Few innovations in the blockchain world have become quite revolutionary for various industries. Etherum blockchain- based Smart Contract applications are one of those. A smart contract is a type of self-executing agreement in which the terms and conditions between a buyer and seller get written into it.
Smart contracts provide unalterable mechanisms, making it almost impossible to hack. The most basic use of a Smart Contract is to guarantee that two parties involved in an agreement aren’t ripping off.
It’s the surface we’ve scratched. Smart Contracts allow for complex transactions to get executed between two unknown parties without requiring an intermediary, any central authority, legal guidance, or enforcement system.
Essentially, Smart Contracts use cases can allow for a wide variety of actions.
Contrary to the concept that Blockchain technology is just a metaphorical field of data, Smart Contracts use cases are enabling an entire world of new applications that are aimed to solve numerous real-world problems.
One of the most problematic challenges the Fintech industry deals with on a constant basis is frauds. For insurance companies to fix this, they need to have an administrative team that oversees the claims and ensures the validity.
Fintech Industry leaders and enthusiasts can use Smart Contracts use cases to curb such challenges as they can lock both the insurer and insuree into an agreement without requiring the use of lawyers, notaries, and other intermediaries. Ultimately, the cost-effectiveness would pass down to the end users. However, this doesn’t necessarily prevent frauds, but it can put arguments in the court on a halt. And, when a blockchain acts as a distributed ledger and system of record equipped with the benefits of Smart Contracts, it surely makes it much more difficult to slip under the radar.
Another area where you can use Smart Contracts Use Cases is the mortgage industry. Blockchain technology could enable buyers and sellers to connect in a hassle-free, frictionless process. Imagine a Smart Contract controlling all terms and conditions and thus, bypassing the need to have a lawyer, realtor or other professional as an intermediary.
It could prove to be cost-effective and time-saving for both parties involved in the transaction while also decreasing the chances for any errors or extra costs that may arise from doing things manually.
Tracking goods as they take a round of the world is an easy task. But, Smart Contract based supply chains can simplify this situation.
From where and when a product starts its journey to when it arrives in the stores, Smart Contract Solutions can help make the entire process crystal clear.
Thus, making clear where in the supply chain potential errors are coming up.
As medical experts conduct clinical trials and research cures to high-grade diseases like cancer, tumors, and the like, it’s necessary to effectively sharing data among various medical institutions freely and openly for further research and development. It’s what a Smart Contract can do. With it, medical experts can freely exchange data, and that’s even without compromising the data security and privacy of the involved subjects or the patients.
Above-mentioned Smart Contracts Use Cases are only a few of many potential real-world applications the technology can bring on the table. If there’s one thing that’s certain, it’s that many aspects of our digital presence, including our business systems, are going to change thanks to such innovations.
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