SMART CONTRACT

What is a smart contract?

• A smart contract is a piece of code deployed in the blockchain node
consists of specifying predetermined conditions, rules and policies
that, when met, trigger outcomes. By running on a decentralized
blockchain instead of a centralized server.
Examples
• Real estate
• Auction.
• Voting.
• Health care.
• Supply chain.
Bitcoin transaction and a smart contract transaction
• In Bitcoin, all the transactions are about send value.
Bitcoin transaction and a smart contract transaction
• In the case of a blockchain that supports a smart contract, a transaction could
embed a function implemented by a smart contract
Smart contract advantages
• Autonomy:
You’re the one making the agreement; there’s no
need to rely on a broker, lawyer, or other
intermediaries to confirm.

• Trust
Your documents are encrypted on a shared ledger.

• Backup
On the blockchain, your documents are duplicated
many times over.
Smart contract advantages
• Speed
Smart contracts use software code to automate tasks,
thereby shaving hours off a range of business processes.

• Savings
Smart contracts save you money since they knock out
the presence of an intermediary.

• Accuracy
Automated contracts are not only faster and cheaper but
also avoid the errors that come from manually filling out
heaps of forms.