Smart Contracts - What Are They And Why Do Businesses Need Them?

4.2
Smart Contracts - What Are They And Why Do Businesses Need Them?

Smart contracts are agreements between two or more parties stored securely inside a blockchain. Smart contract development services include creating & implement

With the advent of blockchain technology, the use of smart contracts increased significantly. Many industry leaders and tech giants are exploring the use cases of smart contracts to enhance their business models. Enterprises need a solution to cut down the substantial fees they spend on regulating & securing transactions. Smart contracts provide the exact solution. They emerged as the most trusted & direct form of agreement between people and organizations without third-party intermediaries.

Blockchain-powered smart contracts are self-executing computer protocols. They regulate the agreements between traders and are recorded on a blockchain. Smart contracts control the overall transaction execution and make them transparent, traceable, and irreversible.

The primary purposes of implementing smart contracts are automating the processes and eliminating the need for mediators - central authority, third-party agencies, or brokers - from the transaction processes.

Practical Use Cases Of Smart Contracts

Digital Identity

Implementing smart contracts in digital identity management would reduce identity theft & data misuse to a greater extent by making KYC mandatory and eliminating multiple parties involved in the transaction.

Trade Finance

Smart contracts make the global trade finance processes more streamlined and secure by reducing the processing time, eliminating intermediaries, cutting costs, and increasing transparency and trust.

Clinical Trials

Smart contracts reduce manual errors significantly and provide an excellent opportunity to rebuild an existing clinical trial process stored on a blockchain network, thereby enhancing the overall quality.

Global Trade

Blockchain-based smart contracts could enhance the communication between importers and exporters by automating the agreements, settling the trades quickly, planning business events and other processes.

Escrow Services

Smart contracts regulate P2P transactions by acting as escrow services. Traders can securely exchange funds or assets, and since smart contracts run on the blockchain, there is no room for dispute.

Government Processes

Adopting smart contracts in government systems will eliminate manual-intensive processes, reduce higher management costs, end corruption, and increase trust in government schemes.

Supply Chain Management

Implementing smart contracts will improve logistics businesses' efficiency, transparency, traceability, and accountability while simultaneously strengthening the relationships among participants.

Education Platforms

Smart contracts play a vital role in upgrading the current education system by making the learning materials readily available, connecting teachers & students directly, and tracking payment distributions.

Decentralized Finance

Smart contracts create exciting opportunities for small & medium businesses, facilitate P2P payments & settlements, create secure marketplaces boost energy management, and monitor the loan processes.

Conclusion

Businesses can create and implement secure, credible, and fully-functioning smart contracts with our smart contract development services to automate their workflow.