Advanced contract management
Introduction
A smart contract (in English smart contract) is a computer program that facilitates, secures, enforces and executes registered agreements between two or more parties (for example people or organizations). As such they would assist them in the negotiation and definition of such agreements that will cause certain actions to happen as a result of a series of specific conditions being met.[1][2][3].
A smart contract is a program that lives in a system not controlled by any of the parties, or their agents, and that executes an automatic contract which functions like an if-then statement of any other computer program. With the difference that it is done in a way that interacts with real assets. When a pre-programmed condition is triggered, not subject to any type of human evaluation, the smart contract executes the corresponding contractual clause.[2].
They aim to provide greater security than traditional contract law and reduce transaction costs associated with contracting. The transfer of digital value through a system that does not require trust (e.g. bitcoins) opens the door to new applications that can make use of smart contracts.
It is fast, efficient and precise. Makes decisions better than a conventional human would. It is also safe, since it must be planned with encryption to guarantee a level of security. Likewise, it encourages savings as it seeks the most economical way to do business.
A smart contract can also be defined as a computerized transaction protocol that executes the terms of a contract, where there can be as many stipulations as necessary to satisfy the needs of the participants, with the assurance that the task will be completed satisfactorily.
Smart contracts typically also consist of a user interface and sometimes emulate the logic of contractual clauses.
Smart property
A smart property (in English smart property) is a property right controlled using smart contracts.[4] It is the digital assertion of property rights of an asset through its entry into a blockchain, using the owner's private key. The owner of the asset can prove ownership to other individuals with the corresponding public key. When the owner decides to sell the asset, the smart contract completes the process by delivering the owner's private key to the buyer. Some types of properties such as trademarks, copyrights and patents can easily be smart properties as they can be easily encoded and processed as digital documents. However, with physical assets, this is where owners are most exposed to fraud. In fact, to register something physical, like a car, on the blockchain, we need to attach a unique tag or chip to it. If the information contained on the tag or chip can be altered, or can be torn off, smart ownership may not be guaranteed.[5].