With systems to launch digitalised legal agreements applying blockchain technology 2017. Smart contracts are, essentially, self-executing digital contracts with the contract clauses composed in computer-interpretable language (instead of human language in paper form). Under a smart contract, no money would be paid unless specific agreements are met and verified by software.
The benefits of smart contracts are solid: they are easily and quickly created, easily accessible and permanent. Notably, they cannot be lost because they are stored on a blockchain; and because they are easy to create, they will be cheaper – bringing down the cost of associate fees. A big advantage is that the risk of a traditional contract dispute arising between the parties is reduced. Smart Contracts can also reduce the risk of fraud and corruption.
Smart contracts are cryptographically secure, self-enforcing digital instruments that can automate agreements between the parties. They are carefully designed and tested before being used in real-world applications.