Top 10 Use Cases of Smart Contracts
“The portfolio of use cases of the smart contract layer over the blockchain technology is rapidly increasing. A day will come in the near future when smart contracts and blockchain technology will be used in every sphere of human lives thus revolutionizing it”.
Instant Digital Verification
The use of smart contracts will ensure that digital identity verification (KYC) of the individual is done automatically, instantly and remotely. The pseudo anonymous nature of blockchain will ensure that smart contract execution does not broadcast information that is not allowed by the person whose identity is being verified.
Banking
Smart Contracts can completely remove the intermediaries from banking processes thus reducing time and fee for processing the transactions. This can make banking cheap and fast.
Tax Records and Payments
Blockchain technology and smart contracts can help in recording the tax details and transactions and perform automatic payment of taxes on the date determined in the smart contract by the taxpayer.
Insurance Sector
Smart contracts can automate the insurance claim process and reduce all the hassle of insurance claims. During a natural calamity in an area, farmers can get their agricultural insurance claim automatically as the smart contract will retrieve the damage data of the area automatically and execute payments to the affected.
Land Title Recording and Real Estate
It can ensure buying and selling of the land or a property without even meeting the seller and obtaining the ownership rights with a proof recorded on the blockchain. This will also help in eliminating the documentation process and in eliminating the risk of frauds in claiming the ownership titles.
Supply Chain Optimization
Smart contracts along with IoT (Internet of Things) can revolutionize the supply chain and logistics industry. The smart contracts can help in recording live data of goods and services during the transportation, their status, storage conditions etc. Once the goods arrive at the destination, smart contracts can immediately release payments to the vendors. This will also reduce the chances of fraud.
Smart Homes
The Internet of Things as a technology has allowed for the creation of smart homes that have automation features that can be controlled by voice, gestures and a lot more. Smart contracts will take the automation to another level as various commands can be predetermined in the smart contract that will be executed when certain conditions are met. Suppose, the curtains get opened automatically just seconds before the alarm rings in the morning etc.
Gambling and Gaming
Gambling and Gaming industry is the biggest use case that is being explored at the moment using the smart contract system and it will pave the path into the Metaverse in the future. Smart contracts will make gaming and gambling transparent and honest. If you win, you will not be cheated and the payments will be executed by the smart contract and vice versa. Many virtual casinos are using smart contracts to create provably fair gambling systems online.
Intellectual Property Rights
Privacy and Copyright are the two major issues in the intellectual property sphere and smart contracts can ensure that the Musicians, photographers, writers, and other artists get their royalties anytime a customer buys or downloads their work. Also, the smart contracts will help the artists in securely registering their ownership rights of the intellectual properties on the blockchain.
Health Care and Life Sciences
Health tracking devices have become a reality today and smart contracts can take this use case to another level and it can even prevent crisis situations during health conditions such as a heart attack. Imagine you getting a notification regarding your health condition and possible risks associated with your current status and actions to be taken, you can even prevent a heart attack. Smart contracts can be implemented that will regularly monitor the health condition and transfer this data to the blockchain regularly and when specific conditions are met, you can simply be notified to take actions.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
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