Is it true that the future of smart contracts is really bright and impressive?
Well, we will check it out in this blog! Whatever business you run, it should always stay updated and be welcoming new and should have innovative ideas. This plays a very big role in your business success. Well, and if you are, then integrating the smart contracts with your business would be a definite smart move! According to an article published in Forbes Magazine, Mr. Gartner estimates that almost 25 percent of the global companies would be using the Smart Contract technology in running their businesses by the year 2022. Also, he adds that just don’t adopt the smart contracts for the sake of it, because it does not add any value to your business. Anyways this blog intends to convey you the message on how smart contracts benefits your business or organization and the future of smart contracts. As the importance of smart contracts are increasing, so does the need of smart contract development services. We would be also learning how the companies who have already adopted this method is going forward. The Future and the Promise of Smart Contracts
One of the major advantages of adopting smart contracts by the companies will be avoiding the intermediaries involved in financial transactions. The main idea behind the creator of Blockchain Technology, Satoshi Nakamoto was also this. He/She/They didn’t like the idea of third-party services controlling our financial transactions. It is said that smart contracts are the future of blockchain. Well, moreover, the smart contracts also remove the common hurdles or barriers involved with the international money exchanges and also the time taken for the processing of transactions. Also, this system provides greater accuracy and genuineness since all the functions are performed by fully automated systems other than the manual methods. Hence for all the business who adopt the use of smart contracts need to rely on themselves only and no need to depend on other third parties. Also, there will be no need to pay an additional fee to other outer organizations, which indicates that more profit will be staying within your business itself. Why adopt Smart Contract? If your business demands a very large volume of transactions and you are paying a transaction fee to any third party in the process, then Smart Contracts would be the best option for you! Smart contracts real world applications are numerous in number.
This point is almost similar to the one mentioned above. Let us discuss this topic with the use of an example. Imagine that you are owning an e-commerce business. And a client comes to your online store for buying a specific product. The supply of product with you is nearly empty or NIL. So what will you do? You will need to contact your upstream provider who delivers you the products. They, in turn, should be contacting someone else to get the product or deliver the customer opted product. This long process involves a lot of costs as well as can jam up the chain of communication. Smart contracts help you to communicate with the different service providers or suppliers in a really more effective and quick way, and at the same time, they help to avoid the intermediary fees involved as we have discussed just above. Once the supply chain partners agree to follow the smart contract mechanism, then there will be no need of trust in third-party financial institutions like banks. And even the partners involved in the process like manufacturers, suppliers, and customers can find each other and do the business much faster and quickly. These are the words mentioned by the experts of the IT giant Cognizant. And they are confident enough that the future of smart contracts is really bright. Well, let us consider another example to reinforce the above-said statement! Once the Vice President of Walmart for Food Safety, Mr. Frank Yiannas bought a packet of mangoes from one of their own stores and came to his office. And asked his team to find out the exact place from where the mangoes had really come from! His team took more than 6 days to figure out where it actually came from. He said the result is fine, but he was not satisfied with the time taken to find an answer. Actually, this was done as a part of a large experiment. Yiannis was actually on behind a technology that would be able to track down all the products that are sold through the Walmart stores. He was in search of a path-breaking technology that could solve such issues. But finally, Walmart along with IBM implemented the Blockchain Technology and it enabled to fix the issue. Yiannis was so happy that afterward, he could track all shipments and other products within a matter of few clicks! And definitely, you too could! "Also read the blog on Future of Blockchain Technology" Why adopt Smart Contract? Adopting the Smart Contract technology in managing your really large Supply Chain will make your life much smooth and efficient.
Blockchain smart contract technology provides higher safety and security to the entire party involved in a transaction, and the credit for this goes to the fully automated contract that works on certain predefined conditions. Or in short, it can be explained as Smart Contracts gets executed only when a specific event occurs and once the event is verified, then the smart contract release funds (say for example). Let us take into consideration a case in which a smart contract can automate the payment procedures involved: Consider a case where a borrower of a book from a library signs a contract that if he/she does not return the book by a certain date then an amount equal to the cost of the book will be deducted from the borrower’s Bitcoin wallet and send to the library. Just imagine a case which follows the traditional mechanism, the library would send the borrower a notice stating the same, and he/she could opt for not to pay the bill, which is a violation of the contract. This example is a clear indication of why Smart Contracts are valuable for every business which deals with monetary transactions. It has also been found out that 82 percent of the businesses fail mainly because of cash flow problems. And the adoption of Smart Contracts helps to avoid missed or late payments because it automatically happens when the predefined conditions are met. Why adopt Smart Contract? If your business is facing the issues of a lot of late or missed payments, then integrating smart contract technology with your business helps to eliminate such issues in the future. Conclusion As of now, Smart Contracts only benefit the business in a very positive way. It’s really difficult to predict all the benefits it would bring to the different sections of industries right now! Smart Contract technology has still a long way to go. And undoubtedly the future of smart contracts will be really huge and awe-inspiring. Let us wait and hope for the best in the near future!
5 Comments
12/8/2022 12:36:22 am
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