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- 1 Smart contracts are making their way ahead
- 2 Here are some real-life applications of smart contracts
Smart contracts are contracts that do not require any third party to execute the contract. They execute themselves if a certain condition is met. They are mainly used in blockchain networks. However, making the way apart from blockchain, they are emerging in real-life applications as well.
What are Smart Contracts
Smart contracts are the contracts that automatically execute the program if a condition is met. Once completed, the transactions under smart contracts are trackable but irreversible. Smart contracts works on a network of computers which executes the program automatically when the predetermined condition is met.
Smart contracts provide speed, efficiency and accuracy to the transactions. As there’s no third party involved, they also build trust and transparency. In addition to this, they also provide security as the transaction records are encrypted in a way that they can’t be hacked easily.
With the increase in implementation of Smart contracts in various fields, it shows us that they are emerging as the major technology in the recent past years. Many researchers believe that the Smart contracts can surpass the inefficiency and the issues related to traditional contract.
However, they are permanent in nature and cannot be changed once executed. But, smart contracts are the future of the contracts as they will change the way how traditional contracts operate.
Real- Life Applications of Smart Contracts
Supply Chain Management
Smart Contracts can help in supply chain management as they can automate many steps involved in the supply chain including shipping , inventory and payments. This will decrease delays in the supply chain and increase effectiveness.
Real Estate Dealings
Smart contracts can play a significant role in real estate deals. Several processes like transfer of ownership, title checks, and escrow payments, can be automated with the help of Smart Contracts.
Insurance coverage claims
Smart contracts can be utilized in the insurance claims process. These contracts can help the automation in the process like when a claim is submitted and authorized. Smart contracts can simplify the claims procedure.
Rights to Intellectual Property
Smart contracts can also help in the patenting and copyrighting process by automating the process of licensing. It will help in content like music, software and videos.
Votings System
Smart contract can potentially help in conducting voting systems. They can automate the process like vote counting and recording. They can also help in enhancing the transparency of the voting process.
Concluding thoughts
Smart contract are widely used in various real-life applications such as supply chain management, real estate dealings, insurance claim procedure, intellectual property rights, and voting process. They are emerging in a way that they can be used in more real- life applications like medical lines, farmers contracts, etc.
In an upcoming future, we will probably witness a sudden increase in the number of use cases of smart contracts. Smart contracts help the businesses in cutting expenses, boosting productivity, and improving customer satisfaction.
So, as to cope up with the future, it is critical for businesses to develop their business organizations with the most recent advancements.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
