Top 10 Smart Contract Use Cases In 2023

Contract

Smart contracts are a blockchain application used beyond cryptocurrency transactions. They are already adopted by countless industries and new users are adopted every day. The decentralized nature of smart contracts makes them a safe and private way to conduct transactions. A variety of different businesses can benefit from this approach.

In this article, we’ll discuss a few examples of smart contract use and how it’s improving the experience for the end user. Chances are that there will soon be more uses as the broader public is aware of how smart contracts are utilized.

Decentralized Finance

Cryptocurrencies and blockchain technology have produced a new approach to finance. It doesn’t require a centralized structure and therefore cuts out the middleman needed for most traditional finance operations. Without banks or brokerages, every transaction that relies on smart contracts is less expensive to the end user.

It also makes access to peer-to-peer finance more widely available, meaning that anyone can use decentralized finance, anywhere in the world. The transactions made this way are recorded on a ledger that anyone can review without having access to the private data of those who use it. This provides a level of security based on the underlying tech rather than the trust in a financial institution.

Data Marketplaces

A data marketplace or a data exchange is one of the many B2B uses of smart contracts. It’s an online transactional location for buying and selling data. At this point, the revenue made from big data and analytics has reached billions. Data is one of the most important assets sold online since it creates insight and can drive business decisions.

Smart contracts allow users to purchase data streams with immutable and easy-to-track ledgers. It also helps everyone involved share data in a faster and more secure manner.

Online Games and Gambling

The gambling industry was one of the first to accept cryptocurrency. Playing at an ETH casino (as featured on CCN) provides the same experience as betting with fiat currency. It comes with added security and anonymity you get from smart contracts. The use of ETH in casinos also allows for instant in-game purchases. Many game developers are already implementing it in traditional casino games.

This greatly expands the casino markets, allowing players from all over the world to bet, regardless of their local legislation. It also includes the rules of the game into the currency code itself, keeping the casinos honest and easy to check up on.

Blockchain

Recording Financial Data

A smart contract allows businesses to keep track of financial data. It can be done across a variety of organizations since everyone uses the same technology. This saves countless hours otherwise spent on bureaucracy and makes the process faster and more convenient.

A better way to conduct financial reporting can have huge consequences on the markets. Audit costs are already one of the biggest expenses for businesses. Using technology to make them more transparent and easier to manage can help small businesses thrive and grow faster. It can also prevent frauds and errors that otherwise occur in accounting.

Smart Contracts in Clinical Trials

The healthcare industry was one of the first to make use of smart contracts. This is especially true when it comes to research and development. For example, smart contracts are used to transfer DNA data from patients taking part in clinical trials. This allows the wider academic community to make use of such data in real-time.

Blockchain technology helps keep and store data and therefore creates long-term records that will allow the scientist to study DNA samples through a much longer timeframe. It can lead to new findings and therefore new treatments for many genetic diseases.

Insurance Industry

 The insurance industry depends on sets of data to predict outcomes and design policies. This is especially true for health and life insurance. Large insurance companies started experimenting with smart contracts and blockchain technology. It was among the first industries to do so.  

It goes beyond health insurance, however. Ethereum-based smart contracts are already used in agriculture, energy, maritime, and hospitality insurance. All of these fields heavily rely on parametric insurance. There are already some that claim that the insurance industry will be one of those most changed by blockchain technology since it will make it more based on science and hard data.

Supply Chain Management

 Managing supply changes is one of the most complex and important tasks in the transportation industry. Once an item that’s being transported reaches its destination it often changes ownership. Keeping track of every item in the supply chain and its ownership as well is therefore a key feature of the industry.

With blockchain-based smart contracts, everyone involved can have real-time knowledge about every item or shipment in process, as well as its legal status. Large vendors such as Home Depot and Walmart are already implementing smart contracts in this way.

A smart contract in the supply chain industry can include:

  •       The cost of producing an item
  •       The time it takes to ship the item
  •       Penalty and bonuses for missing deadlines or being ahead of time
  •       Payment terms.

Shipping Cargo

 As many as 90 percent of all cargo is transported via ships. This is a huge logistical operation involving countless documents, and many national and international organizations and institutions. Smart contracts will play a role in simplifying this process by storing all of the relevant data in a single contract.

International trade will only increase in scope and complexity and the use of smart contracts will become more widespread.

Bitcoin

Property Ownership and Renting

Property ownership contracts, as well as renting contracts, benefit greatly from the use of blockchain and smart contracts. The transfer of ownership as well as renting contracts can be done automatically. Everyone involved are able to keep track of the ledger in real-time. This includes the relevant municipal and tax authorities involved in property ownership transfer.

The use of smart contracts also makes property management seamless and addresses the issues tenants may have in real-time. For instance, once a tenant asks for a maintenance issue to be resolved, their rent payments are locked until the landlord resolves the problem.

Future Projects

 Every industry that requires the transfer of funds or information can take advantage of smart contracts and blockchain technology. Transparency and security are the main features of this tech. Countless industries and businesses can take advantage of that.

Now that Ethereum and other cryptocurrency is more widely accepted and somewhat regulated, chances are that other industries will start their own smart contract projects as well. There’s no limit to how the technology may develop.

To Sum Up

Smart contracts and Ethereum and other cryptocurrency payments are adopted by many industries and businesses. This includes insurance, cargo shipments, renting, and online gambling. All of these fields benefit from the unique features of smart contracts. This goes for businesses and users and customers alike.

The key use of smart contracts comes from the fact they are easy to keep track of and therefore foster trust and transparency between businesses and their clients and customers. The area is already more regulated than it was when the technology was first invented and this trend will continue in the years to come.


Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Latest blogs

Is Solidus AI Tech A Good Investment? Here’s What The Experts Say

The crypto industry is never short of investment opportunities in the form of new and emerging technologies. But unfortunately, not…

2 days ago

Novel Consensus Mechanisms Providing Alternatives To PoW And PoS

The eternal debate around the Proof-of-Work and Proof-of-Stake consensus mechanisms in blockchain has never been settled, and there is a…

3 days ago

How To Evaluate A Cryptocurrency Before Investing

Cryptocurrencies are one of the fastest-maturing asset classes. Yes, it is an asset class and not a speculative instrument. The…

2 days ago