But what are they exactly, and why are they so crucial for the future of crypto? That is what we will try to answer today.
What are Smart Contracts?
Essentially, smart contracts are among the first blockchain features that have opened the door toward the creation of all other products. They are offered by specific projects that act as development platforms, such as Ethereum, EOS, or TRON. Thanks to the blockchain’s ability to store information, developers figured out that this can also include code.
It wasn’t long before smart contracts emerged, as on-chain programs that run when predetermined conditions are met. This makes them perfect for trustless deals with no need for intermediaries of any kind.
Why are they the Future of Crypto?
Smart contracts are the future of crypto for several reasons. First of all, they don’t require the presence or participation of third parties, as mentioned. That alone allows businesses that employ them to save up a fair bit of money. Next, they are self-executing, immutable, and fair to all the parties that are involved with them.
But they are particularly gaining widespread use thanks to their ability to allow the creation of dApps, DeFi protocols, stablecoins, and other blockchain products. They process transactions quickly, they are cheap to use, and they are just as good, if not better, than any kind of traditional contract.
They can help eliminate corruption, contract manipulation, and other similar problems. More than anything, they are becoming easier than ever to use, and are available to everyone, be they novices, professionals, or anything in between. Plus, they are fully decentralized and self-executing, so any sort of tampering with them is out of the question.
In short, smart contracts represent a completely new and different way of approaching contracts, and they ensure compliance through blockchain technology. All of this makes them not only useful but also highly convenient, which is why they are the future of crypto and business alike.