Now imagine
this same scenario, but with smart contracts—applications that replicate and
execute all the provisions of a standard legal agreement and its associated
terms and conditions. When the ship arrives, the cotton is unloaded, and the
buyer scans a barcode on each pallet as it passes inspection. As soon as those
scans are complete, the data they generate is uploaded to a blockchain,
triggering a series of events including filing the customs declarations, paying
any necessary duties, transferring ownership from the seller to the buyer, and
transferring payments from the buyer to the seller and the carrier. If all
conditions of the contracts bargained for exchange are met, the entire process
can take about 10 minutes or less.
The latter
scenario is already a reality. Although the concept of smart contracts has been
around for decades, it’s only thanks to the advent of blockchain—which creates
immutable records of each transaction shared by multiple parties—that every
provision can be automatically executed and verified along the way. Since smart
contracts run in environments in which they are executed exactly as written,
they do not require approval at each step as long as pre-established conditions
are fulfilled.
What’s Next for Smart Contracts on
Blockchain?
While many
smart contracts are operating on the public blockchain Ethereum, significant
implementations will likely take place on more secure and trusted permissioned Blockchains
that businesses and industries are setting up worldwide. To create these
private blockchains, organizations need an open platform and enterprise-grade
infrastructure such as OBP. With its pre-assembled components and templates for
setting up and implementing smart contracts, OBP can greatly reduce the deployment
of new blockchain solutions. Enterprises can readily benefit from a
blockchain-as-a-service (BaaS) model to provide the speed, scalability,
computational power, and interoperability needed to support the
blockchain-enabled capabilities of smart contracts.
Smart
contracts are an exciting development that would not be effective without the
use of blockchain to ensure that contract terms automatically execute if all
parties meet agreed-upon conditions. They have the potential to revolutionize
multiple industries, freeing up capital and giving legal departments around the
world an opportunity to focus their talents on strategic initiatives and
complex contracts and litigation instead of routine contract enforcement that
may be open to dispute.
Hire a
seasoned smart contract development company like Codezeros to develop high
quality, secure smart contracts for your blockchain project
We design, develop, audit, and optimize smart
contracts based on Ethereum and other platforms to automate transactions. With
our smart contract system, one can eliminate the need for third-party
verification for transactions. We have proven our expertise by offering smart
contract development services and solutions to clients across the globe.
We offer
smart contract audit services to provide smart contracts that are free of bugs
and breaches. Our team of expert developers carries out Ethereum Smart Contract
Audits to meticulously review the code to highlight vulnerabilities and
security flaws and make it 100% secure before deploying it.
For FREE
project consultations and estimates, simply contact us https://www.codezeros.com/
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