Is Maker Smart Contract The Same With Ethereum Smart Contract?

A smart contract is a self-executing contract with the terms of an agreement between the buyer and seller being directly written In lines of code. The code and the agreements contained exist on distributed and decentralized blockchain networks.

Smart contracts permit trusted transactions and agreements to be carried out among disparate and anonymous parties without any need for a central authority, legal system, or external enforcement mechanism. The smart contracts have within them, all the information about contract terms and take care of the actions automatically. They were originally designed by a computer scientist Nick Szabo.

With the evolution of blockchain technology, it is even faster and easier to operate with smart contracts. Also, when Ethereum emerged, smart contracts became accessible to everyone. Ethereum uses a more restrictive scripting language which allows developers to write their own programs. Also, these developers can create and program their own smart contracts.

Let’s say you want to rent a certain office space. You can do this via the blockchain and you can even pay in cryptocurrency. You will get in touch with the person who rents the space and he will offer your digital entry key. The key is designated to come on time. If it doesn’t, the blockchain will give you a refund.

The system with an IF-premise and it’s basically happening in front of hundreds of users. When you receive the key, the person who rents the place will get his payment. This way the contract is set and if the key is not received, the contract will be automatically canceled. Smart contracts can be used in a variety of industries such as credit enforcement, financial services, crowdfunding, and insurance.

Smart Contracts can improve the ability to secure record keeping. The blockchain technology behind it can make sure that all the personal information for example in health care, is secure and encrypted.  The healthcare system contains millions of records on patients and it’s extremely important to be kept safe. Current storage places are highly vulnerable.

All in all, smart contracts allow the performance of credible transactions without third parties.