With the entry of bitcoins in 2009, the underlying blockchain technology spurted to fame. Today there is an umpteen number of cryptocurrency in the market, and this brings to light the need for some regulation. Smart contracts are digital contracts that serve the purpose of regulating transactions by using codes that get executed automatically if the conditions are met. Before developing a smart contract, it is essential to bear in mind a few things like -
The feasibility of smart contracts in your industry
While blockchain technology has dramatically altered the dynamics of financial transactions, it is essential to consider whether a smart contract will meet the requirements of the industry you are working in. Unlike the financial sector where cryptocurrency has made far-reaching changes, the other domains and industries have been less receptive to cryptocurrency based transactions.
Acknowledging the drawbacks of smart contracts
While a smart contract is the only way to regulate cryptocurrency transactions, one has to bear in mind that there are still a lot of work to be done in the process of perfecting a smart contract. The fact that a smart contract is a program which cannot be subjective raises essential questions about the decentralization of the whole process. If you feel you have to involve third parties in the process, it is always better to drop the idea of a smart contract.
If you have decided on going ahead with a smart contract, then it is only befitting that you choose a reliable company like Blockchain App Factory to help you get a firm footing in the world of developing a smart contract.