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The global Smart Contracts market size is projected to reach US$ 1460.3 million by 2028, from US$ 315.1 million in 2021, at a Compound Annual Growth Rate (CAGR) of 24.2% during 2022-2028.
A smart contract is a code executed deterministically in the context of a blockchain network; each participant in the network verifies the state-changing operations that a smart contract’s code makes. Smart contracts are the primary means developers can create and manage tokens on a blockchain. Smart contracts can store small amounts of data in common data structures, a critical component of tokenization use cases that map token identifiers to owner identifiers to track who owns which token.
The use of smart contracts in automation includes self-executing computer programs, which makes it possible to automize processes, and payments to enhance efficiency fuelling the global smart contracts market. Furthermore, rising government initiatives in blockchain technology boost the growth of the global smart contracts market.
The demand for smart contracts is growing rapidly due to the above-mentioned benefits, ultimately supporting the growth of the global smart contracts market. The rising application of smart contracts in various industries such as banks, government, healthcare, financial services companies, and supply chains are expected to fuel the market growth. Using smart contracts results in eliminating errors that occur due to the manual filling of numerous forms. Furthermore, only specified persons would have access to the documents due to privacy issues. Similarly, smart contracts may be used to conduct research privately and securely.
However, blockchain technology is involved in the smart contract, but the lack of standardization and interchangeability of the blockchain technology creates a challenge in developing smart contracts, and this factor is anticipated to hamper the growth of the global smart contracts market. Also, Smart contracts aren’t always able to manage confusing terms and conditions since contracts involve terms that aren’t always understood.