Smart contract, just like blockchain is a disruptive technology, and when combined together, these technologies can bring in the paradigm shift in different industries. Smart contracts are basically lines of codes which are securely stored on the blockchain. When the predetermined conditions are fulfilled, these are executed automatically. The benefits and potential of smart contracts are endless in business collaborations. Usually, these are used to enforce a kind of agreement so that all the participants can be sure about the outcome, without involving any intermediaries.
Smart contracts can do wonders on the blockchain by streamlining complicated processes which involve multiple intermediaries. With the identity stored on the blockchain, lenders can take quick decisions about transactions, and this can further be quickened by creating a smart contract.
By using smart contracts businesses will be able to offer more flexibility by understanding the risk-taking capacity of the organization, learning from the past contracts and creating adaptable contracts that can change with the underlying assets.