Introducing Smart Contracts and its features in an efficient way
One of the most unique features of blockchain is its quality of acting as a decentralized which is shared between all the parties of the network thus, eliminating the involvement of middlemen or third-party intermediaries. This feature is particularly useful because it saves you from the chances of any process conflict and saves time too. Though Blockchains have their own set of issues that are yet to be resolved, they offer faster, cheaper and more efficient options as compared to the traditional systems. Due to this, even the banks and governmental organizations are turning to blockchains these days.
Smart contracts can be termed as the most utilized application of blockchain technology in the current times. The concept of smart contracts was introduced by Nick Szabo, a legal scholar, and cryptographer in the year 1994. He came to a conclusion that any decentralized ledger can be used as self-executable contracts which, later on, were termed as Smart Contracts. These digital contracts could be converted into codes and allowed to be run on a blockchain.
Though the idea of smart contracts came into existence long back, the current world that we live in works on paper-based contracts. Even if digital contracts are used, the involvement of a trusted third-party from the system cannot be eliminated. While we have defined a system of functioning with this method; we cannot say for sure if it is always smooth. The involvement of third-party might lead to security issues or fraudulent activities along with an increased transactional fee.