Technology has helped people develop and realize their dreams. But, in order to achieve that goal, a change was required. This change was brought about by Blockchain technology.
The advent of Blockchain has disrupted many industries. Be it the banking sector, Healthcare or even Tourism. Blockchain technology also helps in storing data that can’t be tampered, altered or modified, as it is decentralized. Blockchain is slowly and steadily turning on its head entire industries with the many ways in which it is being implemented. The one basic utilization of Blockchain tech irrespective of the industry is in the creation of Smart Contracts.
The irony is that many people don’t even know what it is and how it can help them.
What is a Smart Contract?
For any service that is being provided, we create a contract. To earmark this contract as valid, legal and binding, we usually get it sealed and stamped from a government authorized seal. Similarly, a smart contract is nothing but a contract that has been created digitally. Its notary is not a judicial seal but a set of peers who validate the contract.
Another noteworthy factor of Smart contracts, is that it gives people the freedom to do business with strangers without needing a third party. The deletion of third party lowers transaction costs and increases overall profit. The confidentiality is also maintained and confined to the original source.
What It Covers?
A smart contract is created on the Ethereum platform. Ethereum is defined as an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. Ethereum uses Solidity as a primary computing language and 6 other languages including Go.
Smart Contracts cover various aspects. Some of which are as follows.
- Loan agreements
- Shareholders agreements (regulating relations between shareholders and participants, regarding the disposal of their shares and stakes)
- Labor contracts
- Civil-law agreements (aimed at the emergence, modification or termination of mutual rights and obligations)
- Property contracts (purchase, sale, lease, transfer into partial ownership)
- Insurance contracts (insurance of cryptocurrency accounts, transactions, hedging of risks)
- Agency agreements
- Smart contracts of commercial concession
- Trust management agreement
- Banking tools (derivatives, escrow, collection, letter of credit)
This comprehensive list covers and provides the most secure form of contract that can be created.
See Also: Blockchain: A Brief Recap
How A Smart Contract Is Made
There are many platforms that help in the creation of smart contracts. Few of them are mentioned below.
Collaborating together investors and fund managers, Brickblock uses a patent smart contract to connect them. They aim to achieve a standard wherein, only a fund manager needs to be verified who can then get an access code to set certain parameters. These parameters will enable the fund manager to set up affiliated smart contracts that are automatically included in the dApp (Decentralized Application). Users can authenticate the affiliated smart contract through the parent smart contract, making it highly accessible.2. JinCor:
Smart contracts have all chances to form the basis for all legal relations. Blockchain Technology is now like a new type of jurisdiction. It includes the relations of the individual with official institutions. JinCor Smart Contracts help in creating binding Contracts with the help of digital identity. This is a sure and secure platform for Contract creation.
While the awareness regarding Blockchain is still lacking, it is needless to say that not many are aware of the power of the smart contract. Over time, familiarity with this dApp can bring in a world of change in regard to the way agreements are made by any two parties. What an amazing manner of bringing people closer.