How is Blockchain Reinvigorating Smart Contracts

How much time does it take to accomplish a simple purchase shipment process?

It may take up to 10 days to finalize all the proceedings.

Consider that a shipment of grains is coming from England and will arrive at the port of France. When the goods will be unloaded from the ship, the buyer would first and foremost inspect the merchandise that he ordered. Thus, before taking the physical possession of goods, the shipment will pass through various customs and the buyer is required to fulfill the custom guidelines and pay all the necessary customs duties. The paperwork is generally handled by a broker. As and when goods are out of the customs authorities, the buyer initiates the payment to the seller and arranges the carriage of the merchandise.

The entire process is time-consuming and complicated. A simplified version is required to easily settle the trade and to redefine the conventional structure. This has already been made a reality with the help of smart contract development services.

How are smart contracts redefining the marketplace?

Smart contracts are the self-executing contracts that use software to enforce and confirm contract obligations. They function virtually and minimize the transaction costs and risks attached to it.

Now re-imagine the above-mentioned scenario but with the integration of smart contracts. In this, when the ship arrives and grains are unloaded, the buyer only scans the barcode which is there on the merchandise. After this, all of the following tasks are automatically connected with the scanning of the code, such as filling of the customs statement, paying necessary duties and taxes, handing over the ownership from the seller to the buyer, and initiating the payment. All this process takes not more than 10 minutes to execute even after counting the causalities.

This easy and quick process can be achieved with blockchain and smart contracts. It creates an immutable record of transactions that is shared with multiple parties and all transactions are executed and verified automatically. It clearly also impacts the cash flow and working capital management of the company as the transactions are accelerated and errors are eliminated on the spot. It has also been reported that blockchain-driven systems loose the money unnecessary tied up in the payment disputes and can realize the benefits by enabling complete utilization of the funds.

Benefits of integrating smart contacts

Businesses can leverage various benefits of blockchain smart contracts development, such as the following:

1. High resistance to errors, frauds, and tampering of transactions
2. Transparency and traceability of data by sharing identical copies with each participant
3. Immutable transactions and data
4. Decentralized transactions without any third-party involvement
5. Complete trust in the mechanism
6. Cost-efficient transactions

Use-cases across industries

A smart contract is a powerful tool that can be applied across multiple industries. But today we will discuss how it is revolutionizing the supply chain and healthcare industry.

• Supply Chain

Smart contracts are self-executing written contracts that can be automatically and seamlessly implemented regardless of the size of the company. Hereby, as industries are booming, it has become paramount to streamline various orders and establish the right path of conduct. Smart contracts can be implemented in the company’s structure and an immutable record of transactions is maintained. The authenticity, origination, and delays along the supply chain can be very well maintained and contract-related disputes can be wiped out. Even the trust among the parties is increased and the errors are eliminated.

Here’s what Andrea Biagianti, Chief Information Officer, Certified Origins Italia Srl, explains “We believe that buyers and growers deserve a world in which authenticity and quality are not only valued but verified”. Goods are easily being traced with the assistance of blockchain technology and proper track of shipment is maintained to reduce the operational cost and enhance the flexibility of the system.

• Healthcare

The healthcare industry encompasses various parties such as patients, service providers, doctors, payers, attendants, nurses, generic staff, and others. Thus, it is of utmost importance to streamline the overall chain and maintain an efficient payment process. Smart contracts in healthcare enhance the level of automation and put data of the patients in complete control and also reduce the cost of business operations.

End Notes

Smart contracts can be easily executed on both public and private blockchain. Permissioned blockchains are secure and trusted blockchains, helping businesses to grow exponentially. On the other hand, private blockchains are created on open platforms.

At Antier Solutions, we provide enterprise-grade blockchain solutions, helping businesses to start with their own development process. Our smart contract development services assist businesses in speeding-up and scaling their operations.

Connect with our subject matter experts to share your business needs and understand how we can help you with blockchain integration, or get an obligation-free quote.