Smart Contracts
Smart contracts are self-executing agreements with terms encoded in blockchain software, automatically enforcing obligations when predefined conditions are met without intermediaries.
| Smart Contract Applications | Real Estate Use |
| Automated payments | Rent payment triggers upon date, no manual processing |
| Escrow release | Funds transfer when milestone verified |
| Lease execution | Tenancy begins when deposit and agreement confirmed |
| Ownership transfer | Title updates upon payment verification |
| Dividend distribution | REIT/fund distributions automated |
| Compliance monitoring | Covenant breaches trigger alerts or actions |
| Benefits vs Limitations | Assessment |
| Automation | Reduces intermediaries, cost, time (benefit) |
| Transparency | All parties see same immutable record (benefit) |
| Security | Cryptographic protection (benefit) |
| Inflexibility | Cannot adapt to unforeseen circumstances (limitation) |
| Code bugs | Programming errors can be exploited (limitation) |
| Legal uncertainty | Enforceability still evolving (limitation) |
Related Terms
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