The term of smart contracts is coined by Nick Szabo in 1997 and described as the digital automation of certain aspects of traditional contracts. In 1997, Szabo proposed the use of computers and the newest cryptographic algorithms to fix some of the issues that traditional contracts have, and this secure digital automation is what he called.
According to the Aleph Report, smart contracts can solve several problems: the first one is the enforceability. When you sign smart contracts, it can be described as a computer protocol that has the aim of digitally facilitating, verifying or enforcing the negotiation or performance of a contract. The transactions are trackable and irreversible, so it is safe and secure.
The second problem that smart contracts can solve is transparency. In a traditional situation, one side of the contract owner might have insider’s information, putting the other party having the disadvantage toward negotiating the contract. Smart contracts could solve the problem because blockchain technology provides a high level of privacy by ensuring that transaction details are shared only among the participants involved in those transactions.
The third problem is, there is no universal set of rules that apply on a global scale for how we negotiate the terms of the contract. The dispute resolution laws, or the consequences of a breach of the agreement, will vary wildly between jurisdictions, cultures, and continents. Smart contracts would solve the problem since the third-parties like lawyers, government bodies etc. would not involve in the transaction process.
Smart parking industry would be benefited by smart contracts because the contracts can be universal, it can have your variable rates based on time and high demand times. Transactions are quick and cheap, based on a decentralized network and the use of a utility token.
Parksen is using the smart contract as part of our platform solution. Join us for the parking revolution!