Advantages of Smart Contracts over Traditional Contracts

You've probably heard about cryptocurrencies like Bitcoin's meteoric ascent (and crash). You've probably heard of Blockchain, the underlying technology that powers cryptocurrencies if you keep up with the cryptocurrency market. But cryptocurrencies are only one use case for blockchain technologies, and we are only now considering the countless other uses that Blockchain might have in daily life. At LeasePilot, one application that we are particularly interested in is contract security and enforcement, the result of which is referred to as a "Development of Smart Contract."

What precisely is a Development of smart contract?

The Blockchain, a technology with continuously expanding records that enables the verification of trackable and irreversible transactions, is where it all begins. The Blockchain can incorporate digital systems of laws and controls known as the Development of smart contracts. In essence, smart contract development companies are computer programs that automate the application of rules. Contrarily, traditional contracts are agreements written in plain, everyday language and supported by legal obligations.

Will the Development of smart contracts replace traditional contracts?

We lean toward saying that they won't. Not entirely, at least. Simple, objective and quantifiable terms and conditions are ideal for Development of Smart Contract. But the Development of Smart Contract's binary nature falls short regarding arbitrary T's and C's. It's also critical to remember that contracts ultimately represent an agreement between people, not computers. The traditional contract will continue to exist since most of us mere mortals cannot quickly abstract the kind of mathematical, deterministic language utilized by the smart contract development company.

What, if anything, unites the two, then? And what possible applications could result from integrating the two strategies?

In actuality, there are undeniable parallels between the two. Both of them explain a variety of circumstances and actions to a high degree. One potential application is the use of a Traditional Contract during the negotiation stage, followed by its translation into a Smart Contract development company, which would take care of validation and enforcement.

However, is this even feasible?

In the future, will ordinary agreements and contracts self-execute? The viability of closing the gap has yet to be demonstrated. We are experimenting with a few cutting-edge technologies at EnclaveFX Techno, a smart contract development company, to see if that gap can be closed. To facilitate a secure transition from the Traditional Contract to a rule-based computer program, our initial step is investigating how to construct standard agreements and contracts from structured data.