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How blockchain and smart contract development help your business – The Daily Hodl

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Blockchain and the development of smart contracts are changing the world as they revolutionize business practices. It is cost effective and can easily streamline transactions, cut out middlemen and better align business interests.

It is undeniable that the disruptive potential of blockchain and self-executing smart contracts brings potential change to the business and legal landscape due to their immutable and irreversible characteristics.

There are several architectures for developing blockchain applications, distributing and managing smart contracts. For example, you can link smart contracts to different payment systems or digital exchanges or you can keep them on the blockchain or a shared ledger.

According to a report, the global smart contract market is expected to reach $1,460.3 million by 2028, from $315.1 million in 2021, at a compound annual growth rate (CAGR) of 24.2% in during the forecast period (2022-2028).

Now, let’s understand the use cases of smart contracts and how smart contract development helps businesses grow.

Use cases for smart contracts

Different industry verticals are benefiting from the development of smart contracts as they change the way a business operates. They help to increase speed, transparency and security in all departments of the organization. Here are some of the use cases of smart contracts.

Multi-signature accounts

Funds are transferred from the main account only if members approve it. Multisig contracts are the best solution for sharing ownership as they offer distributed control over funds. Multi-signature contracts also prevent single points of failure because each sensitive transaction requires approval from a number of parties.

Storage

Smart contracts can store large amounts of information and maintain their own permanent storage. Data stored on the blockchain like Ethereum (ETH) is unique, immutable and cannot be modified. You can use them to keep records, renew them, and release them automatically according to defined parameters.

Third party support

Although smart contracts eliminate the involvement of third parties, it is not possible to completely eliminate them. They play different roles in the network.

For example, the lawyer will not prepare individual contracts but will be required in development to understand the terms required to prepare the contracts. Additionally, smart contracts on a network can communicate with each other much like a software library.

Encoding of financial obligations

The encoding of financial obligations is mainly carried out for the management of contracts of use. For example, providers can encode redemption rules into the smart contract if a person wants insurance.

How Smart Contract Development Helps Businesses Grow

Smart contracts are a new way to securely conduct online business transactions and agreements. Smart contracts help businesses enter the digital age and leverage the concept of decentralization to optimize operations.

Let’s discover the benefits of smart contracts that help businesses grow.

Error-Free Automation

Developing smart contracts for your business allows you to automate your business process. It helps you save time, reduce costs and eliminate errors.

Payments are only released when both parties meet and verify the predefined conditions. Smart contracts help businesses automate complex business processes and execute them with confidence.

End-to-end security

Smart contracts are stored in an immutable and irreversible distributed ledger, providing an additional layer of security. Smart contract development vendors can also help you integrate additional security features such as multi-factor authentication and data encryption. Moreover, no one can control the funds of other participants because each transaction is validated after reaching a consensus.

More trust and transparency

Smart contracts are based on blockchain technology which provides complete transaction transparency. All parties involved can view its terms and conditions as well as transaction history. This helps build trust and improve relationships with existing or new customers and partners.

Reduces operating costs and increases efficiency

Third parties often charge a considerable sum. Smart contracts eliminate the need for intermediaries, allowing businesses to interact and transact directly.

The automation provided by smart contracts helps eliminate redundancy and the need for manual intervention, saving time and money and increasing efficiency.

More control over processes

Automating your business processes through smart contracts gives you more control over real-time transactions. You can also enforce compliance with external regulations or internal policies. All contract transactions are stored in a specific chronological order which can be accessed with the full audit trail in the blockchain.

Conclusion

Blockchain and smart contract development for enterprises is the need of the hour, whatever your field of activity. Leveraging this disruptive technology helps companies from different fields to create a transparent platform for all their stakeholders.

Promising use cases of blockchain and smart contracts are laying the foundation for the future of businesses by maximizing output in different business operations such as supply chain management, quality assurance, data storage and security.


Sudeep Srivastava is the CEO of blockchain app development company Appinventiv and is someone which has established itself as the perfect blend of optimism and calculated risk. Having built a brand known for harnessing uncharted ideas from the mobile industry, he spends his time exploring ways to bring Appinventiv to the point where technology intertwines with life.

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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.

Featured image: Shutterstock/Tuso949/Natalia Siiatovskaia


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