Smart contracts have several core benefits for businesses, the primary one being the fact that using smart contracts allows a business to bypass the imperfect system of government and tax regulations. They do this by offering automation of various processes, operations, and procedures.
INFORMATION TECHNOLOGY :-
Smart contracts can be used in royalty distribution. Smart contracts make it easy to calculate and send out bonus payments to service providers and other relevant parties according to contracts.
Smart contracts streamline supply chain and trade finance documentation by an overall upgrading of logistic and documentation processes. It's easy to transfer payments within the multi-signature approval stage for letters of credits and payment issuing.
THE FINANCIAL SECTOR:-
Smart contracts can support e-Payments. Smart contracts make it easy to automatically calculate and make regular payments via e-Payment systems.
Smart contracts support trading activities. Smart contracts can automate approval for trading workflows and clearing calculations. This greatly reduces the chance of errors, excess costs, or long settlement times. Managers can approve workflow between counterparties, calculate trade settlement costs, and transfer funds quickly and automatically.
Micro-insurance:- Smart contracts can be used to provide micro-insurance. Smart contracts can calculate and transfer ongoing insurance payments based on usage data.
THE HEALTHCARE SECTOR:-
Smart contracts can be programmed to provide e-Health tracking. Smart contracts allow for tracking of medical indicators via Internet of Things devices and automatic remunerations which are identified on the basis of specific health screening milestones.
Smart contracts can support e-Healthcare record management. Smart contracts can check and record important medical indicators upon multi-signature approval between a patient and solution provider.
Operating costs saving:- Smart contracts automate all tasks because they are based on code. This gets rid of any human processing and manual manipulation.
Reducing cost:- Smart contracts require less human intervention and lesser auxiliary steps, which means that costs are automatically lowered. The most common transactions can run at far less financial and administrative cost when smart contracts are used.
Reducing risk::- Smart contracts manage processes automatically by an entire user network rather than by just one user or party. This means that blockchain reduces the risk of fraud by offering decentralized implementation processes.
Transactions without intermediary:- Smart contracts allow the reduction and, for some transactions, the complete exclusion of third-party agent involvement.
Higher accuracy:- Smart contracts make business operations quicker and reduce the chance of human error.
Creation of new business models:- Smart contracts allow new types of business models to thrive, such as the production of smart locks for vehicles and storage units, and innovations in micro-insurance.