Smart contracts and their significance in the PZMCash system

Welcome. 👋🏻 In this post, we will tell you about smart contracts and their role in the PZMCash system.

❓ What are smart contracts and what role do they play in the PZMCash system? Let’s look at this issue in more detail.

📌 At the conclusion of any transaction, as a rule, a contract is drawn up where all the conditions, rights, and obligations of the parties involved are prescribed. However, in most of the agreements, there are also intermediaries — banks, notaries, etc. Thanks to the active development of the blockchain, this need remains in the past. Ordinary contracts were replaced by smart contracts.

📌 A smart contract is an algorithm designed to automate the process of executing contracts. This is a set of rules and a sequence of actions for execution. These rules are automatically checked, and then the conditions are met according to the digital protocol.

📌 Smart contracts monitor the fulfillment of obligations of both parties, and also automatically charge penalties for failure to comply with the terms of the transaction. Smart contracts ensure transaction security and are free from the risk of ambiguous interpretation of conditions due to the fact that they are based on cryptography. They are also more profitable in material terms since there is no need to pay intermediaries.

🔹 In PZMCash, in order to access a smartcontract, the user will need to create an outgoing transaction to the address of a specific contract. As soon as the transaction is confirmed, its execution will begin. A smart contract receives information regarding digitized rights to an asset from an external source, and each blockchain node has smart contracts independently.

📖 Read more about PZMCash smart contracts here: https://pzmcash.com/en/