A smart contract is a computer protocol that enforces the terms of an agreement. Computer code acts as the intermediary and ensures each side behaves per the conditions of the agreement. Meaning the technology enables the execution of a contract without needing a lawyer or independent third-party to oversee the deal.
Why Use A Smart Contract?
Smart contracts can streamline nearly every process that relies on a traditional contract — say, you want to buy a new house.
You could use smart contract technology to execute payment once you’ve run the necessary searches, and both sides are satisfied the sale can proceed. In such a context, you avoid paying a lawyer to hold the funds or process the payment.
A smart contract not only defines the conditions and penalties related to an agreement. It automatically enforces the terms using computer code. Meaning there’s no way any side can side-step an obligation once the smart contract is in place.
Where Can I Use A Smart Contract Today?
There are limited examples of smart contracts in real-world applications. However, Elitium is developing smart contract technology to use in the yacht charter process.
Once available, the yacht charter smart contract will streamline the process and remove most of the manual overhead. This will make yacht charters extremely simple, efficient, and quick to coordinate — as opposed to enduring endless back-and-forth between several parties as you finalize contract terms.
As such, the smart contract will be both a time and cost-saver for businesses.
Learn more about smart contracts: see Elitium’s real-world smart contract in action.