Here, you will get a short introduction to smart contracts.
Smart contracts (also known as cryptocontract) are often referred to as a threat towards the traditional legal industry, because it is a contract that can automatically execute its content online. It can be used when e.g. entering a contract with a media outlet regarding payment per click generated by your homepage. This way, you can enter a number of data points into the contract to implement automatic payment for every click generated by you.
What is smart contracts?
In other words, smart contracts is a protocol that verifies, facilitates and executes a contract digitally and with nearly no human involvement. This way, you can avoid having to use a lawyer or a notary as middle man.
How do you use Smart Contracts?
There are numerous ways to use smart contracts. You can integrate them into code to be replicated and supervised as part of a blockchain network. It is very common when trading with cryptocurrency. One benefit is, that it is very difficult to change or manipulate a smart contract simultaneously verified by many. On the other hand, the visibility of the smart contracts in question to anyone is a drawback.
You can also use a simpler automatic setup, such as Contractbook’s API-solution, but that is not a smart contract, technically speaking.