Traditional contracts establish the rules of the game between people or companies: what the parties can do, how and even the consequences if the provisions are not fulfilled.
In business, these contracts have the intervention of law firms and are subject to the laws and jurisprudence according to the territory where it is established and may even is subject to interpretation.
The great revolution that blockchain introduced is the ability to be an unalterable technology. This is the technology on which the Smarts Contracts are based and precisely the capacity that it transfers to it.
On the one hand, it ensures that everyone can access the information and, on the other hand, that there is no possibility of falsification.
What is a Smart Contract?
As a type of DTL or distributed database, experts maintain that Smart Contracts have great potential in the business world.
A smart contract security audit supplants the printed document with legal language, by means of an unalterable computer program that is executed without the participation of third parties.
Smart Contracts go beyond traditional electronic contracts that allow information to be stored and signed digitally. They are made up of computer codes in programming language. This implies that they are based on statements and commands provided by the code that makes it up.
In addition, they differ from a traditional app, in which we trust the effectiveness provided by its developer, since the smart contracts are supported by a pre-established flow program between the parties and with the guarantee and transparency provided by Blockchain technology.
Smart Contracts in the People Area
In the midst of a pandemic, Randstad decided to automate its workflow using a blockchain focused on smart contracts.
The company hopes that the use of Smart Contracts will reduce human errors, but above all save time, in particular in bureaucratic tasks in the area of people such as payments, verification of academic and professional qualifications and personal identity data. .
Advantages and disadvantages of Smart Contracts
Advantage
• Automation.
• Saving of time and money.
• Without intermediaries.
• Greater transparency.
• Error minimization.
Disadvantage
• Lack of confidence due to ignorance of technology.
• Difficulty changing what is established.
• Possible flaws in the code when programming.
