Whether it is a business relationship, an agreement, or a place where multiple parties are involved, contracts are required to note down the dynamics of that relationship officially. The contract defines the terms and conditions between two parties, i.e., purchaser and merchant, tenant and owner, buyer and seller, or subscriber and service provider. A traditional contract is written in human language and can be subject to interpretation. Since the written contract call is ambiguous, both parties can have a different understanding of the contract.
Smart contract development is translations of an agreement that includes terms and conditions into a computational code (script). Blockchain smart contract developers write the script in a programming language like Java or C++ in a way that is void of ambiguity and does not lead to interpretation. The code translates a set of rules that are automatically validated and executed. A simple example is a translation of: “if A provides the service, B pays for it.”
As smart contracts developers condition driven operations, they eliminate the chance of ambiguity from any agreement. This makes the concept of smart contract workable for a variety of services and businesses. Some of the real world use cases of Smart Contract include:
Every individual can digitally hold their identification proofs and grant access to authorities based on their needs. This reduces the mismanagement in identity management to a great extent and simplifies the process of Know Your Customer (KYC). Also, smart contracts are more secure.
Logistics companies make strategic use of the smart contract in updating their suppliers and inventories as per the deliveries. Also, a smart contract defines payment, transportation, and receivable status in the supply chain.
Insurance policies can be replaced with a smart contract development company to some extent. Insurance companies can disburse health insurance via a smart contract after receiving the confirmation of Proof of Work for a health procedure or surgery. Also, the Proof of Work can have the blockchain system where the records of all the patients are maintained with certain authorities having the key to access data.
The real estate transactions can be less stressful because of implementing the smart contract. The buyers and sellers can form a smart contract which transfers the ownership of the property to the buyer after receiving the agreed upon amount.
Smart contracts are the future of, and it can be accepted as a norm. Hire a smart contract developer and replace the complex processes and contracts with standardized and enforceable agreements.