Do Ethereum Smart Contracts Have Any Future?

Blockchain is arguably the most promising innovation of technology. With time, individuals, organizations, and governmental bodies are also embracing smart contracts and adapting to their appealing features.

The use cases of smart contracts are gaining a lot of attention these days as they are digitizing global processes. One possible reason for the worldwide popularity of smart contracts is that they are much faster and less costly than traditional contracts.


Today, they optimize almost every business operation; some explicit terms and conditions govern these self-executing protocols. Therefore, smart contracts are something that will stay. Hence, the pressing need is to be vigilant about smart contract security.

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They have a great future, which we will discuss in detail in this blog.

Smart Contracts Are Advancing

Smart contracts have a lot of potential; to accommodate the growth, they must advance. In today’s smart contracts, several technical restrictions, including scalability issues, have contributed immensely to reducing transaction speed and maximizing the inability to process complex computations.

The Automated Nature Of Smart Contracts

Smart contracts execute transactions automatically and relentlessly without any human intervention. However, this and its irreversible nature, because of which no one can easily ammend or terminate the existing rules and regulations paves the way to many great challenges that come in the path of widespread adoption of smart contracts.

Whatever happens, once a smart contract is deployed on the blockchain, it cannot be reversed or undone. The only option left will be to create a new one. So, this is something that creates problem.

Smart Contracts: A Transparent Way To Do Business

It’s no secret that smart contracts have radically transformed several industries like finance, manufacturing, real estate, telecommunications, retail supply chain, and more. They have accelerated the efficiency and speed of carrying out transparent transactions without the need for an intermediary. The entire process of how internal business and trade are executed has changed dramatically.

Ethereum is one of the most widely-used and popular blockchain platforms for creating smart contracts. They have solved the problem of scalability and costs. This way, smart contracts have evolved to become a foundational technology in blockchain and a crucial element of the Ethereum network.

Blockchain complements smart contracts in the best way possible – as data can never get lost, deleted, or modified in this environment.

“It is speculated that all the organizations that use blockchain smart contracts have a better quality of data by over 50% as compared to the ones that don’t.”

A Disruptive Financial Technology Innovation – A Boon For Everyone!

If you wish to execute even more complex functions, it is easy to club smart contracts with decentralized applications within the decentralized finance environment. Hence, the massive role that smart contracts play within financial technology (FinTech) is quite apparent. As a result, the accuracy and verification of the transactions have improved.

The most popular use case of smart contracts has to be within the financial industry, for they strengthen trust in conditional transactions. Examples include payment processing, trade finance, settling financial instruments, and more. All of these benefit greatly from smart contracts.

Now that fintech giants like Paypal have already tapped into cryptocurrencies, it is expected that something big is in store for other digital finance companies too. It is also possible that we will witness a new generation of finance stepping into the limelight.

One of the best examples of this upcoming revolution is that Paypal has planned to launch a crypto ‘super app.’ This will be an amalgamation of smart contracts and blockchains to improve payments and other transactions significantly.

Because the data in blockchain transaction records are encrypted, security mechanisms can be added to a smart contract to automatically create backups and duplicates if the original data is damaged, lost, or compromised. Each entry is linked to records that came before it on a distributed ledger. Thus to update one item, the entire chain must be changed.

Smart contracts operate automatically, eliminating the need to file paperwork or fix mistakes manually spelled out in the agreements; therefore, some degree of confidence is involved. Smart contracts may be completed quickly and inexpensively.

FinTech will see new products and business models with this automation of digital asset flow. Also, financial institutions would not require to depend on post-trade financial market infrastructures as monitoring and enforcement costs will surely decrease with blockchain smart contracts.

Certainly, blockchain smart contracts have the caliber to transform the entire way how people make agreements across different sectors and industries, especially fintech. However, this will not come very soon– people need to spend some time and certain developments need to take place before it reaches its mainstream approach for blockchain community.

Smart Contracts: What’s In Store For The Future?

People are indeed thinking about effective solutions to advance the capabilities of smart contracts. When this happens, industry experts are sure about enterprises’ future usability of smart contracts.

Undoubtedly, the world has shifted into a sci-fi drama! With time, as blockchain technology is gaining confidence and people are adopting it, it will take little time to see smart contracts turn far more mainstream very soon. However, before people adopt this technology completely, smart contract security is something they ought to take very seriously; else, they can fall prey to massive hacking exploits in the future and lose access to their funds.

For starters, we can see smart contracts becoming a thing in several areas–are we not aware enough of how they have enhanced customer care experience in the present and will continue to do in the future as well?

Despite its potentially disruptive consequences, the decentralized system needing more central authority is still unsettling for many people, primarily because data localization and border control are some aspects that still need to be explored further from the reach of blockchain-based systems.

Thus, even if the future of smart contracts seems to be opulent, there’s still a long way to go.

The Bottom Line

A smart contract is a crucial enabler/disabler within the blockchain environment. Despite the numerous dazzles that blockchain technology has, it is still in its nascent age, and it will take time for people to accept it completely.

Hence, it is crucial to investigate all the legal and regulatory issues before introducing smart contracts.

And also, note while every smart legal contract will include the components of smart contracts, it is not mandatory that every smart legal contract will be a smart legal contract.

It might only be a matter of time before the expenses connected with the ground-breaking technology become more affordable for other potential consumers throughout the world thanks to the support of the industry’s leading stakeholders.

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