- From insurance, manufacturing, and real-estate to international remittances, legacy businesses often suffer from high- cost transactions. Either middlemen or archaic practices are the reason behind high-costs of any value exchange.
However, a blockchain-based smart contract solution can potentially enable these businesses to remove intermediaries from the transactions and automate conventional, manual processes.
Additionally, blockchain technology platforms like these can facilitate it to meet requisite regulatory and compliance regulations. Together, it can provide business with solutions to achieve significant growth and productivity, improve customer experience, and reduce operational complexity.
Smart Contract, and its Applications
A smart contract is a contract, or a set of business conditions, coded into computer algorithms. A blockchain developer writes the contract terms or conditions into a series of ‘if and then’ code functions. Once the stakeholders of a contract meet the pre-defined business conditions, the smart contract initiates the further steps to execute the transaction. A smart contract, essentially, fulfills the need for a solution to execute fast and efficient business transactions.
With smart contract integration into existing processes involving intermediaries and repetitive tasks, businesses can optimize their services and create new revenue models. For instance, the insurance industry can use smart contracts to automate various policy agreements. A smart contract for travel insurance can automatically trigger payments upon the cancellation of a flight. It can execute a payment directly to the policyholder after the confirmed cancellation, and thereby, bypass the claim process. In the manufacturing sector, it can replace several complex processes like bills of lading, quality control, or the proof of origin.
Key industry players believe that smart contract applications can enable real value savings for businesses.
Benefits of Smart Contracts
A smart contract enables differents business processes to run automatically. Then, businesses do not need to rely on any supervision for the fulfillment of a contract. Mathematical algorithms make it happen. As a result, smart contract-enabled processes become: - Automatic execution of tasks defined in a contract
- Quick transactions happening within seconds
- Direct interactions involving no intermediaries
- Cheap contract execution with almost no charge
- Transparent sharing and access to information enabled with blockchain
Smart Contract Applications in Businesses
The numbers of smart contract applications and use cases are increasing every day. Here are some interesting business areas where smart contract solutions are transforming the processes of industries like banking, insurance, real estate, supply chain, life science and health care, and more
Digital identity
Smart contracts solutions shift to replace the centralized model with a decentralized network of value exchange, thus, bringing the individual in control of their data, digital assets and so on. Users can determine what data they information they want to expose to contracts.
Securities
Smart contracts facilitate users to bypass intermediaries and third-party involvement when exchanging securities. Also, they automate the payment of dividends and management of obligations during the process.
International Transactions
Smart contracts make international payments quite convenient. They enable faster payment for a bargain with a guarantee. We also know it as a letter of credit too. Also, they assist the financial institution to increase and sustain the liquidity of assets.
Commercial Operations
Smart contracts can simplify the process of each commercial transaction with trust, transparency, and efficiency. In case of non-compliance with the quality and supply of goods, the vendor won’t receive money. Besides, he/she will need to pay the penalty for providing non-quality service.
Financial data
Financial organizations can streamline financial data by using blockchain smart contracts. It will help them combine and store all information in one distributed, permissioned ledger, as well as simplify information exchange between organizations. As a result, it will reduce costs for audit and enhance the financial reporting process.
Mortgage
Smart contracts can efficiently and securely automate the process of mortgage payments.
Property transfer
Smart contracts can enable people to transfer property without the risk of fraud and hack of any information.
Goods supply
With blockchain smart contracts, businesses can control and access the whole supply chain information of goods in real-time. They make it possible to record goods related transactions from the warehouse to the shelf of a store.
Conclusion
A smart contract can do much more than what this article explains here. However, it makes it significant that there are several areas of blockchain implementation in processes.
Oodles is a smart contract development company. Our blockchain team holds knowledge and technical expertise to develop smart contract solutions for diverse industry use cases. Know more about our blockchain development services and explore how they can turn your business processes into growth enablers.
BI - Bank Indonesia noted that the total foreign debt or external DEBT up to October 2019 to reach US$ 400,6 billion, or around Rp 5.608 trillion.
Based on the data of Statistics of external DEBT which are published in the BI, the increase in foreign debt was mainly driven by government debt up 13.6% to US$ 199,2 billion.
It is mainly influenced by the outflow of foreign capital that increased the state securities or government SECURITIES and issuance of debt securities globally.
"The rupiah exchange rate against the U.S. dollar also gained so debt in dollars recorded higher in denominations of the U.S. dollar," said BI in the official description, quoted on Monday (16/12).
