Smart contracts are self-executing programs stored on the blockchain network. They are a set of predetermined terms and conditions in a digital format. It is like an agreement between two parties and when the conditions are met, the contract gets self-executed. Smart contracts are widely used in platforms that involve trading, investing, money lending, and borrowing.
Now you have an idea of what a smart contract is, and you might be wondering how to implement it in your business. Let’s see in detail the uses of smart contracts in the next session.
How can smart contracts be implemented in businesses?
- Smart contracts can be used to automate various operations in your organisation. For example, transactions can be automated between you and your clients. Financial operations and information related to shipment and delivery of goods can be automated through smart contracts.
- They are highly secure and can prevent hacking into the system. Since these are predetermined terms and conditions, there won’t be any misunderstandings in the future as there is no chance for miscommunication.
- Smart contracts save a lot of time as there are no third parties involved, and since everything is automated, there won’t be any delays in the business process.
Application of Smart Contract:
Smart contracts are widely used in many industries. Let us see a few examples of it,
- Healthcare:
Smart contracts are used to store the patient’s medical records with private keys to maintain privacy. Only a selected number of people will be given access to these records. This can reduce a lot of paperwork and the fear of missing medical records.
The patient’s health checkups and insurance can be kept on track with the help of smart contracts. All these records can be maintained by healthcare professionals and can directly connect with insurance companies for claims.
- Financial Services:
Smart contracts are widely used in payment gateways by banks to transfer funds, and in trading platforms for instant approval. The chance of transaction failure will become less as the program gets self-executed when the conditions are met.
Similarly, smart contracts are put to use in various fields like logistics, supply chain, food safety, real estate, Identity management, fundraising, government, voting, IoT and more.
Benefits of smart contract development
- More trust
- Distributed and immutable
- Paper-free
- Avoidance of fraudulent activities
- Record keeping
- No chance of failure
- Accuracy
- No third-parties involved
- High Transparency
- Storage and backup
- High-level security
- Cost efficiency
- Clear communication
- Increased Speed
- Promised outcomes
Let’s see in detail the benefits of smart contract deployment in businesses:
Accuracy
The explicit recording of all terms and conditions is one of the fundamental criteria of a smart contract. Omissions could result in transaction errors. Thus this is necessary. Additionally, automated contracts do not have the drawbacks of manually filling out numerous forms.
Transparency
All relevant parties are fully aware of and have access to the terms and conditions of these contracts. After the contract is established, it cannot be changed. All parties who have been involved get benefit from increased transaction transparency as a result.
Speed
These contracts conduct transactions considerably more quickly than traditional contracts, which need a large workforce and hours of documentation because they are based on computer codes.
Data Storage:
Every transaction involving a smart contract captures a set of crucial information, so the information you provide is permanently stored for future use.
Trustability
Transparency, security, and autonomy are just a few of the benefits that a smart contract provides. There is also zero chance for bias, manipulation, or inaccuracy. Absolute faith and trust are generated in the execution of smart contracts.
Cost Savings
By automating most operations and getting rid of middlemen or third parties, smart contracts lower the cost of implementation. The fact that automated contracts do away with the necessity for a vast network of middlemen is one of their most important advantages. Lawyers, witnesses, banks, or other middlemen are not required.
Robust Backup
Because all transactions are replicated by smart contracts, parties can have the data backed up even if the data storage device fails.
How To Make A Smart Contract?
Choosing the platform
There are different platforms available for building smart contracts. The digital agreement will be implemented on the chosen platform. Ethereum smart contract is the most preferred platform in the market. Additionally, you can build smart contracts on TRON blockchain, Polygon, etc.
The Development Process:
In this stage, the developer writes the code required to build the smart contract. The business agreements are transferred into lines of codes. Templates of these codes are available in an open-source library. There are separate libraries for each blockchain and they are updated on a regular basis.
Testing:
This phase is very important because once the smart contract is deployed in your business, it cannot be changed. So in this testing phase, the developer can test run the software and make the necessary changes. There are tenets available for each blockchain. Ropsten or Rinkeby work for the Ethereum blockchain. Using this tool, the testing will be done.
Contract Deployment:
This is the final stage of smart contract development. The lines of code are converted to a .json file with the help of the Truffle tool and put on the blockchain.
Conclusion:
Incorporating smart contracts in your businesses can increase the credibility of your business and help you gain trust among your clients. It is important to be cautious while developing a smart contract. Once a smart contract is deployed, it cannot be changed. Since high technical skills and coding skills are equipped in smart contract development, it is recommended to hire a Smart Contract Development company.
