Smart contracts can execute themselves through code. These contracts exist in a blockchain where all involved parties have access. Each party in the contract keeps data records.
Smart contracts are built so the rules are followed. Smart contracts also help prevent fraud as all parties have a copy and they cannot be altered.
There are several benefits to using smart
contracts with Journeytobillions.
1- Trustworthy
When a contract is written by a lawyer and put
on paper, other lawyers often have to closely read the document to be sure the
language is honest and trustworthy. Code is what it is, there is no lawyer-speak
in them. They cannot have a hidden agenda. They can only manage transactions
for blockchain.
2- Transparent
Smart contracts are easy to read and understand, thus transparent. There aren’t any hidden deals in contracts, because if there were the digital transactions would not work.
Everything has to be understandable in a smart contract, especially since they are read by computers that do not deal with subtleties of legal language. Smart contracts must be accurate and explicit as any gaps in the coding will slow transactions.
3- Accurate
Smart contracts are accurate. They include
terms and conditions written in code. It is difficult to get past the code
without alerting the rest of the parties in the contract. If there are errors
in the code, transactions will be faulty. Accuracy is easier to achieve with
smart contracts, because code just needs to be modified and no lawyers or
stacks of paper are needed.
4- Efficient
Smart contracts made the process of doing business more efficient than ever. With smart contracts, businesses move through transactions at a higher rate, so they make more money.
No paperwork is needed to complete a smart contract transaction, so no paper can get lost and no communication errors get in the way.
5- Eco-friendly
Since smart contracts are written in code and
used in blockchain, no paper is needed. Revisions do not require
multiple reams of paper. The lack of paper means the process is eco-friendly.
6- Quick
Smart contacts move through transactions at lighting speed. The contracts are live online and with them, businesses get through transactions in no time at all. Previously, businesses had to work through paper contracts with lawyers and other middlemen.
Since fewer people have to look at them, smart contracts are created quickly so businesses can get down to making money. With smart contracts, no paper needs to exchange hands which speeds the process significantly.
7- Limited Middlemen
Because they do not need to have any input from lawyers, smart contracts are cost efficient. They do not take long to craft, and they do not require middlemen to evaluate them before they are put into action. Since fewer people work on the contract, businesses save money creating them. A
dd to that, the increased speed of processing transactions and it is easy to see why businesses are turn to smart contracts as financially beneficial.
