Smart Contracts in Layman’s Terms

Source and credits (Unsplash)

Definition

Smart contracts are a guarantee of set number of things , simply being a logical (coded) promise that states X will happen provided Y happens and so on. So in case of our coin locker example either coin will be accepted and you’ll be given with a space to store your luggage or it wont be accepted (if amount not reached or false coins are used)and the coin will be returned to you .

Use cases

Assuming you are still reading this post and have understood everything (not just wikis definition) then lets proceed further and see how smart contracts can help us.

“Last Decade has been about social media but the next will be about establishing trust and privacy.”

With smart contracts stepping in we are entering into the intermediary-less world which could work more quicker and efficiently with unlimited possibilities of where they could be applied :

Issues

Im not saying that smart contracts are perfect , they are flawed as comes with any technology . It’s still unclear how would the government regulate, enforce or tax these. Imagine using the right coin(amount) but still ending up getting a faulty coin locker . In the traditional contract world it would be easier to solve this problem but with smart contracts being on blockchain how will these issues be addressed and solved ? Experts are being challenged everyday to crack these problems and make the use of smart contracts bullet proof .

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