What if contracts could automatically self-execute if certain conditions are met? In this infographic, The Power of Smart Contracts on the Blockchain, Etherparty describes just how this isn't the future – Smart Contracts are becoming the reality. Smart contracts could take the subjective nature of contract qualification and negotiation out of the hands of decision-makers, providing an incredible opportunities for parties to close deals that are perfect for each party – with regard to cost, trust, and execution.
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What is a Smart Contract?
Etherparty, a smart contract creation tool that allows users to create smart contracts on any compatible blockchain, describes the smart contract as follows:
As the name suggests, smart contracts operate by direction of code language, allowing them functionality that removes the need for human programming skills beyond the original coded instructions. The contract functionality enables two parties to operate via an enforced digital agreement, in some instances removing the need for middlemen or lawyers. Smart contracts are outcome-based, with their code language gauging completion from designated inputs.
But smart contracts offer much more than their name implies; their disruption scales far beyond two entities looking to formalize an agreement. Smart contracts have the functionality to facilitate and scale autonomous processes and systems, efficiently moving data from one entity to another without complication or interruption of a manual processor. The secure nature of blockchain technology’s distributed networks and time-stamped blocks are disruptive themselves, but it is the technology’s distinctive data processing properties that make it revolutionary for businesses that today require a third party to validate transactions.
This infographic describes the technology, the process, the benefits, the value, and complexity of Smart Contracts with Blockchain.