Smart contracts have revolutionized the way we carry out transactions on a blockchain. They are automated, decentralized codes that have evolved as the future of business nowadays. These programs execute on the blockchain when certain conditions are met.
Blockchain technology is creating a stir in the field of contracts, and smart contracts are unquestionably the technological turning point and the way transactions will be handled in the future. They enable you to avoid every human error while saving time and money.
The blockchain is used by a smart contract to store code in its database. The smart contract will then carry out the instructions that were coded into it if the conditions in the code are met. You can conduct transactions without involving a third party using a smart contract. The likelihood of being hacked is extremely low.
Now, the question is what encourages people to use smart contracts to carry out their financial transactions?
Well, these are some of the characteristics of smart contracts that make it reliable to work on a blockchain.
It is not only more affordable than conventional transactions but they may also be verified and carried out without the involvement of outside parties.
Using smart contracts is a novel business model. You can do anything using smart contracts, even paying your taxes and purchasing a home!
They are tremendously interesting because nothing programmed on the blockchain can be changed, and they are self-executing, tamper-proof, and self-enforcing!