A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.

Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.

1. Distributed: Everyone on the network is guaranteed to have a copy of all the conditions of the smart contract and they cannot be changed by one of the parties. A smart contract is replicated and distributed by all the nodes connected to the network.
2. Immutable: Once deployed smart contract cannot be changed, it can only be removed as long as the functionality is implemented previously.
3. Autonomy: There is no third party involved. The contract is made by you and shared between the parties. No intermediaries are involved which minimizes bullying and grants full authority to the dealing parties.
4. Customizable: Smart contracts have the ability for modification or we can say customization before being launched to do what the user wants it to do.
5. Transparent: Smart contracts are always stored on a public distributed ledger called blockchain due to which the code is visible to everyone, whether or not they are participants in the smart contract.
6. Self-verifying: These are self-verifying due to automated possibilities.

1. Real Estate.

   Reduce money paid to the middleman and distribute between the parties actually involved. For example, a smart contract to transfer ownership of an apartment once a certain amount of resources have been transferred to the seller’s account(or wallet).

2. Vehicle ownership.

   A smart contract can be deployed in a blockchain that keeps track of vehicle maintenance and ownership. The smart contract can, for example, enforce vehicle maintenance service every six months; failure of which will lead to suspension of driving license.

3. Music Industry.

   The music industry could record the ownership of music in a blockchain. A smart contract can be embedded in the blockchain and royalties can be credited to the owner’s account when the song is used for commercial purposes. It can also work in resolving ownership disputes.

4. Management.

   The blockchain application in management can streamline and automate many decisions that are taken late or deferred. Every decision is transparent and available to any party who has the authority(an application on the private blockchain). For example, a smart contract can be deployed to trigger the supply of raw materials when 10 tonnes of plastic bags are produced.

5. Healthcare.

   Automating healthcare payment processes using smart contracts can prevent fraud. Every treatment is registered on the ledger and in the end, the smart contract can calculate the sum of all the transactions. The patient can’t be discharged from the hospital until the bill has been paid and can be coded in the smart contract.

1. Fully in a programming language.
2. Duplication (with a paper copy of the document).
3. Mixed form (part of the provisions are fixed on paper, part on software code).

According to our experts, the third way is the most suitable for the parties because of the possibility to foresee, for example, force majeure circumstances. The subjects of the transaction are goods and services that have the ability to automatically give/receive access to themselves.

​​We provide comprehensive smart contract design and security audits to help your business maximise efficiency and improve data security through the secure implementation of smart contracts for your operations.