Can a smart contract be used to Improve the business?
Blockchain started to roll with a man named Satoshi Nakamoto, who invented Bitcoin and brought blockchain technology. It is still mysterious who really Satoshi is. Bitcoin was introduced as an alternative for flat currency and blockchain implemented to support the bitcoin. After the release of blockchain, developers began to identify the potential of blockchain and started to explore the possibilities of blockchain outside the cryptocurrency. In earlier time users often thought bitcoin and blockchain as the same thing, but in reality, bitcoin is simply an application built with blockchain.
Blockchain is a decentralized, distributed ledger created to record the transactions permanently without any third-party applications to authenticate. This type of transactions can be used for financial exchanges with a higher transparency rate, speed.
When developers are busy with developing and exploring the functionalities of blockchain outside the cryptocurrencies world, a man named Vitalik Buterin founded ethereum, which is the second largest cryptocurrency in the world as per market capitalization. He also included a feature name “Smart Contracts” which stated that it can be used to exchange anything of value directly without any mediator. Before the invention of ethereum and smart contracts only cryptocurrency token like bitcoin could be exchanged, But using smart contracts, it will allow other assets like, bond, agreement, loans or services can be exchanged. Nowadays smart contracts are being widely used in various business organizations to cut down the time required for manual verification of the contract and can save the cost. Smart contracts are termed as a virtual agreement that can facilitate to exchange anything of value. These contracts are self-executing in nature and can be triggered automatically if certain conditions are met. Industries like banking, real estate, private organizations can get the benefit while using smart contracts. Using smart contracts, it will increase the trust between the companies and can simplify and standardize the contracts. Smart contracts can be used in certain industries like, Healthcare, Financial services, Media, Public Sector and Cross-Industry. The reason why smart contracts are used in because it provides accuracy, transparency, trust quotient.
Using Smart Contracts in different organizations will improve the communications and trust between the different organization and can exchange any asset without using any third-party middlemen.
