More than its potential monetary uses, what makes Ethereum (ETH) an innovative form of cryptocurrency is its use of smart contracts.
But what exactly is a smart contract? And what do you get out of this innovative technology? Let's find out.
Making the Blockchain a Whole Lotta Smarter
Simply put, what makes cryptocurrency such a fantastic form of technology is the blockchain. As a decentralized ledger of transactions, everyone keeps tabs on activities and the like.
It is quick and secure, with one's personal data kept far from harm's way.
Now, smart contracts step up the game when it comes to recording and confirming the changes/transactions made on the blockchain. It is an even faster and safer way to conduct business on the blockchain.
How Do Smart Contracts Work?
Let us break down the concept. Basically, a smart contract is a protocol that manages and confirms negotiation of a contract.
A contract is basically a function between parties.
In a blockchain environment, transactions or contracts are determined once third parties confirm or authorize the said agreement. But with smart contracts, there is no need for third parties to intervene at all.
As such, it speeds up the process, especially if a contract deals with small or agreed actions that do not necessarily need the authorization from third parties.
Running the Code
So, how can we all benefit from smart contracts? Using ETH as a prime example of this technology, the possibilities are endless.
(Do take note that ETH is actually pegged as a platform for all sorts of developers to create their own decentralized apps. And with smart contracts included in the mix, it does make this platform a stable and viable avenue that will benefit developers and consumers alike).
Going back to the question - it all boils down on how developers implement this function into their apps. But some really interesting case scenarios would be:
Sure, integrating a blockchain for elections in a national scale is a secure and transparent way of getting accurate vote counts. But it will also take so much computing power!
Smart contracts will help in removing the power blunder - taking away that third party element further streamlines the entire process in an efficient manner.
More often than not, realtors will need to hire someone to post rental or properties for sale. With smart contract integration, the flow be much smoother. Realtors will also stand to profit more, as they would no longer have to deal with middlemen (the third party that smart contracts take out of the equation).
These are just some case scenarios - do you have others in mind?
Get Smart with ETH Smart Contracts
With the innovative approach in streamlining processes, smart contracts provide bright solutions that can benefit all.
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