THE POSSIBLE APPLICATIONS OF SMART CONTRACTS IN DAILY LIFE

🌍 Last week, we just attended a very important event and in it, there was the presence of ASTAR (A gateway to the multi-chain future connecting multiple layer1 blockchains to Polkadot through Astar Network) with the theme “The Future of smart Contracts for Multichain’’. Realizing that this is a good and important topic in blockchain, today we send you a detailed article about smart contracts.

🤔 WHAT EXACTLY DOES “SMART CONTRACTS” MEAN?

Although there isn’t yet a standard definition in the network world, a smart contract must have the qualities listed below:

The digitally verifiable event, a program code that analyses the event (for example, in the car’s onboard computer), and a legal action that may be taken depending on the event (e.g., opening the barrier to drive out of the parking garage).

Thus, a smart contract may be defined as computer code that determines legally significant acts (such as the real exchange of services) in response to events that can be digitally verified (so-called: “if-then scheme”).

Therefore, it is necessary to explain that smart contracts are not contracts in the legal sense. This is where the connection to our snack vending machine comes into play once more.

THERE ARE NUMEROUS POTENTIAL USES FOR SMART CONTRACTS, INCLUDING THE FOLLOWING: 👇

👉 Automobile leasing: Leasing a vehicle is only possible with timely leasing payments. An interface to the bank is used via a smart contract installed on the car’s onboard computer to keep track of when the required payments have been transferred. The car starts if this is the case. You must take the bus if not.

👉 PrePaid Heating: By utilizing properly set thermostats, it is possible to make the purchase of heating contingent upon the preceding heating unit’s payment.

👉 Parking: Our car uses the relevant technology to interact with the parking lot and automatically pay for the time spent parked there.

Aside from all the possibilities, programming ambiguous legal phrases like “unfaithful,” “fair,” or “warranty situations” into smart contracts now presents a legal issue. Such situations cannot be “translated” using a programming language, hence human judgment is required. Technology (such as resource consumption, a restriction on digital facts, etc.) and legal problems are just a couple of the significant aspects that will determine whether smart contracts are successful (e.g., enforcement issues, privacy law, liability, etc.).

📌 On the one hand, there is still more work to be done before smart contracts are used in daily life. However, blockchain-based contracts provide a wide range of chances for the digital revolution to advance.

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