Traditional physical contracts, such as those created by legal professionals today, contain legal language on a vast amounts of printed documents and heavily rely on third parties for enforcement.
This type of enforcement is not only very time consuming, but also very ambiguous. If things go astray, contract parties often must rely on the public judicial system to remedy the situation, which can be costly and time consuming.
Smart contracts, often created by computer programmers through the help of smart contract development tools, are entirely digital and written using programming code languages such as C++, Go, Python, Java.
Written in IF THIS happens THEN THIS happens. Everybody understands this language, not like in legal docs. This code defines the rules and consequences in the same way a traditional legal document would, stating the obligations, benefits and penalties which may be due to either party in various different circumstances. This code can then be automatically executed by a distributed ledger system.
Governance (secure, fair, voting system), Management, Case History (store all transaction history), Supply Chain (deliverables vs payments), Automobile (self driving cars), Crowd Funding, Real Estate (no intermediaries), Healthcare (share medical conditions everywhere).