How Cryptocurrency and Smart Contracts Will be the Future of Digital Payments
It has been well near a decade since the first cryptocurrency in the form of Bitcoin emerged in the finance market. Since then, bitcoin is constantly and successfully dominating the modern finance market through its secure, transparent digital transactions and a convenient way to store value digital data and assets with global accessibility.
Many new cryptocurrencies, as well as blockchain applications (DApps), have emerged in the meantime which have shown great potential to solve the existing problems of many industries. However, bitcoin and most other cryptocurrencies are still being largely seen not more than an investment product.
Blockchain, the technology behind bitcoin, has great potential and can truly provide solutions to various problems of different industries if implemented properly. Smart Contracts are one of the biggest examples of the real world use of the blockchain tech, which effectively automates various kinds of digital transactions and contracts through the use of decentralized, distributed blockchain ledger.
Sir Geoffrey Vos, a reputed senior lawyer of the UK, was recently reported saying that cryptocurrencies and smart contracts will eventually be used by the society, but they need to be regulated.
“My starting point is to ask why smart contracts have taken so long to become ubiquitous. We should, therefore, be looking to identify and, if necessary, remove any fundamental legal impediment to the use of smart contracts. We should try to avoid the creation of a new legal and regulatory regime that will discourage the use of new technologies rather than provide the foundation for them to flourish,” said Vos during his speech at the University of Liverpool School of Law and the Northern Chancery Bar Association.
Not just Vos, but many other finance and law professionals around the world believe that blockchain smart contracts are inevitable. It is a matter of when not if. They agree, however, that work should be done on creating some regulations for managing how cryptocurrencies operate.
For those of you who are wondering what are smart contracts, here’s a brief explanation.
Smart contracts are digital contracts usually built on the blockchain platform for automatically verifying and processing a digital transaction. Any kind of transaction involving the exchange of valuable assets can be programmed via smart contracts.
Smart contracts are written in computer programs/code mentioning specific conditions of a particular transaction and triggered to execute themselves upon the fulfillment of that condition. For instance, a user who wants to buy shares in a company can request a smart contract from a particular company. The contract will mention the conditions like payment terms, etc and will execute itself, i.e. process the shares in the buyer’s account, once the payment is validated and verified.
The use of smart contracts saves money and time as well as remove the need for hiring or paying a third-party or intermediary for verifying such transactions.
Cryptocurrencies and smart contracts have immense applications in different industries. They can effectively reduce time and cost while increasing the overall efficiency in transactions.
Looking for a secure and reliable cryptocurrency for trading? Check out bitica coin (BDCC) which is now trading on Crex24 and TradeSatoshi exchanges.
