Exploring Smart Contracts: Use-Cases and Benefits for Business

Smart contracts are self-executing computer programs with the terms and conditions of the agreement written in the coding language. A smart contract is one of the most famous applications of blockchain that makes the codes and agreements distributed on a decentralized blockchain network. The codes are enforced, executed, verified and constrained in a traceable and irreversible manner. Smart contracts help in automating and boosting the efficiency of transactions. Smart contract development solutions are leveraged across industries like IoT, real estate, healthcare, agriculture, insurance, and more.

The concept of smart contract was first coined in 1994 by Nick Szabo, much before bitcoin came into existence. He was a computer scientist, law scholar and a cryptographer by profession. He stated, “A smart contract is a computerized transaction protocol that executes the terms of a contract. The general objectives are to satisfy common contractual conditions (such as payment terms, liens, confidentiality, and even enforcement), minimize exceptions both malicious and accidental, and minimize the need for trusted intermediaries. Related economic goals include lowering fraud loss, arbitrations and enforcement costs, and other transaction costs”.

Smart contracts over traditional contracts

Smart contracts have many advantages over traditional contracts, be it in the form of safety, security or the efficiency of cost. Smart contracts eliminate the need for third parties and maintain trust between the parties through their immutable nature. Immutable means that once the smart contract is created, no one can ever change it again, which means that no one tampers with the code.

Furthermore, in smart contracts, there is no ambiguity of language, and everything is displayed crystal clear in the contract. The direct communication between the parties of the contract eliminates the associated administrative costs.

Smart Contracts: Make your business one step ahead

Smart contracts are proposed to benefit all sorts of industries by automating their exchange of goods and services by registering them on the blockchain platform. Various troubled industries are relishing the efficiency of digital agreements. Widely used smart contract application lies in the field of financial services by regularizing the purchase of goods and services and by regulating the dividend payments. Thus the scope of smart contract development is much more beyond what we are experiencing today. Its major implications can be seen in the following industries:

• IoT (Internet of Things): In this network, smart contracts are used to regularize and maintain easy data transfer between the parties. Parameters can be listed on the platform which can automatically define the further course of action.

• Agriculture: Smart contracts can regularize agriculture. It can instigate the factors when some particular actions need to be taken, such as spraying of pesticides, irrigation and much more.

• Insurance: In case of any uncertainty, there is an automatic occurrence of events of claims and processing. There need not be a particular team who would be handling the process.

• Real Estate: Real estate can also be linked with smart contracts. It can be used to automate the payment of rent at the end of every month or on a date agreed upon by the landlord and the tenant.

• Healthcare: This is a major sector where smart contracts could be used limitlessly. Starting from maintaining real-time records of patients to supervising medications, smart contract development could be efficiently implemented.

Future of Smart Contracts

Smart contracts are gaining global traction and there are huge chances that sooner and later we will acknowledge the presence of smart contracts in all of the industries. Whether it is a startup, SME or a large corporation, smart contract development will enable automated, smooth and cost-efficient transactions.

If you are planning to build a smart contract for your business, Antier can help. We offer customized smart contract development services to create an outstanding computer-based protocol to automate your business agreements.

A free consultation is available to discuss your business needs, no obligation, just a friendly chat to work out if we can help.