What is an advantage of using smart contracts?

Using smart contracts offers a significant advantage in terms of reducing the costs associated with execution. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. This automation minimizes the need for intermediaries, such as brokers or legal advisors, which can lead to lower transaction fees and administrative expenses.

Moreover, the efficiency of smart contracts enables quicker transactions, thereby reducing the time and resources spent on contract management. The decentralized nature of blockchain technology enhances transparency and trust among parties involved, which also helps in avoiding costly disputes. Overall, smart contracts streamline the contract execution process, leading to substantial cost savings compared to traditional methods.