We are about to witness an exponential growth of Smart Contract and Blockchain platforms, according to predictions from BraveNewCoin. Let’s explore what they are and how their combination could replace traditional contractual forms!

What are Smart Contracts?
Smart Contracts are, as the name suggests, “intelligent contracts” that define the rules of an agreement just like a traditional contract. Used to manage exchanges of money, property, and more, within a framework of total transparency, they eliminate the need for intermediaries. They are based on an “if/then” analysis of software, which makes it automatic for something—like a payment—to occur when certain conditions are met.

Smart Contracts and Blockchain
Smart Contracts are built on Blockchain technology, which many consider the “New Internet.” This technology, founded on the principles of immutability, transparency, and consensus, allows for the creation and management of a vast distributed database that handles shareable transactions across multiple nodes in a network. The underlying database is structured into blocks, each containing multiple transactions, ensuring that each new transaction initiated on the network must be validated by the network itself through an analysis of each block. A block, therefore, serves as both an archive for transactions and a historical record, with modifications possible only through approval by the individual nodes on the network.

Smart Contracts: How They Will Replace Traditional Contracts
The key feature of Smart Contracts is their ability to self-execute automatically when specific conditions and agreed clauses are met. This makes them agreements that, while requiring support during the drafting stage, do not need legal or technical assistance for verification or activation. Therefore, there is no longer a need for a third party to verify the conditions between two parties, and most importantly, the conditions can be analyzed without the need for human intervention!

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