Smart Contracts – Contrats autonomes
Secure your deals thanks to contract automation
Eliminate non-payment risks of traditional contracts
Reduce intermediaries to lighten your budget
1 - What is a Smart Contract ?
A Smart Contract is an IT protocol that simplifies transfers of digital assets between parties in compliance with agreed terms or conditions by defining rules and sanctions around the agreement. It is similar to a traditional contract in most cases, except that it can also automatically enforce the agreed obligations. With Blockchain technology, intelligent contracts are increasingly used.
2 - Uses of a Smart Contract
Let's say you need to sell a house. It is a rather complicated process which requires a lot of administrative paperwork, communication with different companies and people with many risks. That' s why the absolute majority of home sellers decide to find a real estate agent, who takes care of all the documents and acts as an intermediary when negotiations begin.
A Smart Contract in this case would remove intermediaries that may not always be reliable and would enforce both parties' obligations. More importantly, they solve a trust problem. Smart contracts work on a " if-then " basis, meaning that house ownership will only be transferred to the buyer when the agreed amount is sent into the system. Since trust between the parties is no longer an issue, no intermediaries are needed.
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3 - Functionning of a Smart Contract
In simple terms, Smart Contracts works a lot like vending machines. You simply transfer the required amount into the Smart Contract and your blocked account, allong with your property right, driver's license or any other document in your account. All rules and penalties are not only pre-defined by Smart Contracts, they are also enforced by them.