How Do Smart Contracts Work in Blockchain?

in smartcontracts •  6 years ago 

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Enterprises, big or small business industry, are supported by traditionally written contracts. Unfortunately, these are often heavy and a source of business and legal conflict. A solution can be found in replacing traditional written contracts with smart ones. A smart contract is an agreement, in the form of a computer program that is implemented automatically once certain pre-programmed conditions are verified.

On blockchain, the goal of a smart contract is to explain business and trade between both parties, sometimes without the need for a central authority or middleman. A smart contract scales down on formality and costs combined with traditional methods, without compromising on validity and reliability.

Most of the industries could benefit significantly from smart contracts like art, music, real estate, finance, manufacturing, retail, supply chain, telecom & more. Smart contracts have the potential to introduce the radical change in the way online business and trade are executed by speeding up transactions, reducing paperwork, and bringing about cost-efficiency.

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