What is a Smart Contract

Benefits of Smart Contracts

Smart contracts provide security, transparency and can remove layers of bureaucracy in certain contexts.

the advantages of smart contracts are that they’re automatic, trustless, secure, cheap and fast.
Smart contract advantages

Autonomous

Smart contracts do not require centralized facilitators. Once the code is written and executed, no other action is required. This feature likely removes many costs involved in business processes today, such as many arbitration systems and value transfer systems.

Trustless & Secure

Carrying out transactions between multiple parties doesn’t require you to trust the other party because the smart contract code deterministically enforces the rules of the contract.

Cheap & Fast

The removal of long processes will decrease admin and labor costs; most importantly, it could remove specific functions of institutions, such as insurance companies and banks.

Streamlining society with smart contracts

Example Use Cases

Travel Insurance

If you are going on vacation and took out flight insurance using a smart contract, and your flight got canceled, that contract could be executed to determine if your claim should be paid out. Since your flight was canceled and this is easy to prove, the smart contract would likely pay out your claim immediately.

Mortgages

Another example of how smart contracts can be used in the real world is in the approval of mortgages.

Parcl Smart Contracts

Parcl uses multiple smart contracts across its synthetic real estate protocol and token swapping protocol. Prices of pAssets–tokens that represent price per square foot in a given geographic area–are determined using the Parcl protocol’s property valuation database.

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