Smart contracts can help you exchange foreign exchange, houses, stocks or anything of value. It is conducted in an open and transparent way, without controversy, and at the same time avoids the existence of intermediaries.
The best way to describe a smart contract is to compare it with the technology of vending machines.
Usually you need to find a lawyer or notary, pay them first, and then wait for your documents.
With smart contracts, you only need to send a bitcoin (that is, charge your account), a third-party payment, a driver's license, or anything to your account.
The intelligent contract department only defines the rules and penalty clauses of the same agreement as the traditional contract, and it also automatically executes the obligation clauses.
Application of intelligent contract
Digital identity
Smart contracts allow individuals to own and control digital identities that contain data, credibility and digital assets.
It allows individuals to decide what kind of data to disclose to their counterparties, and provides enterprises with an opportunity to get to know customers in depth, and counterparties do not have to hold sensitive data to verify transactions.
Although this promotes the understanding of customer needs, it reduces the responsibility.
In addition, it improves compliance, flexibility and interoperability.
record
Smart contracts can digitize UCC files, automatically update and publish processes, and automatically improve the creation of secured interest credit for lenders.
They can automatically abide by the rules that require records to be destroyed in a certain period in the future, and make UCC that applies for automatic issuance, automatic renewal or automatic mortgage.
Lien becomes possible.
Smart contracts reduce the legal costs of performing such functions.
securities
Smart contracts can simplify the management of capital statements, bypass intermediaries in the securities custody chain, facilitate the automatic payment of dividends, stock split and debt management, and reduce operational risks.
Combined with the securities on the distributed ledger, smart contracts can digitize the workflow.
In Delaware, encrypted signatures may require effective legislation to clarify that the local company law allows registration in distributed books.
Issuers will naturally want to know who their securities holders are, but some buyer companies will protect this information.
Trade finance
Smart contracts can simplify the international transfer of goods by opening fast letters of credit and trade payment, and at the same time obtain greater liquidity of financial assets.
They can also improve the financing efficiency of buyers, suppliers and institutions.
Consider trade financing.
Industry standards for smart contract procedures need to be more widely accepted.
In addition, * * * must determine how the law should define the liability in case of failure to implement, especially in case of dispute and breach of contract.
For trade financing, the integration of settlement system, technical requirements and discrete ecosystem are three important elements.
derivative product
Smart contracts can simplify the post-transaction process, eliminate the verification transactions executed by each counterparty, and reduce the repetitive processes in appropriate trade activities.
They formulated a set of standard contract terms and optimized the post-trading treatment of OTC derivatives.
They can also assess the location in real time to monitor and reduce errors.
Considering the smart contract of derivative products, it is important to solve the agreement changes related to regulatory reform.
Financial data record
Financial institutions can use smart contracts to record accurate and transparent financial data.
Smart contracts allow financial data to be unified across organizations, improve financial reporting and reduce audit costs.
By improving data integrity, smart contract support improves market stability. In addition, they also reduce accounting costs by allowing organizations to share costs.
Interoperability between distributed ledger networks and legacy systems is very important for financial reporting.
mortgage
Smart contracts can complete the execution of mortgage contracts by automatically connecting all parties, thus providing a smooth and error-free experience.
Smart contracts can automatically process payments and release liens from land records when paying loans.
They can also improve the record visibility of all participants and effectively promote the tracking and verification of payment.
They reduce errors and costs in manual operation.
In order to achieve this, the verification of digital identity is very important.
Land ownership record
Smart contracts that promote property transfer can prevent fraud, improve the transparency and efficiency of transactions, and strengthen the credibility of identity.
In addition, it can also reduce the audit cost.
In order to achieve this, * * * needs to make an open agreement for electronic filing.
supply chain
Smart contracts can make every step in the supply chain visible in real time.
Internet devices can record every step of the product from the factory to the store shelves.
They promote the inventory tracking at the granularity level, and help to protect the financing, insurance and risks of the supply chain.
This enhanced tracking and verification technology reduces the risk of theft and fraud.
If smart contracts are to be widely used, supply chain participants must prove their identity, including companies, institutions, individuals, sensors, facilities and products.
automobile insurance
Smart contracts can improve the current chaotic automobile insurance and payment processes.
Smart contracts can record relevant policies, driving records and driver reports, allowing Internet vehicles to claim compensation immediately after an accident.
Contracts can automatically handle claims, verification and payment processes.
The information base of each policyholder includes driving records, vehicles and accident report history.
Eliminating duplicate reports will also save costs.
However, all these require cross-industry cooperation to solve technical, regulatory and financial challenges.
clinical trial
Smart contracts can improve clinical trials by increasing cross-institutional visibility.
Privacy-preserving computing improves data sharing among institutions, and can also automatically process patients' data.
Contracts can simplify the trial process, improve data access between institutions, and increase the credibility of patient privacy.
Authentication, authorization and identity are still problems to be solved for smart contracts executed on networks supporting blockchain.
Cancer research
Smart contracts can promote the enjoyment of cancer data.
They can promote patients' consent to the management process, summarize data contribution and data enjoyment, and protect patients' privacy, which may require new forms of blockchain technology to provide real-time access and data confidentiality.