Applications Of Smart Contract And Decentralized Applications In The Real World
What Are The Applications Of Smart Contract In Our Real World, And What Is The Role Of Decentralized Applications In This World?
The purpose of the design Smart contracts Computer codes was replaced by traditional intermediaries that had previously formed the requirements for each agreement.
The concept of smart contracts has a long history, and its introduction dates back to its inception. Bitcoin It will return.
Nick Szabo first, in 1996, in an article titled “Smart Contracts; “The Cornerstone of digital markets’,” proposed this term.
Ethereum The initiator of the second generation of technology Blockchain Was; A generation that introduced new concepts and techniques for managing distributed ledgers. One of these techniques was intelligent contracts, which included automatic guidance (automation) for the entire blockchain network. Still, to simplify the writing of smart contracts, Ethereum also introduced a scripting language. Sometime later, in 2015, Gavin Wood and Vitalik Buterin launched the Ethereum network.
Although not much time has passed since the emergence of smart contracts, this important and outstanding feature has opened its way to other areas of our lives.
In addition to reviewing the concept of smart contracts in this article, we intend to explore intelligent contract applications in finance, blockchain games, legal sectors, real estate, decentralized self-governing organizations, and emerging technologies.
We will also look at the applications of smart contracts in industries, So stay with us until the end of this article.
What is a smart contract?
Smart contracts are essential in blockchain-based ecosystems and elements of application-focused blockchains such as Ethereum. These digital contracts have an independent, decentralized, transparent, and intermediary mechanism and are usually irreversible and unchangeable once created and launched.
A smart contract’s benefits include reducing or eliminating the need for intermediaries and contract enforcement in a single agreement or transaction. For this reason, smart contracts have become the cornerstone of the decentralized application (dApp) ecosystem and an important focal point of blockchain development.
Each smart contract can be used for only one type of transaction. However, most decentralized applications work with a set of smart contracts to be able to implement a complex set of capabilities.
There are thousands of decentralized applications in areas such as finance, gaming, exchanges, and media on blockchain networks, all of which can use smart contracts in different ways and for other purposes.
Innovative contract applications in finance
Decentralized applications in decentralized finance or DeFi (DeFi) are a powerful alternative to traditional financial services. Their popularity is increasing thanks to features such as the lack of intermediaries and the immutability and transparency of blockchain technology and smart contracts.
Decentralized DeFi applications provide users with loans, borrowing, buying and selling, other financial assistance, and new business models parallel to financial and banking services.
Decentralized programs can reduce the barriers to entry of users from all over the world into the field of finance due to increasing the transparency of smart contracts and non-stop and round-the-clock operations and reducing costs.
The value of DeFi projects has reached billions of dollars so far, and it seems that this trend will continue as more users become familiar with the unique opportunity in this field. Users can participate in the new generation of financial services without the need for centralized protection or paying fees to intermediaries.
Although only a few years have passed in the field of DeFi, the presence of innovative decentralized programs and proving the value and efficiency of these programs to consumers has made the effects of these programs based on intelligent contracts felt in the financial industry.
Heterogeneous tokens and smart contracts, and blockchain games
While the global gaming industry is a $100 billion ecosystem that continues to increase, how value is created and distributed across the industry can be unfair. Developers make and release games, and players pay to interact with these games.
This one-way flow, where players have to pay to access in-game assets, continues. Instead, in-game blockchain technology can allow players to use in-game purchases more effectively.
Non-Featured Tokens (NFTs) are the mainstay of the blockchain gaming industry. These unique digital assets represent in-game content and depend on smart contracts.
Another thing is that these tokens are rare and indivisible. While blockchain networks underlie asynchronous tokens, they can facilitate player ownership, rarity, interaction, and immutability of items.
Thanks to the implementation of blockchain technology in the gaming industry, you can keep in-game purchases or sell them to other players or transfer them to games that support these items. Meanwhile, the rarity of the in-game token is provable through immutable records on the blockchain network.
Ethereum, Tron, Ias, And some neo-blockchains have significantly progressed in game development. Because asynchronous tokens are unique and can be designed to retain their value beyond the game in which they are created, decentralized games and applications made within the Blockchain have the potential to expand the gaming economy and create new categories and new games. Develop based on these items.
Smart contracts in legal departments
Perhaps one of the promising applications of smart contracts in the real world is to use the capability of these tools as legally binding contracts. The emergence of electronic signatures to bind legal agreements has led to innovation in the legal field.
