Smart contracts are contracts that do not require any third party to perform the contract. They run if a certain condition is met. They are mainly used in blockchain networks. However, apart from the blockchain, they are also emerging in real applications.
What are smart contracts
Smart contracts are the contracts that automatically execute the program if a condition is met. Once completed, transactions under smart contracts are traceable but irreversible. Smart contracts operate on a network of computers that execute the program automatically when the predetermined condition is met.
Smart contracts provide speed, efficiency and accuracy to transactions. Since no third parties are involved, they also build trust and transparency. In addition to this, they also provide security as the transaction records are encrypted in such a way that they cannot be hacked easily.
With the increasing implementation of smart contracts in various fields, it shows us that they are becoming the mainstream technology in recent years. Many researchers believe that smart contracts can overcome the inefficiencies and problems associated with the traditional contract.
However, they are permanent in nature and cannot be changed once executed. But smart contracts are the future of contracts because they will change the way traditional contracts work.
Real applications of smart contracts
Supply chain management
Smart contracts can help with supply chain management as they can automate many of the steps involved in the supply chain, including shipping, inventory, and payments. This will reduce delays in the supply chain and increase efficiency.
Real estate transactions
Smart contracts can play an important role in real estate transactions. Several processes such as transfer of ownership, title checks, and escrow payments can be automated using smart contracts.
Insurance coverage requests
Smart contracts can be used in the insurance claims process. These contracts can help automate the process, such as when a claim is submitted and authorized. Smart contracts can simplify the claims procedure.
Intellectual property rights
Smart contracts can also help in the process of patenting and copyright protection by automating the licensing process. This will help in content like music, software, and videos.
A smart contract can potentially help drive voting systems. They can automate the process like counting and recording votes. They can also help improve the transparency of the voting process.
Smart contracts are widely used in various real-world applications such as supply chain management, real estate transactions, insurance claims procedure, intellectual property rights, and voting process. They are emerging in such a way that they can be used in more real-world applications such as medical lines, farmer contracts, etc.
In the near future, we will likely see a sudden increase in the number of smart contract use cases. Smart contracts help companies reduce expenses, increase productivity and improve customer satisfaction.
Thus, to face the future, it is essential that companies develop their business organizations with the latest advances.