Yelyzaveta Naumova, ME-110i, KNEU
In the age of high technology, the trend of smart is very relevant. Smart contracts are a very contested topic.
A smart contract has huge advantages over the usual one. First of all, it’s his defense. The system is structured in such a way that the parties to the treaty and their resources are controlled and protected. Participants in this process may not be concerned about the correctness of the obligations, as if the conditions are not met, the contract will be cancelled. In addition, the use of smart contracts can eliminate the need for intermediaries, significantly reducing operating costs. This is a huge advantage of this type of contract. A smart contract can be defined as a tool that formalizes and protects computer networks by combining protocols with the user interface.
Judith Rirearson is not sure that such contracts will someday replace the usual ones, but everything is interchangeable, especially it can help optimize the state system. The information is more secure and more accurate, thanks to automatic input. In addition, smart contracts allow you to execute transactions without additional persons, i.e. intermediaries. All documents are encrypted and stored in the registry, which excludes forgery or loss of these documents.
Joe Dewey, a partner at Holland and Knight noted that these products have evolved noticeably since their debut. “You can start to see changes in how some smart contracts platforms are marketed. A lot of them started as platforms geared towards the blockchain, and if you look at them today a lot of the focus is on automation.”
In the global practice, smart contracts are piloted and applied in the financial sector, including in the banking and insurance sectors, in the public sector as well as processing insurance claims and compensation in typical insurance cases.
However, the smart contract does not have functional flexibility. With traditional agreement mechanisms, it is always possible to negotiate or change its terms, but it is difficult to implement such changes in the course of its implementation when using smart contracts.
In conclusion, I want to say that the use of smart contracts can create a more convenient environment for interaction between organizations and citizens. However, one should not expect the rapid implementation of smart contracts before they are widely used.