“The Smart Contracts have been in the news all over the crypto sphere and their popularity is no fluke. Their capability of revolutionizing the blockchain technology makes them extremely important and every blockchain network is working by leaps and bounds to implement them on their platform”
Smart Contracts and their Features
In simple terms a Smart Contract is a piece of code that defines actions and the conditions of their fulfillment. Once the conditions are met, the contracts will be executed automatically without the requirement of any third party or an intermediary. The smart contract layer is an additional layer that is added to the existing blockchain technology that enhances the functionality of the blockchain. There are various features that make smart contracts so popular in the crypto sphere:
- Automatic: The smart contracts are executed automatically when conditions in the contract are met making them automation instruments. They work as ‘if then’ statements to verify an event and execute the corresponding action.
- Fast: It will be executed immediately and thus is extremely fast. The execution of actions in a smart contract is immediate. As soon as the conditions are met, the corresponding actions are executed instantly.
- Direct: There is no intermediary involved and thus the process is direct. As the smart contracts work on ‘If Then’ statements, there is no requirement of an intermediary to execute the smart contract code, the execution is autonomous in nature.
- Cheap: Due to no third party involvement, there is no fee that has to be paid. This ensures development of low cost processes on the blockchain.
- Transparent: All the information regarding the smart contract and its status will be recorded on the public blockchain making them transparent in nature. They can be viewed by all but cannot be altered.
Smart Contracts: Benefits
Speeds up Processes
The smart contracts speed up the processes due to its autonomous nature. As the executions are instant and no intermediary is involved, it can help in saving a lot of time which can be crucial during a crisis situation.
Provides Security and Trust
All the data recorded by the smart contracts on the blockchain is immutable and tamperproof. This ensures that the transaction is secure and at the same time builds trust among the parties involved in the contract.
As there is no human involved, the chances of human error are completely off the table. This ensures high accuracy and reliability on the smart contracts. The accuracy is critical is high precision tasks and transactions
Ensures Automation and Savings
The automation feature of the smart contracts makes them ensure automation in every field they are applied. This results in saving both time and money and thus makes the complete system highly efficient.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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