Recently, there have been many discussions in the cryptocurrency community about how smart contract technology will change future business operations. In the future, smart contracts are not just a substitute for paper contracts, because there are more unique applications. And, in the traditional way that takes a long time, different benefits are immediately felt.
Smart contracts will continue to use in cryptocurrency transactions. Because they are usually the only insurance we have to do to believe in the delivery of physical goods or services. However, the value of smart contracts goes far beyond commercial transactions.
What Is the Implementations of Smart Contract?
A simple use case for smart contracts is for individuals who want to use cryptocurrency to buy and sell physical objects anonymously. In this case, neither party knows the identity of the person running the business. Except for some infrastructure that uses a decentralized reputation scoring system to gain trust.
How can you trust the other person if you don’t even know their name or location? What if you pay but they don’t ship?
An integral part of cryptocurrency is anonymity. But there needs to be a way to prevent intentional misconduct and a way to remedy fraud. The beauty of smart contracts is that they can automatically apply the consequences of breaching the agreement. For example, a smart contract may require the seller to deposit a cryptocurrency deposit until the buyer confirms that they have received the goods or services.
There are smart contracts that use a dual deposit custody system that requires both parties to agree to deposit during the initial contract setup period. You can set equal or different deposit amounts for buyers and sellers, as well as any required amount. Once the contract is accepted, if one of the parties cheats during the transaction. The other party can terminate the contract without completing it. Because both parties lose their deposits.
In the business sector, smart contracts can improve inventory and supply chain management. The service provision process (or product manufacturing/delivery process) can describe by smart contracts, and each step of the code clearly defines the process.
At present, it is difficult for researchers to coordinate and collate with other external researchers in real-time. And at the same time eliminate risks such as information theft or praise.
Why Use Smart Contract?
At its core, a smart contract is a set of computer code write to run on a specific cryptocurrency blockchain protocol. Cryptocurrency is a program to behave in a very specific way with one or more economic participants. Each contract condition formulate is directly code into an unchangeable digital agreement. Complying or violating the conditions of smart contracts, self-executing contracts do not require the help of external sources or third parties.
An important part of smart contracts is the computer code that creates them decentralization and security by using blockchain technology and/or encrypted peer-to-peer networks to store information. This kind of network technology is very resistant to external manipulation. Because the information is not stored in a centralized location or server. This greatly reduces the risk of contract manipulation, information theft, and other hacker attacks.
What Are The Benefits For Enterprises?
- This is another benefit of using distributed networks to protect information, because theof the integritysystem does not depend on a single point of failure. Distributed networks provide security and lower operating costs, compared to traditional data storage methods. Because there is no single entity responsible for managing information storage.
- Security and privacy data are usually stored on central servers that are directly controlled by companies, governments, or other entities. We understand that disasters such as fires or earthquakes can cause hardware failures, and personal information that threatens the security of personal information may destroy or lost. You must have seen many examples of companies abusing the control of user data.
- Smart contract technology have the ability to eliminate the need for third-party intermediaries and expensive court litigation. Because the conditions of the contract are predetermine and cannot change. Since no human intermediary is require to execute the contract. If the transaction does not go smoothly, there is no need to pay any fees to the contract agent or other intermediary.
- For people who were previously afraid of signing a business agreement due to a trust vacuum, smart contracts increase the trust that the agreement will be execute correctly and outline the consequences of violating the agreement. This factor is especially important for small business owners looking to enter international markets, because these markets are often expensive, risky, and technically difficult to trust companies on the other side of the globe.
With all the convenience and security provided by smart contract technology, many parties will start using the technology. I also want to try the existing benefits. So the possibility of this technology will be immediately popular and will definitely be used in many industrial sectors. Then what is the relationship video games and crypto.