The term “Smart Contract”, today famous among crypto pundits and trading professionals had its inception in 1994. Nick Szabo who was a cryptographer and a computer scientist, used this term for the first time.
Smart contracts are securely stored machine-readable programs built for the autonomous execution of several transaction policies. The predetermined protocols execute only when certain terms or conditions for them are met. This makes a smart contract a set of recorded triggers that automatically put into effect the clauses of the contract.
Although, there are many advantages that smart contract development can potentially bring to an existing business, one of the most essential ones is the elimination of middlemen parties.
We have already discussed some use-cases of smart contracts in one of our previous blogs. The utility of smart contracts is, however, continually expanding. Let us discuss some of the advanced use-cases of smart contracts and how they are going to impact the operations of several businesses.
1. Smart Contracts as a tool for enhancing financial inclusion
Financial inclusion is essential for people and businesses all over the world. The advent of DeFi (Decentralized Finance) dApps has brought a great alternative to traditional financial services. Bettered versions of lending, borrowing, staking, trading, a myriad of other traditional financial services, and various neoteric revolutionary business models and products have now come into existence with decentralized finance.
Smart contracts have contributed majorly to the success of DeFi dApps as they enable immutability, transparency, 24*7 functionality, reduced costs, and undoubted reliability in a financial ecosystem. With such advantages, they lower the barriers to entry for various businesses and individual classes and considerably maximize financial inclusion.
2. Undeniable Role of Smart Contract based NFTs in Gaming
The traditional gaming industry offered more power to the game developers than to the players. Blockchain technology can revamp the indiscriminate ownership of power and the flow of value. NFTs are one of the major elements driving value to gamers. The NFT regulated gaming ecosystems allow gamers to have complete ownership of in-game assets along with the power to sell them to other players or use them in other supported games.
NFTs rely on smart contracts for their uniqueness, scarcity, indivisibility, ownership, trading conditions, immutability, and many more aspects. This way, smart contracts can contribute to building a more just value model and generate mainstream adoption for the gaming industry.
3. Smart Contracts as a Versatile Tool for Legal Industry
The legal industry is one of those industries that can benefit a lot from smart contract development services. The primary role of the industry is to ensure that all entities abide by certain regulations and compliances.
Smart contracts can act as legally binding instruments for certain agreements, contracts, or licenses. This new development in the legal industry would substantially lower the costs incurred in hiring intermediaries (lawyers or others required in different processes). They would also lead to smooth, fast, and economic execution of certain transactions or protocols.
4. Smart Contracts as a Key Efficiency Booster for Real Estate Industry
The application of smart contracts in real estate opens the doors for the rapid growth of the industry. Smart contracts can potentially lower the barriers to entry of certain classes of investors by enabling fractional ownership of assets.
The autonomous instruments can also raise the efficiency of record-keeping, documentation, and transactional processes. Besides, they can lead to cut down or total elimination of several costs that arise from an intermediary intervention such as broker fees, closing fees, advisory or legal counsel fees, title transfer fees, and many others. This also makes the processes brief and less time-consuming. The automatically executing smart contracts can also streamline rental, complex credit, or mortgage agreements insurance, and warranty.
5. Smart Contracts as a Key Element in Building DAOs
Delaware passed Senate Bill 69 in 2017 which legalized the incorporation or management of businesses leveraging the disruptive blockchain technology. The bill led to the explosive popularity of DAO (decentralized autonomous organization) which was launched in late April 2016. This induced a new wave of the invention which enabled corporations to be governed by smart contracts. Several big names and startups have already started taking advantage of this smart contract development use case.
From ownership to compensation, everything resides coded on the smart contracts. The use of these miraculous instruments allows automatic, fast, streamlined, smooth, and economical execution of several protocols within a corporate ecosystem. In addition, they lessen several administrative expenditures incurred during hiring, payroll, incentive distribution, etc.
6. Smart Contracts as a Robust Collaborative Tool for Emerging Technologies
The fusion of smart contracts and several emerging technologies can build exceptional use-cases. Smart contracts can smoothly execute tasks involving complex computations required in machine learning and artificial intelligence. When smart contracts are deployed across businesses in various industries, they would need to be more complicated to put up with new roles.
By clubbing the data exhaustive processing mechanisms of AI with decentralization, security, and immutability inducing smart contracts, a new incredible invention comes to the table – AI-enabled smart contracts. They can allow the creation of more responsive, highly complex, and efficient enterprise-grade dApps that can radically multiply the capabilities of technology.
Conclusion:
The smart contract technology would continue to improve as it gets deployed in countless other industries. Thus, the use-cases of smart contracts would continue to expand and multiply as the technology grows further.
If you are a business organization interested in availing of smart contract development services to increase the value proposition of your business offerings, hire Antier Solutions to leverage our extensive experience in blockchain development. We specialize in the development of smart contracts using different blockchains such as Ethereum, Solana, Terra, and more.
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