The Role Of Smart Contract In Revolutionizing Industry

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INTRODUCTION

If you have never heard of smart contracts or you have heard about it but don't really know what it is, today is your lucky day, to put in simple and easy to understand terms, smart contracts are self executing and automatic contracts with the terms of the execution of the orders directly written into its code.

Basically how this works is that these digital agreements automatically enforce and execute themselves when the predefined conditions and terms are met and as a result eliminating the need or requirement for any supervision or monitoring from intermediaries or middle men it also reduces the risk of human error.

Additionally, the smart contracts which run and operate on block chain technology have been transforming and revolutionizing various industries in this post of mine I will be explaining some of the ways in which smart contracts are revolutionizing the different industries.

• IN SUPPLY CHAIN MANAGEMENT

One way in which block chain based smart contracts is revolutionizing and transforming industries is by addressing and finding solutions to the issues of inefficiencies,

it does this by facilitating effective communication and transparency among the different and multiple parties like the suppliers, manufacturers, and distributors who are participating in the management of the supply chain.

Implementing smart contracts in supply chain management allows for every process and transaction done in the supply chain to be recorded on the blockbchain, using the block chains transparent and immutable ledger, this therefore ensuring that all involved parties are able to access the transaction information.P

• IN THE FINANCIAL AND BANKING SYSTEM

Another way in which smart contracts is revolutionizing and transforming the financial and banking industry is by eliminating the old mode of operations of the traditional financial transactions, eliminating the need and requirement of banks or brokers which in turn streamlines the transaction processes by enabling peer to peer transactions without the need for intermediaries.

Take for instance when it comes to financial transactions like lending and borrowing of funds and capital, the smart contract streamlines these financial transactions, making the disbursement of loans, the repayment process and enforcement actions for defaulters automatic.

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Therefore this automatic method of processing and executing transactions reduces the number of loan defaulters it also however, facilitates faster, quicker and more secure transactions especially across boarders seeing as they basically eliminate the need for banks.

• IN THE ENTERTAINMENT INDUSTRY

Another way in which the entertainment and media industry is being revolutionized by smart contracts is by addressing the issue of copyright and piracy which the entertainment industry often struggles with, the smart contracts can help facilitate and offer solutions by automating the management of intellectual property rights.

Take for example a poet, writer or musician can implement and make use of the provision of smart contracts to automate the process involved in distributing royalties among musicians or artists whenever someone streames or purchases their songs or music.

The implementation and usage of smart contracts in the entertainment industry ensures that artists and producers are able to share revenue and income without the need for intermediaries, smart contracts can also enforce copyright protection by verifying proof of ownership and preventing unauthorized usage.

• IN HEALTHCARE INDUSTRY

Healthcare is another industry where smart contract is also transforming and making significant impact especially when it comes to managing patient records, billing, and insurance claims, smart contracts automates and streamlines these processes ensuring that they are free from errors of human imperfections.

When it comes to storing patient’s medical records this can be done or stored using the block chain tamper proof and immutable ledger, the smart contract can ensure that only authorized personels and healthcare providers are granted access to the health records, thereby maintaining privacy and security.

CONCLUSION

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In conclusion, smart contracts are revolutionizing and transforming industries by basically improving and enhancing the efficiency, transparency, and security of any industry in which it is implemented, and it offers numerous advantages.

As smart contracts continue to grow and gain more traction in the various sectors and industries they impact and are implemented in they are sure to offer and facilitate further innovation and evolution.