Smart Contracts: A Technological Miracle that Will Transform Business and Finance

Smart contracts are around us

Smart contracts can significantly improve business models, not only improving daily operational efficiency, but also significantly reducing operating costs. However, putting smart contracts into practice is easier said than done.

For many people, the concept of Bitcoin as a method of transferring value made sense and didn’t make sense. It wasn’t until Bitcoin was used as a currency that people realized that the underlying technology of Bitcoin would change our daily lives in different ways than previous technologies.

Smart contracts are a technological marvel as the concept touches various aspects of business and finance. Imagine having a technology that can distribute employee bonuses and dividends in a proper contactless manner that not only improves work efficiency but also avoids unnecessary interference.

Until now, it has been almost impossible to fully automate transactions because there are always intermediaries involved in the transaction process. For example, when you pay in a store using a plastic card issued by a bank, these cards are intermediaries. In addition, consumers must complete the payment by manually swiping the card or entering a PIN code.

Although the concept of smart contract system is now accepted, it needs further improvement. Smart contracts create an ecosystem where users can automatically execute payments by scanning codes, which will bring huge benefits to all participants. Funds can be settled in seconds and there is no handling fee. Therefore, smart contracts will promote economic prosperity.

Ethereum is currently the only company that can bring smart contracts to the masses in an easy way. Ethereum is currently working on public blockchain smart contracts. However, there is still a lot of work to be done before Ethereum smart contracts become a mainstream concept. However, the Ethereum blockchain faces many security issues and is not as good as the Bitcoin blockchain in this regard.

Private blockchains are not without merit

Although few people in the Bitcoin community currently see the value of private blockchains, there is at least one benefit to private blockchains. Private blockchains can be a good platform for testing the stability of smart contracts in a financial environment. Private blockchains can allow blockchain technology players in the financial industry to try blockchain technology with confidence.

It will take time for the public to know about the changes in smart contracts, and when that moment comes, viable solutions must be prepared. Although the concept of private blockchains may disappear into the darkness in the future, it can indeed help promote future innovations in smart contracts.

Original article: http://digitalmoneytimes.com/the-future-of-role-of-smart-contracts-in-finance-and-business/
By JP Buntinx
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/smart-contracts-in-finance-and-business