The Future is Here: Blockchain and Smart Contracts.
If you have to name the most disruptive tech in decades, Blockchain is the answer. This ledger based technology is transforming the IT industry in a way not seen before. Though not a household buzzword, blockchain is creating noise lately in the form of cryptocurrencies. Might you have heard about bitcoins? Yes, the digital currency with groundbreaking exploits. Now the question is, what’s making blockchain so popular? What’s the USP of this technology? You know that security and transparency are the two key issues in today’s digital economy. The blockchain is providing relief on both the fronts.
To put it in other words, blockchain development services are removing the third party gatekeepers. With a decentralized network and numerous data blocks, there is no single control point. The digital transactions via blockchain are hack proof. This robustness of blockchain has given rise to “Smart Contract”. Just like the traditional one, it’s a bond between two or more parties. The difference is, it’s enforceable by a programming code. The agreements are distributed and decentralized on a network. This makes smart contracts tamper-proof.
Not to mention, the smart contracts are much more than coded contracts. They offer a lot in terms of efficiency and security. Let’s have a look:
- Security and Immutable Records– The smart contracts are encrypted in a digital form. They are stored in numerous packets and distributed among nodes. This makes them difficult to hack. Also, the transaction records are tamper proof. Though you can retrieve them whenever you want to.
- Non-ambiguous– The problem with traditional contracts is that they use natural language. There is always a room for ambiguity. The blockchain smart contracts are non-ambiguous. You cannot change them once written. This characteristic makes smart contracts a very appealing option in today’s digital economy.
- Transparency– The parties bonded by a smart contract have full access to it. They can view the terms and conditions on their will. The smart contracts are self-executing pieces of codes. Once written you cannot modify them. The decentralized nature of blockchain makes these contracts transparent yet immutable.
- Trust– With no room for tampering and hacking, the smart contract is a trusted technology. The network automatically executes these contracts. Error and manipulation of data are risky in digital transactions. This makes blockchain technology solutions a must in today’s digital age.
- Savings and Efficiency– The smart contracts increases the efficiency of a process by removing third-party interventions. The middlemen in a value chain cause chaos. With smart contracts, you can eliminate this problem. Also, efficient transactions help in cost cutting.
In the final analysis, blockchain and smart contracts are here to stay. They have revolutionized the digital economy. With time we are going to witness more benefits of smart contracts. We at Signity Solutions have years of experience working on blockchain technology. So, if you also wish to incorporate smart contracts in your business, our blockchain developers are at your service. Feel free to reach us and we will revert back at the earliest.
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