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How Smart Contracts Are Revolutionising Industries?

August 22, 2022

Content

HOW SMART CONTRACTS ARE REVOLUTIONISING INDUSTRIES?

The modern world keeps growing at a fast pace with the unprecedented emergence of blockchain in different global sectors and industries. Blockchain has had its fair share of innovations and transformations in every sector in the past few years. Smart contracts are an important component of blockchain-based ecosystems. These digital contracts are trustless autonomous, decentralized, transparent irreversible, and unmodifiable agreements once deployed. Smart Contract Developers are delivering high-end revolutionary applications of smart contracts. Moreover, smart contract development services by a smart contract programmer ensure the ongoing growth of smart contract applications in various industries.

What are smart contracts?

A smart contract is an encoded blockchain-based agreement between two parties that executes an exchange automatically once it fulfilled the agreement terms from both parties. It contains directions to every ‌transaction outcome and gets executed only if met the condition. These smart contracts are trustless, unmodified blockchain agreements that are irreversible once completed. It eliminates the role of an intermediary. Because of this, it also reduces the cost of the transaction.

Benefits of smart contracts

Self-executing smart contracts are executed automatically based on predefined data and actions. Smart contracts have a host of potential benefits.

● Transparency

Because smart contracts are based on blockchain, the transaction record is available and (theoretically) immutable. Regulators can also review transaction records during audits.

● Autonomy

The use of intermediaries, which is a common aspect of typical contract execution, is ultimately not necessary to execute the terms of a contract. By contrast, smart contracts do not involve third parties holding a store of value in escrow.

● Efficiency

Smart contracts are automatically self-executing terms written into the code because they are highly efficient. It involves only the main parties, which saves time and resources. Moreover, the automatic execution speeds up the process.

● Lower Cost

By cutting out the role of intermediaries, companies can lower transaction costs through Smart contracts.

Used Cases in Different Industries

● Finance

Decentralized apps have been overcoming the trends of traditional financial activities. Smart contracts have a substantial contribution to dApps. Its growing popularity reason is its trustless, immutable, and transparent characteristics.

Defi apps provide alternative services to banks and financial institutions like lending and borrowing. DApps have the potential to lower the barriers to financial activities. Users can cut off the role of third parties and expedite the financial process because of the automated processes of Smart Contracts.

● Legal

Smart contracts themselves have bound agreements between parties. Technology has proved its role in driving innovation in the legal industry. One of the most recent cases is the introduction of e-signature for binding legal agreements. Smart contracts facilitated the legal industry with a lot of new exciting development. They may soon be an option for parties to legal agreements, potentially lowering the costs incurred from using lawyers and other intermediaries.

Furthermore, the primary objectives of the legal industry and Smart contracts are alike. They can lead to smooth, fast, and transparent economic execution of certain transactions or protocols. Its substantial growth can lower the cost of hiring the lawyers required for legal processes. It also increases the transaction speed.

● Real estate

Through tokenization, smart contracts are advancing the fractional ownership of assets. Fractional ownership of assets lowers the barriers to the entry of investors. It gave birth to rapid and secure investment opportunities. The autonomous mechanism of Smart contracts expedites the efficiency of record keeping and legal processes.

Moreover, smart contracts can also rework real estate transactions by incorporating blockchain technology into the documentation and transaction process.

Purchased a home or other property includes hidden costs such as the closing fees, title transfers, and broker fees. Smart contracts reduce costs because it functions free of intermediaries. Using tokenized property, we can maintain records via smart contracts, which saves time and money for all parties involved.

● Emerging Technology

Smart contract technology enables complex computational tasks like machine learning and artificial intelligence (AI). Combining AI-powered Smart contracts with blockchain technology’s decentralized security and immutability offers the potential for creating AI-powered Smart contracts.

Additionally, Smart contract applications will have to become increasingly complex as they implement across various industries. DApps and smart contracts can be built to be highly complex, more responsive, and enterprise-grade solutions. Thus, it enables the use of these technologies efficiently.

● Gaming

Gaming is a widely growing industry with unparallel expansion in the billion-dollar market. By using the NFT-regulated gaming ecosystems, gamers have full ownership of in-game assets with the ability to sell or use them in other supported games.

Contrariwise, blockchain technology in gaming can enable players to capture the value of in-game purchases and asset acquisitions more effectively. Blockchain enables the in-game buying and selling of the games.

Wrap Up

The list of smart contract applications in the real world is beyond the limit. Many industries are moving towards the used cases of blockchain and smart contracts. With the ongoing discoveries and developments, smart contracts will take a leading position in the technological world.

If you are looking to deploy smart contract applications in your business, Hashlogics is a smart contracts development company with an expert smart contract programmer league. Schedule a free demo to get the whole idea of your project with us now.

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