Smart contracts can be applied in a wide range of industries.
In real estate
Closing fees, title transfers, and broker fees are all potential hidden costs that buyers are likely to encounter when buying a home or other property. A smart contract that operates without intermediaries might be able to reduce or eliminate these costs. Using smart contracts to record a piece of property can save parties time and money by automating much of the process. Streamlining rental agreements, credit or mortgage agreements, warranties, and insurance claims are just a few of the ways smart contracts can benefit parties. The use of smart contracts and blockchain can potentially reduce the need for legal counsel and other advisory services in real estate.
In financial services
It is possible for smart contracts to transform traditional financial services in a variety of ways. When insurance claims are processed, they perform error checks, route the payments, and provide them to the user. By incorporating smart contracts, accounting records can be protected from data infiltration. Shareholders can also participate transparently in decision-making. Aside from that, they assist in trade clearing, which is the transfer of funds after the trade settlements are calculated.
It is possible to store encrypted health records of patients on a blockchain. Individuals would be restricted from accessing records due to privacy concerns. Research can also be conducted securely and confidentially using smart contracts. As proof of service, hospital receipts can be automatically shared on the blockchain with insurance companies. Using a ledger is not only useful for managing supplies, supervising drugs, and complying with regulations, but it can also be used for many other tasks as well.
This industry is worth over a hundred billion dollars and is constantly growing, but value is not always distributed equitably. Players pay to play and interact with games developed by developers. Thus, players are forced to spend money in order to gain access to in-game assets and gameplay configurations. A blockchain-based gaming platform, on the other hand, will enable players to capture the value and utility of in-game purchases more effectively. Non-fungible tokens (NFTs) are used in gaming to represent in-game content with blockchain technology. A smart contract is at the heart of NFTs. A NFT is a token that is unique, rare, and indivisible, whereas the blockchain networks that enable it enable player ownership, provable scarcity, interoperability, and immutability. As a result of these characteristics, blockchain has the potential to drive mainstream adoption as well as more equitable value-models in gaming.
Smart contracts offer several advantages. They are based on decentralized blockchain technology, which means they are not dependent on central authorities or intermediaries. This increases the transparency and security of transactions, as contracts are automatically executed based on predefined conditions, and cannot be altered without the consensus of all network participants.
In summary, smart contracts have a broad range of applications and can significantly simplify and expedite processes in various sectors of the economy.