In a nutshell, a smart contract is a computer program that automatically executes the terms of an agreement between parties. Nick Szabo first proposed smart contracts in 1994 to facilitate, verify, and enforce the negotiation or performance of a contract. Since then, the idea has been further developed and refined by many others and has seen increasing interest from academia and industry in recent years. The use of smart contracts can offer several advantages over traditional contract law, such as increased accuracy and efficiency in contract execution, reduced transaction costs, and improved security and trust.
Additional Smart Contract Advantages:
Describe some of the benefits of using smart contracts in business processes:
1. Accuracy and efficiency:
2. Reduced transaction costs:
Another potential advantage of using smart contracts is that they can help to reduce transaction costs. This is because smart contracts can eliminate the need for third-party intermediaries (such as lawyers or brokers) to facilitate transactions.