Real-Time Applications of Smart Contracts and Blockchain Technology
The whole world is locked and framed in the hands of digital technology. Digital technology is in trend with its few innovations to build the technology to the peak. One of those digital technologies is the latest blockchain technology.
If you are very new to this technology, will explain this in a very simple way that the name itself starts with a block, so something related to block? Yes, the data is stored in blocks and the blocks are connected to each other with some cryptography technique. i.e the stored data is protected with encryption and decryption techniques of cryptography.
The connected blocks are known as a distributed database with no central server and the transactions are always verified using the ledger of records to verify the transaction. The updated transaction is always stored in this ledger. This gave rise to smart contracts in blockchain technology.
Cryptosoftwares – The ultimate solution for Blockchain Application Development ServicesSmart contracts are usually based on the basic working model of blockchain technology using the ledger and this ledger is distributed among the blocks in blockchain technology. Similarly, this technology gave rise to smart contracts, to record the agreement between the two parties and to be included in the smart contracts. The agreement is directly written in code and usually, the agreement is between the buyer and seller.
This agreement or contract cannot be altered or changed and it is fully protected with the code and very difficult for hackers to alter anything. This assures that the smart contract is always secure and both parties are not ripped off.
As it is using the blockchain technology, no central authority to check the complex transactions and it allows this complex transactions to be carried out in a very well manner without any complexity.
Smart contract development allows substituting traditional contracts and develops business growth. So the smart contracts can be used and programmed for a wide range of complex activities.
Blockchain technology is not only the record of data it allows the digital world to move on with the new innovations of the applications to exhibit and handle real-time issues.
In this article, we will see the real-time applications of smart contracts and blockchain technology
I will explain to you with an example, It helps journalist and the content writers to manage their content and can have that digital rights on their own content. This means they can earn from their protected data or content by taking a fee form the third party. Here no need of any lawyer or any agency to solve any illegal issue.
There are many industries benefit from the smart contracts and blockchain technology.
Few are listed below:
- Finance and banking
- Real estate
- Legal contracts and intellectual property
- Logistics and shipping
1. Insurance and financial services
- The major challenge for any insurance company is to handle their fraud claims. There should be a separate team to track the claims and verify the validity.This dispute most of the time will end up with legal issues.
- Now we can solve this type of issue with smart contracts. Both parties can avoid the dispute by using an altered agreement in smart contract and blockchain technology.
- It ensures that the agreement is not altered and both insurer and the person who opted for insurance will benefit from this agreement by saving the cost of facing the legal issues in the court and can avoid the lawyer or other intermediaries interfering the issue.
- This may not prevent the fraud claims but you can verify the agreement for any future use.
2. Mortgage transactions
- Smart contracts can be utilized in the mortgage industry. The buyer and the seller are connected through these smart contracts and blockchain technology for any transactions.
- This is a hassle-free process which governs the conditions of the agreement and it bypasses the legal issues and the need for intermediaries opr any lawyer to interfere into this legal issue.
- This will definitely save your time and energy and it becomes cost effective to use the smart contracts in the mortgage industry.
- It ensures error-free transaction since everything is done without any human interaction
- Shipping the products and tracking all the products is an exhausting task for any logistics and this complexity can be solved using smart contracts and blockchain technology.
- When the product is shipped from the manufacturer to the warehouse, the whole process can be tracked using this technology.
- Transparency in shipping is achieved. It clearly locates the product whereas, in the supply chain, there is a chance for potential errors to happen
- In case of any damaged product during shipping, management can track the damaged product and discard instead of discarding the whole shipment.
- It is cost-effective for the manufacturer and the buyer will be much more satisfied with undamaged products.
- Smart contracts can help to maintain the contracts of any logistic company for shipping the products safely from manufacturer to buyer.
- The medical field researchers do many types of research to find medicine for incurable diseases like cancer and they research the same with the new medicines given to the patient.
- The patient history and the result will be shared to the researchers for conducting such clinical trials.
- Here the data of the patients are shared for some fee to be paid by the researchers to get the result data of the patient.
- This agreement is solved using the smart contracts and the data security is ensured using the blockchain technology.
- Many organizations, industries manage the records to save the customer data and here the data safety and security is hindered.
- Here comes an opportunity for Mining. Mining means getting control over the database to alter the data. So many miners try to hack our personal information and data.
- Individuals can have their own personal information and secure it using the digital identity by blockchain which includes username and password.
- These individuals can maintain smart contracts using blockchain technology. they can decide to which organization or to the industry, they have to share their personal information.
- In this way, the smart contracts and blockchain technology ensures data security in record management and can save the digital identity