Smart Contract in Block Chain

Smart Contract

Smart Contracts are executable logic that runs on a block-chain Network.

Who invented Smart Contracts?

The idea of smart contracts date back to papers in the early 1990s published by Nick Szabo.


Key Properties of Smart Contracts

1. Autonomous :- The creator does have to participate in the process after deploying the contract.
2. Auto-Sufficient :- Contracts are able to collect money, realize transactions, distribute resources, issue and spend funds to allow a large capacity of storage and computation power.
3. Decentralized :- Smart contracts are not focused on one central server but are distributed by various network points so they can be referred to as being decentralized. 

Advantage of Smart Contracts

• Secure

            Data in a decentralized registry cannot be lost or cyber attacked.

• Neutrality

           Agent neutrality in signing deals

• Precision

          No mistakes can be made due to the absence of hand-filled forms

• Saves Time

          Automation in signing deals saves time be excludes human participation in transactions. Everything is done by the prescribed code.

• Maintenance

          Every Smart Contract that is deployed is immutable after that. So changes to business logic and general bug fixes become really tough.

• Difficult To Understand

          The concept of a decentralized backend is hard to comprehend for inexperienced developers.

• New Technology

          Smarts Contracts even though an old idea, is a fairly new technology in application. Hence the community is small and people are sceptic.

Smart Contract Tools
  A number of tools are necessary for the development of smart contracts

• Test Network
• Framework
• Wallet
• Online Compiler

Smart Contract Use Cases

GAMBLING
     Smart Contracts ensure that the gambling money is distributed without any error.

FINANCE
      Financial contracts generally take days to go through regulations. With Smart contracts these processes can be easily automated.

SUPPLY CHAIN
        A smart contract can keep tabs on "possession" of a product all the way along the line of distribution, solidifying the trust of exactly where to find the package.

VOTING
       Smart Contracts can be used to ensure complete transparency for voting procedure.

INSURANCE POLICIES
       Smart contracts reduce the administrative costs associated with fulfilling policy procedures and ensures transparency and trust in the process is visible to all stakeholders and all regulatory bodies.

AUTOMATION OF ORGANISATIONS
     Smart contracts can be used to automate small scale organizations.These organisations are popularly known as Decentralized Automate Organisations.