Smart contacts are programs that execute automatically once certain agreed upon conditions are met. They eliminate the need for intermediaries and operate in a “trustless” environment, meaning that no one is required to trust any third party since transactions are guaranteed to be carried out according to smart contracts’ terms and conditions.
Smart contracts are set to provide benefits across multiple industries. Here are a few examples:
- Finances: Automatic payments, dividend payouts, facilitating international trade.
- Art: Thanks to smart contracts, artists are able to receive royalties from resale of their art in perpetuity.
- Gaming: Smart contracts can ensure fair trades and more realistic digital game economies mirroring physical marketplaces.
- Real Estate: Fair bidding, faster mortgage application process, automatic mortgage payments.