How Smart Contracts Can Automate Enterprise Operations
By: Sara Technologies Inc.
Tags: Blockchain Development, Smart Contract Blockchain, Smartcontractdevelopment

Smart contracts are digital contracts that work on a defined set of protocols. Depending on the users’ actions, it proceeds in the direction as defined by the protocols, therefore automating the process of execution and effort. A smart Contract, as explained by Nick Szaboo in 1990, is — Smart Contract is a set of promises, specified in digital form, including protocols within which the parties perform on these promises. In today’s world, smart contracts eliminate the middleman and therefore decrease the costs of operation. Smart contracts have their uses in varied places, from trading shares, money, and any other value that holds a value.

Smart contracts’ automated nature makes them popular as they provide a more effective, secured, and cleaner way of holding a transaction. Smart Contacts can be useful in the financial and legal fields. Therefore, they can cut down the costs of bankers and lawyers, and any other middlemen involved in a transaction. Information relating to a smart contract is encoded on a shared ledger, which increases the security of data stored.

Benefits of Adopting Smart Contracts Blockchain

Accurate & Clear — Records on smart contacts consist of all rules and regulations to be followed to execute the transaction. The rules written by the parties must be written in simple and easy-to-understand language that could be understood by all the parties involved in the transaction.

Transparent — Being implemented on a blockchain network, the rules of smart contacts are open and visible to all the members present on the network. Thus, it is difficult to deny the contract made between the parties as there are many witnesses to the same.

Speed — Smart contracts are coded in such a manner to operate live on the web, thus increasing the speed of the transaction and helping in processing thousands of transactions simultaneously in real-time.

Automated Monitoring — Once the set of rules driving the contract is defined, the execution process is almost automated depending on the set of rules described therefore handling various types of transactions in the organization on their own and in a more secure manner.

Cost-effective — Elimination of third parties like lawyers and or financial institutions, the cost of implementing the Smart Contract is reduced. There is no need for banking professionals, attorneys, lawyers, mediators, and witnesses to execute the contract.

Backup — Smart contract development and implementation on a blockchain keep records of each transaction in the entire cycle. This stored data in the blockchain can be retrieved in data loss and provide a good backup of the transactions.

Secure — Smart contracts are implemented using end-to-end enterprise-grade data encryption protocols, which make them safe. Also, the implementation of Consensus Algorithms such as Proof of Work (PoW) and the Proof of stake (PoS) make them very difficult to hack or alter.

Trust — Implementation of the consensus algorithm makes the transactions transparent and secure and decreases errors or mistakes. This error-free contract system is gaining use in various industries and will be a new way contracts are executed.

Other Services That We Offer