Soon, smart contracts will become an option for parties to legal agreements. We will likely witness the spread of customized intelligent contracts, reduce costs, and increase speed for various types of transactions much sooner than imagined. Another point is that using these contracts minimizes the cost of using a lawyer and other intermediaries.
Some US states have allowed intelligent contracts and Blockchain in the legal field and specific areas. For example, Arizona allows some legal agreements to be created through smart contracts. California also provides marriage licenses to be issued through blockchain technology.
Innovative contract applications in real estate
Smart contracts develop fractional ownership of assets through tokenization, and integrating blockchain and real estate transactions can remove barriers to entry for investors.
There have been successful attempts at real estate tokenization. Platforms such as RealT and SolidBlock, which have linked blockchain technology with real estate, are among the successful examples in this field.
At the same time, innovative contract technology can revise and modify documents and transaction processes using Blockchain in real estate transactions. For example, the Republic of Georgia in the Caucasus region has launched a blockchain-based land registry since 2016. It should be noted that similar projects are also underway in the United Arab Emirates.
Anyone who has bought a home or other property is probably aware of the hidden costs of closing, transfer, and brokerage fees. These costs can be reduced or eliminated by automatically executing smart contracts. When a piece of property is converted into a token, its required records can be kept through intelligent contracts and save the time and money of the parties.
Some experts claim that intelligent contracts can benefit both parties by simplifying lease agreements, complex credit or mortgage agreements, warranties, and insurance. In addition, with the use of smart contracts and Blockchain in real estate, the need for legal advice or other advisory services becomes less critical, and, in general, costs are reduced.
Decentralized self-governing organizations and smart contracts
In 2017, Delaware passed Senate Bill 69, allowing businesses to be integrated using blockchain technology. This bill is a way to expand the decentralized self-governing organizations DAO opened.
Decentralized Autonomous Organizations (DAOs) can implement complex structures and automatic execution of incentive processes using smart contracts in corporate frameworks. Also, using smart contracts, DAOs can save on management costs such as office spaces, recruitment processes, and salaries.
Emerging technologies and smart contracts
One of the exciting applications of blockchain technology and smart contracts is their ability to facilitate complex computational tasks related to machine learning (Machine Learning) and artificial intelligence (AI).
Combining the centralized processing of artificial intelligence data and the decentralized and immutable security of blockchain technology makes it possible to create intelligent contracts through artificial intelligence. To implement innovative contract-based applications in heavy industries, they must become more sophisticated to adapt to their new roles. Since it is possible to manually design simple, intelligent contracts, more complex smart contracts can be created using artificial intelligence.
Many experts believe that artificial intelligence and Blockchain can benefit from each other’s impressive features. Intelligent contracts take advantage of advanced computing capabilities and adaptive systems of artificial intelligence technology. For fake intelligence implementations, innovative contract technology is used to independently implement rules and provide a secure environment for sensitive machine learning data.
Zilliqa, one of the blockchain platforms with its clever contract programming language, Scilla, and its advanced processing structure using Sharding (Sharding), tries to increase its advanced computing capabilities.
Capabilities of smart contracts in other industries
Many researchers and developers are eager to apply the benefits of innovative contract technology to meet the Internet of Things (IoT) needs. Of course, the mentioned examples of innovative contract applications in the real world are not complete, and in the future, this advanced technology will be used in countless industries. While blockchain technology is generally used to create security and transparency in IoT devices, the benefits of smart contracts can further this integration.
Healthcare is another industry that has begun integrating with blockchain technology for secure, trustless, and transparent data sharing. The connection between healthcare and blockchain technology can solve the main problems of this field with the integration of smart contracts and decentralized applications.
Conclusion
Smart contracts are one of the essential elements of blockchain-based ecosystems. Once launched, these digital contracts are independent, decentralized, transparent, and immutable. The advantages of the smart contract are reducing or eliminating the need for intermediaries and reducing costs, and increasing the speed of transactions. For this reason, these contracts have become the cornerstone of the entire ecosystem of decentralized applications.
Smart contracts have appeared in various fields, such as finance, blockchain games, legal affairs, real estate, decentralized autonomous organizations, medical services, and emerging technologies such as machine learning and artificial intelligence. Many industries are expected to benefit from their capabilities in the future. Benefit.
