Compared to ordinary contracts, smart contracts have some advantages.

Reliability: If a smart contract is programmed correctly, difficulties in interpreting the terms of the contract are almost impossible. This also excludes the loss of documents.

Security: Cryptographic encryption techniques shield smart contracts from hackers. The contract's negotiated conditions cannot be altered later. However, this does not exclude hackers from altering and fiddling with the source code.

Efficiency: Creating a smart contract requires less time than performing administrative tasks. Contractors save time and money as a result.

Independence: Redundant entities such as banks, insurance companies or public authorities can be replaced by decentralized, intelligent contracts. The immutable blockchain is used to verify a contract. Only the program code of a contract determines whether the terms of the contract have been fulfilled correctly or not.

The inclusion of a cryptocurrency in the digital contracts is another option. This indicates that payment for contract fulfilment may be made directly in a cryptocurrency, however it is not required.