Smart contracts are self-executing contracts based on software. They basically work like a regular contract, but are enforced in real time using the blockchain.
Smart contracts take effect automatically when certain predefined events occur and do not require human supervision. This eliminates typical sources of error.
All relevant contract information is defined in the program code of the smart contract. The basis is the “If-This-Then-That logic.”
As soon as a certain condition is met – for example, an ordered good arrives at point A (if this) – a related action is automatically triggered – the good is paid for (then that). The contract is fulfilled automatically, fast, and secure.
Cryptocurrencies such as EGLD or tokens in the ESDT standard can be integrated into the program logic as a means of payment.
The advantage of smart contracts over normal transactions: They allow people who do not know each other to trade with each other. The secure smart contract technology – i.e. the blockchain – establishes or replaces trust.
Additional advantages of smart contracts
- Cost reduction
- Legal certainty
Smart Contracts and The Elrond Blockchain
Adaptable Smart Contracts
Smart contracts enable the widespread application of blockchain technology in numerous use cases.
While most smart contracts are not adaptable once launched, Elrond has developed a technology that will allow your business case to evolve flexibly, taking into account changing user requirements.
Smart contracts are the foundation of business in the future! A few examples:
- Contracts for decentralized energy supply
- Peer-to-peer contracts (DeFi)
- Insurance contracts and notarizations
- Transactions n the Internet of Things
- Car sharing in the private sector
- Goods traffic and supply chain
- Real estate transactions
- Contracts in the public sector
- Licensing, e.g., digital rights management
Royalties reduce costs
Transactions on the Elrond blockchain are unbeatably cheap. But it gets even better:
When a self-created smart contract is executed, 30% of the transaction fees go to the creator of the contract in the form of royalties.
This means that an attractive passive income can be generated with a corresponding volume of transactions. Smart contracts are also transferable.
Development of smart contracts
Our software developers will be happy to help you implement smart contracts on the Elrond blockchain.
More about the Elrond blockchain
Let us show you why we are convinced of the Elrond blockchain technology.
Elrond is a high-performance blockchain technology based on the proof-of-stake consensus mechanism. It was developed to eliminate vulnerabilities of other blockchains. Actually, we claim that Elrond is the best blockchain technology in the world.
Would you like to learn more about the potential of the Elrond blockchain for your company? Our experts will be happy to advise you. Free of charge and without obligation.
Would you like to learn more about the potential of smart contracts for your company?
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