Month: February 2021

Smart contracts can be used across industries to streamline and automate doing business down the street or around the world.

Smart contract platforms have grown to become one of the most significant sectors of the crypto economy. Of the top 10 crypto assets by market capitalization (based on data from Messari), three are smart contract platforms, with one—Ethereum—second only to Bitcoin itself.

Digital transformation continues to speed up the pace of business. Yet asset-based transactions continue to run on slow, sequential settlement processes that are fraught with high costs and high risks. Smart contracts — digital records that encapsulate terms and mutualize workflows  — offer an alternative.

While many people still view cryptocurrency with some scepticism, the use of blockchain within certain industries and for specific processes has gained general acceptance. One of the offerings of blockchain that has attracted much hype is Decentralized Finance (DeFi).

Smart contracts can be used in a variety of fields, from healthcare to supply chain to financial services.

Traditional legal frameworks act as road maps for parties to create legal interests and rights when entering into an agreement. However, they are often subject to different – and sometimes conflicting – requirements. When a transaction shares the characteristics of different legal frameworks, disputes between parties can arise.

A smart contract can work individually, but it can also be implemented along with other smart contracts. They can function interdependently as well. Successful completion of one smart contract can trigger another one and the process keeps going. If implemented properly, entire businesses and organizations can run successfully on smart contracts. This has already begun in various cryptocurrency systems wherein the laws are pre-defined. This allows the network to function independently.