What a smart contract does, and what it should not
A smart contract is a small program stored on a blockchain. It holds a set of rules and, when the inputs it receives match those rules, it moves value or updates a record without anyone pressing a button. That is useful where several companies need to act on the same facts: a delivery was received, an inspection passed, an instalment was paid.
It is not a replacement for your legal agreement, and it cannot know what happens in the physical world on its own. Something has to tell it that the goods arrived. That something is called an oracle, and choosing it is the most important design decision in most projects. It might be a signed confirmation from a named inspector, a scan event from your warehouse system, or a bank notification.
We therefore start every engagement by separating what belongs on the ledger from what should stay in your existing systems. Contracts stay small on purpose. Less code means fewer places for a defect to hide and lower running cost. Personal data stays off the chain entirely, which also keeps the design compatible with the Personal Data Protection Law.
