The Capital
Published in

The Capital

Comparison Between Smart Contracts and Live Contracts

Similar and different at the same time.

Smart Contracts

Smart contracts are if-else clauses that work if all the conditions are met. To illustrate an example, vending machines could be given as an example. Let’s think about a vending machine: to get the product, you need to enter the number of the product and pay for it to obtain the product. If you pay the right amount, it’ll give you the product right away. If you don’t give a sufficient amount, the machine requires you to put the funds unless it’s been fully paid. If you pay the machine more than the product, the machine will give you out the product and the change. And all these processes can’t be turned back.

Because smart contract processes can’t be turned back, there’s huge reliability on how the whole system will work. This has allowed automated business practices and helped companies to further secure their business processes. Especially when it comes to the supply chain, smart contracts could be used in full effect.

As smart contracts had some deficiencies, many companies had issues implementing them in various fields. Therefore, some other alternatives to smart contracts were born, and LTO Network became the first blockchain network offering alternatives to smart contracts.

Live Contracts

Live contracts work smart contracts in a similar way. But they can work even though all the conditions haven’t been met. Instead, these contracts decide the rules interact with all the parties involved in the contract. Therefore, these contracts are not binding, and it helps corporations in many ways.

As live contracts are flexible, many corporations started to implement Live contracts on their workflows. This has resulted in improvements for legal, notary, and leasing. While these fields are known for paper-based static processes that potentially having fraud. Live contracts are used as immutable evidence in these fields, and no counterfeit could ever occur.




A publishing platform for professionals in business, finance, and tech

Recommended from Medium

12 things you should know about Incoterms

Start your miner automatically & running in the background (silently) Windows 10

Supply Chain And Blockchain: A Dynamic Duo

How Decentralized Applications can Improve Online Marketplaces

How to pursue a career in Web 3.0, Blockchain and Cryptocurrency must read for students

Blockchain Technology May Contribute Around $2 Trillion to the Global Economy

LO3 Energy Updates Pando Platform, Migrates To Energy Web Chain

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Ata Tekeli

Ata Tekeli

Blockchain, blogging, statistics, mathematics and R&D.

More from Medium

How we refund our ETH programmatically from a public address that we didn’t have the private key…

The ETHDenver Cheat Code!

Get our bounty by winning using Reach!

What is impermanent loss?

Coinstirs: We are introducing a brand new economy based on crypto