- As contracts are the source of many legal and business conflicts, they are always considered contempt. They often lead to disputes when they are not appropriately drafted or communication breakdown.
- Business professionals have been looking for ways to avoid contract conflicts with the technological revolution.
- Traditional contracts usually involve one or more parties, multiple lawyers and various rounds of negotiations. The result of negotiations is a lengthy document which has to be signed by different parties.
- Before the introduction of smart contracts, people had to store paper copies of agreements in file cabinets.
- Smart contracts have been named as “smart” because of the technology-derived solutions. Similar to traditional contracts, smart contracts are agreements that execute specific actions based on the performance without the need of a trusted party.
Due to its immutability feature, smart contracts are secure and tamper-proof; therefore, they do not require any third party for building trust between obligating parties.