You must have noticed the numerous promising use cases of blockchain emerging in different industries. So, it is right to assume that blockchain is the most dominant technological intervention, which has made quite a massive impact within just over a decade of its arrival. Today, you can witness many professionals across various sectors alongside the general public using the term ‘blockchain’ in different discussions.
One of the most promising blockchain applications in real world points out the use of smart contracts, thereby driving interest in smart contract examples. Smart contracts emerged in 1994 with the objective of embedding contracts into computer codes. Blockchain technology simplified the possibilities for achieving the basic design goals of smart contracts with the value of transparency and security. The following discussion presents a detailed overview of five interesting examples of smart contract use cases to help you understand smart contracts on a deeper level.
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Introduction to Smart Contracts
One of the foremost aspects in understanding blockchain smart contract examples would refer to the fundamentals of smart contracts. Smart contracts are one of the basic components in various blockchain-based ecosystems. Most important of all, it is a crucial aspect for different application-centric blockchain networks such as Ethereum. Smart contracts are known for specific traits such as being trustless, transparent, decentralized, and autonomous.
In addition, smart contracts are irreversible and cannot be modified after deploying them. Smart contracts remove the need for manually enforcing contracts or involving intermediaries in transactions or agreements. In all the smart contract examples, you would find the code defining the mechanisms of transaction alongside serving as the final arbiter of the terms and conditions in the contract. Therefore, smart contracts have served as a formidable foundation for the thriving ecosystem of decentralized applications or dApps.
Most of the smart contract use cases employ a bundle of smart contracts. Solitary smart contracts are only suitable for a specific type of transaction wherein only particular events can lead to related consequences. Therefore, the majority of dApps bundle smart contracts together for developing a comprehensive and interwoven assortment of features. As of now, you can discover various dApps in different blockchain networks for use cases in gaming, media, finance, and exchanges.
The dApps utilize smart contracts in various ways for achieving different business objectives. One of the common answers to ‘What are examples of smart contracts?’ points to financial services such as lending, borrowing, investing, and trading. Let us discover more about the factors which drive interest in real examples of implementing blockchain smart contracts.
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Value Advantage of Smart Contracts
While smart contracts look like an innovative take on automation, it is much more than the simple concept of embedding contracts in code. Just like any other technological intervention driven by automation, smart contracts introduced prospects for higher efficiency with time savings. Furthermore, smart contracts are also capable of delivering visible cost savings. Here are the two most significant value advantages you can discover with real-life examples of smart contract use cases.
Smart contracts leverage automation for enabling improved efficiency by excluding intermediaries and redundant layers in executing contractual obligations. Smart contracts could help in the faster execution of deals within a matter of minutes by using pre-configured conditions.
When a specific condition outlined in the smart contract is fulfilled, the relevant action outlined in the contract will materialize immediately without any third-party delays. Furthermore, real blockchain smart contract examples clearly exhibit improved simplicity with smart contracts in comparison to traditional contracts. You can have the benefits of limited paperwork, reduced waiting times, better intuitiveness, and fewer steps.
Saving Time and Money
As you can notice clearly, the simplification benefits introduced by smart contracts presents many other added advantages. For example, the parties involved in contacts could save a considerable amount of time due to the simplified contracting process. In addition, the exclusion of intermediaries could lead to quantifiable and real savings in cost. You would have to pay for the costs of the blockchain infrastructure required for executing the contract.
Apart from the benefits of simplicity and time as well as cost savings, smart contracts could facilitate improved security. At the same time, smart contracts could also ensure improved accuracy, trust, and transparency. With so many promising value advantages, it is reasonable to focus on smart contract examples in the real world.
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Top Examples of Smart Contracts in Real World
The different value advantages of smart contracts present a promising case for their application in many real-world use cases. Here is an outline of some of the most notable blockchain smart contract examples you can find today.
The insurance sector spends more than millions of dollars annually processing claims. In addition, the industry has to bear the burden of fraudulent claims. Smart contracts could serve as a useful technological intervention in the insurance sector. Interestingly, smart contracts could improve claim processing by ensuring regular error checks and supporting policy administration from organizations or individuals.
Therefore, the shorter processing times in the real world smart contract use cases for the insurance sector could lower down the costs for consumers. According to Lloyd’s of London, insurance companies could address several discrepancies in coverage, which are associated with the underwriting process. As a result, they could also improve the efficiency in managing risks from corporate buyers.
Safeguarding Medical Data
Healthcare institutions are exploring the value benefits of automation alongside reliable and updated security measures. Cybercriminals have been targeting hospitals for gaining access to and compromising a massive collection of sensitive information. Many reputed names in the healthcare sector, such as UCLA Health, have fallen prey to data breaches with around 4.5 million compromised patient records.
The smart contract examples, in this case, suggest a secure exchange of patient data among healthcare providers. It could play a crucial role in maintaining the standards of care. The most significant aspect of smart contracts is the secure storage of patient data on a blockchain.
In addition, smart contracts also ensure that the patient’s private key is the only way for accessing patient data. Therefore, patients could have the assurance of medical providers gaining access only to the required information. At the same time, patients are also assured of the security of their data.
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Resolving Errors in Trade Finance
Smart contracts have the capability of reducing some of the most expensive errors in trade finance. They could easily ensure automation of workflows while also simplifying and streamlining calculations. So, you can find a promising reduction in work hours with blockchain smart contract examples in trade finance. The most notable example of smart contracts in trade finance has been pointed out by Santander InnoVentures.
The firm has showcased the benefits and opportunities associated with the latest financial technologies. Santander InnoVentures perceive smart contracts as a crucial tool for introducing fundamental modifications in the infrastructure and processes of the financial services industry. The firm also perceives smart contracts as a vital tool for managing higher transaction volumes efficiently. Interestingly, smart contracts could result in savings in the range of $15-20 billion annually by the year 2022.
One of the most innovative and groundbreaking applications of blockchain has been identified in the domain of elections and voting. As a matter of fact, blockchain-based voting systems could transform the future of elections all over the world. Therefore, voting is also a prominent answer for ‘What are examples of smart contracts?’ with so many possibilities in blockchain-based voting systems.
First of all, blockchain-based voting systems could improve accessibility to elections alongside driving better voter participation. Subsequently, smart contracts could also help in speeding up the process for tallying and reporting the votes. Smart contracts could provide essential support for the validation of voter identities in order to avoid multiple casting of votes. With proper identity verification mechanisms in place, election hackers could barely find their way around smart contract-based voting systems.
Real Estate Applications
The final entry among smart contract examples in the real world would obviously point towards the real estate sector. Smart contracts in the real estate sector could help in the documentation of property ownership details regarding any establishment. Smart contracts can help in optimizing transaction speed through the reduction of the need for brokers and lawyers. Interestingly, real estate sellers could take control of the process of real estate transactions.
Thought leaders have stated that smart contracts could offer better transparency and cost-effectiveness than property title management. Title defects could create obstacles for transfers, thereby leading to legal fees. On the other hand, smart contracts could maintain records of history, location, and other significant details regarding a property. As a result, they can simplify property assessments while ensuring the value of security.
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The outline of different real-world smart contract use cases is only a limited representation of the potential of smart contracts. As of now, smart contracts have the potential to transform numerous industries in the future. Many developers, researchers, and enterprises are investing efforts in discovering new ways for leveraging the benefits of smart contracts.
While blockchain is definitely a favorite for transparency and security benefits, smart contracts bring simplicity and a broader scope for integrating multiple functionalities in decentralized applications. Many organizations in different industries are exploring the true potential of smart contracts. Learn more about them and use smart contracts to your advantage!