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7 use cases of smart contracts

A revolutionary blockchain application, smart contracts hold the power to change the world, and for better. From crypto to health, smart contracts can be used in a vast and versatile range of industries today. While crypto smart contracts help to facilitate faster and direct transactions, smart contracts for healthcare organizations can aid to assure optimum protection of health records. In fact, smart contracts can be configured to cater to a broad range of use cases. Check out more about Multibank.io.

The post below will discuss the various use cases of smart contracts- but before that, let’s have a few words about the core concept of smart contracts.

Smart contracts- overview

Essentially a modern blockchain application, smart contracts can be defined as digital contracts that are based on conditioned programming.  Another important aspect of these contracts is that they follow automatic execution. The crypto smart contracts will automatically execute an agreement, transaction, or payment once the pre-set conditions have been fulfilled.

Smart contracts comprise of 3 key integral components or “objects”-

Signatories- two or multiple parties participating in a smart contract

Subject or scope of contract- the core agenda of the contract

Terms- the terms and clauses of the contract

Benefits of smart contracts

Let’s have a quick look at the major advantages of crypto smart contracts-

Faster execution

Smart contracts assure faster execution of payments or agreements, thanks to their decentralized framework and automatic functionality.

More economical execution

Smart contracts advocate P2P transactions, without the interference of a middleman or intermediary. As a result, smart contracts executions or transactions are always more economical since these executions offset the costs of middlemen.

Optimum security

All information that is stored in the smart contracts are protected by highly advanced cryptographic protection to assure protection from hackers.

Smart contracts use cases

Below is a list of crypto smart contracts use cases-

Faster and cheaper payment processing in crypto

The crypto smart contracts facilitate faster and more economical crypto payment transactions through P2P execution.

Additionally, smart contracts are a great help with international money remittance tasks. Cross-border money remittance through smart contracts is always faster and cheaper in comparison to the traditional process of international money transaction.

Healthcare records

Healthcare centers have to handle tons of sensitive records every single day and all of them need optimum protection. Though these centers usually adopt safety measures yet these tools cannot offer them optimum protection from hacking attempts.

This is another place where smart contracts can come to the rescue. The crypto smart contracts always guard data with state-of-the-art cryptographic protection that makes the data impossible to hack and decode.

Insurance

The crypto smart contracts can help with insurance issuance in two ways.

One, claims records can be stored in smart contracts. During the time of compensation, the contracts will automatically release the records and send insurance compensation to the deserving party.

Another thing is, smart contracts will help insurance firms to weed out fake claims. These contracts can be conditioned to release payment only when certain specific conditions have been fulfilled. This way, the insurance company can have the peace of mind knowing that  the compensation paid by the is only going to the deserving party.

Safe record keeping

Smart contracts are probably your ultimate tool when it comes to record keeping, especially sensitive record keeping. Whether it’s a critical military record or your trade secret or records pertaining to your IPR or property ownership- every kind of record can be guarded with optimum protection of cryptography through smart contracts.

Another thing that must be mentioned here is that smart contracts assure immutable record keeping. It means whenever you enter a record or data into smart contracts, it cannot be manipulated  or altered by anyone else. Thus, artists and composers today are turning to NFTs where they embed their signature through smart contracts.

Supply chain

A supply chain system of a company or a warehouse can be a lengthy process and hence difficult to keep track of.

As smart contracts are built on blockchain systems, they assure transparency. Thus, smart contracts in a supply chain will help to ensure transparency throughout the chain that would eventually aid in eliminating miscommunication and errors otherwise arising out of it. Moreover, the transparency factor will help to spot an error or flaw in the chain just in the nick of time and the problem can be corrected easily before it’s too late.

Voting

Voting fraud is getting more rampant with each passing election. The recent American Presidential election was marred with allegations of voting fraud. It was reported that despite all kinds of protection, some nefarious elements still managed to alter or manipulate the votes.

But smart contracts can stop all these illicit crimes by banning any scope of manipulation. We have already discussed the immutable quotient of smart contracts. This way, if all votes and related voting data are stored in smart contracts, nobody, even the government itself, will be able to manipulate them.

Trade and businesses

Smart contracts are no less than a blessing for business organizations.

Smart contracts will help your company in multiple ways. One, if needed, you can implement these contracts in your company’s supply chain. Then, as these contracts assure automatic execution, they can help to reduce manual labor and the costs associated with it. Likewise, as smart contracts reduce manual labor, these contracts also help to reduce the errors and costs associated with manual labor to a great extent. Besides, you can always trust smart contracts for the optimum security of your business records.

Oracle talk

We will wind up the discussion with the mention  of oracle.

Well, we already know by now the immense potential of smart contracts. You do understand that to fulfill real-world use cases, these contracts need access to data in the real world. But, there is a catch. The same blockchain that has endowed smart contracts with enormous potential, prevents them from accessing data in the off-chain world. Oracles come to help here as they help to bridge the gap between smart contracts and the real-world data feeds so that the former can explore its ultimate potential to cater to real-world use cases.

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