Blockchain technology 5. – Automating transactions on the blockchain

Smart contracts refer to when the terms of the agreement are executable code by themselves. They automate and enforce contracts, eliminating the need for intermediaries and creating more trust. This article discusses the meaning of smart contracts and ways they can be applied. Smart Contracts Intelligent contracts are coded programs that operate autonomously and execute contracts depending on the pre-determined conditions.

They are hosted on a blockchain, ensuring transparency, security, immutability. Once a smart contract is in the blockchain, it cannot be changed, which makes reliable automation that cannot be tampered. How They Work Smart can only be executed through the principle of “if-else” or “if-then.” For instance, if a party A sends 1 Bitcoin to the contract, then party B will send 10 Ether to party A.

The smart contract will create the execute without any human input once the conditions are met. Applications of Smart Contracts They include: DeFi: is an acronym for decentralized finance, and the services are built-in blockchains, and they self-execute through smart contracts. Such services include lending, borrowing, and trading, among others, without involving intermediaries. Supply Chain Management: smart contracts automate and verify each transaction during the various stages of supply chain management. The procurement data analysis is real-time, and the limited use of humans can help reduce fraud.

Insurance: smart contracts help in automated claims processing, and they increase liquidity levels and ensure instant payment. Real Estate: they can be used in the property to automate and verify the transfer of ownership and transaction funds. Platforms that Support Smart Contracts The most popular blockchain is e Ethereum, although other blockchains are now supporting smart contracts. They include Binance Smart Chain, Cardano, and Polkadot, which have different properties, capabilities and can be deployed in different use cases or product specifics.

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