The benefits from using Smart Contracts
Smart Contracts live on a shared database, which is blockchain, where all parties have a copy. However, today’s systems are that every party stores their own records. If anything in the physical world can represent a data point with attributes and rules, then it can be formulated into a Smart Contract.
Smart contracts are self-executing contracts with the terms of an agreement written directly into lines of code. Smart contracts ensure the implementation of the network rules, making the data secure and complete, while also lowering the risk of fraud or malicious alterations.
Verification in Real-time
Approvals are verified in real-time, based on conditions set in the contract, without any intervention, so there is no long-winded verification process. Smart Contracts move forward with its efficiency and speed.
From a business standpoint, consolidating tasks and automating them can help streamline business operations and boost efficiency, allowing employees to concentrate on other tasks.
Cost-Effective
Companies can save on numerous costs since Smart Contracts can perform actions automatically when a certain state is changed without intermediaries such as banks or escrows services. Thus, it eliminates any organizations in the process of fulfillment of Smart Contracts.
Safety
Smart Contracts are stored on a blockchain that is duplicated into a series of copies stored across a network of separate machines, which is so-called ‘decentralization’.
The processing power required to corrupt a blockchain ledger entry doesn’t exist today, so trust and transparency is built into the system. Having said that, there is still a need to continue to keep a few steps ahead of threats.