Trading through the online platform sometimes is very challenging mainly when dealing with expensive goods, for example, an expensive vehicle. In most cases, people trading via the online platforms might not be trusting each other. This is very common to the people who have never been a deal there before. Remember the trading portal may require you to send money before receiving the item or receive the item before sending money.
The buyer may not trust the seller and at the same time, the buyer is not trusted by the seller. In this case, an intermediary person is needed to build trust on the trade and make sure both the buyer and the seller and the buyer is satisfied since the intermediary will be trusted by both seller and buyer. The intermediary will get the money from the buyer and later on transfer the money to the seller when the item is confirmed delivered to the buyer. The will do this a fee where the intermediary will get a certain percentage of money.
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)The intermediary, in this case, works as the blockchain. The smart contract software is able to run as an intermediary where you are able to create contracts that may involve a given amount of money entrusted and safer way. The smart contracts is available for public use in a trusted state. The same ways as the other block chains, smart contract charges a fee for every deal but lower than the common intermediary
To startup with smart contracts you just need to download the application to your gadget and install it. it's from the software you will be able to trade online confidently without the fear of conmen.
Below are some of the reasons as to why smart contracts are commonly used.
- It requires more than one party who is not in trust of each other therefore cannot be used by one person.
- It will only work best in collaboration with cryptocurrencies, although their adoption is limited.
- There is no privacy since all the transaction s are public