Smart contracts are nothing more than computer codes programmed to perform a specific action. In other words, these smart agreements allow you to program a virtual form of payment and execute self-executing instructions that are stored in distributed Protocol nodes. Each node in the network is part of the log for any of the operations. That are making the smart contract virtually impossible to modify or break. Thus, contractual clauses are written instructions in a particular code.
Blockchain: platform for writing smart contracts
The architecture that makes possible the creation of smart contracts is known as the blockchain. In simple terms, Blockchain is a kind of distributed book or registry that all users or nodes of the system have.
The blockchain is a distributed peer-to-peer protocol. For this reason, blocking agents can not interfere with intermediaries, which can increase the cost of transactions. Similarly, by allowing the self-fulfillment of intellectual contracts, a blockchain can simplify the fulfillment of obligations and in many cases avoid disputes through litigation.
The blockchain system also ensures that the transactions are unchanged, since it is almost impossible to modify each of the chains of blocks that make up it. In fact, to change an intellectual transaction or contract, you need to “intervene” in each of the blocks.
The future of smart agreements
Lawyers in the future should include the notion of intellectual contracts in their daily work and understand how they work. This will undoubtedly lead to a reduction in administrative expenses in companies.
The creation of smart contracts in many areas becomes necessary due to several aspects. One of them is the value of transactions and the legal recognition of the truthfulness of the information contained in the blockchain.