DeutschSmart contracts are so-called “intelligent contracts”.
What are Smart Contracts?
A smart contract is a protocol that automatically checks the fulfillment of contractual terms and simultaneously takes over the execution of the necessary steps. A smart contract is based on an algorithm. It is therefore a contract that is programmed. The smart contract is executed on the blockchain so that no changes can be made afterwards. In addition, the terms of the contract are publicly available.
This allows buyers and sellers to be sure that there was no manipulation of the contract thanks to the blockchain – without needing a third party for legitimation. In simple cases, such as with a mobile phone contract, you can be sure that the sales representative will not book any additional options for you. When buying a house, you theoretically wouldn’t even need a notary anymore. The possible applications are almost limitless.
The largest smart contract platform is Ethereum. Nowadays, however, there are many alternatives with Cardano, Solana, Polkadot or Avalanche.
You can find more information about smart contracts in our basic article.
