Smart contracts are digital versions of traditional contracts. This has become a mandatory feature in all blockchain projects. Smart contracts are a set of predetermined conditions in the form of computer protocols on blockchain technology. The main function of a smart contract is to automate vital business processes, eliminating the need for other third-party intermediates. Many industries are leveraging smart contract development to increase their business credibility and gain trust among their clients. Let us see what all this hype is about by discussing the benefits, applications and development process of smart contracts in this blog.
Benefits of Smart Contracts:
Smart contracts are one of the most secure technologies available in the market. In the first place, smart contracts are difficult to hack as they come with multiple security layers. The security is due to blockchain transactions being encrypted.
Smart contracts’ main purpose is to automate vital business processes eliminating the intermediates. There is no need for a group of notaries, agents, advisors, and other mediators, reducing the consulting fees and commissions drastically.
Since all the transactions and documents are stored on a secure ledger, there is a lesser chance of losing or stealing information. With smart contracts comes trust and transparency, as there is less chance of error or possibility of manipulation.
Smart contracts are automated. When the predetermined conditions are met, the contract gets executed immediately. There is no need for any paperwork, eliminating the time wasted on fixing the mistakes that occur with the paperwork.
Application Of Smart Contract:
Smart Contracts have great potential and can be used by various industries. Despite various doubts, many industries have already implemented smart contracts. Let us briefly discuss the use of smart contracts in finance, healthcare, insurance, and real estate.
Smart contracts are a boon to the financial services industry as they can see great value from this technology. Smart contracts are widely used in investment banking, and loan settlement cycles can be reduced by half due to the quicker processing time that smart contracts provide. As a result, providing an excellent customer experience and keeping the clients happy with quicker processing time. The well-known benefit of the smart contract is the elimination of intermediates reducing the operational cost. It is overall a win-win situation for all parties involved.
Patient’s medical records are ultimately the most valuable documents to be safeguarded from cyberattacks by the healthcare industry. They are constantly working on increasing security to protect electronic health records and sensitive patient data. Smart contracts and blockchain come to the rescue, as medical records can be safely stored and given access to a limited number of individuals. Additionally, prescription filings can be automated, reducing processing time and enhancing the patient experience.
Make your Business Future Proof With Smart Contract Development
The major drawbacks of the insurance industry are long claim processing time and fraudulent claims. By incorporating smart contracts, the insurance industry can see a significant decrease in expenses and a lower processing time, enabling insurance claimers to have a good customer experience. If the insurance companies can reduce the cost of operations, they can thereby provide their customers with lesser premiums creating a win-win situation for all.
Smart contracts record and transfer property ownership in the real estate industry. A buyer would hesitate to send money before having the property in his name. Similarly, a seller doesn’t want to send money before receiving funds. A chain of third parties were to be involved in fulfilling all the documentation work. With smart contracts, the situation won’t be the same. You can eliminate the intermediates like lawyers or other officials, thus reducing the processing time.
The contract gets executed only when the seller transfers the property and the buyer hands over the money. Smart contracts allow you to carry out the whole process in a secure, transparent, and quick way.
Smart Contract Development Process:
Selecting a platform
For the development of smart contracts, various platforms are available. The selected platform will be used to implement the digital agreement. The most popular platform on the market is Ethereum smart contracts. TRON blockchain, Polygon, etc., are other platforms used to build smart contracts.
The Development Process:
The developer writes the code that is needed to create the smart contract at this step. Business agreements are converted to lines of codes. These codes’ templates can be found in an open-source library. Each blockchain has its own unique libraries, which are updated regularly.
Once the smart contract is implemented in your company, it cannot be changed. Hence this phase is crucial. So the developer can test the software during this time and make the required changes. There are tenets available for each blockchain. Tenets for the Ethereum blockchain are Ropsten and Rinkeby. The testing will be carried out using this tool
This is the last step in the creation of smart contracts. The Truffle tool is used to convert the lines of code into a.json file, which is then uploaded to the blockchain.
How Do You Pick the Best Company For Your Smart Contract Development?
Now that you have decided to deploy smart contracts to business after seeing its potentiality and something that is worth investing in for your company. The next thing is to decide the right company to approach for your smart contract development process. There are many uses of smart contracts, and you should first understand the need for smart contracts in your organisation, for example, for verifying payments or transferring payments. If you are not clear on where to implement the smart contracts, our professionals at TurnkeyTown help you better understand how smart contracts work and help you decide on your objectives.
If you are ready to begin your smart contract development journey, we are happy to help. TurnkeyTown has a team of professional blockchain experts to deliver custom-made smart contracts for your business growth. What else are you looking for? Contact us right away and commence your smart contract development journey with us today.