The essence of smart contracts
Smart contracts are pieces of codes that are embedded on a blockchain platform. These act autonomously, depending on the pre-written rules and regulations. For any organization that tries to do its transactions in a provable, highly private environment with security and transparency, smart contract implementation is the only solution.
There is more to smart contracts besides simplifying processes and cutting costs. These are the game-changers in the whole of the blockchain industry. It is important that we, as avid tech users, get used to this technology at the earliest and make the most of it.
Well, this is the base of how a smart contract is built. What is the history behind the smart contract? We must understand the history and origin of smart contracts to gain better insights into its benefits.
The rise of smart contracts
Nick Szabo, the inventor of a virtual currency called ‘Bit Gold’, stated that smart contracts are computerized transaction protocols that execute the terms of an agreement. He said this at least a decade before Bitcoin was invented.
Also, he compared smart contracts to standard vending machines that we use in our everyday life. The vending machine is the blockchain platform. The coin we insert is the smart contract command. The product that we receive is the output of the command that was pre-written.
The different levels of this boon!
Smart contracts could be of a basic level, only triggering once during an event. This type could come in handy when your smart contract development company is working for a small scale or start-up company. For instance, when an airdrop happens alongside ICO.
At the same time, it could be of huge importance when dealing with higher-level companies. Smart contracts could be deployed to manage finance, manage the refunds for defective products or returns.
With a note of what smart contracts could do, here is how it could flip your business upside down for the better.
To be truthful, most companies deploy smart contracts primarily to make their process simpler, cut costs, and to speed up the whole procedure. However, the smart contract development companies that you opt-in for, could bring more into the frame depending on their expertise and your requirements.
Better Data Security
- Since it is built on the blockchain, the system relies more on the immutable data for security that the system itself.
- Blockchain has the advantage of compressing and store huge data without storing it anywhere at all.
- This clearly explains the decentralized and distributed nature of the blockchain, which is not vulnerable to one point failure.
- The smart contracts trigger actions autonomously as per the pre-set rules. This way, there is no possibility of a data breach or unintentional sharing of the given data.
- No fraud transaction or double-spending can take place as the codes are put to stringent quality checks.
- The most significant matter that blockchain provides is that the system is trustworthy.
- Any action or transaction done on the blockchain can be traced back to its origin.
- Any node can verify any transaction, prove it true or false, yet maintain the anonymity of the user.
- These completely rule out intermediaries and increase trust between the parties.
Lesser operating cost
- Smart contracts save you a huge amount by replacing the workforce.
- Besides that, you can do a lot of business operations with just a tap on your phone instead of traveling all the way abroad to sign a document personally.
- Have you ever heard of digital certificates? That’s exactly what we’re talking about.
- Refunds for damaged product will no longer take 5-7 business days to reach the concerned person.
- The process happens in lightning speed and curbs the dependence on third-party banking apps.
Is smart contract adaptable in your industry or the domain you are in?
A day would come when the size of the company would no longer matter while wanting to adapt smart contracts. In such a time, never be the last one to do it.
Be the early bird to get all the benefits and ace the crypto race. We, the Blockchain Firm, are here to walk you down the aisle of success with all the gears you will ever need. If you are looking to develop smart contracts for your business to keep yourself ahead of your rivals, we got you covered.
How about a strong foundation for your pre-eminence? Our doors are wide open for you to walk-in anytime. We await your call!