Blockchain technology has offered many solutions to the business industry. Smart contracts are one of the biggest innovations blockchain has to offer to the business world.
Smart contracts allow you to come to a legal agreement through programming. Conventional contract processes are very complex and lengthy processes that can be simplified through coding and programming.
Smart contracts also simplify commercial transactions without involving any third party. As there is no requirement of a central body for its operation, smart contacts can be used to perform a variety of actions. In this post, you will find some of the top real-life applications of smart contracts.
5 Applications of Smart Contracts
Smart contracts are now used by many industries for legal agreements and business contracts. Here are some of the use cases of smart contracts.
Intellectual Property Rights
Are you a content creator? Do you have a digital platform where you store your content? Are you a journalist? If you are one of the above you will definitely need smart contracts for having the legal rights of your content.
You will no more need lawyers or legal advisors for this purpose.
You can sell it to your clients by having ownership and authority. You can also offer your intellectual property with your authority for free. Nobody can use your content without your permission.
Finance and insurance industries are facing a lot of problems in their operation. Mainly insurance companies are facing the challenge of fraud.
For which the insurance company as well as the insuree has to visit the doors of the court. This can be significantly reduced by the use of smart contracts.
Smart contracts can lessen the risk of fraud in the insurance industry. It may not completely reduce the fraud but it can reduce arguments in the court. More importantly, there will be no requirement for notaries or any lawyers for coming into an agreement.
Supply Chain Industry
A supply chain system is very important for shipping and logistics purposes. The supply chain system is a very complex network where different businesses are connected. The network of companies come into agreements for daily operations.
With smart contracts, everything becomes faster and transparent.
Both the customer and the merchant can track the package with real-time data. This ensures transparency between businesses and clients.
As a result, both merchants and customers can build good relationships. Along with that, it reduces the complexity of the process and makes the delivery of products faster.
Moreover, smart contracts settle payments through cryptocurrencies. Transactions in the supply chain occur through original bitcoin era website and digital wallets.
Digital ID Management
Another important application of smart contracts is it can be used for managing your digital identity. With digital transformation, everyone has created their digital identity. Having your digital identity on the internet can be a risky thing. Because companies can easily access your personal information from the internet.
However, a smart contract allows you to manage these things. You can share your digital ID with those organizations or institutions where needed.
Additionally, you can also manage which data to be shared and which are not.
In the healthcare industry, smart contracts can be used for sharing information of patients among hospitals without any security and privacy threat.
In addition, doctors and medical researchers can share data among themselves to figure out causes and cure of diseases.
Now you have known various applications of smart contracts. Smart contracts have really made business processes very easy, efficient, and faster. In the next few years, the business landscape will drastically change.
Blockchain technology through which smart contracts operate is going to be highly in demand. Hopefully, this article helped you to discover the applications of smart contracts.