Smart Contracts
Smart contracts are automated contracts. They are self-executing with specific instructions written on its code which get executed when certain conditions are made. Smart contracts are a series of instructions, written using the programming language solidity, which works using the IFTTT logic aka the IF-THIS-THEN-THAT logic. If the first set of instructions are done then execute the next function and after that the next one and keep on repeating until you reach the end of the contract.
The best way to understand that is by imagining a vending machine. Each step that you take acts like a trigger for the next step to execute itself. The most important part of this entire interaction is that you (the buyer) is contacting directly with the vending machine (the supplier). At no point are you dealing with a shopkeeper (a middleman.)
Plus, remember that smart contracts are created on a blockchain, which makes the contracts immutable and transparent (unless privacy features are used). Lets go through the major benefits that smart contracts can offer.
Benefits of smart contracts
The most obvious benefit is that it will cut off all the middlemen. Imagine how much money you can save by cutting out all the brokers, banks, and lawyers. With them not collecting their standard 2-5% cuts, you will be saving up a small fortune.
Smart contracts will also considerably speed up real estate transactions. LIke we have mentioned before, real estate transactions can take months on end, and that is mainly because of the vast amount of bureaucracy, middlemen, and lack of transparency that you need to go through.Realistically speaking, smart contracts will not wholly remove local government regulations, however, it will eliminate middlemen, as mentioned above.Plus, all the various data regarding the property can be saved as a hash file within the blockchain. If you are interested in knowing more about a particular property, you can exploit the blockchains transparency to trace all the information you need. Imagine how much time that will save as opposed to the more traditional middle-man approach.
Finally, smart contracts can protect owners from property fraud. It is possible to link the digital ownership of your property, documents, and contracts directly to the blockchain. Once inside the blockchain, it is impossible for it to be tampered with or altered.The governments of Andhra Pradesh and Telangana in India are using the blockchain technology to fight against property fraud.
Important text dear people..