Smart Contracts…Why They Are So Important to the Future

by | Feb 26, 2022 | 0 comments

A Smart Contract is a blockchain-augmented representation of a traditional contract with counterparties, rights, obligations, and considerations. They allow for the execution of either a portion or the entirety of, contractual rights and obligations with reduced human oversight and management.

The contractural terms and conditions of a smart contract are written directly into the underlying blockchain code – which increases the integrity of its terms and conditions.

Aspects of a Smart Contract

Coding & Contracts  – An aspect of utilizing smart contracts is the ‘translation’ of traditional contracts into a code-based contract – resident on a digital platform, ie. blockchain. This process must be executed by both legal and technical experts.

Flexibility vs. Ridigitity – Contracts provide assurance over rights, terms, conditions due to defaults or breaches. Smart contracts, which are rigid must be adjusted to enable flexibility in the face of changing conditions.

Contractual Controls – Blockchains are tamper-resistant so their use requires that controls must be put in place to ensure there are no hacking or data breaches.


Smart contracts will most definitely play an important role in our future. Yet, anyone using this new technology must fully understand their challenges and opportunities.


Categories: Blockchain

By Jim Lavorato

Jim Lavorato is the founder of 4M Performance which is designed to assist businesses to survive and thrive in these uncertain times. Jim launched an entertainment-related company in 1988. He was at the forefront in cinema technology and helped spearhead the movie industry's transition to digital presentation and distribution. He also co-founded the Arboreal Group, an environmental consultancy. He has published articles on the motion picture and media industries and is a contributing editor for ScreenTrade magazine and writes a blog "Cinema Mucho Gusto". He is a certified SCORE Mentor in the SCORE Greater Phoenix Chapter and lives in Scottsdale, AZ. Learn more about Jim in his "About" page.

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