Along with the commencement of the famous blockchain technology, smart contracts are also becoming a matter of special interest for various businesses. Now the question that triggers in the mind is- what are smart contracts? Smart contracts are basically the digital contracts that are designed to help people in exchanging shares, money, property or anything that have a certain worth over the internet in a conflict-free and transparent way without the need of intermediaries. Ideally, smart contracts serve the existing role of normal contracts among two parties which are facilitated by a lawyer.
If we think about the practical benefits of smart contracts in relation with the P2P marketplace websites then here are some which we can consider:
- Trust- In the business, one of the major challenges that have forbidden the decentralization of the marketplace is how to deal with the two people who are unaware of each other. With the help of smart contracts, encryption of information is done on a shared ledger. Which means no party can say that they are not able to see it. Thus, the trust is generated in the better way amongst two parties.
- Fake Goods- With the help of smart contracts, the sale of fake goods has been totally eliminated. It has become possible to track and verify the product easily with the help of cryptographic code.
- Security- Security on the P2P marketplace software is tremendous as everything is securely stored in a network. Therefore, there is no single point of any kind of failure. Moreover, cryptography ensures that the credentials are safe enough.
- Autonomy- In the case of smart contracts, there is no need to rely on lawyers, brokers and other intermediaries just to get a safer way to enter into a sale agreement. Moreover, all the execution process is managed in the network via the decentralized system and hence, there are very few incidences of error.
- Speed- Smart contracts are quite faster to implement than the traditional out-dated contracts. In the blockchain marketplace, all the paperwork needed to enter into a sale agreement is not used if we consider the traditional marketplace. Through the use of high-tech software, smart contracts are capable of using software code to automate the tasks.
If you are also influenced with the benefits of smart contracts and are looking forward to take its advantage in your peer to peer marketplace website then consider, IdyaFlow because here, we take care of your every expectation.