We all are now well familiar with bitcoin and the technology underlying it called Blockchain. However, this decentralized technology born to support bitcoin and other cryptocurrencies has moved further to assist the number of applications in the real world. The decentralized nature of the technology has eliminated the intermediates in the system, making the process faster, cheaper and secure.
Understanding the benefits of the technology, many scalars and researchers worldwide, are working hard to use Blockchain concept to solve everyday problems of different sectors including health care, supply chain, voting, retail etc. Evolution of smart contract or Blockchain contract is one such legal application of Blockchain.
What exactly is a smart contract?
Ethereum Smart contract is the 2nd generation of Blockchain after bitcoin. It was founded by Vitalik Buterin with a thought to present an advance decentralized network with the best scripting ability and self-executing contract. The smart contract can be defined as:
An Unalterable Agreement: The smart contract is an agreement between the two parties or individuals in the form of computer codes. These codes get stored securely on a public Blockchain and hence information remains immutable and unalterable.
Eliminates The Middle Man: Every transaction is held on Blockchain network, thus eliminating the need of a middle man or third party intervention in the process.
Build Trust: The transactions on the Blockchain are processed only when the certain condition of the contract is met. With the elimination of any third party interference, there is no trust issue.
How Smart Contract Is Driving The Change In The World?
We have already witnessed the potentials of Blockchain smart contract that are more than just financial transaction. They are already in use in different sectors including insurance, legal procedures, ensuring KYC and AML, ICO and crowdfunding, health care companies, elections to record and safely transfer data. The technology eliminates the need of lawyers, bank, agents or any other intermediate authority all these industries.
What benefits it holds in future is still unknown. But, there is no doubt that technology is here to stay and it’s better to be prepared for this awesome technology to mark its existence in the coming years.
Here in this post, we have covered everything about the smart contract that makes it awesome decentralized technology. And as you read our guide on Blockchain smart contract, we hope you have understood everything about it. Want to learn more, visit us on our Blockchain Africa network.