Lately, Blockchain technology has generated significant interest across diverse industries. Now, more industry players are piloting with the technology to find and fit particular uses in their business processes for efficiency. One revolutionary application of Blockchain technology is facilitating smart contract solutions. A smart contract solution is a set of self-executing codes on a blockchain It carries the potential to automatically implement terms and conditions of an agreement between two or more transacting parties. We can say that it can play a critical role in streamlining processes that are currently spread across multiple databases.
If you are thinking of moving from traditional to smart contracts, you may have some concerns regarding that. Is it safe, feasible, and effective? At Oodles, we talked with our smart contract developers to find out more about using smart contract development for real-life business use cases. So, let’s understand their pros and cons, application areas, and methods of implementation.
Technically, a smart contract is a type of digital contract of a traditional legal contract between two business parties. Simply put, it is a computer-generated program that can automatically enforce terms of a multiparty agreement.
What’s unique about a smart contract is that if parties fail to meet the mentioned conditions, it revokes the contract and thwarts the asset exchange. A smart contract provides businesses a few advantages over a typical one. Its execution is automatic and you may run it as many times as you need. A blockchain underlies a smart contract and thus, makes it distributed across all participants in an agreement that nobody can alter. Consequently, all the members of a transaction or agreement can have a transparent, immutable view of its terms and conditions. Also, it doesn’t require a third party to ensure the guarantee of a transaction. The blockchain-powered smart contract codes do all the job.