The Smart Contract is a Million Times Better than the Traditional Ones. Know-How!
Also known as digital contracts, these are prewritten computer codes. Smart contracts facilitate, negotiate, execute any given action when the given rules are met by the parties involved.
In traditional contracts, there is a huge threat to safety despite everything being on the papers. Evidently, a smart contract is a better choice compared with traditional contracts.
How to avoid real-life problems using smart contracts?
Use digital contracts; even better use blockchain-based smart contracts. The best thing with smart contracts is that it reduces the chances of forgery.
Anything once integrated or coded on it is there to stay. There is no way of manipulating it. At the same time identity can never be faked. Hence when the cheater tries to use the blockchain again, he will be caught (he’d be caught even if he does not try to use the blockchain again). However, this is not to be confused with blockchain’s unique privacy facility that keeps you anonymous.
What are smart contracts?
As mentioned earlier, smart contracts are digital contracts that are written on the blockchain. These can not be manipulated or deleted if written on the blockchain once. Just like how we write the agreement on bonded papers, these are codes written on the blockchain.
This automatically enforces the prescribed action when the rules are met. These come in handy when the two parties are across different borders. Besides that everytime when you want to keep things private and confidential.
So we know the difference between the traditional contracts and smart contracts. Now, there is something called smart contract auditing. What is that?
When we used to be kids, we always had the habit of checking our assignments before they hit the staff’s table. Why? Once it reaches their table whatever mistakes we do, gets corrected with a bright red pen. This is a slight black mark on us.
It is the same with blockchain smart contracts. However, it is even worse than a teacher’s correction. As we know anything once written is written forever. No manipulating. No deleting. Also, a single bug could crash the whole of your finances and bring you to square one.
To keep all these issues at bay, it is best to check your contract codes multiple times before deploying them on the blockchain. This checking process is called smart contract auditing.
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