Smart contracts are self-executing programs that perform instructions on top of a blockchain. They eliminate or reduce the involvement of third parties. There is an increase in smart contract use cases in 2023. These programs are becoming the framework for developing multiple solutions, including non-fungible tokens, decentralized finance, provenance, self-sovereign identity, and more. Read on to learn more about the capabilities of smart contract development in different sectors.
Smart contracts are computer codes that developers write on a blockchain. They perform agreement or contract terms after meeting certain conditions and terms. This simple concept has multiple implications.
The usage of smart contracts is growing with more awareness among people.
Here is a list of the latest smart contract use cases in 2023:
Suggested Read: Emerging Use Cases of Smart Contracts on Blockchain Technology
Smart contracts can simplify the administrative processes for conventional shops. Retailers can build these programs to speed up payments to contractors. Alternatively, they can digitalize the payroll administration and use smart contracts to track real-time data. Additionally, they enhance supply chain transparency with the use of blockchain IDs.
Non-fungible tokens (NFTs) are unique assets that are non-interchangeable with other NFTs. People can use them to represent digital arts, land ownership, in-game items, digital identity management, and more.
People create NFTs via a minting process. The process requires converting pictures, sound snippets, movies, and other digital media into cryptographic assets on a blockchain.
This minting process requires smart contracts, which provide ownership right to an NFT owner. The program's code determines the properties of the NFT.
A smart contract will transfer the ownership rights to a new buyer after NFT selling.
These programs provide transparency, security, and efficiency to the NFTs._ They are fundamentals in NFT development.
The traditional gaming industry has a unidirectional flow of value. Here, players spend money to buy in-game assets. But players cannot earn from those assets.
Blockchain-based games are bringing a change in the gaming sector. Players can earn profits from their in-game assets by converting them into NFTs.
As already mentioned, smart contracts enable the minting of NFTs. These programs give value to in-game purchases and asset acquisitions of players.
A decentralized autonomous organization (DAO) is a digital entity built by transparent encoded rules or smart contracts. The programs give a way to enforce organizational regulation without human involvement on the administrative level. Smart contracts eliminate the role of a centralized entity and therefore make DAOs highly efficient.
Check It Out: Real World Examples of Smart Contracts Use Cases
Decentralized finance (DeFi) facilitates user interactions without any third party. It is possible with the use of smart contracts. These programs remove counterparty risk, minimize financial transaction costs, and boost efficiency.
Smart contracts have enabled sophisticated transactions such as borrowing, lending, and derivative transactions on DeFi platforms.
Smart contracts are the core elements of a decentralized metaverse. They help in regulating the functionalities of the digital world. The contracts enable cross-metaverse trading without compliance problems.
DAO, enabled by smart contracts, controls the working of the decentralized metaverse.
Many music artists rely on online music streaming for their income. Smart contracts can ease the process of royalty payments. Artists and record labels can create smart contracts mentioning the division of royalty income between artist and their music labels. Since these self-executing programs work without any third party, they process the transaction quickly.
People can use smart contacts to form agreements among involved parties in copyright management. These programs can automate and standardize copyright-related processes. They can record the ownership of assets on the blockchain.
Smart contracts can simplify and facilitate royalty payments. They can record the ownership and other aspects of digital copyright assets, such as digital IDs or fingerprints on the blockchain.
For example, artists who mint their NFTs can include a smart contract that enables them to receive a percentage of subsequent sales of the NFT.
Read More About Smart Contract Use Cases for Businesses
More smart contract use cases will evolve in the future. If you want to use smart contracts for your business, then this is the right time to explore the potential of smart contracts for your organization.
Oodles offers the development of decentralized applications and protocols with smart contracts. Contact our smart contract developers today to avail of our services.