Smart Contracts
Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They run on Blockchain technology, allowing for automatic execution when predetermined conditions are met, eliminating the need for intermediaries.
Examples of smart contracts include:
- Escrow Services: A smart contract can hold funds until both parties fulfill their obligations, ensuring that payment is reLeased only when conditions are satisfied.
- Supply Chain Management: Smart contracts can automate and verify each step of the Supply Chain, ensuring that products meet specified conditions before moving to the next stage.
- Insurance Claims: Smart contracts can automatically process claims based on data inputs, such as weather reports for crop insurance, releasing payouts without manual intervention.
Use cases include:
- Real Estate Transactions: Automating property transfers and ensuring that all conditions (like payment and title verification) are met before ownership is transferred.
- Decentralized Finance (DeFi): Facilitating complex financial transactions, such as lending and borrowing, without traditional banks.
- Voting Systems: Ensuring transparency and immutability in elections by recording votes on the Blockchain.