smart contracts development with blockchain technology

1. Smart Contracts with Blockchain Technology

2. Introduction: • A smart contract development is a computer program that uses a unique code to define a series of conditions that, if met, trigger certain actions. • In other words, it is a contract that executes itself as the parties involved update it and comply with its clauses. • Based on blockchain technology , smart contracts are a secure way to automate certain contractual obligations between all parties. • For example, a company that imports a raw material can set a payment deadline in a smart contract, and the supplier company can determine shipping dates. In this way, these actions will be carried out automatically without external mediation.

3. What is the technology behind a smart contract? • Smart contracts are a reality made possible by blockchain technology. In this case, each contract represents a block containing all the relevant information. • The intriguing aspect of this issue is that: • Each smart contract has a unique code recorded on it, called a hash . • Each smart contract contains two codes in its hash: that of its own hash and that of the previous contract. • If a single byte of the file is changed, the hashes will change completely on-chain. • This hash is used as a password that prevents access to any outsider. This is why it is said that blockchain technology ensures the immutability of data.

4. Advantages of smart contracts • Smart contracts have undeniable advantages over paper or simply digital contracts: • Speed • Smart contract clauses are written in code and are executed instantly and automatically when certain conditions are met, unlike traditional contracts, where all actions must be carried out manually. • Security and transparency • Blockchain technology prevents any party or external person from modifying the contract on their own, so neither party can evade their responsibilities in a treacherous manner. In turn, a well-programmed smart contract leaves no vulnerability unfixed or for any hacker to maliciously manipulate it. • Safe and sound • Smart contracts are stored on a blockchain network, i.e. in a public database (which can be viewed by all parties involved, but not modified), immutable and decentralized. All computers that have access to the contract have virtual copies, so the contracts cannot be lost.

5. How does a smart contract work? • A smart contract is not far from the concept of a traditional contract. Let's imagine that we sign a smart rental contract. • This contract contains the typical details: how much the rent is, when the payment date is, the tenant's rights, the landlord's obligations and any other clauses. • However, in a smart contract all clauses are defined in a programming code that specifies certain conditions that must be met for predetermined actions to be executed. • For example, if the tenant does not pay the rent by the 10th of each month, access to the apartment is blocked (let's imagine that everything is digitalized). Transactions from the tenant's bank account to the landlord's can also be automated.

6. What is a smart contract used for? • A smart contract can be applied in any case where a traditional contract could be signed with paper and pen. However, these are the sectors in which it is most used: • Music and art • Supply chain • Real estate sector

7. Examples of smart contracts • Here are some examples of smart contract clauses by sector so you can get an idea of ​​how they work: • Financial sector: If the user account balance falls below the minimum threshold of €500, the smart contract will automatically initiate a transfer from the linked account to replenish the balance up to the set threshold. • Real estate: When the agreed payment for the property has been received in full, the smart contract will automatically transfer ownership of the property to the buyer so that the transfer is recorded on the blockchain.

8. Healthcare: If the patient grants access to his/her medical data to a specific provider, the smart contract will allow access to the medical information stored on the blockchain for the authorized period. • Logistics sector: The smart contract will release payment to the supplier once the system confirms that the merchandise has been delivered to the final destination and has been electronically signed by the recipient. • Energy sector: The smart contract will automatically calculate and generate an invoice at the end of each energy consumption cycle, based on consumption data recorded in real time on the blockchain. https://www.blockchainx.tech Contact@blockchainx.tech