All The Smart Contract Information About BTCBAM

5 min readAug 11, 2021

After we begin to discuss Smart Contracts, there is a part 1 of the topic which was explained in the former story:

https://btcbamofficial.medium.com/btcbam-chains-emphasized-smart-contract-module-fced09b5e158

Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.

Smart contracts defined

How smart contracts work

Smart contracts work by following simple “if/when…then…” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified. These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. That means the transaction cannot be changed, and only parties who have been granted permission can see the results.

Within a smart contract, there can be as many stipulations as needed to satisfy the participants that the task will be completed satisfactorily. To establish the terms, participants must determine how transactions and their data are represented on the blockchain, agree on the “if/when…then…” rules that govern those transactions, explore all possible exceptions, and define a framework for resolving disputes.

Benefits of smart contracts

1. Speed, efficiency and accuracy

Once a condition is met, the contract is executed immediately. Because smart contracts are digital and automated, there’s no paperwork to process and no time spent reconciling errors that often result from manually filling in documents.

2.Trust and transparency

Because there’s no third party involved, and because encrypted records of transactions are shared across participants, there’s no need to question whether information has been altered for personal benefit.

3.Security

Blockchain transaction records are encrypted, which makes them very hard to hack. Moreover, because each record is connected to the previous and subsequent records on a distributed ledger, hackers would have to alter the entire chain to change a single record.

4.Savings

Smart contracts remove the need for intermediaries to handle transactions and, by extension, their associated time delays and fees.

Also, we have to say that things are rapidly changing thanks to blockchain technology and its most promising application — Smart Contracts. Automation means a vast amount of devices and interconnections and therefore needs a secure infrastructure that enables all these technologies to converge. And we believe that blockchain, which is probably the most secure piece of technology ever built, is best positioned to manage the vast amount of data, and also verify and automate the transactions between these devices through Smart Contracts.

At the first site, the benefits of Smart Contracts are obvious:

blockchain is a secure technology and therefore the Smart Contracts can be a more secure place than the traditional contract law;
blockchain has the advantage to cut out the middleman, which enables Smart Contracts to eliminate a series of costs associated with contracting and to improve efficiency and liquidity.

But these are only the most obvious benefits of Smart Contracts, and going deeper into the matter many other advantages arise.

Key properties of Smart Contracts

The key properties of Smart Contracts are autonomy, decentralization and auto-sufficiency. This means that after a Smart Contracts is launched, the deal initiator does not have to participate any more in the process. But it is very important to provide quality input when initiating Smart Contracts, because although they are able to collect money, realize transactions and distribute resources by themselves, they are by no mean magical instruments that understand what the user expects from them.

In other words, Smart Contracts need fine tuning at the beginning, but afterwards they do their job without any intervention. If you manage to achieve this fine tuning, the benefits are incommensurable when compared to traditional contracts. Whether traditional contracts between companies are notoriously difficult to set up and cost involved parties valuable time and money due to complex legal matters open to interpretation and disagreements, the Smart Contracts only create a set of rules that govern an entire exchange system between two parties, which are automatically executed without intervention.

A key issue in the business world and a common reason behind the success or the failure of a deal is trust. One of the main benefits of Smart Contracts is that they eliminate any concern in this regard, because you wouldn’t need to trust the other party you would only need to trust the Smart Contract itself. Instead of keeping a list of transactions and manually checking whether the terms of the contract have been fulfilled by the other party, a Smart Contract would get rid of the lengthy verification process and take care of things automatically. And making the market a more transparent place is clearly a great benefit for all parties involved.

But Smart Contracts are useful not only for established businesses aiming to maximize the market opportunities and fuel growth but also offer great benefits for start-ups. Smart Contracts can be a useful foundation for a start-up’s business model, as well as a way to accept payments and access financing. Some start-ups even used Smart Contracts to set up their entire system of operations given that, as we mentioned before, smart contracts can be integrated with the internet-of-things and artificial intelligence technologies in order to create a single platform and deliver better services to customers, as well as a more efficient workflow within the organization.

Businesses can benefit from smart contracts in so many different ways, and we are only at the beginning. As things will progress we will discover more and more insights about how game-changing this technology really is. Smart Contract technology might be only in an early stage of development, but you don’t have to wait for it to mature before jumping in, because it might be too late.

There is still a lot of roads to be driven on the path of Smart Contracts. Wide adoption will take place sooner than later, and advances in scalability, latency, flexibility and privacy will benefit them. These subjects are currently under constant development, and we will be able to see lots of improvements and opportunities in the near future.