In simple words, Smart Contracts Development is a set of computer code
(protocols) that runs on Blockchain technology and comprises explicit terms
& conditions (pre-defined rules) that are established by the consent of the
involved parties. Smart Contracts helps to verify, enforce & execute
digital transactions in a credible way without the involvement of third
parties. This enforces transparency in all dealings, be it the exchange of
money, shares, assets, property, or anything of value.
A perfect example of Smart Contracts is when you
require to obtain a document of proof from the court of law. In a traditional
scenario, you’d need to first hire a lawyer, pay them and then wait for the
document to be given to you. But, with Smart Contracts, you’d be able to
eliminate the need for a lawyer, as all you need to do to obtain a document is
run the process with Smart Contracts, pay for it and get the document you want.
If you have decided it’s time for you to try out the benefits
of smart contracts for yourself, there are a few things that you need to
consider before you start.
Steps to develop Smart Contracts
- Outlining The Requirements
- Usability Research
- Architecture Design
- Development
- Deployment
How does it work?
The working principle of smart contracts can be examined in five steps:
- Offer:
The transaction
process starts with an offer of the first party. The first party writes its
terms in the form of an “if-then” statement, then places it into the blockchain.
- Negotiation:
Terms are visible to any party on the blockchain so that two
parties can negotiate on contract terms.
- Approval:
Once two parties agree upon terms and trigger events such
as due date, expiration date, strike price, or other conditions, the contract
becomes immutable and cannot be changed by any party.
- Satisfying Conditions:
After each party approves the contract, smart contracts can
self-verify the conditions that are placed inside a contract by interpreting
real-time data.
- Transaction:
When the triggering event occurs, the transfer of assets such
as stock, real estate, information, intellectual property, and digital/nondigital funds happens.
Blockchain Smart contracts can be used in various industries and can be
implemented in numerous ways. Today, there are many business problems, big and
small, that you can solve with smart contracts. However, as with any other
technology, smart contracts are not perfect solutions. They have some
imperfections as well.
The first is that the code is written by a human and
therefore prone to error. There are also issues on how governments can regulate
smart contracts, especially in terms of things like government taxes. The
answers lie somewhere in the future as blockchain technology grows and maybe
becomes a mainstream technology for business processes.
To know more, contact
us at: https://www.codezeros.com/contact
Comments
Post a Comment