Despite the increase, according to BI, the management of the external DEBT of the Government prioritized to finance the development with the largest portion in some productive sectors.
Sector services health and social activities reaches of 19.0% of the total external DEBT of the government, the construction sector of 16.5%, the sector of educational services at 16.1%, the sector of Government administration, defense and compulsory social security was 15.3%, as well as the financial services sector and insurance to 13.4%.
FinTech is no longer a passing trend but a profitable venue for startups and financial incumbents.
Banks and financial institutions embrace the shift towards digital to capture the value of the growing segment of digitally active customers and reduce capital and operational expenses.
While SupTech and RegTech companies ensure the global economy does not see the repeat of the financial crisis of 2007-2008 and strive to protect sensitive data, FinTechs' goal is to develop a mobile banking application full of customer-facing features.
The apps gain popularity across the globe, despite security concerns, help companies add value throughout the customer journey, expand their ecosystems, and enter promising new markets.
Let's delve deeper into each crucial facet of banking app development and their business impact.
It is an important decision that unites you financially for many years, so sometimes it is difficult to take the step.
In today's article we will talk about how it works and the advantages and disadvantages it has.Sky Marketing strives to be Pakistan's biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty.
With projects http://www.skymarketing.com.pk/blue-town-sapphire-lahore/.How does a shared mortgage work?Signing a mortgage with a single owner is quite complicated, buying a home means having a lot of money saved and being able to assume it only one person is rare.The vast majority of mortgages that are signed each year are shared mortgages, in addition, the financial institution is more in favor of accepting the mortgage loan because it understands that it is assuming a lower risk by having two owners.In a shared mortgage both owners are owners of the property, each has a quota that is established in the mortgage deed in which it is defined what percentage each pays.
But both have the responsibility in case of default.Advantages and disadvantages of contracting a shared mortgageIn this case, the disadvantages are in case of separation, since it is quite difficult to manage it.
But, if this situation does not occur, you have many benefits compared to requesting it as a single owner.AdvantageThere are three main advantages to consider:Easier to get the mortgage.
Banks prefer there to be two holders to one, so it is easier for them to grant you a mortgage.Higher loans.
Blockchain is gradually taking over the business world by storm.
After cryptocurrency success, blockchain is making its way into other industries like healthcare, real estate, finance, gaming, social media, and so on.The unprecedented rise of cryptocurrencies in the last decade has paved a new path for various industry verticals.
Using the attributes of blockchain like transparency, immutability, and decentralization, they are improving their financial transactions and operations.
Thus, eradicating complexities from the most fundamental day-to-day operations.The innovative concept of blockchain is significantly reaching the masses.
It is steadily impacting various areas of life, including the complex real estate landscape.For instance, issues like lack of transparency and data redundancy in the rental agreements’ processes require immediate changes.Considering the daily dealings of real estate companies with contracts, “smart contracts” were need of the hour and indeed, a much-awaited breakthrough.However, interestingly, a computer scientist named Nick Szabo conceived the concept of digital contracts over 20 years ago.He proposed that the real estate industry requires smart contracts.
Because in a real estate office, numerous people deal with disagreements due to agreements created informally, such as those based on people’s selective memory.Nonetheless, if your wallet comes integrated within a smart contract implemented especially for such deals, it is immutable and fixed.In that case, either you’re in, or not.
As a distributed shared database technology, blockchain technology has been successfully applied in various fields.
The decentralization, transparency, fairness and openness of blockchain technology are consistent with the energy Internet concept, and its application in the new energy Internet will further promote the construction of the energy Internet.NEN Chain is a value chain that focuses on proving blockchains in a new energy field.
NEN Chain is based on the blockchain chain bottom technology new energy network technology features:1) The blockchain and the energy Internet all reflect the idea of decentralization.
Therefore, in the NEN Chain blockchain system, there is no centralized database, each node holds all the information of the blockchain, and the rights and obligations are equal; the distributed energy and microgrid in the energy Internet will become an important part.
Therefore, the NEN Chain blockchain system is operated and maintained by all nodes in the network, and there is no unified management mechanism; the self-scheduling and ecological operation of the system is emphasized in the new energy Internet.3) Blockchain and new energy Internet can promote the establishment of marketization and financialization platform.
The user voluntarily joins the maintenance of the grid system platform, and the rights and obligations are equal, which ensures the decentralized attribute of the system platform; the open information release and trading platform is easy to access.
