Smart Contracts are also known as crypto contracts. If it is interpreted into Indonesian, a smart contract is a smart contract. Smart contracts are computer programs that directly control the transfer of digital currencies or assets between parties under certain conditions.
Smart contracts not only notify the rules and penalties associated with the agreement that has been agreed, but also can automatically enforce these obligations. The contract will be stored on Blockchain technology.
The words "smart contract" were created by Nick Szabo and the purpose of the smart contract is to make a contract that is like a lawyer in the internet.
In 1998, Nick Szabo designed a mechanism for decentralized digital currency called "Bit-Gold." Although this coin never happened, he was arguably the pioneer of Bitcoin. Many people say that Szabo is Nakamoto Satoshi, father of Bitcoin, but there is no strong evidence of this statement.
Many platforms now allow the use of smart contracts, including Ethereum, Bitcoin and Nxt. Today, with more and more people using Bitcoin and Blockchain technology, smart contracts are increasingly popular. Almost all cryptocurrency has a smart contract to reduce fraud.
Blockchain is ideal for storing smart contracts because of security and technological provisions. The smart contract data is encrypted in the shared ledger, so that information stored in blocks cannot be lost or engineered by one side.
Another advantage of blockchain technology that is included in the smart contract is flexibility. Developers can store almost all types of data on the blockchain, and they have various transaction options that can be selected during the smart contract implementation.
Blockchain-based smart contracts help businesses become more efficient, cost-effective and safe.
For example: initial (A) rent a house to initial (B). (A) pay to (B) with crypto money and the receipt will be stored on the blockchain, (A) will get a special electronic code to enter the house. If next year (A) does not pay (B) on the designated day, this special code will change and (A) can no longer live in the house until (A) pay.
You might be confused as to why renting a house is so complicated, but abroad, if you want to rent a house, you have to go through a middle person like Century 21. Because of using a middle-man, then there is a transaction fee, too much time will be wasted.
By using the smart contract, transaction fees, admin and time will be deleted because this passes the internet. This contract also remains legal in the eyes of the law.
Not only in property, smart contracts can be done anywhere and for anything like the police, the company, the government to banking. Time is money and using a smart contract will save a lot of time.
