What are the different Crypto Smart Contracts and what are the pros and cons of the same?

Crypto Smart contract:

A Crypto Smart Contract is a computer program that facilitates, secures, enforces and executes registered agreements between two or more parties. The transfer of digital value through a system that does not require trust (eg bitcoins) opens the door to new applications that can make use of smart contracts.

Smart contracts are essentially programmers that run when certain criteria are satisfied and are stored on a Blockchainx. They’re usually used to automate the execution of an agreement so that all parties can be certain of the conclusion right away, without the need for any intermediaries or time waste.

Advantage and Disadvantage of Crypto Smart Contract:

There are several key areas in which smart contracts are superior to their traditional counterparts.

The main advantages of smart contracts are:

Autonomy:

You are the one making the deal. It is not necessary to trust intermediaries to confirm operations. Incidentally, this also eliminates the danger of manipulation by third parties, as the execution is managed automatically by the network and not by one or more individuals, possibly biased and prone to errors.

Reliability:

Your documents are encrypted on a shared ledger. There’s no way for anyone to say they lost. There is a guarantee of transparency, certainty, security and legitimacy of automated processes.

Security and Backup:

The smart contract is encrypted and distributed across the network nodes. This ensures that it will not be lost or altered without your permission.

Speed:

Typically, you need to spend time and documentation to process documents manually. Smart contracts use software code to automate tasks, thus reducing hours of a series of business processes.

Savings:

Smart contracts save you money as they eliminate the need for the presence of intermediaries.

Accuracy:

Automated contracts are not only faster and cheaper, but they also avoid the errors that come from manually filling out multiple forms.

human factor:

Code is written by people, and they can make mistakes. If the smart contract is on Blockchain , it cannot be changed. A good example of human error is The DAO.

The DAO was a decentralized autonomous organization project, launched on the Ethereum network in mid-2016 to be a fully autonomously controlled investment fund for promising projects.

However, a hacker attack that exploited developers’ errors in the code cost a lot to its users and companies, as more than $50 million dollars were lost as a result of the attack , which is why the project ended up being discontinued.

Uncertain legal status:

Therefore, there is a potential problem if government institutions decide to establish a legislative framework unfavorable to smart contracts.

Implementation costs:

Smart contracts cannot be realized without programming. It is essential to have an experienced coder on staff to make failsafe smart contracts and adopt the company’s internal framework for Blockchain technology.

Smart contracts are far from perfect, like any human technology. What if bugs appear in the code? And how can governments regulate these contracts? How can governments tax smart contract transactions?

The list of challenges is endless – and several professionals from the most different areas are currently trying to solve them.

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