Are the smart contracts going to replace lawyers?

Blockchain technology is certainly a very creative and ingenious invention that has transformed the digital world. As a world’s leading software platform, blockchain allows cryptocurrencies to expand without need of a bank or a government, and it also saves you time.

Blockchain — it is a great innovation, a decentralized system that exist between all parties and there is no need of a “middle men”. Of course that there could be some problems sometimes, but the blockchain technology resolves them in a cheaper, faster, and more secure way, which is why many banks are turning to it instead of using the traditional systems.

In 1994, Nick Szabo, a cryptographer, was interested in this area and came up with an idea that the decentralized ledger can be used for smart contracts, also called as blockchain contracts or digital contracts. He defined smart contracts as a computerized transaction that execute terms of a contract. This type of contract could be transformed into a computer code, replicated in the system and then monitored by the networks that use blockchain.

So, what exactly is a smart contract?

A smart contract is a computer protocol created to digitally verify, enforce, or sign a contract. It is a self-executing contract that allows transactions between buyer and seller without any third party. Smart contracts help you to exchange documents, money, shares, property, almost everything of value in a transparent way, while avoiding banks, governments, brokers, notaries, agents, etc. Everything is directly written into the lines of code.

A standard contract outlines the terms of a relationship (by law), but a smart contract outlines a relationship with a cryptographic code.

Imagine you go to a lawyer and pay to get some document. With smart contracts, you can pay with a cryptocurrency and your document appears into your account! The whole process is safe and secure and smart contracts enforce all determined obligations.

Blockchain, as a decentralized system, does not need intermediaries at the process of transactions or signing contracts. That’s why it is the perfect space for smart contracts. Smart contracts carry out their work through a computer network that is controlled by the blockchain.

The main advantages of smart contracts are:

• Safety — data that is stored in these contracts cannot be hacked, your documents are encrypted on a shared ledger.
• Time saving — you save time because you don’t have to go to a lawyer or some company to sign a contract, everything is done by a code.
• Precision — there is no place for mistakes because there are no hand-filled contract forms.
• Autonomy — you are the only one making the contract, there’s no need of a lawyer, broker, agent, etc.
• Speed — smart contracts are saving hours of boring business processes and paperwork.
• Savings — usually, you have to pay a notary or a lawyer for some transaction, but smart contracts save you that money.
• Backup — your documents are duplicated on the blockchain and you cannot lose anything.

The smart contracts are performed through the Ethereum platform. Through this platform, smart contract are executed exactly as they are set up by the creators. Ethereum allows developers to create their own smart contracts.

The future is blockchain-based smart contracts!

Energy Premier utilizes smart contracts in multiple use cases. This includes ownership and transfer of electricity rights and tokens, price submission during a bid, automatization of bidding process and fulfillment of tasks once conditions are met, etc. Furthermore, smart contracts also ensure highest levels of data safety and eliminate potential for fraud and information manipulation.

That’s why out platform is a transparent, safe, secure place for trading electricity!

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Are the smart contracts going to replace lawyers? was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.