Posted: 01.07.2021 | 14:27
What is a Smart Contract?
The Ethereum revolution, known as Blockchain v2 after Bitcoin, paved the way for information transfer in the Blockchain network, apart from money. As a matter of fact, Ethereum was created as a platform where smart contracts can be run. So what does smart contract mean?
Ethereum enables us to perform many of the tasks we encounter in daily life more effectively and cost-effectively by removing the middleman. This could be a legal, financial or information system issue.
As an example, let's assume that Ali's Ethereum Blockchain also stores documents. These documents include his identity documents, title deeds and will. One day, when Ali dies, his death certificate will also be uploaded to the Blockchain.
In the post-death period, the transfer of Ali's house to the heirs will be a very painful process. Many parties that are in conflict with each other, such as heirs, lawyers, the state, tax offices and land registry administration are in the process. However, since all documents are stored in Ethereum, everything will progress and be resolved much easier. As soon as Ali's official death certificate is uploaded to Ethereum, there will be no obstacles to the immediate effect of the statements in Ali's will and it will be implemented.
Suppose Ali donates the house to his daughter, who is his sole heir, then the ownership of the house will automatically pass to his daughter on the Ethereum network. In order for this process to take place, there will be no need for a lawyer, and the necessity of the profession in this field will also disappear. Although this may sound a little scary, it has a serious benefit due to the time and resource savings it saves. It can also be considered as an environmentalist approach. It is an important technological development that the process takes place automatically only according to a predetermined rule.
Today, many impressive projects are carried out on various Blockchain networks such as Ethereum. With these projects, it will be possible to transfer the contracts, which are a burden on us in terms of time and cost in our lives, to Blockchain.