Smart Contracts and Blockchain Technology
Artificial intelligence (AI) I in collaboration with Blockchain, helps create quickly transactions quickly while limiting risks and fraud. In this respect, blockchain technology (distrbuter ledger technology) covers an automated system allowing real-time execution and verification of decentralized non modifiable and peer to peer transactions without intermediaries. In fact this article addresses the subject of artificial intelligence specifically the blockchain technology which has allowed the emergence of so called smart contracts
What are Smart Contracts ?
They are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.
How Smart Contracts Work ?
They work by following simple “if/when…then…” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified. These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. That means the transaction cannot be changed, and only parties who have been granted permission can see the results.
Within a smart contract, there can be as many stipulations as needed to satisfy the participants that the task will be completed satisfactorily. To establish the terms, participants must determine how transactions and their data are represented on the blockchain, agree on the “if/when…then…” rules that govern those transactions, explore all possible exceptions, and define a framework for resolving disputes. Benefits of smart contracts are multiple : speed, efficiency, trust and transparency.
Five Companies Already Brilliantly Using Smart Contracts : Fizzy AXA (French Airline), Etherparty (Start Up), Propy (Real Estate), Populous (Global architecture design), Bonus: PolySwarm (Network for detecting malware).
Benefits of Blockchain and Smart Contracts in the Government and Public Sectors
- Identity Management : Governments can establish well-protected digital identities of their citizens, Gathering all the private data, e.g., birth certificates, passports, marriage licenses, driving licenses, etc.
- Taxation : Speed up and streamline tax collection processes with smart contracts, the contracts can be used for checking if tax data matches with the transactions made or calculating social security and tax deductions, implementing a public ledger, tax departments can decrease the cases of tax fraud.
As a conclusion, smart contracts seems the best solution to fight against fraudulent actions by ensuring instantaneous, non-modifiable, transparent transactions without intermediary.
