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Before understanding what functions smart contracts can achieve, the editor of the currency circle first wants to understand what smart contracts are. A smart contract is actually a computer protocol that uses information technology to disseminate, verify and execute the content of the agreement. It can achieve a completely trustworthy transaction without a third party. This transaction cannot be traced and cannot be tracked. Reversed. Its purpose is to explore a more secure and low-cost transaction method. This concept was proposed as early as 1995. So after so many years of development, what functions can smart contracts achieve? Now let the editor of the currency circle introduce to you the functions of smart contracts.

 What functions can smart contracts achieve?

In the blockchain, all nodes jointly maintain a blockchain ledger, and all transaction data cannot be tampered with or forged. It can also reduce the error probability and labor cost of manual reconciliation, and improve efficiency and save time; with the development of smart contracts If it is popularized, there will be no more conflicts between people. The code has the final say, so there is no need to waste words.

For example, if you buy delay insurance when flying, the claim settlement becomes much simpler. Investment information and aircraft changes are stored on the blockchain in the form of smart contracts. Once the flight delay meets the compensation standards, the compensation will be automatically transferred to the insured passenger's account. The policy processing is very efficient, and there is no need for direct conflict.

Suppose you loaned a large amount of money to a relative. Although you wrote an IOU, when the repayment date came, the other party acted in a shameless manner, and you didn’t want to break up or make things worse. , you won’t get your money back. At this time, smart contracts may be a good way. Of course, we need to prerequisite that both parties write the amount of the loan, the repayment time, and the bank card information bound by both parties into the contract. On the agreed repayment day, if you fail to repay on time, the contract will be triggered and the loan will be automatically transferred to your account.

 Smart contract application scenarios

1. Management

Blockchain can also make workflows and communications smoother due to its accuracy and transparency, not to mention running on automated systems. Typically, commercial operations will encounter setbacks and numerous issues while waiting for approval. Blockchain ledgers clear up such issues while removing variables that can lead to costly litigation and settlement delays.

2.Medical records

Personal health records can be encoded and stored on the blockchain through private keys, allowing only specific people to access the data. It can also be used to confirm research or seek medical advice. Doctors can store surgical data in the blockchain, and insurance companies can also check it. Of course, this eliminates unscrupulous people who want to cheat insurance.

3.Real estate

The hypothesis of smart contracts can allow this industry to further expand its scale and revenue. Generally renting your home to someone requires
Intermediary services. The point is that not only is there a waiting time, but the agency also charges a fee. It can be very clear with smart contracts. Once the conditions are met, the contract can be completed, efficiently and quickly, with no agency fees and cost savings.

In theory, smart contracts can achieve better protection of data and show the best "trust" to users. However, in reality, smart contracts do not mean that they can realize all ideals. It is best for them. The overview is to be able to solve something in a way that minimizes trust. Traditional technologies and third-party trust institutions have existed for a long time. Suddenly a new concept and new technology appear in an attempt to break down the original market barriers. I am afraid that this still requires technology to prove.

To sum up, this is the answer of the editor of Biquan Circle to the question of what functions smart contracts can achieve. I hope that this introduction of the functions of smart contracts by the editor of Biquan Circle can help investors who do not know much about smart contracts. We have a more comprehensive understanding of the concept of smart contracts. Through the above introduction, we understand the functions and applications of smart contracts, but smart contracts actually still have some security risks. Because smart contracts are completely open source, some security loopholes are also visible and cannot be repaired in time. Once The emergence of such loopholes will cause huge losses, so this is a problem that currently needs to be solved in smart contracts.