Smart contracts have been dubbed the killer application of distributed ledger technology. Within every industry, smart contracts will provide significant efficiency benefits. They will reduce transaction times between stakeholders from weeks to minutes or seconds. Especially within global supply chains, smart contracts will kickstart data-enabled collaboration. They can offer trust, provenance and security while enabling instant transactions.
Smart contracts may seem revolutionary, but they are nothing new. In fact, they have been around for a long time. Smart contracts are already in place in most modern office buildings. For example, access cards that determine whether you are allowed entry to a certain area are pre-defined by a piece of code and linked to a database. The only difference now is that when they are deployed on a blockchain, they become immutable, remain accessible indefinitely and will carry out their pre-defined tasks whenever certain conditions are met. That is the revolutionary part of blockchain-enabled smart contracts.
Smart Opportunities for Society
Smart contracts offer tremendous opportunities for organisations. Organisations that deploy smart contracts to facilitate inter-organisational transactions become more intensely connected since they share the same database across time and space. In the coming years, we will likely see a wide variety of applications using …