Smart contracts were an exciting promise of the Ethereum blockchain at its creation. Since then, many more blockchains have launched offering smart contracts in various forms. But what are smart contracts? How can they make the world a better place? Let’s dive in to how these self-executing contracts function, as well as some of the real world applications of this technology!
Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.
The best way to describe smart contracts is to compare the technology to a vending machine. Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With smart contracts, you simply drop a bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account. More so, smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations. If you are looking for a more detailed walk through of smart contracts please check out our blockchain courses on smart contracts.