Application of blockchain technology in the creation of smart contracts

The aim of this paper is to elaborate in more detail, through a brief explanation of the basic elements, the essence of the functioning of blockchain technology, which is a prerequisite and basis for the emergence and functioning of smart contracts, as a modern alternative to using conventional contracts. The nature of the connection between these two concepts points out the differences between conventional and smart contracts, defines the advantages that smart contracts have over the conventional ones, and thus contributes to a more complete understanding of the concept of smart contracts. In this paper we will try to explain how to use the benefits of block chain technology in many other areas of human activity, such as creating and exchanging crypto currencies, exchanging securities, things, documents, real estate, gems or other goods, on the example of smart contracts. In general, these advantages relate to the elimination of the need for intermediaries (in this case, lawyers and notaries), the reduction of the possibility of fraud and increasing the level of security in performing various types of legal transactions as well as acquiring full confidence in the accuracy and correctness of various types of records due to inability to change once stored and from a large number of equal partners, verified transactions.