Smart contract excludes intermediaries from the process of a transaction.
If we consider a smart contract for dummies in simple terms, then imagine that you are selling a house and there is a buyer who is ready to purchase it. In a standard situation (without the use of it), since you do not trust each other, you need to involve intermediaries: lawyers, notaries, financial institutions to conduct a transaction.
You will have to collect a bunch of documents, stand in lines, certify them at a notary. All checks can take a significant amount of time, and besides, smart contract development services of intermediaries must also be paid.
The program independently verifies all the conditions of its participants and, if so, automatically distributes assets. The real estate is transferred to the buyer. This, of course, is an ideal option to the modern world is still far away.
Practical use of blockchain contracts
Smart contracts are relevant across all industries. Initially, they were interested in trading platforms and entrepreneurs for whom monetization is important. But today they are actively used in a number of other areas:
- voting and elections (political system);
- Insurance companies;
- gambling industry;
- fiscal structures;
- humanitarian funds;
- partner projects.
Industry of gambling applications and services: sweepstakes
Wanting to predict the results of a football match, users make predictions into the program and enter special bets in crypto there. After completing the game, all participants who correctly guessed the result will receive a reward thanks to a smart contract.
If the match ends with a draw, and this was not specified in the conditions, the money is returned to those who made the bets. At the same time, no one has to pay a commission to the bookmaker’s offices or be afraid of deception.
What is the future of sm?
Smart contracts are a new transparent way of doing business, where peer-to-peer transactions can take place in a trustless environment. Moreover, a well-developed smart contract infrastructure could revolutionize shipping, logistics and trade on a global scale. Smart contracts can make transactions faster, cheaper, and more efficient across industries ranging from real estate to construction to supply chain management. Read more info here: https://hyperlab.digital/
Currently, it are mainly used in the financial technology industry. However, as more blockchain networks launch their smart contract functions, other industries may find more uses for this technology as well.
The utilities industry is also adopting smart contracts, using them to improve the efficiency of energy distribution in networks. Smart contract algorithms track the energy use of each user in real time as they are linked to smart sensors included in the IoT (Internet of Things). It ensure that no excess energy is distributed on the network and allow users to pay for energy consumption in real time using cryptocurrencies.
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