How do smart contracts change our life?

Blockchain is simply a decentralized system that is supported by computers connected to a network. One of the most important features of this technology is that you don’t have to pay for intermediaries anymore and that saves a lot of time for everybody. This is where Smart Contracts play a significant role.

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MenaPay

3 min readJun 22, 2018

So, in this article I will talk about Smart Contracts and I will also mention their impact in different fields of our daily lives. Using smart contracts, or we can call them decentralized contracts, or self-executing contracts, they can be registered in the form of a code and copied into the system, and their implementation is guaranteed by a computer network that manages Blockchain.

The practical application of smart contracts

using smart contracts can simplify work in various areas of life, including industries of logistics, management, rights and even elections.

Logistics

Procurement and logistics often struggle with bureaucracy, because different companies must be subject to multiple levels of conditions. That’s why scammers get money, and companies suffer losses. This where Blockchain comes to play its role and avoid these problems, since each participant in the network gets access to a secure system, which monitors the execution of work and payments. Thus, the use of smart contracts provides records of transfer of rights and automatically transfer funds to other financial institutions.

Management

Blockchain does not only provide a transparent and secure record, but also helps avoid misunderstandings and encountering problems in joint work or positions when the parties make contracts independently.

Automobile

Let’s think of the future where everything is automated. Everything is already automated from smart phones, smart glasses, to smart cars, etc. Smart contracts will come to service as well.

Let’s Take an example of self-controlled or self-driven cars. In case of accidents, Smart contracts will determine the culprit in the incident, the sensors will also help analyse the incident. And insurance companies will be able to use smart contracts in order to determine the insurance costs through the circumstances in which drivers drive their cars.

Elections

According to experts, the use of smart contracts will make it impossible for any election results’ manipulation, thanks to smart contracts, there will be no external interferences that can affect the electoral system. In this case, election votes will be placed in a special secure record, and decryption requires computers with very high abilities. There are no computers capable of this yet, so it is impossible to penetrate the system.

Other fields

Smart contracts can be used in other fields such as loans and accounting, for risk assessment and management for example. Moreover, lawyers will be able to move from conventional traditional contracts to creating standard models of smart contracts.