What Are Smart Contracts & How Do They Create Transparency?

What is a Smart Contract?

Smart contracts help avoid middle-men in online transactions. Just like a contract in real life, this virtual version of a contract outlines the conditions and details of a transaction. However, a smart contract can implement these conditions and details immediately.

The Major Benefits of Smart Contracts

The benefits of using smart contracts for the Parkade.io app are nearly endless, but below are a few features we think users and investors will appreciate the most.

Efficiency

In the case of a parking app where various payments will be coming in and going out, smart contracts will help us maintain efficiency and ensure funds are collected and distributed quickly. In a moment-to-moment world, we see this as the future of apps around the world, and we’re happy to be leading the change in bringing transactions in the parking industry online.

Accountability

Smart contracts guarantee accountability. Just like a real-life contract, a smart contract enforces the rules of an agreement and applies them in real-time. As an investment-based business, it’s very important to us that we maintain complete transparency in our operations, finances, and pay-outs.

Time-Stamped, Minute-Based Billing

Thanks to smart contracts, it’s possible to bill for parking through the Parkade.io app down to the minute. The smart contract is time-stamped for complete accuracy, which means that drivers will only pay for the parking time they have used, rather than in 15 or 30-minute increments.

Automatic Check-Out

Check-in and check-out for a parking spot will be automatic through a smart contract. For check-in, a driver will simply scan his/her QR code linked to their ETH wallet, triggering the smart contract to begin. Once a driver has made a payment for the time spent in the parking lot, the contract will end and the user will be able to leave the lot. Payments will be distributed automatically after the contract ends, which is detailed below.

Automatic Distribution

Smart contracts collect and distribute money instantly. This means that Ether collected from a payment will automatically be divided and distributed to various wallets, including the PRKC (profit sharing) wallet, Parkade.IO future expansion wallet, and the Parkade.IO operational wallet. This means less management of funds (which in turn lowers operational costs and room for human error), ensures transparency, and prevents inefficiencies.

The Parkade.io contracts will be developed in Solidity and will run on the Ethereum Blockchain.

For more detailed information about smart contracts and how they work, see this guide or visit our technical framework outline.

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