Blockchain-based smart contracts allow parties to enter into agreements without third-party intermediaries by automating the execution and enforcement of the contract terms through code stored on the blockchain. Smart contracts can be used for rental agreements, option contracts, and other scenarios where payments or asset transfers are triggered by predefined conditions. For example, a smart contract for renting an apartment could automatically refund a tenant if the landlord fails to provide a digital key by the lease date, or release payment to the landlord once the key is sent before the rental period begins. All transaction details are recorded on the distributed ledger for transparency, with the terms enforced autonomously according to the original code.

1. Blockchain
Smart Contract
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2. Blockchain-based Smart Contract
 a decentralized system that exists between all permitted parties
 no need to pay intermediaries (Middlemen)
 saves you time and conflict
 decentralized ledger could be used for smart contracts, also called self-executing
contracts, blockchain contracts, or digital contracts
 contracts is converted to computer code, stored and replicated on the system and
supervised by the network of computers that run the blockchain

3. An option contract between parties is
written as code into the blockchain.
The Individuals involved are
anonymous, but the contract is in the
public ledger
A trigger event like expiration date
and strike price is hit and the contract
executes itself according to the coded
terms
Regulator can use the blockchain to
understand the activity in the market while
maintaining the privacy of individual actors'
posistion

4. Example: Apartment Rent
 Suppose you rent an apartment from me.
 You can do this through the blockchain by paying in cryptocurrency (bitcoin, etherium) or even
fiat currency stored in the wallet.
 You get a receipt which is held in our virtual contract; I give you the digital entry key which
comes to you by a specified date.
 If the key doesn’t come on time, the blockchain releases a refund.
 If I send the key before the rental date, the function holds it releasing both the fee and key to
you and me respectively when the date arrives.
 The system works on the If-Then premise and is witnessed by hundreds of people, so you can
expect a faultless delivery.
 If I give you the key, I’m sure to be paid.
 If you send a certain amount in bitcoins, you receive the key.
 The document is automatically canceled after the time, and the code cannot be interfered by
either of us without the other knowing since all participants are simultaneously alerted.
Owner Tenant
Contract
created
Blockchain
Pay money
Contract
date
triggered
Give digital key
Get digital key
Get money
Contract
expired
Revoke
digital key
Notify
expiration

5. Etherium
 Etherium Coding
Example

6. Need more info?
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