Has there ever been a situation where selling your old vehicle was so easy that there was no need to worry about who would buy it? Thinking about consideration should be an entire chapter in this case.
Imagine a contract where payments and products delivered between different people can be calculated effortlessly. Payables can be paid and things can be given as a gift. All of this can be organized automatically.
How have smart contracts evolved?
Cryptocurrency transactions are recorded in a decentralized data structure known as a blockchain. Bitcoin and Ethereum, two of the most important cryptocurrencies, both offer the ability to encode rules or scripts for transaction processing. This feature was developed to make smart contracts or full-fledged programs that run on blockchains a reality.
What is a smart contract?
Smart contracts are simple programs that run when specific criteria are met and are registered on a blockchain. They are typically used to automate the implementation of an agreement so that all parties are instantly assured of the outcome, without the involvement of an intermediary or the loss of time. They can also automate a process by initiating the next step when certain criteria are met.