Contracts are fundamentally statements of a transaction between two or more separate parties. In the past, centralized arbitration has needed proof that the conditions of the agreement are being followed. But now we can replace centralized arbitrageurs with decentralized infrastructure thanks to smart contracts.
The smart contract system is being tested by financial institutions, clearing companies and leading commercial banks around the world. But today we will talk about how the technology is already being used.
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Why apply smart contacts?
The use of smart contracts is growing daily. This is simply explained by the benefits that smart digital contracts offer. They enable you to streamline and accelerate a number of typical procedures as well as minimize the need for an intermediary party, thus lowering the related expenses.
Additionally, errors that may have been made because of the human aspect are now eliminated through the usage of smart contract technology.
In world practice, smart contracts are used not only in the financial market, including banking and insurance, but also in public administration, retail, healthcare, in the initial offering of tokens (ICO), and according to buidlbee.com, even in dating!
Medical records of patients, the findings of tests and analyses, the prescription of medications, and much more are all examples of the vast quantity of different information used in medicine that might be misplaced, confused, or utilized for other purposes.
It’s challenging for most individuals to organize and digest such a large volume of information. And we know that any errors might result in the loss of a life.
Today clinics develop a single information base with the capacity to fully automate the procedures of transfer and approval of documents, even confidential ones, by integrating blockchain technology and smart contracts.
The processes of granting and repaying credit money include a staggering amount of operations. So, banks try to build algorithms with the help of blockchain technology and smart contracts. This greatly facilitates the process of making payment history, boosts a security and fraud detection system, evolves automated lending, etc.
Additionally, the use of smart contracts in the lending industry optimizes control over the movement of assets with the capacity to continuously monitor and identify the status of real estate used as collateral when applying for a mortgage. The Spanish bank BBVA now makes extensive use of the technology.
In a modern democratic digital society, the relevance of holding open and objective voting using new information technologies is increasing.
Numerous issues with election procedures can be resolved by the implementation of smart contracts based on decentralized registries. The algorithm cannot be altered in their favor, violated, or ignored. People will thus have more faith in openness and the necessity of voting.
Whether it’s a vehicle, a home, or a bike, the process of issuing property for temporary use consists of multiple straightforward sequences of a single algorithm.
This straightforward, standard procedure may be simply included into the smart contract-based blockchain programming. This approach saves time and substantially lowers related expenses.
The processing of a vast quantity of data on suppliers, receivers, transportation, routes, etc. is required by the supply logistics system. The processing of materials will be substantially facilitated if all of these materials are put into a single, shared blockchain system, which will result in the elimination of any confusion and any errors related to the human aspect.
Any adjustments made during planning will result in the addition of a new supply chain link or a change in the price of one or more system components.
The digital contract between S7 Airlines and Gazpromneft-Aero is one illustration of how smart contract technology has been successfully integrated with the supply chain. A smart contract for refueling air transport made it possible to fully automate the processes of fuel supply planning and related calculations.
In the coming years, smart contracts will be able to replace most of the workflow operations in the field of finance. Many of the world’s leading banks are experimenting with blockchain technologies and transferring their routine activities to them.
The time is not far off when smart contracts will be used at the state level to optimize the processes of reporting, documentation, etc.