One of the main qualities of blockchain is that, since it is a decentralized framework that exists between all permitted parties, there’s no reason to pay the middlemen, and it spares you time and strife.

In 1994, Nick Szabo, a legal scholar, and cryptographer understood that the decentralized record could be utilized for smart contracts, generally called self-executing contracts, blockchain contracts, or digital contracts. In this format, the contracts could be changed over to computer code, stored and duplicated on the framework and regulated by the network of computers that run the blockchain. This would likewise result in ledger feedback, for example, exchanging cash and accepting the product or service.

What are Smart Contracts?

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller is directly written into lines of code. They are a bunch of codes that are written which the program has to follow and this type of contract runs on a blockchain which means it is distributed and a fundamental characteristic of this is that it is immutable which means no matter how hard you try you cannot change the contract once it has been set.

The best way to describe a smart contract is to compare the technology to a vending machine. one would put a dollar in the machine to get a soda. In the same way, with smart contracts you pay your fee by dropping a cryptocurrency into the vending machine, i.e., the ledger and your document drop into your account. More so, smart contracts not only define the rules and penalties around an agreement in the same way as a traditional contract does, but also automatically enforces those obligations.

Source — blockgeeks.com

What does this mean for the future of business?

Jerry Cuomo, vice president for blockchain technologies at IBM, believes smart contracts can be used all across the chain from financial services to healthcare to insurance. A few industries that use smart contract are — government, management, supply chain, healthcare, and real estate.

Smart Contracts in Healthcare

Personal health records can be encoded and stored on the blockchain with a private key which the user can grant access only to the specific individuals. The same strategy could be used to make sure that all research is conducted via HIPAA or other law agencies (in a secure and confidential way). Receipts of surgeries can be stored on a blockchain and automatically sent to insurance providers as a proof-of-delivery. The ledger, too, can be used for general healthcare management, such as supervising drugs, regulation compliance, testing results, and managing healthcare supplies. (For more information on Blockchain in Healthcare, read our blog.)

NHCT uses Smart Contracts to provide our users with-

Trust — All documents are encrypted on a ledger, making it secure. Autonomy — Smart contracts have eradicated the need for middlemen and brokers. Also, it gives you access to your data. Speed — They have reduced the amount of manual labor that goes into drafting documents and contracts by automating tasks using software codes. Accuracy — Smart contracts have remarkably reduced the errors made by manually filling heaps of forms.

These above benefits have made smart contracts and blockchain a safe-haven for businesses and users. It is helping us resolve systemic issues like data fragmentation, data security, data duplication, and data breaches.