What is a smart contract?

We constantly say that all participants of Briastorm CPS platform are protected by a smart contract. Let's figure out what a smart contract is and why it's needed.

A smart contract is a computer algorithm. Its purpose is the transfer of information and enforcement of contract terms by both parties. Such contracts make it possible to carry out reliable and confidential transactions without the participation of external intermediaries like banks or state bodies. These transactions are traceable, transparent and irreversible.

Smart contracts contain information about the obligations of the parties and monitor their compliance. Also, the contracts themselves automatically monitor compliance with all the terms of the contract.

Required attributes of smart contracts:

- use of electronic signature methods based on public and private keys available to two or more parties of the agreement;
- presence of a private decentralized environment (for example, Ethereum), in which smart contracts are recorded;
- the subject matter of the contract and the availability of instruments necessary for its execution
- precisely described conditions for its execution, which parties confirm with a signature

The main advantages of smart contracts:

- autonomy (to confirm the transaction, you do not need to look for an intermediary in the person of a broker, bank, notary, etc.);
- reliability and security (a multiple-duplicated contract is stored in an encrypted form in the blockchain);
- speed - thanks to the blockchain many intermediaries are eliminated and processes are automatized;
- accuracy - due to automation and minimization of manual work, the probability of errors is reduced.

Smart contracts on the Briastorm platofrm guarantee a transparent relationship between the advertiser and the webmaster. They work directly without intermediaries, the formation of links and accesses process automatically.