The general concept behind Smart Contract technology was first conceived by Mr. Nick Szabo in the mid 1990’s. Since that time, there have been many software engineers, theorists, and cryptographers working diligently to crack the code and find the best way to make this dream a reality. Fast forward 20 years, and individuals such as David Zimbeck, Peter Todd and others have begun to fulfill their dreams. Smart contracts are now a reality, and are providing the safety on the Bitbay market.
The term “Smart Contract” is widely used now. The only definition of the term that we accept is a contract that is enforceable without middlemen. The way we use it on the marketplace is that both buyer and seller lock a certain amount of Bay in a multisignature wallet. If the deal goes well, the parties release the locked Bay. If it goes belly up, both parties lose their locked bay, because one or both will refuse to release the deposit. This gives a strong incentive to fulfill your end of the bargain just like when you use an escrow (but without the cost of escrow).
But that is only the beginning. In the future we believe smart contracts will be implemented in a lot of new areas. The technology can be used in almost any kind of situation from auto-execution of a will to controlling the lock on your door.
These contracts are unbreakable, enforceable, and completely secure while simultaneously giving equal rights to both parties involved in them.