How Smart Are Smart Contracts?

One thing about the blockchain that is admired by most users is how it neutralizes the need for paying the middleman by offering a decentralized system. The ability of the block chain to decentralize the system saves you both time and conflict. Blockchains may have their own set of problems, but they are rated as undeniably faster, more secure than all traditional systems and way cheaper. Their ability to attract huge investor attraction is the reason why most governments and banks are turning to them.

What are Smart Contracts?

Smart contracts assist you in exchanging property, money, shares and anything else of value. The exchange or transaction is carried out in a conflict free and transparent way that avoids the services and hassles of having a middle man in between the chain of services.

For beginners, a smart contract can be compared to the concept of a vending machine. Normally, you would have to visit a lawyer or any notary and be required to pay them for getting the document. On the contrary, with the help of smart contracts, you simply drop a unit of cryptocurrency into a vending machine, to have your license or escrow in your account.

Moreover, the real reason why these contracts are labeled as smart is because they not only define the penalties and rules that govern an agreement, similar to that of a normal agreement, but also take a step ahead to automatically ensure that these obligations are being duly observed and implemented by the organization in question.

How Smart Contracts Can Make the World Smart

It is believed, on a wider level, that smart contracts can be used in numerous field including financial services, insurance and healthcare to improve the recording and implementation of contracts. Here we have a few examples of their use:

Government

It has been narrated on countless occasions that the voting system in democracies across the world are at risk of being rigged or hacked. Smart contracts would cater to all concerns and will provide a secure system. Votes protected by the ledger would need to be decoded before they are deciphered through computing power. No one has the computer power required to decode these results. Smart contracts would also put an end to low voter turnout by removing all hindrances that come along the way for voters lining up in tough weather. With smart contracts voting can go online and millennials will have much more of a say in who gets to be the POTUS.

Healthcare

All personal healthcare records can be stored by encoding them on a blockchain with a private key. The regulations could also be used to ensure that all research is done with HIPAA laws in perspective. Receipts from surgery could also be transferred to insurance companies in a more foolproof manner.

Real Estate

You can earn more from your rented estate through smart contracts. Cut the advertisement and the middlemen out and rely on the ledger to reduce your costs and provide a fair system.

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