The Smart Contract and the Cryptocurrencies - Basic Concepts
Smart Contracts are computer programs written and programmed in virtual code, we could also say that it is software that is programmed previously with a series of conditions previously agreed between both parties, is as simple as if A complies with the agreed B follow the path automatically.
No reliable or legal intermediary is needed (such as a Notary Public), since everything is done through computer code, so it is a way to save costs and very significant times compared to the normal contracts that we are accustomed to sign habitually.
But what would these mysterious Intelligent Contracts be if they could not be applied to everyday life? Nothing, so here are some ways Smart Contracts can be applied:
Automation of Payments: They can be programmed to ensure that the amount of money required will arrive in the specified time to the people or companies of the Smart Contract. Inheritances could be automated in the future, loans could be secured ...
Registration and Change of Ownership: The documents required by both parties could be registered in the Blockchain to establish a property from the outset, and change ownership through smart contracts.
Intellectual Property: When the image and privacy rights of a product or services are shared the distribution of income can be complicated. Smart contracts can not only facilitate these processes, but make the process automatic.
Insurance: In this sector would require common oracles of trust between the insurer and the user, but the process of automatic payment and managements know that is very late that is why with Smart Contracts we would be saving a lot of time.
Betting: You would no longer need trusted third parties for any kind of bets. Two or more parties can use an intelligent contract to ensure that the conditions are met.
These are some of the many functionalities that would have or rather are already having the Smart Contracts in our lives and are expected to be many more in the not too distant future.
Image by Blockgeeks
Great job with example use cases. I really like how you break down the way this technology WILL revolutionize all aspects of our economy. As a property owner, collecting rent will be much easier due to smart contracts. Thanks for sharing
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STOPThank you for breaking this down to where someone as green as myself can make some sense on why the smart contracts are some pivotal to the currency.