By Cristhian Raphael. Technology has been expanding rapidly. We are already living in a reality that few imagined possible, despite the fertility of the human mind. Even though we do not have flying cars in our garages at popular prices, we already possess a technology that can revolutionize the way we formalize our negotiations, investments, and purchases. Yes, we are talking about cryptocurrencies, but not exactly. Are you familiar with the concept of the smart contract?
Briefly, the smart contract allows its formalization, storage, and execution to occur independently. In practical terms, a traditional contract requires both parties to negotiate the terms and sign a physical document, which must be stored by the interested parties, awaiting its execution, which may or may not proceed through judicial means. In this modality, human intervention is immense, at all stages of the process, which can generate errors or interpretations.
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A smart contract, on the other hand, will have the same function of formalizing, storing, and executing an agreement between two or more parties. However, this will occur automatically, after having gone through all the blockchain stages to ensure its validity and veracity.
In other words, it is a completely electronic process, faster, cheaper, and immutable, which prevents fraud. This technology can change the way business is conducted worldwide, especially when it comes to monetary transfers.
One example is online betting houses, which operate worldwide and generally accept several different currencies. With the recent resurgence of controversy over the most popular cryptocurrency, Bitcoin, this subject may be of great relevance to houses that wish to place bets at reduced cost, since smart contracts do not require intermediaries in their processes and are highly secure and automated.
Thus, casino and sports-betting sites such as Betfair have yet another option to expand their already vast list of payment methods.
For now, other sectors are already making use of smart contracts to improve the security of their businesses. The food and pharmaceutical industries, for example, have the commitment to guarantee the consumer the quality of their products. With the use of this technology, they can trace the origin of their inputs and verify their legitimacy.
It is not exactly a surprise that technology would revolutionize business, but smart contracts impress those who seek greater agility in their agreements, without losing security and, moreover, preventing fraud and default.
In this sense, document management becomes more fluid with the support of this technology, which continues the incentives for similar developments. As the Blockmaster portal points out, smart contracts have already been used in logistics, financial, and agricultural matters.
Contracts as we know them today will soon have to undergo an updating process, in order to incorporate into their formats the smart-contract modality. This is also an important update for legal professionals, who can ally themselves with technology and find suitable means to translate the clauses of traditional contracts into a model compatible with the computational one.
By Cristhian Raphael, from the site criptofacil.com
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