Blockchain technology has become the revolution of business and the shake-up of its models. Think of any cryptocurrency. Bitcoin, for example. It’s a smart project. Now, let’s think about confidential, “a platform for the creation and execution of smart contracts.”
These are two examples of innovative projects that promised a change in the way we manage our data and our operations.
What smart models are emerging with blockchain technology?
Since the advent of blockchain in 2009, the financial and healthcare system is experiencing important developments. For example: loans between individuals with cryptocurrencies, tracking our own medical history, etc. Things that were once unimaginable are now possible thanks to blockchain technology.
The blockchain’s own smart contracts are spreading to more and more sectors, and even creating new smart business models such as these:
The way Ethereum works is a good example of Smart contract, as this decentralized platform executes smart contracts relying on blockchain technology. The code or programming language it uses is top-level. Solidity is a good example.
Cryptocurrencies, in general, have opened a door to agility in payments, instant and low-cost loans between individuals, poverty reduction and access to financial resources in societies with access difficulties, traceability in illegal operations, etc.
Smart contracts already promise a legislative world in which laws are enforced when the conditions that have been designed or programmed into their code are met. As a result, it is likely that in the very near future, automatically executed and signed contracts or legal agreements will begin to be created, eliminating much of the legal process. What happens with these smart contracts is that their self-executing nature allows certain actions to take place as long as a series of specific conditions agreed in the contract are met.
To process claims, automate the enforcement of policies for non-payment of rent, etc. Smart contracts make it possible to streamline the tasks of insurance companies, offering faster and more convenient processes. As a result, they can increase the level of trust of their customers, provide greater security, etc.
Other applications in smart business
Smart contracts have immense possibilities, and their applications can be in a myriad of things. From healthcare services to a soft drink vending machine. In insurance companies. In tax registration. In intellectual property rights. In IoT. Smart homes are no longer science fiction, because thanks to smart contracts everything is more agile and reliable.
Where do smart contracts come from?
We live in a society where it is increasingly common to talk about digitally signed contracts, voice confirmation contracts, smart contracts, etc. And what is clear is that it is technology that is making this possible. It was the computer scientist Nick Szabo who coined the term Smart contracts in 1993 to refer to what he called ‘highly evolved practices’.
Their evolution has led to contracts that are executed autonomously and automatically. They can improve on the current contracts we are used to, being much cheaper, transparent, and secure. Saying goodbye to any risk of fraud and saving a great deal of time. Goodbye also to intermediaries.
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