Why startup founders love smart contracts
Imagine yourself playing “Family Feud.” We all love this game, right? So, if you were asked to name some of the most disruptive innovations of the last decade, we bet blockchain would hit the top of the scoreboard.
The reason is simple. It’s getting more and more complicated to ignore talk about cryptocurrency and the blockchain technology behind it. It seems that it’s now officially a part of the mainstream news cycle and our day-to-day life. But blockchain is more than just a buzzword.
Aside from the financial opportunities blockchain provides, it’s viewed as an ideal solution for cloud storage and smart cities. It has the potential to redefine multiple industries, from retail to healthcare. While the changes may not be implemented at once, blockchain is already being used in many circumstances.
Within a centralized model, businesses are dependant on a third party, whether it's a bank, a law enforcement company or another intermediary. On the contrary, blockchain technology allows for the building of decentralized models which opens up new opportunities for businesses.
That’s why it’s no wonder that today, blockchain is all the rage in the startup world. And as we know, startups like making noise about new technologies, so they start looking at smart contracts, which is one of the most successful applications of the blockchain technology.
In the digital world, smart contracts are already revolutionizing the way agreements are made. How? Read on to learn how smart contracts are shaking up multiple domains and why startups are wasting no time in putting them to use for breakthrough solutions.
Smart contracts as a part of a crypto world
First up, let’s define the term. A smart contract is similar to its traditional counterpart, but in the digital world, it’s represented by a piece of software that handles some logical operations on the blockchain. So, they work on an ‘if-then’ principle, meaning that they include rules for negotiating the agreement terms, verify fulfillment, and then execute the agreed terms automatically. Well, we all love automation!
In smart contracts we trust
As people are always trying to make the most of tech, smart contracts seem to be the perfect way to save time and money. They are much more than merely coded contracts. Just have a look at the benefits they offer!
Guaranteed transparency. Smart contracts are encrypted and distributed among the parties. Thanks to the decentralized nature of blockchain, once such contracts are written, they cannot be lost or modified.
Security. Smart contracts are still an immature technology, so sometimes they are prone to basic bugs. However, their proper implementation makes smart contracts something that hackers can’t easily break. So, until blockchain and its applications become a really streamlined tech, these self-executing contracts seems to be a perfect complementary automation tool.
Savings and efficiency. The key feature of a smart contract is that it eliminates the services of a middleman. Accordingly, all the intermediaries like advisors, agents, and notaries are not needed, which leads to cost-cutting.
Non-ambiguity. A smart contract is a program, and like any software, it does exactly the same it’s supposed to do, timely and objectively. Unlike a traditional contract, it simply doesn't have the nuances of natural language with all these “whereas” clauses. There’s simply no room for ambiguity.
Standardization. Today, there are lots of various types of smart contracts. You can pick a ready-made one and then customize it according to your needs.
Meet startups already utilizing smart contracts
Smart contracts are rapidly evolving, so many startups begin to explore smart contracts and their effectiveness to streamline the working processes and lead the way in their industries. We've gathered several examples that are worth getting to know.
Slock.It leverages smart contracts to redefine how the sharing economy works. Any type of business can potentially use Slock.It for sharing, payments, and rentals automation. For instance, the Share&Charge solution uses their smart contract technology to set a new trend in eMobility and to automate the payment process during electric vehicle charging. They show that charging and blockchain can go hand in hand.
Also, smart contracts are becoming big in the entertainment industry. Ceek is one of the startups building a new business model in broadcasting concerts using VR technology. They use the Ethereum-based smart contracts to allocate the revenue between Ceek, artists, and other involved parties.
Real estate also remains on track with a lot of examples of brilliant use-cases for smart contracts. For example, Propy, a San Francisco-based startup, recently announced that it executed their first blockchain property in California. Significantly enough, the whole deal was carried out using Ethereum smart contracts.
Several Singaporean real estate startups are also paving the way towards greater blockchain adoption and accessibility. Averspace enables homeowners and tenants to reach into a tenancy agreement using smart contracts to ensure the appropriate security level. Attores offers a system allowing digital document sharing and signing based on smart contracts.
It’s important to realize that the potential of smart contracts adoption is not limited to these cases and industries. Any business domain can gain much from working with such programs.
Blockchain technology is a true game changer in today’s tech world, as automation has long been one of the biggest issues businesses face. But as the technology advances, there’s every chance for smart contracts to become an integral part of our society.
As startup lovers, we will continue to follow the innovations and to keep an eye on all the new companies ready to take up the blockchain and smart contracts challenge.
If you have some amazing ideas, we at iTechArt have the inspiration, expertise and top-rated dedicated development teams for blockchain startups to assist you in carrying out your lofty mission.