Smart contract vs. traditional contracts
Smart contracts differ from traditional contracts primarily in that they are written as computer code and automatically enforced by a decentralized blockchain network. This means that they do not require intermediaries such as lawyers or notaries, which translates into lower costs and faster contract execution. In addition, the smart contract is immutable and unchallengeable, providing greater security and trust between the parties.
The contracting process using smart contracts is much faster and more efficient than standard contracts. In the first stage, the parties define the terms of the contract, which are then written in the form of source code. This code is properly secured and placed on the blockchain network. Then, when the specified conditions are met, the smart contract automatically enforces the contract, which can include, for example, the transfer of funds or the transfer of property rights.
Advanced smart contracts have the potential to revolutionize various business sectors with their advanced features and greater flexibility. With these features, they can be customized to meet the specific needs of businesses, allowing for even greater automation and streamlining of business processes.