FAQ About Smart Contracts

Smart Contracts
one year ago | alfred

How do smart contracts differ from traditional contracts?

Smart contracts differ from traditional contracts in several key ways:

Execution: Traditional contracts require human intervention to execute the terms of the agreement, while smart contracts are self-executing and automated, eliminating the need for intermediaries and manual intervention.

Code-based: Smart contracts are based on code and are stored on a blockchain network, while traditional contracts are often paper-based or stored in electronic form.

Transparency: Smart contracts are stored on a public blockchain network, providing a transparent and immutable record of all contract transactions and changes, while traditional contracts may be subject to disputes and disagreements due to lack of transparency.

Security: Smart contracts are secured using cryptography and are resistant to tampering, fraud, and hacking, while traditional contracts may be vulnerable to breaches and disputes.

Efficiency: Smart contracts can be executed quickly and without the need for manual intervention, reducing delays and increasing efficiency in contract execution, while traditional contracts may require significant time and resources to execute.

Conditional execution: Smart contracts can be programmed to include a wide range of conditions and variables, allowing for greater flexibility and customization compared to traditional contracts.

Smart contracts represent a new paradigm in contract execution that leverages blockchain technology to provide a secure, efficient, and transparent means of executing contracts without the need for intermediaries and manual intervention.