Smart Contracts are one of the few innovations in the blockchain world that has been revolutionary. Smart Contracts are an innovative, self-executing agreement between two anonymous parties, AKA, the buyer, and the seller, without the need of any central authority or legal guidance. Smart contracts are directly written in the code itself which are impossible to hack and help guarantee that both the sides of an agreement aren’t ripped off.
Smart Contracts present the future of digital transactions, although with a 3% failure rate or issues with smart contracts. It has the potential to disrupt many businesses and industries and help rethink the way they operate. Some of the smart contract examples include Legal industry, shipping, and logistics, Real Estate, Finance or Banking and many more. We have mentioned some of the companies using smart contracts. (practical examples for smart contracts)
The global streaming services makes around 40% of the global revenues but the music industry experiences some issues like the revenues fails to reach the content creators’ hand due to centralization, lack of transparency over ownership of the content, royalties payment and many more.
Inmusik is a music streaming platforms that can decentralize revenues and have a proper allocation of revenues to the worthy recipient or creators. All this is possible because of the smart contracts, available in the Inmusik blockchain that enables the validation of the ownership of a song through a transparent tagging system. As a result, the party who creates the track gets the right portion of fees allocated from the royalties. For every $1000 of music sold, a musician gets an average paltry of $23.40.
The Digital Art industry is also prey to lack of ownership and transparency. With the blockchain art market emerging, digital artists are bound to find answers to the aforementioned issues. Smart Contracts and blockchain technology could help the digital artists in these four areas, as per Artnome:
Ascribe is a digital art platform, merged with smart contracts to enable secure ownership or authorship of a digital artwork, which means the digital artists are saved against fraud. As the artwork is circulated and promoted across various platforms on the web, the artists can keep a track wherever their work is published so that they can claim the right publication fee. Around 6% job growth is predicted for digital artists, hence this is one of the fast-growing platforms for integrating smart contracts.
Smart Contracts can help the diamond industry to improve its supply chain. Very recently, a diamond company, DeBeers introduced a blockchain-based project called Tracr, that will help in improving the supply and logistics of the diamond production. The issues which are looked forward to being solved with the help of smart contracts are:
Tracr takes care of all these issues and relies on a KYC procedure which facilitates the transactions while enablement of privacy control to respect sensitive data. Tracr even provides a digital fingertip that enables anyone to efficiently track diamond production. Some other smart contract supply chain examples include Maersk and IBM, Tomcar and many more.
The Banking industry is one such industry that will be getting the most benefit from the blockchain technology and smart contracts. Some of the areas that benefit the most from smart contract technology are as follows:
Recently, the Swiss Bank UBS has discussed the inception of a new technology called “smart bond”, which is a blockchain-based program for the creation of the self-paying instrument, which will be risk-free and is an available payment stream for the unbanked people. This kind of micro contracts can enable microfinance which could help in payment of everyday goods.
Even in the healthcare industry, there are several issues pertaining to data conservation and patient privacy. To get rid of the dependencies which involve a lot of middlemen and bureaucracies, introduction to the smart contract was much necessary for the healthcare industry. Smart Contracts would help in:
Applicature is a blockchain development application, which fosters data integrity, wherein the patients will have access to a transparent, secure record of their health data. It provides a safe network to all the healthcare entities from the practitioners to patients.
Smart Contract has been getting a high adoption rate by most of the companies because of its innovative technology and its benefit as it leads to transparency in any kind of projects. You must wonder why are smart contracts called contracts, the answer is simple. It is an agreement, without much probability of failure, as it is a contract between two parties, where the ownership lies with them solely.
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