When people hear about blockchain technology, they first think of cryptocurrencies, especially Bitcoin, but there are other uses for it, such as smart contracts. Although people doubt the ability to revolutionize the world of cryptocurrencies, smart contracts do not share these hesitations.
Smart contracts really have the power and ability to revolutionize the world because they are more secure than conventional ones in authenticating documents, making the process completely automatic.
In this article, you will witness how smart contracts are an unbeatable way to deal with a wide range of transactions where information must be recorded securely in an immutable chain of blocks.
Here’s a list of 10 real-world use cases for smart contracts!
1. Medical Records
Virtually any industry in the world can use smart contracts to help improve the speed and security of their records. In particular, we can talk about a particular industry, such as health.
Today, the healthcare sector has computer systems with millions of patient medical records. Despite the large amounts of money used to secure this information, they are still very vulnerable to attack compared to a blockchain-based system.
This technology can help databases with personal records to be securely encrypted and protected from the eyes of others. Another advantage is that it allows private keys that only allow certain people to access them.
Going beyond, you can see how some smart contract use cases cover issuing prescriptions, storing receipts, managing inventory, storing medical exam results, etc.
2. Financial Trading
Financial trading can greatly benefit from smart contracts. For example, Spain’s Santander bank estimated that blockchain technology could save more than $20 billion annually starting in 2022. A large part of these savings is due to smart contracts that automate approval workflows and bank clearing calculations that are currently labor intensive. This automation will help reduce working hours and significantly reduce errors and the time it takes to calculate.
When people hear about blockchain technology, they first think of cryptocurrencies, especially Bitcoin, but there are also other uses for it, such as smart contracts. Although people have doubts about the ability to revolutionize the world of cryptocurrencies, smart contracts do not seem to share these hesitations.
3. Property Registration
Smart contracts have enormous potential in the real estate market. In principle, they allow registering the property with speed and efficiency and can be a better alternative to existing systems. It means smart contracts can be used to record the ownership of everything from buildings to land to smartphones to watches.
In the private housing market, smart contracts eliminate the need for expensive services such as those provided by lawyers and realtors. This implies that for the first time, the seller and the buyer can carry out the transaction without needing a third party.
The insurance industry spends millions of dollars each year to process claims, while many lose money due to fraudulent claims.
Not only do smart contracts make it possible to issue an insurance policy, but they also help improve the claims process in many ways. You can verify errors and determine the payment amount according to established criteria, which consider the type of policy the person or an organization has contracted, reducing time and errors and lowering costs.
The real estate market can also benefit from cheaper, safer, and faster mortgages with smart contracts. They will allow buyers to purchase a property quickly and help make the process much easier.
Mortgages with smart contracts will allow both parties to digitize the agreement before proceeding with the payment. Once completed, the contract will automatically update the property details. Since the contract to exchange property for money requires the keys of all participants, this will make the process more secure and reduce fraud risks.
6. Medical Research
Within the health sector, medical research is another industry that can benefit from the advantages of smart contracts, as does care. The first is handling sensitive information, such as patient records, which can be transferred between departments and research centers through the blockchain.
Many medical study participants have sensitive conditions they prefer to keep private, which is why a system like this is essential.
On the other hand, medical study centers have a large amount of information, such as test results or new drug formulas, that they also want to keep safe. This can be kept secure when using smart contracts if they need to disclose it to a third party for whatever reason.
Currently, the countries that have adopted digital solutions for the elective process are not safe from malicious people who use creativity to manipulate the results.
In this context, smart contracts can efficiently solve the problem. They can be used to validate voter identities and record their votes. Because the blockchain is very difficult to modify, it is a great defense against record tampering attempts.
8. Product Development
Another interesting use is to keep the blockchains updated with the production stages of a product through smart contracts. Two parties can sign a contract whereby reaching certain project milestones is recorded by itself. For example, it can release funds as certain parts of the development are completed.
An important quality of this technology is that it allows information to be recorded securely and prove its origin. A company that has invested a large amount of money in developing a project does not want this information to be stolen. In case it happens, the current path is to go to justice and wait. However, it only takes a look at the blockchain to figure out the problem in intellectual property.
This will allow large companies to benefit from the technology and also small startups that need more money to defend themselves through a legal process. You can create a fairly simple and inexpensive kicking system with smart contracts.
The supply chain industry can greatly benefit from smart contracts. Internet of Things (IoT) devices can be complemented by smart contracts and produce product information at every stage of manufacturing. With this, inventory loss can be practically eliminated since it is only necessary to search for the lost product up to the point where it disappeared. No wonder why more and more businesses are opting for IoT consulting services.
On the other hand, in department stores, smart contracts can help managers check inventory levels in real-time and make the entire supply chain more efficient. With this data, you can adjust stock levels and develop new work practices to improve delivery times.
10. Peer-to-Peer Transactions
Smart contracts can be used for a wide range of peer-to-peer transactions. For this reason, projects such as Ethereum have been created. People can use these platforms to create and run smart contracts.
These remain active until certain conditions established by their participants are met. Once the contract has seen that all of them have been completed, it continues its execution to complete the agreement. The most common is, for example, the transfer of money, but it could be anything else.
Until now, it has been used mainly for launching ICOs and selling products over the Internet. But the possibilities are practically limitless. Smart contracts replace any type of situation in which money is required today, such as hiring a third party.
Reach Out to an IoT Solutions & Consulting Company!
Perhaps after reading all this, you consider smart contracts to be the most interesting of all this new revolution that blockchain technology and cryptocurrencies imply. While Bitcoin and its growth in price in recent years have stolen the limelight, smart contracts can take cryptocurrencies to a whole new level.
If you’re looking for the best IoT consulting services, contact Vates, an expert Nearshore Software Development Services Company offering IoT and big data consulting services.
Contact us to talk to our experts to benefit from this new technology!