SMART CONTRACTS AND FUTURE DEVELOPMENTS: A COMPREHENSIVE REVIEW OF APPLICATIONS AND CHALLENGES

The evolution and restructuring of traditional corporate, economic, and industry processes have been made possible by smart contracts.The implementation of smart contracts in various industries was made possible by the favourable global evolution.Smart contracts are digital agreements that are incorporated into blockchain technology and are executed when certain requirements are satisfied.In a nutshell, smart contracts are programs on computer that attempt to carry out the actions specified in the contract.The removal of trusted third parties, arbitration fees, and potential frauds are the main benefits of smart contracts, which smart contracts have been able to successfully support.Smart contracts have vowed to lead the way in company advancement.Smart contracts can also be divided into different sorts according to their intended use.Despite the assurances, smart contracts present few issues and limitations to consider.The current legal framework does not recognise that smart contracts are legally binding.Security risk, immutability, and flexibility are all perceived as obstacles.Anticipating a significant change in future smart contracts offers a lot more.This paper attempts to make smart contracts, in the context of banking sector, a topic of discussion by highlighting what smart contracts are and what they have to offer to the world, while also addressing their strengths and weaknesses.