In recent days, one of the biggest challenges that many organizations have faced is a lack of trust while they engage with other organizations.
Due to the trust issue and lack of transparency, businesses act cautiously and spend a significant amount of time & money on intermediaries while finalizing the agreements.
So to automate the process and reduce intermediaries, smart contract development services came into play.
Smart contracts build trust and transparency between two parties by using blockchain technology. They create immutable and easy access to data. It is simply a computer code that runs on top of blockchain technology and enables secure value exchange. To be precise, Smart contracts can remove the need for a mediator when two parties want to exchange valuable digital or physical assets.
Why are smart contracts important?
Cost-effective Time-saving Secure Accurate
Now let us understand a simple use-case on how smart contracts can automate and enhance different processes.
Supply Chain Management:
Supply chain management is the flow of goods that involves streamlining a business’s supply-side activities. In a blockchain-based supply chain network, once an item reaches the final terminus, the ownership status of the item changes.
With smart contracts embedded system, everyone in the supply chain can track the product location with the help of IoT sensors. Smart contracts can find the product and its location if an item is misplaced or lost during the process. The contracts can also automate all the routine tasks and payments that are involved.
Medical Research
The medical research industry will be benefited similarly to the healthcare industry. High sensitive data such as the records of the patient can be transferred between departments after having been secured and encrypted through blockchain technology.
Generally, patients often wish to keep their sensitive medical records private. Likewise, medical research companies deal with an enormous amount of data, including new drug formulas and test results that they need to keep safe. All these can be secured via the usage of smart contracts.
Key takeaway:
Undoubtedly, smart contracts have tremendous potential in reducing time and costs worth billions and making the entire process more secure. Thus it benefits both the firms and the customers engaging with them.