Do you know what are the Ethereum smart contracts? Living in a world where each year appear so many new technologies makes it impossible not only to be aware of all of them but also decide which one can offer some advantages to you and your business. Remember AR (Augmented Reality) or Big Data? Until recently one thought Augmented Reality is unachievable or even far from reality. And look what has happened now: AR has transformed the gaming industry and who would have ever thought that insurance and healthcare businesses would be among the first to benefit from Big Data? But here we are, and the companies that have foreseen the promising possibilities of these technologies became successful. Guess what enormously influenced their prosperity? Well, it’s easy, information. They managed to forecast things, they were the first and they hit the jackpot.
All things considered, it’s clear that the deep understanding of the technology potential is the key to success. One of the most promising and innovative technologies is blockchain tech which comes with its the most significant implementation – ethereum smart contracts. So, let’s get the whole picture of this groundbreaking technology and learn all the hidden but practical methods of opening new horizons for your business.
All Hows and Whats of Ethereum Smart Contracts
It might be difficult to understand the nature of this technology, especially if haven’t heard about it before. But in case you know how the blockchain technology functions, you will definitely comprehend the principles of ethereum work.
Having some important information such as personal info or other private details, somewhere on a server or a cloud makes it easy to access the data from different devices and at any time. But think about the vulnerability of this information. It takes only one hacker attack on a third-party service to destroy all the data.
But what if not storing all the information in one place? Is it possible? Well, the answer is yes. And here is where a blockchain technology comes into play. You’ve probably heard about Bitcoins – it is a cryptocurrency which is also called ‘digital gold’ and works on the blockchain.
Chiefly, the Bitcoins system is decentralized and exists due to all permitted parties. In other words, it’s just like a huge spreadsheet copied numerous times across an extensive network of computers. As the result, all the information on a blockchain remains asa shared database.
So what are the advantages? They are obvious. First of all, the data is no longer located in one place but is presented on millions of computers simultaneously. Another major aspect is that blocks hashing and coupling achieve the blockchain immutability. It also should be mentioned that the blockchain technology is used far beyond a cryptocurrency.
How do the Ethereum Smart Contracts work?
The primary aim of Ethereum is to substitute the third parties and create a ‘World Computer’ which would become a decentralized and democratized form of the Internet. That said, in terms of security, people will be provided with an opportunity to store their information on a huge amount of computers instead of using server companies. As the result, such data as financial details, personal health records, payment agreements etc., will be properly protected.
What are Smart Contracts?
Smart contracts are exactly what they sound. To be more specific, smart contracts are multiple-signature accounts and manage agreements between users. Smart contracts help the user exchange money, property, shares, or anything of value in a transparent, conflict-free way. Ethereum smart contracts embody pre-written logic that makes contracts get automatically enforced when it’s clear who won. This technology leaves no space for fraud, corruption, or censorship.
Smart Contracts Usage in Business: Real Advantages
As you can see, the potential of smart contracts is clear and evident. Still, there are tons of reasons to use these contracts in business.
Autonomy implies that after a smart contact launches, the deal initiator does not have to participate any more in the process. Thus, smart contract usage eliminates a possibility of manipulations made by a third party.
All the data is duplicated multiple times and stored on computers for each and every user of a blockchain. That said that all the information is safe as long as the user has a private key. Once it’s lost, the asset gets permanently lost with no recovery possibility.
One of the fundamental aspects of a blockchain is immutability. This feature provides the user with the assurance that all the information, whether it is some document, digital asset, value, agreement, etc., it is indeed exactly as it was stored.
Usually, it is a time-consuming process to manually manage traditional documents even digital ones. With smart contracts the situation is totally different. Due to code usage, a huge amount of business operations and task have become a fully automated process.
Since the main idea of smart contracts is working without a middleman, the users are able to save a considerable sum of money.
The smart contracts exclude mistakes made by human factor. As the result, the absence of human involvement decreases the risks of errors and boost the accuracy degree.
Industries that Can Make the Most of Smart Contracts Usage
It’s undeniable fact that businesses can gain much from adopting blockchain technology. Smart contracts come in handy when we need to exchange money, purchase or sell properties, operate anything of value in the most smooth and easy-going way. So, there are many industries which can get benefit from smart contracts. The list below includes but is not limited to the following industries which can profit from smart contracts usage:
Is it possible to enhance the current voting system? With using smart contracts, the answer will be affirmative. Such processes as lining up, proof of identity, form completing which take up so much time will disappear with smart contracts. The possibility of online voting and the loss of corruption are also the advantages of smart contracts usage in the government industry.
Management and Communications
The smart contracts usage removes all the complexities of management and communication industry. It eliminates the possibility of data alteration and brings transparency into all the processes in a company. Besides that the communication will dramatically improve and the process of conflict-solving and disputes resolution can become faster and generally better.
Fintech and Bank Industries
When it comes to the financial segment, smart contracts can significantly help with handling the approval workflows between counterparties and transfer funds automatically. Error checking, payout calculating based on a type of a claim or certain policy and perform routing all these processes become simple when using this technology.
With smart contracts there is no need to pay extra money to the third party for rental-related services. It can be easily done through cryptocurrency.
Using smart contracts can have an extremely useful impact on the healthcare industry. Ethereum provides the users with a secure access to
In terms of security, it is difficult for hospitals to share information, and doctors are often unable to access the medical records. Ethereum makes it possible to encode and store personal health records on the blockchain. With smart contracts, the patient’s information can be automatically synced across a global network through blockchain, and easily provided to the individuals with a private key.
It seems obvious that smart contracts can supply all types of businesses with innumerable possibilities. Many companies have already adopted this technologies and generate a profit of it.
Still, since the technology is relatively young, it might be difficult to find the professionals who are specialized in the custom blockchain or smart contracts development. You should make sure, the team you are going to hire has an appropriate expertise and all the details and tasks are perfectly clear.