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Recent advancements in the Blockchain technology has led to the development of the cryptocurrency landscape and Smart Contract services. Now, they support the global economy by eradicating the complexity in cross-border payments and digital transactions. As per the report by Market Research Future, Smart Contracts market is likely going to experience a compound annual growth rate of 23 percent and surpass $300 million by 2025.
Although it's an exciting thing for corporations working on an international level, SMEs are still finding it hard to identify practical Smart Contract applications.
Regardless of these reservations, possibilities for SMEs (small and mid-sized) to leverage the potential of Smart Contracts are in abundance. Here' what they need to know:
Smart Contracts Explained:
Even the most fundamental contract needs a broker or a lawyer for a thorough oversee and its completion. Also, meeting the terms of an agreement requires additional actions like invoicing, delivery scheduling and payment.
Here, the role of Smart Contracts is to eliminate the middlemen and enable parties to define their terms and agree upon the same.
Initially, we register the Contract with a database and legally clear it as valid. Using Smart Contract development services, each phase of the contract is made automated and triggered to execute as a specific event occurs.
For instance, upon the successful delivery of a product, the payment will be automatically paid without requiring to send an invoice. With Smart Contracts Services, organizations won't need a broker or a lawyer and get the freedom to agree on the terms they have defined. Subsequently, this will result in fast, accurate and secure global transactions along with reducing the time and operational expenses.
Practical Smart Contract Applications:
Smart Contracts can enhance the operations/processes of nearly every small business. Here are a few practical Smart Contract applications:
Automated payments:
Like many small businesses, yours also requires a clients' credit card information on file for automatic payments. With Smart Contracts, you can ensure that you offer them better data protection.
The blockchain technology-based smart contracts can help SMEs to make their clients' financial information more secure. It will create a level of trust and confidence between an organization and its customers, and set you above your competition. Indeed, Smart Contracts can be seen as the most secure way to make digital transactions, and as a contract ledger that automatically records what and when you paid for.
Engagement contracts:
If you own a consultancy firm, event management company or even child care, using Smart Contract services can keep everyone on the line clear on what, when and how you are going to deliver what you've promised as well as how much and when you'll get paid for it. Do a segmentation of the project into separate units to create a Smart Contract that identifies when the defined terms of the unit meet: to automatically trigger payment. Altogether, it will help in improving customer experience/satisfaction and your cash flow.
Real estate:
If you own a real estate business, smart contracts can prove to be a better alternative for improved transaction processes. The complete transaction, from escrow to completion, everything can be managed without requiring the parties to be present at different steps. Each step of the buying/selling process can be efficiently managed that includes title clearance and registration and closing costs. Once the buyer pays the purchasing prices, either through a mortgage company or in full, he receives the deed. It also has increased the rise of mortgage companies incorporating Smart Contracts Applications to manage the financing.
Employment contracts:
Joining a smart employment contract means that your employees will be aware of what they may get demanded and what compensation they're likely to receive. This increased level of transparency will help keep you and your staff on the same page. Also, wages can be executed using the contract itself, such as with requirements that certain hours need to be completed in the system before pre-defined funds can get released into an employee's account. Not only this but also the contract can be modified to indicate promotions and alterations in responsibilities. All this can be tracked to monitor an employee's performance and professional growth.
Supply chain management:
Hardly there's an area within a business where smart contracts can't help to improve it. They can enable you to communicate and coordinate with your suppliers more effectively. When each step is automatic, including payment, you would have everything in place. When your supplier uses smart contracts with other suppliers, the entire system could have a smooth and efficient run, thus, saving time and money for everyone.
Creating smart contract applications:
For many SMEs, another issue is the creation and registration of Smart Contract applications. Most of those get written using Ethereum Blockchain (Etheruem programming language) which only a bunch of owners want to learn. However, there are resources available to help you out. We are a Smart Contract Development Company. We can help you develop a traditional contract into a registered, enforceable Smart Contract.
