A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. The great thing about smart contracts is that they allow the performance of credible transactions while limiting the need for third party involvement. This now becomes a secure alternative to sending money through traditional vehicles such as banks or wire transfer services while promoting a strong contract between buyer and seller. In fact, smart contracts can even allow for the use of escrow agents to settle disputes and keep things in the best interests of both parties. These transactions are traceable and irreversible. The aim of a smart contract is to provide security that is superior to traditional contract law and to reduce other transaction costs associated with contracting.
