By automating its own enforcement and relying on blockchain technology for security, smart contract development has several distinct advantages.
- They automate one of the most arduous elements of any contract: enforcement. This generally means omitting the need to pay a middleman to do the work of enforcement. So, rather than threatening or even conducting legal actions against a signatory who fails in their contractual obligations, a smart contract will execute the contractually designated response automatically.
- Following the concept of decentralization, their drafting does not require the services of an intermediary in virtually any step along the way. Rather than being written on a piece of paper like their ‘normal’ counterpart, the contents of Smart Contracts are mutually agreed upon by the contracting parties, subsequently written into the code and exported onto a public ledger – a blockchain.
- By relying on a program to conduct its provisions, a smart contract enforces itself far more quickly than a traditional contract. So, if one party takes any action which the contract should respond to, this response will come immediately. So, as with the above example, instead of waiting for lawyers or employees to execute the agreed contract provisions, the contract itself will do this, saving time and money.
- Lastly, by relying on the blockchain for authentication, smart contracts provide unrivaled security. So you can be assured that the digital nature of a smart contract does not mean that it is open to illicit manipulation.
We offer full-stack of blockchain development services including smart contract development, consulting, and auditing. So whether you’re curious about the potential of smart contracts and would like expert advice on their capabilities, would like to develop a smart contract, or simply need someone to ensure an existing smart contract has been created properly, we offer services for every need.