Smart Contracts: what are they and what are the benefits?
Smart contracts that can be used through ChainOn, represent one of the most promising innovations that have emerged with blockchain technology. These smart contracts not only automate and simplify many transactions, but also offer an unprecedented level of security and transparency. In this article, we will explore what smart contracts are and what benefits they offer.
WHAT ARE SMART CONTRACTS?
Smart contracts, the technology on which ChainOn’s innovative marketplace concept is based, are self-executing computer protocols that enable the automatic execution of contract terms defined by the parties. They are written in code and stored on a blockchain, which ensures that the contract is executed accurately and transparently.
A smart contract functions autonomously: once the predetermined conditions are met, the contract automatically performs the specified actions.
The key to how smart contracts work is decentralization: there is no need for intermediaries (such as lawyers or notaries) to verify and enforce the contract, as the blockchain guarantees the validity and immutability of transactions.
BENEFITS OF SMART CONTRACTS FOR PURCHASING SPONSORSHIP PACKAGES
Smart contracts offer numerous benefits for both sellers and buyers of sponsorships. First, they increase efficiency and automation, significantly reducing the time and effort required to execute a contract. Automation eliminates the need for human intervention to verify and execute contract terms, speeding up processes and reducing errors. In addition, thanks to blockchain technology, smart contracts are highly secure and immutable. Once recorded on a blockchain, the contract code cannot be modified, reducing the risk of fraud and manipulation.
Smart contracts also reduce the costs associated with contract management and execution. By eliminating the need for intermediaries, such as lawyers and notaries, legal fees and transaction costs can be significantly lowered, making contract transactions more affordable even for SMEs that decide to purchase sponsorship packages through ChainOn. Finally, smart contracts are precisely programmed to execute actions only when specific conditions are met, reducing the possibility of manual errors and interpretation that can occur in traditional contracts.
