What is a Smart-Contract?
A Smart-Contract is an account on a blockchain that holds a balance and can process transactions on the network. These digital contracts are stored on a blockchain and executed when pre-programmed conditions are met.
Smart-Contracts allow for automatic and therefore faster execution of contractual clauses. They eliminate the need for manual form filling and increase trust, as they are transparent and auditable. The immutability mechanism specific to the blockchain also allows any risk of modification in the contract clauses to the benefit of one party. These digital contracts therefore make it possible to rethink the need to use intermediaries to manage transactions, and thus optimize the time and costs associated with them.
What are its applications?
Decentralized finance (DeFi) represents a disruptive and unregulated alternative to traditional financial services. It is gaining popularity due to the trust, immutability and transparency features of blockchain technology and smart contracts. With transparency in nature contracts are functional 24/7, and allow for cost reduction. DeFi uses these mechanisms and cost reduction to lower the barriers of entry into financial services for people around the world.
Non-fungible tokens (NFTs) represent unique and indivisible content based on tokens and smart contracts. These NFTs facilitate access to the ownership rights of the underlying assets, and their uniqueness is publicly verifiable within the blockchain network.
Using tokenization, smart contracts allow access to fractional ownership of assets while lowering the barrier to entry for investments. Smart contracts can also be used in real estate to reshape real estate documentation and transaction processes.
How does Petale use smart-contracts?
Assets and contracts can be stored in Petale Cards to access smart-contracting features. The Petale network offers smart-contracting functionalities that are attached to the assets nested in the card. This digital and programmable contract allows a much cheaper and faster execution of notary procedures, but also a greater flexibility for asset management within the Petale ecosystem.