5 benefits of using smart contracts
Many talk about smart contracts as the technology that will replace lawyers, but is it true that these advances have such power? One of the great advantages of the chain of blocks, or blockchain, is its decentralized system. It is faster, cheaper and safer than any traditional system that requires the presence of third parties or intermediaries.
Some professionals compare it to a vending machine: “Normally, you go to a lawyer or notary, pay him and wait to receive the document. With smart contracts, you simply leave a Bitcoin in a vending machine (ledger) and your warranty, driver’s license, or whatever, is deposited into your account”, as the Blockchainx portal points out .
Everything that this technology can contribute to companies can be summarized in the following points:
- trust . It is virtually impossible for someone to lose a document as they will be encrypted in a shared ledger.
- security . Thanks to cryptography, documents will be kept 100% secure and free from being taken by hackers.
- autonomy . The person making the agreement does not need to rely on third parties to verify or confirm it.
- backup . The distributed nature of the chain of blocks keeps any document secure and indelible, making it very difficult to lose it.
- Precision. By working with smart contracts, the process of your agreements will not only be much faster and cheaper, but also avoid any errors.
Thanks to these benefits, many banks and governments are beginning to analyze all their possibilities with Smart contracts and include them among their tools. It is not a question of substituting lawyers for technology, but of complementing them and taking advantage of the best of each one.
These professionals will eliminate traditional contract writing from their tasks to start producing smart contract templates, for example. In addition, they will be able to spend most of their time on more productive tasks and leave the most routine part for technology.
How and where to use smart contracts
Here is the big question that we all ask ourselves. Until now, we have mentioned its presence in law firms as an alternative to legal traffic and traditional contracting. Smart contracts constitute an ideal means to make agreements, businesses or transactions. This is how it is estimated that they will begin to be used in our society:
- public administration ; to ensure the security of the voting system and protect the votes by the ledger. Thanks to smart contracts, they could increase participation in the electoral system, especially taking into account the technological and participatory nature of the new generations of Millennials and Centennials.
- manager ; The blackchain eliminates any error or possible manipulation in the documents, in the communication, in the precision or the transparency in the commercial operations of a company. This technology can easily streamline the entire transaction process, from approval to resolution of any issues.
- Automotive ; to avoid any type of manipulation in the manufacture of vehicles, guarantee that it complies with all the necessary processes, and even so that insurance companies can charge rates according to the conditions in which the cars are driven.
- health ; In order to guarantee the veracity of our patients’ medical records, medical care is much faster, safer and more efficient, and to give access to specific individuals. In addition, Defi Smart Contract Development the advantages of Smart contracts can also be transferred to the preparation of medicines and receipts for surgeries.
Actually, there are many other possibilities to apply smart contracts that we will tell you little by little. Its automatic nature guarantees speed and cost reduction in operations, and that makes it a fundamental tool for many businesses. Are you prepared to guarantee the specific results you seek? And to avoid any kind of confusion?