Smart contracts are changing the approach to agreements by offering automation and security in digital transactions.
What are smart contracts?
Smart contracts, proposed by Nick Szabo in 1997, became practical with blockchain technology. They are programs that automatically execute actions when certain conditions are met.
How smart contracts build trust
Automation eliminates the human element, speeding up transactions. Transparency and security on blockchain ensure data protection. Smart contracts eliminate intermediaries, reducing costs in areas like real estate and insurance.
Challenges and prospects of smart contracts
Despite their potential, smart contracts face challenges like immutability, lack of standardization, and legal uncertainty. However, advancements in cross-chain technology and AI integration open up new possibilities.
Smart contracts are becoming a vital part of digital economies, offering innovative solutions for transaction automation and security.
