To Understand Smart Contracts – Know The Blockchain
In order to figure out how the Blockchain can put the world’s most annoying jobs out of business, we need to understand what the Blockchain is. Basically, it’s a digital transaction ledger. Very similar to an accounting balance sheet, and it can be accessed by anyone connected to the internet.
It can record and store all digital transactions in a secure, efficient, and decentralized way. Transactions on the platform are recorded in blocks, imagine pieces of paper that are filled with data and other info. Anyone who uses the Blockchain can remain anonymous.
The Blockchain provides the possibility for smart contract creation. These contracts are legally binding and are automatically self-executed. They are digitally stored on the Blockchain.
These contracts can be used to exchange money, buy goods, services, and even sell music. Reducing the need for lawyers, banks, and other intermediaries.
What Jobs Can the Blockchain And Smart Contracts Put Out of Commission?
The Blockchain and smart contracts work on an If-Then logic. An asset or a currency is put into a computer program that runs a code, checks conditions, and upon all conditions being met, funds are distributed. Imagine that you would like to rent out your home. To do so, you would need to hire a real estate agent, agency, or website. Which would find you tenants, file papers, and then take a big fee.
The Blockchain can reduce the need for that. All you need to do is encode a contract on the Blockchain with some bitcoins as a payment. Then, a possible renter would see the contract and offer to take part.
The contract would state that the renter needs to send a set number of bitcoins by a specific date via the Blockchain. If the money is sent then a digital key to your home would be given to the renter on a preset date.
If something goes wrong, the Blockchain will detect that conditions aren’t met and will assign a refund. Smart contracts can eliminate the need for intermediaries like rental agencies that charge high fees.
With Blockchain You May Never Need to Deal With A Financial Institution Or A Lawyer Again
The Blockchain and smart contracts can reduce the need for banks and lawyers. Sure, you can send money online and even make payments through your phone. However, these transactions are always processed by financial institutions like Square, Citibank, and Wells Fargo. They also charge you fees, take time, and errors can be made.
When a transaction is made on the Blockchain it’s confirmed, time-stamped, checked for errors, and instantly approved by every computer connected to the network. Checks that banks must do manually can be done automatically on the Blockchain.
Thanks to this, the need for lawyers with to deal with ownerships, post-contract issues, arguments, and transactions can be avoided. The Blockchain is moving us towards a time where property can be bought without brokers, you can get loans without banks, and contracts without lawyers.
Smart Contracts Mean Freedom For Intellectual Property Creators
Musicians, artists, and writers can bypass the need for record labels, banks, galleries, and publishers. They can add their work to the Blockchain, stamp it with digital watermarks for proof of authenticity and ownership. Then, they can tie their work to smart contracts and obtain freedom as to who, when, and where they sell their work, while retaining full legal rights and royalties. This new tech can be very detrimental to companies like Spotify, Apple, and Sony.
Smart contracts and the Blockchain can allow you to work without middlemen like Uber, Gett, and etc. A driver could launch a smart contract on the Blockchain with their transportation service offering and work for themselves. A potential passenger could accept the contract through their phone. Money would be placed in escrow, once the passenger reaches his or her final destination safely, the funds would be moved from escrow to the driver’s account. The driver would receive the money without paying a chunk of fees to intermediaries like Uber. He would then only need to care about his own business costs.
The Blockchain Smart Contracts Will Remove The Middle Man
The Blockchain will most definitely replace some white collar jobs. If that really does happen remains to be seen in the future. The potential here is great, as well as the benefits that users can gain. The Blockchain and smart contracts will simplify many aspects of modern life by reducing the need for annoying jobs and middlemen.
Sure, the Blockchain is capable of destroying jobs. However, it will also allow people and companies to save huge amounts of money while improving the efficiency, security, and ease of exchanges, deals, agreements, and transactions.