Are you looking to keep your business more secure and efficient? If so, here the smart contract came into the concept. A smart contract is the smartest way of performing various activities under living a certain agreement which will be pre-defined in the form of code or set of instructions that will be executed when and only the certain defined terms and conditions will be met between the sender and buyer. Well, today this article will discuss the smart contract and explore the "Real World Examples of Smart Contract" so, here let's get started!
What is Smart Contract?
A smart contract is a set of rules and agreements between two parties and all these agreements are pre-defined in the form of coding. These lines of code will be automatically executed when two different parties meet the defined condition and after running the smart contract desired objective would be met. For instance, if two different parties want to perform the transaction on the Ethereum (ETH) blockchain, then they have to meet the criteria as defined in the smart contract which is deployed on the Ethereum blockchain, without fulfilling the predefined rules or agreement transaction will never be done.
Real-World Examples of Smart Contracts
The use cases for smart contracts are numerous. Here are a few instances of smart contracts in the actual world:
- Supply Chain Management: Smart contracts automated and streamline the supply chain process, for example, it can be used to track the goods or services and pay insurance like in the supply chain supplier will receive the amount only when the goods are delivered and verified.
- Real Estate Transaction: Smart contracts can automate the buying and selling of real estate for example, it can be used to hold the funds until the desired task would not be met such as the completion of the home or the transfer of ownership.
- Insurance: Smart contract can be used to execute and trigger insurance policies, for instance, a car has insurance, and in case of an accident, the contract will be automatically executed and the insurance payment will be transmitted to his or her account.
- Voting: We can utilize it even in a voting system by ensuring that votes are counted accurately and transparently. They can also eliminate the involvement of intermediaries and fraudulent activities during elections.
- Gaming: Smart contracts can be used in decentralized gaming ecosystems, they ensure when the user paid for specific tasks or assets it would be executed automatically.
Conclusion
Smart contracts are self-executed programs when certain terms and conditions are met and it is the set of rules or regulations that are the necessary part of seller and buyer. It allows secure, transparent, and efficient transactions as well as eliminate third-party involvement. The smart contract has several use-cases in the real world such as supply chain management, real estate, insurance, voting, and gaming.
