Blockchain technology was originally created for decentralizing peer to peer transactions. However, this advanced technology has evolved into a useful form of security across many platforms. Smart contracts, also known as cryptocontracts, are one example of this evolution of blockchain technology.
Halo Platform recognizes that the potential applications of blockchain technology are limitless. However, not everyone understands how powerful cryptocurrency can be. It’s so much more than just a way to buy and sell things online — it’s an entirely new way to interact with people and businesses online. Halo Platform’s mission is to bring the power of the blockchain to everyone, and we’re doing this by building the most inclusive and customizable cryptocurrency platform on the web.
Smart Contracts — The Next Generation of Blockchain Tech
In short, smart contracts transfer and validate digital assets under specific conditions. Smart contracts are built on blockchain technology, similar to cryptocurrency. Blockchain technology-based smart contracts allow for a buyer and seller to make credible and legally-binding agreements on a peer-to-peer level. However, smart contracts only deliver if the promise of the contract has been fulfilled or completed. The terms of the contractual agreement are written directly into the lines of code of the blockchain technology. This is a clear benefit above traditional oral or written contracts, in which the terms of the agreement must be written or spoken communication between parties.
Benefits of the smart contract include direct dealings between buyers and sellers (or traders). In a smart contract, no single person or entity is in control of the exchange, making it cost efficient by eliminating additional third-party transaction fees. Smart contracts also allow for sophisticated record keeping to be performed easily through the blockchain ledger. Also, the blockchain technology allows for smart contracts to be trackable and irreversible, allowing these contracts to have the same security as traditional contracts but without the extra transaction costs, third-party or centralized party involvement, or the need for external enforcement methods.
New Applications of Smart Contracts are Changing the Game
Although most people think of Ethereum as just another cryptocurrency, Ethereum is actually a platform specially created for smart contracting. It uses a similar structure as the blockchain technology, including a shared record of transactional history, but it includes other types of transactions in addition to currency exchanges. Thus, while smart contracts can be created on any properly designed platform, Ethereum allows for more ease, flexibility, and serviceability in smart contracting.
Smart contracts are gaining popularity in many professional fields. For example, the healthcare system is finding smart contracts useful for increased patient privacy, cross-institutional information sharing, and insurance processing. In the real estate business, smart contract technology may be used for financing, funding, and creating or managing lease and rental agreements, or purchase and sale agreements.
Blockchain technology is very well-suited to business activities, and even more businesses will adopt the trustworthy and validated smart contract technology to streamline their procedures, protocols, and transaction processing. Halo Platform recognizes that smart contracts and decentralized applications are completely changing the way people do business online. That’s why we’re building an all-in-one platform for business and individual uses of cryptocurrencies in one easy-to-use place. To find out more about Halo Platform, check us out!