What are the applications of blockchain smart contracts?

Smart contracts can be used not only in the currency and payment sectors but also in terms of their characteristics and attributes that can be extended to other business and organizational activities. Smart contracts allow many different types of programs and operations to be automated, and the most obvious of these are the payment steps and payment steps. However, smart contracts can be used not only in the currency and payment sectors, but their characteristics and attributes can also be extended to other business and organizational activities.

The white paper of the Digital Commerce Chamber, written by the Smart Contract Alliance, shows that the financial sector is one of the major application scenarios for smart contracts. For example, the blockchain intelligence contracts and conditions set by the code, digital identity rights protection, financial data files digitally recorded, pay equity and debt division automation management, OTC derivatives processing optimization, property ownership transfer and other applications. These financial services rely on the participation of manual operations in the operation of traditional processes, which requires high labor costs; and the integration of smart contract technologies will enable them to reduce errors and costs in the process of manual operations while improving efficiency and transparency.

On the other hand, companies including IBM, Nasdaq, Microsoft, etc. have also been exploring the application of this technology in the field of Internet of Things in recent years. In the opinion of analysts, the development of the Internet of Things requires standardized and scalable open protocols to avoid duplication of IoT infrastructure, ensure the neutrality of the Internet of Things, and eliminate the concerns of industry interlocutors. The blockchain system based on smart contracts has the possibility to realize this kind of protocol, and it is also one of the directions explored by researchers of the Internet of Things.

In addition to commercial applications, blockchain smart contracts can also be applied in establishing decentralized autonomous organizations (DAOs). The traditional organization is maintained by the system and the centralized executors; and the DAO can be automatically managed through the system on the basis of the completion of contractual commitments, such as removing members, dismantling organizations, and allocating funds when triggering conditions arise.

Of course, these application cases are still in the exploratory stage. Whether they can be implemented still requires practice to be certified.

Related Posts