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What are Smart Contracts, and what’s their significance?

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Smart Contracts
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The present times in this era are full of technological advancements, and Smart Contracts are undoubtedly among them

In a nutshell, smart contracts are an essential building block of the crypto ecosystem and eighth being at the core of almost every other decentralized application or DApps. These virtual contracts are designed to run when predetermined, written conditions on contracts are met that helps to make the workflows automated, executing agreements and carry out such essential tasks that are designed to govern with statements initiated with If, When, Then, etc. that shows conditions or situations and its result.

Smart contracts designed by developers are autonomous, decentralized, operate transparently and trustless and are designed in such a way that they are unable to get modified or reversed. Such features and characteristics of smart contracts make them a useful tool for reducing or eliminating the requirements of third parties of our intermediaries. The contract terms or agreements are arbitrated by the code written on smart contracts. So how good they are? You want your tasks to get executed at the moment when a condition is met that is also set by yourself, write code for it on a smart contract and be good to go without being dependent on anyone to execute the task. 

There should be no surprise that many traditional companies are seeking technology using the benefits of smart contracts to optimize their operations. As per a research published in December last year, the market size of global smart contracts was expected to jump from $145 million in 2020 to more than $770.5 million by 2028. 

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Smart contracts have gained significant popularity and adoption across various industries, for instance, in the supply chain industry, where the businesses aim to track their products better with their help. In 2021 Epacc Inc, a company providing the mobile app for blockchain and crypto services announced its plans to launch StreamPay Blockchain Smart Contract App. The company further details that managers in the supply chain industry could also use the application to have better watch on the products, from being raw materials to their transformation into finished goods. All this would happen thanks to smart contracts.

Among numerous benefits of smart contracts, it includes traceability is one of the attributes that attracted many companies in legal industries to look upon the technology. Different perceptions about the usability of Smart contracts are being made according to the utility as they are flexible enough to mould according to the need. Some believe that they could build for starting the e-signatures needed for legal documents. These measures could prevent the lawyer’s fees and other recurring costs that could be made with the help of smart contracts. 

Nancy J. Allen

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