Smart contracts are not a new phenomenon. Their concept was first proposed by American cryptographer and law expert Nick Szabo in 1994. However, this idea became popular only in 2008, when the blockchain technology was invented. Blockchain technology provides a decentralized network – the only possible base for smart contracts operation. Smart contracts can automate and greatly simplify work in many life spheres, such as logistics, management, and jurisprudence, and we are going to tell you how.
A smart contract is a code, which is stored and duplicated in the system. With the smart contracts you can provide and use services, supply products and pay for them without involving intermediaries and taking any risks.
To execute a contract or an agreement, you often have to apply to a lawyer and wait for the papers to be registered. The smart contracts can make it simple: you can set up your own terms and their execution will be monitored automatically. At a certain moment the program confirms the completion of the terms, then either transfers the specified asset to the account of one party, or returns it to another party, or makes any other actions, depending on the initial conditions.
For example, the trade payment is registered in the blockchain, but the vendor gets paid only after receiving the automatic delivery confirmation from the logistics company. The contract itself is protected by duplication in a decentralized registry, and does not allow any party to modify its terms.
The trade party, who has the access to change the contract terms, is named the administrator. He can also assign other administrators that will have the same rights as the first administrator does, and will not be removed or restricted from managing the contract once it is signed.
At his own discretion or by consensus, the administrator can invite other parties as additional contract parties, or as verifiers of current contract. It can be banks or delivery services to confirm receiving the payment or package. There will be no need to hire specialists or execute additional contracts for them to join the Smaco.
Working with Smaco in FoodCoin Ecosystem is going to be even easier, as it will have an open library of contract templates for the users with intuitive interface to connect additional options. Having programming skills is not necessary to create and manage Smaco contracts.
Besides trades and deals, the smart contracts can also be used for betting and voting. They are very easy to use, and we are sure that you will appreciate this convenience by participating in our pre-ICO and joining our project.