SMART CONTRACTS IN SIMPLE WORDS — PART I
The phrase “smart contracts” could sound amazing nowadays because technology floods our daily lives.
Mickael Mosse — Blockchain and Cryptocurrency Expert, explains in simple words the main points to understand what is a smart contract, how to use one, and how to manage in the usual routine.
What is a smart contract?
They are a digital contract type that defines rules and penalties of a specific agreement between two parties. The difference between smart and traditional contracts is that these make the obligations done automatically.
According to Mickael Mosse, smart contracts are coded to make a must for each rule specified inside of them.
How to use a smart contract?
Mickael Mosse has collected some examples in the daily routine where anyone can use a smart contract even without notice about it.
Warranty or Insurance Claims
By using a smart contract to claim the warranty of a product or to claim insurance. The process comes easier and faster, thanks to the use of the Blockchain. All the controls ensure the product status takes a lot of time and has to pass for many hands to be completed.
If the company uses a smart contract, the process could be done in hours, not days. The system can verify each control and then send the payment automatically without any human intervention.
Online verification will be faster than waste time verifying the identity through traditional methods.
Identity data will not be centralized anymore. Informatic pirates don´t have those vulnerability points available to make an attack. Data storage will be inviolable when it is on the Blockchain, according to Mickael Mosse.
Internet of things
It is a device network plus other elements such as software and sensors connected to the Internet. These devices and components share information and data every second, and they need to store it for sure. Mickael Mosse says that using a smart contract in this situation will be a great idea to save time, effort, and money.