Emerging Use Cases of Smart Contracts on Blockchain Technology

Smart contract development can be used to streamline corporate workflows in a variety of industrial use cases, including finance, retail, healthcare, and media. 

Traditional Contracts

A contract is a written document that spells out the terms and conditions of a service arrangement or partnership. Because a contract is written by humans, the many parties involved may understand it differently. Many complex terms and conditions can be included in business contracts, which might lead to uncertainty if misunderstood. As a result, enforcing the law and making critical decisions during a dispute frequently necessitates the involvement of a third party. This approach necessitates a considerable amount of paperwork, and resolving disagreements can be a lengthy and difficult process.

Smart Contracts on Blockchain

 Smart contracts are a digital form of the contract created by modern technology such as blockchain. They convert the terms and conditions of a contract into a computer program. Blockchain code is written in programming languages such as C++ and Java. This code is converted into a set of rules that may be validated and executed automatically. As a result, smart contracts reduce the possibility of ambiguity and misinterpretation. As a result, smart contracts eliminate the requirement for a third party to enforce an agreement's claims. Various smart contract use cases can be employed by enterprises to simplify various procedures and improve overall efficiency as a result of these benefits.

Also, Read | Blockchain Smart Contracts for Driving Business Innovation

Emerging Blockchain Smart Contract Use Cases 

The following are a few use cases of smart contract development that can be extremely valuable to businesses:

Secure Identity in the Digital World

Using digital identity management, smart contracts can help people own and govern their personal information. It can allow people to select which pieces of personal information they wish to disclose to counterparties.

People can, for example, use smart contracts to choose and show the required personal information to airport officials while flying overseas. Unless the owner authorizes it, no one else can see or copy digital data. As a result, smart contracts can operate as a deterrent to identity theft.

To confirm transactions, it will not require intermediaries to maintain confidential data. This can help to lessen the risks associated with data sharing and storage. Smart contracts for digital identity management can also assure compliance and interoperability as they enable important data exchange across authentic various parties.

Also, Read | Advancing Identity Management with Blockchain Technology

Advanced Supply Chain Management 

Buying products from numerous suppliers, keeping them in a warehouse, placing orders, packing required products, and shipping them to retailers or clients are all part of the supply chain. Many businesses use both free and paid software to manage their supply networks.

Supply chain management software, on the other hand, can be generic, one-size-fits-all solutions that aren't appropriate for many firms.

One of the numerous smart contract use cases is that the technology makes supply chains more visible and efficient. Every step of the supply chain can become transparent in real-time with a smart contract. Stakeholders can monitor products in real-time from manufacturers to retail shop shelves. They can also track the origin of supplied products and validate it thanks to the integration of IoT into smart contracts. Furthermore, smart contracts can help to eliminate the need for manual involvement in the supply chain process.

Also, Read | Supply Chain Traceability and Sustainability with Blockchain

Transparent and Secure Banking and Financial Services

 Financial firms can use smart contracts to precisely capture financial data. Smart contracts can manage mortgages, capitalization tables, payments, and settlements, among other things. They can automate payment processes for mortgages and relieve liens after the payment of loans.  They can also improve the visibility of mortgage documents and make payment tracking easier. By eliminating the need for middlemen in the chain of custody and automating dividend payment, smart contracts can simplify capitalization table maintenance.

Smart contracts can also make regulatory compliance easier by allowing secure storage of relevant papers and establishing real-time communication with involved parties.

Also, Read | Blockchain-based DeFi | Understanding the Decentralized Financial Shift

Frictionless Real-Estate Ownership Transfer

Smart contracts can facilitate property ownership efficiently than traditional means. They can keep track of ownership rights and authenticate each owner's identification. This method is particularly effective for cross-border purchases, as it avoids time-consuming negotiations, tiresome paperwork, and difficult regulatory procedures.

Smart contracts can establish ownership of intellectual property transparently and efficiently. Artists can protect their work from theft and unauthorized usage by preserving proof of ownership. Property owners and artists have the freedom to set their terms for fair use of their work. Smart contracts can also ensure that artists receive a royalty anytime for the use of their work. Artists might thereby decrease the impact of piracy by using smart contracts.

Also, Read | Real Estate Tokenization and Blockchain | An In-depth Guide

Efficient Insurance Processes

Insurance claim processing can be a lengthy and complex process that might take weeks or even months to complete. The entire method is manual, which raises resource costs and increases the risk of human error. Smart contracts can automate aspects of the claims process in this case.

Insurance companies can use smart contracts to build a variety of insurance plans. Depending on the type of insurance coverage, smart contracts might include a variety of characteristics. Insurance claims will be processed automatically after specific standards have been met.

Smart contracts can records factors such as hurricane location and wind speed, for example, and initiate claims if they meet stated criteria.

Auto insurance is another use case among several smart contract use cases. Drivers' driving reports and policy data can be recorded using smart contracts. Smart contracts can immediately complete claims processing in the event of an accident by incorporating IoT sensors into autos.

Also, Read | A Definitive Guide to Exploring Blockchain In Insurance

Inventive Clinical Trials

 Several patients are required to visit various healthcare organizations and physically bring their documentation for doctors to grasp their medical history during medical trials. Clinical studies can benefit from smart contracts since they allow for cross-institutional visibility of patient data. To protect their privacy, patients can choose the data they want to disclose to an organization.

Also, smart contracts can securely and automatically transfer patient data. With this approach, healthcare institutions can understand the results of various clinical trials. Additionally, smart contracts can help incentivize patients to participate in clinical trials.

Also, Read | mHealth App Development with Blockchain Technology

Innovative Forecasting Markets

People can use prediction markets to forecast the result of events like sports, election campaigns, and auctions. For example, the outcome of a football match or a politician's future election campaigns. Prediction markets provide useful information on public perceptions of a firm or a political campaign. Companies can also utilize prediction markets to determine whether or not to launch a new product.

Smart contracts can transparently record the guesses of huge groups of people to produce more accurate projections. Participants can receive compensation for participating in the prediction market, as well as for making accurate forecasts. With the use of smart contracts, the payment of incentives and prizes can become more exact and automatic.

Connect with our blockchain smart contract development experts to discuss how to realize your vision with these smart contract use cases.