Nick Szabo compared smart contracts to vending machines. In short, you can receive a can of lemonade or a chocolate bar. No third parties are necessary; If you deposit the change, the refreshment comes out. The efficiency offered by smart contracts are obvious benefits. Let’s take a look at the various benefits offered by smart contracts:
Efficiency and Cost Reduction: Smart contracts allow direct transactions between two or more parties without the need for intermediaries. The lack of intermediaries will reduce the cost of execution and streamline the entire process.
Immutability: since all transactions are recorded in the blockchain of open source, all information about the transaction is immutable and transparent. This means that transactions can not be changed or eliminated. it will always be part of the blockchain public database record.
Security: Blockchain technology uses a decentralized and distributed system that is much safer than a centralized system. Since all the nodes in the network must download the complete database of transactions, this makes it very difficult for hackers to infiltrate the network.
Confidentiality: Smart contracts consist of coded rules. Therefore, “the code is king”. Users do not have to trust the other party or any other person because the rules of smart contracts for the blockchain are not involved in the transactions. Therefore, transactions are executed in a trust-free environment. Blockchain also allows a transparent and easy verification. Imagine the benefits of a crowdfunding campaign enabled by smart contract. It would be much more dangerous to donate fraudulent campaigns where the funds are distributed through the network instead of a group of people.
Convenience: Software code automates tasks and makes complex and time-consuming transactions much faster. Documents can be scanned and certified immediately.
There are many ways to generate wealth in cryptocurrency market. The major and well-known …