Smart Contract is the set of protocols programmed in a block of a blockchain. It is a set of codes programmed to verify its own authenticity and also the compatibility of any prospective ledger to connect in the network. Being the basis of Blockchain, any Smart Contracts Development Company can go mainstream in the IT as well as business landscape. Smart Contracts are called Self-Enforcing because the code replicates itself in the next new block.
The technology is comparable to digital lawyers that can verify the legality as well as authenticity of the contract. If a block is compatible with all attributes to the existing block, it connects automatically, replicates the program and keeps on the chain of ledgers intact with the set of incorrupt protocols.
In 1998, Nick Szabo an expert in multiple dimensions of Information Technology, Computer Codes, Law and Cryptography, pioneered the concept of Smart Contracts. Many contemplate that Szabo is Satoshi Nakamoto, the mysterious founder of Bitcoins. Interestingly, Smart Contracts came into existence theoretically 14 years before Bitcoins, when the technology gained prominence in the digital world.
Szabo used Smart Contracts to create a mechanism for the first digital currency. This was known as Bit Gold. Although never implemented, Bit Gold laid the foundations for Bitcoins. Owing to the fact Szabo has an exceptional knowledge or perhaps the most of all, there are strong reasons to believe he is, in fact, the actual Satoshi Nakamoto, under whose name, the first proposal of Bitcoins was published. However, he has denied repeatedly of this claim by other industry experts.
Szabo was trying to create a decentralized solution to the Double Spending problem in transactions of digital money. In online systems, a third party verifies the authenticity of a transaction. This third party is a centralized mechanism, that keeps the record of every transaction. Szabo, in his own words, “was trying to mimic as closely as possible in cyberspace the security and trust characteristics of gold.” He was closely observing the aspect of decentralization and the feature that transaction of gold “does not depend on a central authority.”
Smart Contracts has a critical relevance in securing financial transactions in the digital world. However, the technology is not limited to cryptocurrency. Any Smart Contracts Development company can create applications to ease digital transactions in any industry vertical. Blockchain has strong applications in diversified dimensions like ensuring transparency, research, record management, identity management, and other critical areas apart from any secured digital transactions.
However, a Smart Contracts Development Company and create applications that act as artificial lawyers. Creating leeways to the conventional legal system is emerging as the strongest application of Smart Contracts.
A longing for security is universal. Security is not only a necessity on the internet, but it is also a major parameter of survival in the cyber world. A reason Blockchain is deemed as the future of the internet is because Smart Contract it secured and reliable enough for transactions of critical data. Any enterprise, from micro to large multinational businesses are finding immense possibilities in smart contracts. The contrasting factors that have hauled this technology as a basis top business applications are:
Gartner outlined more than 25% of global enterprises will adopt Smart Contract technologies by 2022. This will put a great thrust in the Smart Contract Development industry. While blockchain development companies are mushrooming across the world, only the selected ones can provide reliable services.
Only Blockchain developers with years of experience and in-depth knowledge of the technologies can offer credible solutions. Oodles Blockchain has been pioneering research and development in Smart Contracts since years. We have been working on an array of products in this technology for clients from across the globe.
Consult our experts, if you need a Smart Contract Solution. Opportunities are waiting!