You probably know what blockage is. If not, we will recall: it is a decentralized system, whose existence is provided by a number of computers, united in one network. But what are smart contracts or, as they are called in another way, a smart contract? They allow you to exchange money and property, but do not resort to the help of intermediaries.

For example, if you want to negotiate a normal deal, then you need the help of an appropriate specialist, whether a notary or a lawyer. In the case of contracts with clever you are dealing with a fully automated system: all you need is to throw in bitcoin registry and stored with a third party contract (eg, driver’s license or any other desired document) falls to your account. Another advantage of smart contracts is that the conditions that are specified in them are automatically provided by the system.

How can I use a smart contract in practice? In fact, the scope of applications of this technology is a lot. For example, they can completely eradicate falsification of elections, when the votes will be placed in a special register, the decryption of which will require a computer with incredible power. Also, its users will be able to find a smart contract in the field of logistics, helping to solve the problems of bureaucracy, so characteristic of this area. Clever contracts will also determine who was guilty of an accident, and insurance companies will find it easier to determine their contributions.

Smart contract and accounting, which will be used for real-time audit purposes, will not bypass the side. So far, smart contracts are only at an early stage of their development, but they can already be used in Bitcoin and Ethereum.