There are several potential business advantages when using smart contracts.

Cost-efficiency. Smart contracts eliminate many operational expenses and save resources, including the personnel needed to monitor their progress.

Processing speed. Smart contracts run on automated processes and, in most cases, can eliminate human involvement, increasing the speed of business transactions stipulated in the contract.

Autonomy. Smart contracts are performed automatically by the network, eliminating the need and associated risk of a third party being involved in smart contract deployment.

Reliability. Data entered in the blockchain cannot be changed or deleted. If one party does not complete its obligations, the other will be protected by the conditions of the smart contract. The automated transactions also remove the potential for human error and ensure accuracy when executing the contracts.

There are numerous potential disadvantages to smart contracts, as well. A lack of international regulations focusing on blockchain , cryptocurrencies and smart contracts makes these technologies difficult to monitor in the global economy.

Smart contracts are also complicated to implement. They are also impossible to change, and while this is considered a security-related advantage, the parties cannot make any changes to the smart contract agreement or incorporate new details without developing a new contract.

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