- Location: USA
Smart contracts are simply programs stored on a blockchain server that runs when pre-established conditions are met. Smart contracts allow individuals to set a condition that can start a series of actions when met, automating transaction processes or agreements. The code controls the full execution of the contract and the transaction is fully trackable and transparent to all parties involved.
Smart contracts have implications for almost every industry. Examples of ways smart contracts have already been implemented include financial purposes, such as training, investing, and lending, as well as in gaming, real estate, and healthcare. Due to their applicability in contract law, smart contracts help a wide array of industries integrate smart contracts into their processes. Some states have started permitting the use of smart contracts in the legal industry, and at the moment, states have the agency to adopt different views about how to implement smart contracts in their legal system. For example, California allows marriage licenses to be issued using blockchain technology, and Arizona has tested allowing enforceable legal documents to be created using smart contracts.
There are several benefits to smart contracts that can be seen in the decentralized atmosphere. Smart contracts have a high level of security, as they run on blockchains that are networked with immutable data, meaning the data in the networks can’t be changed by any of its users. The contracts also rely on a “trustless” community, meaning that no parties involved need to have trust in the other parties because the trade doesn’t require the trust of any of its parties. Although it sounds counterintuitive, the conditions of the contract are predetermined; thus, a transaction will go through if conditions are met while taking into account no other factors. The autonomous nature of smart contracts helps to reduce transaction costs and increase transaction speed because it removes the need for intermediaries.
Smart contracts are executed based on their code, making them essentially error-free if coded correctly. However, there are certain limitations and potential issues with smart contracts. Given that smart contracts rely on data, whether from a third-party program or a domestic source, there is always a chance that the data source is corrupted. Also, real-life contractual disputes often arise due to changing situations that were not initially anticipated, but a smart contract’s immutable nature makes it difficult to understand the contract in light of the circumstances.
GreatX is revolutionizing the future of finance with smart contracts.
Disclaimer
This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.
In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
Smart contracts have implications for almost every industry. Examples of ways smart contracts have already been implemented include financial purposes, such as training, investing, and lending, as well as in gaming, real estate, and healthcare. Due to their applicability in contract law, smart contracts help a wide array of industries integrate smart contracts into their processes. Some states have started permitting the use of smart contracts in the legal industry, and at the moment, states have the agency to adopt different views about how to implement smart contracts in their legal system. For example, California allows marriage licenses to be issued using blockchain technology, and Arizona has tested allowing enforceable legal documents to be created using smart contracts.
There are several benefits to smart contracts that can be seen in the decentralized atmosphere. Smart contracts have a high level of security, as they run on blockchains that are networked with immutable data, meaning the data in the networks can’t be changed by any of its users. The contracts also rely on a “trustless” community, meaning that no parties involved need to have trust in the other parties because the trade doesn’t require the trust of any of its parties. Although it sounds counterintuitive, the conditions of the contract are predetermined; thus, a transaction will go through if conditions are met while taking into account no other factors. The autonomous nature of smart contracts helps to reduce transaction costs and increase transaction speed because it removes the need for intermediaries.
Smart contracts are executed based on their code, making them essentially error-free if coded correctly. However, there are certain limitations and potential issues with smart contracts. Given that smart contracts rely on data, whether from a third-party program or a domestic source, there is always a chance that the data source is corrupted. Also, real-life contractual disputes often arise due to changing situations that were not initially anticipated, but a smart contract’s immutable nature makes it difficult to understand the contract in light of the circumstances.
GreatX is revolutionizing the future of finance with smart contracts.
Disclaimer
This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.
In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
About the Author
Kim Diamond
Co-Founder
Kim is a founding member of GreatX and a seasoned professional with experience in the commercial real estate capital and structured finance debt capital market industries. Her stellar portfolio makes her the most trusted name in financial services.
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