How Blockchain and Smart Contract Development Help Your Business
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Blockchain and smart contract development are changing the world as they revolutionize business practices. It is economically efficient and can easily streamline transactions, remove intermediaries and better align business interests.
It cannot be denied that the disruptive potential of blockchain and self-executing smart contracts brings a potential change to the commercial and legal landscape due to their immutable and irreversible properties.
There are several architectures for blockchain application development, deployment and management of smart contracts. For example, you can connect smart contracts to different payment systems or digital exchanges or can be held on the blockchain or a shared ledger.
According to a report, the global smart contract market is estimated to reach $1,460.3 million by 2028, from $315.1 million in 2021, at a compound annual growth rate (CAGR) of 24.2% during the forecast period (2022-2028).
Now let’s understand the use of smart contracts and how smart contract development helps businesses grow.
Use cases for smart contracts
Different industry verticals are leveraging smart contract development as they change how a business operates. They help increase speed, transparency and security across all organizational departments. Some of the use cases for smart contracts are the following.
Multi-signature accounts
Funds are transferred from the main account only if the members approve it. Multisig contracts are the best solution for sharing ownership as it provides distributed control over funds. The multi-signature contracts also prevent single points as each sensitive transaction requires the approval of a certain number of parties.
Storage
Smart contracts can store sensitive information and maintain their own permanent storage. The data stored on the blockchain such as Ethereum (ETH) is unique, immutable and cannot be changed. You can use them to keep the records, renew them and release them automatically according to the parameters set.
Third party assistance
Although smart contracts eliminate third-party involvement, it is not possible to eliminate them completely. They have different roles in the network.
For example, the lawyer will not draft individual contracts, but will be necessary in the development to understand the terms required to draft the contracts. Smart contracts in a network can also communicate with each other in the same way as a software library.
Coding of financial obligations
The coding of financial obligations is mainly carried out to administer the user agreements. For example, providers can code redemption rules into the smart contract if a person wants insurance.
How smart contract development helps businesses grow
Smart contracts are a new way to secure business transactions and agreements online. Smart contracts help businesses move into the digital age and leverage the concept of decentralization to optimize operations.
Let’s learn the benefits of smart contracts that help businesses grow.
Flawless automation
Smart contract development for your company allows you to automate the business process. It helps you save time, reduce costs and eliminate any errors.
The payments are only released when both parties meet and confirm the pre-set conditions. Smart contracts help companies automate complex business processes and execute them securely.
End-to-end security
Smart contracts are stored in an immutable and irreversible distributed ledger, which provides an extra layer of security. Smart contract developers can also help you incorporate additional security features such as multi-factor authentication and data encryption. Also, no one can control other participants’ funds as each transaction is validated after a consensus is reached.
Higher trust and transparency
Smart contracts are based on blockchain technology that offers complete transparency in transactions. All parties involved can view the terms and conditions along with the transaction history. It helps to build trust and better relationships with existing or new customers and partners.
Saves operating costs and increases efficiency
Third parties often require a significant lump sum of money. Smart contracts eliminate the need for intermediaries, allowing businesses to interact and transact directly.
The automation that smart contracts provide helps to remove redundancy and the need for manual intervention, saving both time and money and increasing efficiency.
More control over processes
Automating your business processes via smart contracts gives you more control over the transactions in real time. You can also enforce compliance with external regulations or internal policies. All contract transactions are stored in a specific chronological order that can be accessed along with the entire audit trail in the blockchain.
Conclusion
Blockchain and smart contract development for companies is the need of the hour, regardless of the business domain. Leveraging this disruptive technology helps cross-domain businesses create a transparent platform for all their stakeholders.
The promising use cases for blockchain and smart contracts lay the foundation for the future of businesses by driving maximum output across various business operations such as supply chain management, quality assurance, data storage and security.
Sudeep Srivastava is the CEO of blockchain app development company Appinventiv and is someone which has established itself as the perfect blend of optimism and calculated risks. Having built a brand known for harnessing the unexplored ideas of the mobile industry, he spends his time exploring ways to take Appinventiv to a point where technology blends with life.
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Featured image: Shutterstock/Tuso949/Natalia Siiatovskaia
