Are you a smart contract developer? If yes, then your work can be tedious. It is because blockchain technology is not only about cryptocurrency. You can use it to design everything, starting from the voting system to medical record keeping. However, only a few applications of blockchain technology have jumped from theory to a functional prototype till now. But first of all, let us learn about smart contracts and their benefits:
What are Smart Contracts?
Smart contracts are software development programs executed on the basis of specific logic and agreements. These programs run on localized networks whose records cannot be tampered with or changed after registering transactions. So, they are a reliable way to perform transactions requiring transparency, trust, and anonymity.
Benefits of Smart Contracts
The key benefits of smart contracts are as follows:
- Autonomous: Smart contracts offer automation which means no third party can make changes in decisions or agreements.
- Secured: Smart contracts enable processes to complete securely. Also, encryption makes them work as intended.
- Interruption Free: If smart contracts start execution, they cannot be interrupted or stopped.
- Trustless: There is no need to trust other parties to carry out a transaction. It does not require trust as an integral part.
- Cost-Effective: Smart contracts make trades cost-effective with the removal of intermediaries.
- Fast Performance: Smart contracts get executed faster than the old-fashioned traditional method. All the parameters are pre-defined within the smart contracts, so it only needs to match them before execution.
- Accurate: Smart contracts are error-free. The only thing is that you need to code them correctly.
10 Practical Examples of Smart Contracts on Blockchain Technology
Here are some of the examples of smart contracts development:
Best customer experience
Smart contracts can develop a strong B2C relationship in real time. For instance, suppose there is a shoe brand in partnership with a streaming music service. It gives a complimentary subscription time if the buyer creates a playlist for listening while they jog.
A smart contract also sends customers a discount on new shoes and suggests similar tempo songs to add to the playlist. In addition, it can enhance customer expectations by supporting runners who like tracking fitness and listening to music.
High Securities
Another useful smart contract practical example is security. You can simplify or improve the capitalization table management with smart contracts. It means that there is a channel between the parties, including security custody chains. You can also use it for automatic payments, dividends, stock splits, and liability management. In addition, contracts can allow you to make workflows digitized and reduce operational risk.
Records
Nearly all industries worldwide can use smart contracts to improve the speed and security of record-keeping. One of these industries that stands to benefit a lot is the healthcare industry. The global healthcare computer systems currently hold trillions of patients’ medical records. Though these healthcare organizations have invested a significant amount in security, current storage methods are far more vulnerable to cyber crimes than their blockchain-based equivalents.
You can securely encrypt or keep the databases of personal health records using blockchain technology. In addition, this technology facilitates using a private key, meaning only certain individuals can access the data. Some other blockchain smart contracts examples include storing receipts, issuing prescriptions, storing test results, general stock management, etc.
Fill the Gap in Entertainment Consumption
Blockchain technology can improve consumers’ interaction with their preferred entertainment choices. For instance, non-fungible tokens (NFTs) authenticate ownership of digital assets. A smart contract can simplify the selling, buying, and trading of NFTs. Moreover, there is interest in using smart contracts to pay independent creators like filmmakers, authors, and musicians. This automation eliminates the need for intermediaries for processing royalty payments.
Cross Border Payments
You can revolutionize trade finance with the help of smart contracts. Undoubtedly, it can allow trade payment initiations and international goods transfer by using a Letter of Credit. In addition, smart contracts can also improve the liquidity and efficiencies of financial assets.
It is important to find the industry standards and implement them accordingly to make smart contracts work in trade finance. It happens especially in international trade and cross-border payments. You can solve the legal complications and provide a better way to solve problems among parties with proper integration.
Maximize Productivity for Human Resources
You can automate an HR manager’s workflow via distributed ledger technology. For instance, an HR employee can perform reference checks and confirm employment history. A smart contract can ease the onboarding of employees by simplifying verification tasks. In addition, blockchain technology can automate responsibilities like enforcing employee contract terms, penalties and paycheck processing.
Property Ownership
Smart contracts have two significant examples when it comes to the property market. Firstly, you can use them to record property ownership. The use of smart contracts is more cost-efficient and faster, so it makes them a better alternative to existing systems. It also means you can use them to record the ownership of all properties from land, buildings, phones, and watches.
Within the housing sector, smart contracts can eliminate the need for expensive services like those provided by housing brokers and lawyers. This technology also means that sellers can handle the transactions by themselves for the first time ever.
Supply Chain Management
Some areas of supply chain management can benefit from enterprise blockchain. Smart contracts can increase the product’s traceability and materials. For example, blockchain software can track the origin of items as it moves between international supply chains by calculating tariffs. Some organizations are also exploring smart contracts on blockchain technology. In such cases, blockchain has the potential to minimize errors and increase efficiency.
Product Development
Another example of smart contracts is keeping a record of the product development stages. Two parties will sign the contract to activate it. For example, you can record the stages, and other relevant information to the smart contract with the development of a project. If the parties agree to such things as split payments, the agreement will initiate their release when reaching the milestones.
Efficient Utility Distribution
The opportunity to use blockchain technology is growing in the energy industry. For instance, it can automate electricity delivery from an energy firm to a consumer. Executing smart contracts can simplify energy trading by connecting small energy producers. Also, a smart contract can certify renewable energy sources. Blockchain can process and record transactions, making implementation promising.
The Bottom Line
Are you interested in adopting smart contracts of blockchain technology for your businesses? If yes, it is better to look for the potential of smart contracts. The only limitation is your imagination. Smart contracts offer a unique way of solving all business problems. So, it is best to explore them asap.
