Are Smart Contracts Beneficial | Coinscapture

Are smart contracts
beneficial?
https://medium.com/coinscapture/are-smart-contracts-beneficial-77217c00cba1
In this world of increasing corruption and frauds to trust anyone
in the matter of any valuable assets is a bit tricky and a tough task.
To help you with this, smart contracts can be a helping hand and a
trustworthy platform to deal with all the assets.
What are smart contracts?
Smart contracts are set of computer codes that run
on blockchain and sets of pre-defined rules that have to be
followed by both the interacting parties. If these rules are fulfilled
by both the parties an output is executed by the smart contracts. In
simple terms, it represents an agreement between the two parties
which is exactly the same as the real world agreement. The only

difference is smart contracts run on the blockchain, eliminating
the need of the third party. Confused?
Consider this example for easy understanding. In the physical
world buying a house can be chaotic requiring a lot of paperwork,
talking with different people and a high level of risks. To avoid
this, we generally hire an estate agent which helps us to lessen the
burden by dealing with the paperwork, communication with the
people and reduce the fraudulent risks. But this leads to complete
dependency on the middlemen. However, the scenario changes in
the smart contracts, there is no need for the middlemen. Because
the ownership will not be passed on to you until the terms of the
contract are fulfilled and the deal amount is sent to the system. As
all the functions performed by the estate agent are coded into the
contract. Thus reducing the commission amount, time and fraud
as the money transfer can be viewed by all the participants in the
network.
Features of Smart contracts
The unique features of the smart contract can change our life
tremendously by applying in our everyday life. Let’s check some of
them
• Cost-effective - Smart contracts eliminate the third-parties
(Notaries, estate agents, and advisers, etc.) and the extortionate
fees associated with them thereby making it cost-effective.
• Safe - The digital contracts are difficult to hack as they are
protected by complex cryptography that stores the documents
safely.

• Trustworthy - The documents can neither be stolen nor lost
as they are safely encrypted and shared on a distributed ledger.
• Autonomous - Smart contracts completely eradicate the third
party intermediaries which directly gives you full control over
the agreement
• Fast - You can save a lot of time by implementing smart
contracts and reducing the processing time due to paperwork,
sending or waiting for approval, etc.
Hence, digital contracts can be used in many other areas including
government and enterprises as they are automated and
streamlined. Just check the code before execution and the
remaining after that will be done electronically. In this way, smart
contracts can be beneficial and lead to safe, secure, and quick
agreements between the two parties.
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