Trust is one of the core values in any business transaction, but not everyone honours their part of the agreement. A smart contract plays the role of automatically honouring business deals via a transparent platform. Buyers and sellers find confidence transacting over a smart contract to avoid any foul play.
The Role of Technology in Smart Contracts
Blockchain technology has brought about a revolution in how business transactions are being conducted and especially those which traders conduct online without having any physical meeting. There exists a system where delivery of goods and services is tracked to automatically ascertain adherence to the terms and conditions set between the buyer and the seller and a means of releasing funds when all the conditions are met. The contractual agreement tracker protects both the buyer and the seller by ensuring that the seller will receive payments for the goods or services rendered, while the buyer needs to ascertain the authenticity and quality of the same.
Smart contracts eliminate the use of third-parties in the transactions which could consequently increase operations fees. With smart contracts, traders can remain anonymous and their transactions are not limited.
Security in Smart Contracts
Business dealings which involve money need a high assurance of security in the funds circulating in the transactions. Smart contracts implement an electronic ledger which is shared and available to every party for verification whenever the need to do so arises. An escrow account could be vital in smart security dealings to ensure that the appropriate amount of funds is made available to the seller after the buyer confirms that the delivered services or products meet the agreed quality and quantity.