Blockchain Smart Contracts
Blockchain smart contract was presented in 1994 when computer expert Nick Szabo explained the working and importance of smart contracts embedded in the computer codes. When blockchain technology came out in the world, this option was started to look much more viable. With this technology, security and transparency can be ensured.
Stakeholders are attracted to smart contracts because of the efficiency of the sharing and accessing of them. With smart contracts, one can automate, arrange and manage, and they automatically accept the terms and conditions of payment. Moreover, it can save time, remove intermediaries, and allow for multi-party-census-based validations as soon as the requirements are completed.
Native smart contract management was first offered by the blockchain platform known as Kaleido. The platform provided the complete features with visibility to contract development. Smart contracts are said to have a huge potential, and they can change several industries in the coming days.
Following are some examples of smart contracts:
1. Error Reduction in Trade Finance
It is easy to remove costly errors with smart contracts. With automated workflow and precise calculations, smart contracts can save processing time significantly. In a report by Santander InnoVentures, the explained the advantages and opportunities of several new financial technologies. Smart contracts can come in handy for changing the fundamental infrastructure and procedures of financial companies. The distribution ledgers can manage volumes of transactions. By the end of 2022, this can save around $15-$20 billion a year.
2. Tracking of Real Estate Property Details
In this sector, smart contracts are used to record ownership details of any property. It can eliminate/reduce the need for lawyers and brokers as transaction speed and efficiency are optimized by smart contracts. According to Rob Massey, a blockchain expert, property title management can be replaced in a much cheaper and efficient way by smart contracts. There can be some bugs in the system of smart contracts that might require the user to pay the legal fee. But, for a proper assessment of a property, smart contracts are useful to save all the transaction history, ownership, and other details of the property. Moreover, they come in handy to avoid scams and frauds with encrypted codes and high-security measures.
3. Protecting Medical Data in Healthcare
The Healthcare sector is trying to adopt more automated options and up-to-date security systems to protect their patients’ data efficiently. Cybercriminals often attack hospitals as hospitals have more personal details of a person than any other institution. Several big names have been affected by cybercrimes, such as UCLA Health, a well-known health department, was attacked, and more than 4.5 billion patients records were breached. Such incidents pushed health institutions across the US to give priority to skilled healthcare managers and administrators. As a result, new technologies and techniques were introduced to ensure more safety. According to Maryville University, healthcare sectors are more in need of technical expertise now than ever before. That is why there is a high demand for technical experts in the medical sector now. With smart contracts, it has been made sure that the private data of patients, formulas of new medicines, and clinical trials will be kept safe.
4. Election’s Integrity can be improved
All around the world, we hear the news of fraud in the elections. Several experts have forecasted that in the next elections, the blockchain voting system can play its role. If voting is made available safely on a digital platform, the blockchain voting system will encourage more participants to cast their votes. Moreover, it will be a much safer, easier, efficient, and faster voting system. It can speed up the process of counting and reporting the votes that have been cast. Smart contacts will also prevent participants from voting multiple times to avoid any injustice in the elections.
5. Claim Frauds can be Reduced in the Insurance Industry
The insurance industry spends millions of dollars every year to claim the insurance of clients. Most of this money is wasted on fraud insurance claims. With smart contracts, the process of insurance claims can be strengthened by continuously monitoring the errors. Both organizations and individuals can benefit from it to help both of these parties with administrative policies. The fast process will shorten the cost for the customer. According to Lloyds of London, insurance companies will be able to cover their cost of insurance claims with smart contracts as risk management from the cooperate buyers will be improved.
Several other examples of smart contracts are there, such as peer-to-peer transactions, supply chain management, product development, and stocktaking. There will be more innovation and improvement in this technology, but even now, the popularity of smart contracts is increasing because of their transparency, efficiency, and accountability.