An important aspect of blockchain technology is, it has gradually limited the use of intermediary users in virtually every field it finds application with this said blockchain aims to increase scalability by improving users' transparency in any executed transactions by reducing the rate of fraudulent activities across businesses and any financial marketplace.
The need for self-executing codes that are cryptographically integrated into blockchain technology has helped accelerate how business deals can be closed among different parties these codes legally bind users into agreeing on simple deals without involving any legal party.
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What are smart contracts in blockchain and how they work
Smart contracts in blockchain are written codes that self-execute contracts (transactions) with terms of agreements between the buyer and seller, the codes mainly control the execution of all conducted transactions which exist across a decentralized distributed blockchain network.
Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.
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In general, it functions as a middleman for both parties acting like a general binding law between merchants.
Smart contacts limitation in businesses
Research from Grayscale shows smart contracts would be incapable of handling world 10% transactions traffic, citing there's more room for Materverse and decentralized finance (DeFi) growth.
Another limitation business enterprises are concerned about in the use of smart contracts is privacy use case since blockchain operates publicly which does not support the use of private close business buying and selling for most enterprises transactions are kept private from the public considering the level of transparency in blockchain, enterprise level of privacy is high which limits the adoption of smart contract use.
Developers have lately been working on improving how these limitations can be used to enhance the use of smart contracts in business, Algorand is one of the leading blockchains working on smart contracts privacy solution.
Smart contracts in the future
Blockchain technology is gradually revolutionizing today's industry providing simple solutions to complex problems although there is plenty of room for improvement and increasing scalability problems for smart contracts use in the future for businesses, this will solve the problems of complex systems that require the use of multiple participants to execute close transaction, with this adopted in our today's businesses it will reduce cost and save time.
Integrating this technology into businesses will require a lot of input which is been gradually developed today, few organisations are ready to embrace this technology which shows a lot of work need to be done ahead.
Used references
The future of smart contracts adoption for enterprise
What Are Smart Contracts on the Blockchain and How They Work
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good ideal to key into but really hard to understand how it works
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