A Smarter World with Smart Contracts
Smart contracts are one of the key features of many blockchain-based cryptocurrencies to provide an automated way of executing complex transactions without the help of intermediaries. They are self-executing digital contracts that run on a blockchain network, designed to carry out the terms stated in the contract.
It’s like a vending machine, wherein the contract says that you need to pay a certain amount to get the drink that you want. Once you place the correct amount, you can select your desired drink, and receive it in just seconds.
Smart contracts are used by decentralized exchanges (DEXs) too. In a decentralized exchange, users are permitted to trade with each other without any assistance from any intermediaries of third parties. Since the transactions are automated, this can make trading faster, more secure, and more transparent than centralized exchanges.
Benefits of Smart Contracts
- Autonomy
Smart contracts remove the need of intermediaries to confirm agreements, the risk of third party manipulation, and reduce transaction costs.
- Automatic Updates
Every transaction and data stored on the blockchain are updated and duplicated multiple times so they can be retrieved anytime.
- Speed
Removing intermediaries from the picture also decreases the time each transaction takes. Thus, making transactions faster.
- Transparency
Smart contracts are based on blockchain. That’s why the data that is stored there are immutable and accessible, establishing trust and security.
- Immutability
The code used to build smart contracts cannot be altered. Once it is written, it will accurately execute what it is programmed to do.
A Smarter Way to Transact
Automating complex crypto transactions is possible through smart contracts. They remove intermediaries, reduce costs and risks, and increase transparency. As the crypto industry continues to grow, the technology behind smart contracts and their power to transform businesses will keep on evolving as well.
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