyone can check it, and the goal is achieved!
Healthcare
Blockchain is an easy way to store personal health records. They will be given a special key which only certain people can use. Also this technology could be applied to medical treatment bills, which will streamline the process of payment.
Why we need them
- Accurate
Smart contracts are practically error-free as computer databases are extremely reliable. - Autonomous
There is only you and the person you are dealing with. Intervention possibility is completely eliminated. - Economical
Without third parties there is no one to charge extra money. - Fast
Smart contracts rely on software code to streamline processes, saving your time and energy that can be redirected elsewhere. - Protection from failures
As the blockchain is a decentralized system, the data is not stored on any one computer. Thus it cannot be lost. - Safe
Thanks to data encoding, your documents are safe. Cracking the code will take an extremely high-end computer.
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