Smart contracts, which are maintained over blockchain, were first introduced in 2013. Since then, the contracts have gained a reputation for trust, safety and accuracy, according to Yahoo News.
Five things to know about blockchain smart contracts:
1. Because blockchain uses a shared ledger that is replicated on every system, contracts logged on the technology can be easily backed-up, so no information goes missing. Blockchain also uses cryptography, writing or solving codes; hashing, mapping data; and consensus algorithms, agreeing on a single data model, to keep the contracts safe.
2. Smart contacts eliminate the need for intermediaries, giving autonomy to the organizations involved in each contract. Also, because the blockchain is available to all parties on the system, smart contracts foster extended trust.
3. Healthcare organizations can potentially save money by using smart contracts since no third parties need to be involved. Additionally, because the blockchain is all electronic, it could improve accuracy within contracts.
4. Speed is one of the major strengths of smart contracts and blockchain. Organizations can save time filling out forms, recording physical visits, validating and authenticating transactions by using blockchain.
5. Various organizations and industries can benefit from smart contracts, including government organizations, management business, supply chain companies and the automobile industry.