Transformative role of smart contract in asset tokenization

Smart contracts are digital agreements that are encoded directly into computer code and can be thought of operating much like a flow chart. For example, if an airline flight is delayed then pay compensation, if on time then pay nothing. Smart contracts utilize blockchain technology which functions similarly to a safe on-line ledger and can be globally available provided there is access to the internet. This means that transactions happen automatically without intermediaries once specific requirements are satisfied. And, because smart contracts only execute when the predetermined conditions are fulfilled, they improve transaction safety and dependability. Businesses can benefit from this in several ways, including tracking inventory, purchasing and selling real estate and managing finances. Smart contracts are computer programs written in languages such as Solidity (for the Ethereum blockchain) and Rust (for the Solana blockchain), and these contracts consists of several key components: