Benefits Of Smart Contract For Your Business

 

Introduction

How we conduct business and even live our daily lives is changing due to the blockchain and the opportunities it provides. A "smart contract," a tiny piece of software kept on a blockchain, can speed up transactions, lower costs, and save time. The characteristics of the trust-shifting technology known as smart contracts and the sectors that potentially profit from them will be covered in this blog.

Benefits of Smart Contracts

1. Independence and savings

Due to the lack of brokers or other intermediaries, smart contracts prevent third parties from manipulating the agreement. Smart contracts also save money because there is no need for an intermediary.

2. Transparency

Since everyone is aware of the same facts at once, there is less chance that the contract's terms will be manipulated. Since smart contracts are built on the blockchain, they guarantee the immutability of data, enabling the creation of contracts and agreements without the need for prior interpersonal contact and preventing potential conditional breaches or errors in the administration and execution of the contract.

Since transactions are duplicated so that all parties involved have a record, this transparency gives the parties security and trust because they always have access to the data and information about the contract.

3. Cost-cutting

This benefit is also related to the removal of intermediaries. The associated costs are decreased by not needing a third party to confirm the contract's terms and give the required confidence. In this kind of contract, intermediary fees are eliminated.

4. Speed

The time and financial costs are both decreased by the lack of intermediaries. Compared to contracts completed manually and in the presence of a third party, the amount of time spent is less because it is done automatically.

5. Paperless

Businesses all across the world are becoming more aware of their environmental impact. Smart contracts make the "go-green" movement possible because they are fully functional in the virtual environment. Large reams of paper are no longer required as a result.

6. Backup & Storage

These contracts document crucial information about each transaction. Therefore, whenever your information is utilized in a contract, it is permanently preserved for use in the future. These properties can be quickly recovered in the event of data loss. 

7. Ensured Results (Bonus)

The possibility of significantly minimizing or perhaps wholly removing the need for litigation and judicial proceedings may be another appealing aspect of these contracts. Parties agree to abide by the laws and judgments of the underlying code by employing a self-executing contract.

What conditions Suit Smart Contracts?

These contracts are better suited to some businesses than others due to their self-executing nature. Adopting this technology can help sectors including banking, insurance, healthcare, and real estate. A system of unambiguous guidelines, formulas, and quantitative terms of involvement support these sectors.

Automated contracts are less suited to the hospitality, food, and beverage businesses because service levels are qualitative.

Smart Contract Example, the program code might sound something like this if it were translated into spoken English:

Send item B to client X if client X receives item A and if client X pays for item A. 

You can verify and manage the smart contract without the help of outside experts because it runs independently. As a result, you avoid the danger of fraud and save time and money.

Keep in mind that smart contracts can be reused. Once a program is written, it can be used repeatedly with different input data.

List of Smart Contract Platforms

These are the list of top Smart Contract Platforms. Here are the 5 top Platforms.  

1. Hyperledger

A leading platform for smart contracts in 2022, Hyperledger was developed by the Linux Foundation. Thirty co-founded business members were present in 2015, including well-known companies like IBM, J.P. Morgan, Cisco, Intel, and others. 

As a legitimate blockchain, Hyperledger Fabric, participants' identities are known, and identification is required. Because of this, Hyperledger is incredibly tempting to companies on the list of smart contract platforms that work with sensitive data and must adhere to regulations like the GDPR for data protection.

2. Tezos

Tezos, another platform for smart contracts, was started by Arthur Breitman in 2017. Breitman built this platform to build a blockchain that will do away with issues of first-generation blockchains, namely protocol splits.

For instance, the fact that platform stakeholders cannot agree on specific protocol modifications and instead choose to create a new chain is one of the reasons Bitcoin has numerous forks, including Bitcoin Cash and Bitcoin SV.

To avoid hard forks, Tezos combines self-amendments and on-chain management. This suggests that if stakeholders approve a developer's proposed modification, protocols can be changed immediately. As a result of developers' contributions, the platform might grow.

3. EOS

On the list of smart contract systems is EOS, widely regarded as the best one. The crypto community noticed it when it started running in 2017.

With almost no transaction costs and the ability to process numerous transactions in a single second, which is essential for smart contract execution, it appeared to be the most promising of all the systems.

The best smart contract platform is EOS, a cryptocurrency designed for large-scale applications. It doesn't include any fees for sending or receiving EOS. Instead, the protocol rewards the network administrators regularly with more EOS. Inflation thus takes the place of transaction costs.

4. Near Protocol 

Near Protocol is another prominent smart contract platform. Former Google and Microsoft software developers invented this protocol. They presented their cutting-edge blockchain technology solutions, and within the first four months, they had raised $50M without even having anything created. Currently, the Near protocol has about 60 validators, making it relatively centralized.

On a fresh layer, one blockchain, Near, is constructed. Because of its sharding and usage of the delegated proof-of-stake consensus, it is scalable and secure. According to their website, they are developing an architecture for Web 3.0 to make it difficult for tech giants to steal your personal information and for governments to shut the internet down.

5. Cosmos 

With 140 validators and an inter-blockchain communication protocol, Cosmos is a Layer 0 blockchain. This smart contract blockchain intends to build an ecosystem of interconnected blockchains, or an "internet of blockchains," so to speak. The majority of blockchains on Cosmos only have a few validators.

Soon, Cosmos will unveil new roadmap features intended to increase the ATOM coin's utility significantly. For instance, cross-chain staking and the staking of derivatives. Cosmos can be a decentralized exchange platform and a medium for scaling smart contracts.

At Reveation Labs is a smart contract development company. we know that the key is not to invest in innovative systems but to carefully consider the demands of businesses, weigh the options, and gauge the potential benefits of each innovation. We offer tangible advantages that might help your business grow by increasing its profitability and competitiveness.

Build your Smart Contract with us with ease.

Conclusion

Cryptocurrencies with smart contracts are an intriguing topic. It is still being determined where this market will go in the future. However, there is a significant likelihood that these digital currencies will survive and grow over time. You can invest in most of these currencies on well-known smart contract crypto exchanges. Always conduct your research into this and other cryptocurrencies in this industry. Furthermore, only invest in something you can afford to lose because all bitcoin investments are risky.