Blockchain Financial Applications and Beyond

Smart contract is one of the applications that are developed on top of blockchain. Today, we will scrutinize some of the applications we can predict now. Some of the apps are the simplest of all and some are real complex. The best thing about this decentralized industry is that a huge amount of intelligent people are working on these future projects, and keep publishing their work for the good of community.

Derivatives

Contracts that observe the performance of non-digital or digital property can be used as swaps, options, forwards, futures.

Escrow

Smart contacts can be set up as escrow accounts that observe a trade between two people. The buyer will transfer payment directly to the contract account. The contract will observe external services for public home or domain name ownership records for purchases. When the ownership is transferred to the buyer from the seller, the contract will release payment to the seller.

Cryptocurrency wallet controls

Right now Ripple and Bitcoin doesn’t have a fine mechanism for allowing pull payments, where a payment can be initiated by the seller on behalf of the buyer the way debit and credit cards work. Cryptocurrency wallets that are controlled by contracts can include multiple types of complicated controls, from day-to-day withdrawal limits to allowing and canceling access for particular entities. This will authorize conditional payments and subscription control over wallet access, that too, without revealing the private key.

Online voting

In the coming years smart contracts can be used to implement bureaucratic, democratic and other kinds of control formations over organizations or assets. With all of the other apps, the contracts implement predefined guidelines including guidelines for altering the very own code of the contract. Some non-financial apps need more complex structure and a more advanced ecosystem so expect this is going to take time to be built.

Decentralization is cheap but surely isn't free

Bitcoin’s distinctive attributes are what enabled it to flourish, but there is no such thing called free in this materialistic world. And bitcoins pay pretty heavy price for its benefits., so other decentralized applications will also have to pay a price in order to thrive.

Decentralized applications or Daaps have abilities to be self-sustaining because they authorize stakeholders to invest money in the development of decentralized apps. Because of this, it’s possible that decentralized apps for data storage, payments, and cloud computing may some day excel the value of giant corporations active in the market.

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