The use of smart contracts in a company
Posted: Wed Jan 08, 2025 4:04 am
n our modern world, where technologies are evolving rapidly, it is essential that the law adapts to these developments. The contract has undergone several revolutions since the oral, paper and then digital contract. Today we are talking about smart contracts. Between technical and legal , they now represent an innovative solution to simplify and secure transactions in many areas of activity. What are they? What are their applications benin phone data in the field of law? Given the multiple possibilities they offer, what are the advantages of applying them in your company? This overview will allow you to better understand how they work as well as the various possible applications.
What is a smart contract?
Although it is inseparable from the blockchain on which it is based, the term appeared ten years before the creation of Bitcoins. A renowned cryptographer named Nick Szabo used this term for the first time in 1994, imagining computer contracts instead of paper contracts, capable of securing transactions between parties . It was the emergence of Blockchain technology that made it possible to implement Szabo's concept, by writing complex scripts on a chain of blocks. It has since enabled the automation and improvement of many processes . It is therefore not a contract, strictly speaking, but rather the execution of a contract, made more efficient thanks to its automation and guaranteeing its integrity.
Smart contracts, based on blockchain
Based on blockchain technology, thus guaranteeing their integrity, they are based on computer protocols . Thus coded, they are executed automatically if the previously determined conditions are met. A third party is not essential to carry them out, unlike standard contracts, due to their self-execution. The bases of the contract are the same: an agreement on predefined conditions and the formalization of a meeting between supply and demand. Only the implementation of the execution of the terms of the contract is different, because it is entirely automated. Basically, computer codes formalize the instructions at the origin of the transactions. As soon as the conditions are met, the contract is said to be smart, because it is executed automatically and allows the storage of results deemed immutable on the blockchain . According to Laurence Lessig: Code is law; this famous formula seeking to demonstrate that it is the code that guarantees the law and no longer the law. The integrity of the terms of a transaction is thus guaranteed by the blockchain, and by the cryptography on which it is based. Bitcoin and blockchain technology thus have promising features, improving processes and making it possible to do without a central authority, for example banks in the field of cryptocurrency.
What is a smart contract?
Although it is inseparable from the blockchain on which it is based, the term appeared ten years before the creation of Bitcoins. A renowned cryptographer named Nick Szabo used this term for the first time in 1994, imagining computer contracts instead of paper contracts, capable of securing transactions between parties . It was the emergence of Blockchain technology that made it possible to implement Szabo's concept, by writing complex scripts on a chain of blocks. It has since enabled the automation and improvement of many processes . It is therefore not a contract, strictly speaking, but rather the execution of a contract, made more efficient thanks to its automation and guaranteeing its integrity.
Smart contracts, based on blockchain
Based on blockchain technology, thus guaranteeing their integrity, they are based on computer protocols . Thus coded, they are executed automatically if the previously determined conditions are met. A third party is not essential to carry them out, unlike standard contracts, due to their self-execution. The bases of the contract are the same: an agreement on predefined conditions and the formalization of a meeting between supply and demand. Only the implementation of the execution of the terms of the contract is different, because it is entirely automated. Basically, computer codes formalize the instructions at the origin of the transactions. As soon as the conditions are met, the contract is said to be smart, because it is executed automatically and allows the storage of results deemed immutable on the blockchain . According to Laurence Lessig: Code is law; this famous formula seeking to demonstrate that it is the code that guarantees the law and no longer the law. The integrity of the terms of a transaction is thus guaranteed by the blockchain, and by the cryptography on which it is based. Bitcoin and blockchain technology thus have promising features, improving processes and making it possible to do without a central authority, for example banks in the field of cryptocurrency.