Smart contracts are just programs stored on the blockchain that run when predetermined conditions are met. Smart contracts are typically used to automatically execute protocols, so that all participants can immediately determine the outcome without the need for any intermediaries and without wasting time. Smart contracts can also automatically complete workflows and trigger the next action when conditions are met.
Speed, efficiency, and accuracy
Once the conditions are met, the contract will be executed immediately. Because smart contracts are digital and automated, there is no need to handle paperwork or spend time reconciling errors typically caused by manually filling out documents.
Trust and transparency
Because there is no third-party participation and encrypted transaction records are shared among participants, there is no need to question whether information has been changed for personal gain.
Security
Blockchain transaction records are encrypted, making them difficult to crack. In addition, since each record is associated with the front and back records on the distributed ledger, hackers must change the entire chain in order to change individual records.
Save
Smart contracts avoid the need to process transactions through intermediaries, thereby eliminating related time delays and costs.
