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Make a Smart Move with Smart Contracts: All You Need to Know

  • 10 June 2019, Administrator
Guide to Smart Contracts


We are living in an era of digital payment. As more companies tend to rely on online transactions, smart contract development has started gaining ground worldwide. These virtual contracts are developed using a revolutionary technology Blockchain. Here we are going to discuss a few important aspects of smart contracts. But before that, let’s understand the scope of Blockchain in the modern business.

In today’s mobile-driven world, we rely on the Internet for accomplishing almost all of our daily tasks, including management of our finances. But then, we put the security of online transactions and our personal financial details including credit card numbers and passwords at stake. There, Blockchain technology lends a helping hand.

A Blockchain is a sheet (or a structure of data) that represents any financial data entry (a ledger), or several such financial transactions. All the transactions are signed digitally to ensure unnecessary tampering of the original data, i.e. to maintain authenticity. This sheet is shared among a group of computers, people, where everyone possesses a copy of the concerned sheet. The sheet is accessible to every member without editing facility.

One of the most promising advantages of the Blockchain concept is freedom from middlemen, which makes transactions faster and more reliable.

What is Smart Contract Development?

A Blockchain smart contract development involves the digital representation of a contract that is stored, replicated, and maintained by a chain of computers connected over the Internet. A smart contract, also known as a self-executing contract; is a type of computer protocol which is designed for enforcing the terms and performance of a contract, without the involvement of any third party.

Smart Contract development enables the hassle-free transaction of money and even shares and property. It can save your time and efforts in hiring lawyers and completing the transaction. With Smart Contracts, you can use bitcoins and other cryptocurrencies as well. Smart contracts development services aim at exploring endless possibilities and opportunities for smart contracts for modern business.

Be it a realty sector or finance sector, all industry sectors that deal in high volume online transactions and M&As can leverage the benefits of smart contracts.

Some of the properties of Smart contracts include:
  • Tamper-proof
  • Self-Executable
  • Self-verifiable

Working principle of Smart Contract Services

For easy understanding of how smart contracts work, let us consider an example. Suppose you want to rent your apartment. Now, in this process, you need to communicate with a lot of people, verify their identity, carry out a lot of paperwork, etc. In some cases, you might take the help of real estate agents, which further increases the complexity of the process. The agents may not be reliable, and as the number of parties keeps on increasing in a contract, chances of fraud also get increased.

This is where Smart Contract Development comes into the picture. With smart contact, only you and the person interested in taking your apartment on rent is present. All other middlemen are removed from the contract process. Now, you and the interested customer make a mutual agreement and fix the date for the validation of the contract. The terms mentioned in the contract becomes validated only from the date mentioned. The customer makes the necessary payment using cryptocurrency, and gets a virtual receipt. You, on the other hand, release the virtual key for the apartment, which the customer collects and then use the same to enter your apartment.

Moreover, to prevent any fraud cases, both the processes are made relative, i.e. the customer will receive the key only after making the necessary payment and vice versa.

Why Smart Contract Development Services are highly sought after

When high-value online or cryptocurrency-based transactions are involved, smart contracts development remains the most reliable and secure way. Here are the key benefits of smart contracts for today’s world.
  • Absolute Transparency
  • Probably the best feature of a smart contract is that all the terms and conditions are mentioned in full details. Because of such absolute transparency, chances of disputes and frauds remain minimum to nil.
  • Time Saver
  • Smart Contracts can complete all the documentation within a few minutes while traditional methods require some days for the same task.
  • Money Saver
  • As only the parties of the agreements are involved in a smart contract and middlemen are eliminated, the overall cost of the contract reduces considerably.
  • Freedom from Paperwork
  • Blockchain Smart Contracts Development eliminates the need for all the hectic paperwork, which makes the overall process swift and seamless.

    Also Read: How Smart Contract Development can Impact Industries

Where we can use smart contracts

As mentioned above, smart contracts development has a wide scope in the business. Here we mention a few notable applications of smart contracts.
  • Insurance: Using Smart Contract development services, we can easily automate the insurance sector to provide faster delivery of insurance policies to the customers. Smart contracts can also enhance security, accuracy and transparency of the policy documents.
  • Mortgage loans: Blockchain smart contract development services provide easy access to mortgage loans.
  • Smart contracts can be used for securing copyright documents and other financial information related documents.
  • For maintenance of the supply chain and M&A (Merger and Acquisition) deals, smart contracts can be used to boost up the process as well as improves the overall security.

Concluding Lines

Smart Contracts is a smart and secure way to transact in the BFSI and other related sectors. Smart contract development services aim at eliminating the middle man to ensure security and decrease the turnaround time. If your business relies on revolutionary blockchain technology, you just cannot ignore the smart contracts.
Paritychain is a dedicated Blockchain smart contracts development company. Our expert developers can assist you to make the most from smart contracts and enhance security and transparency. Send us your project requirements at info@paritychain.com and see how Blockchain technology can make your business more trustworthy and secure.

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