The Merits of Implementing Smart Contracts for Your Business
Posted By : Khushboo Arora | 22-May-2019
Blockchain technology serves as the foundation for smart contracts and cryptocurrencies. These are new age mediums for conducting secure, low cost, reliable, and tamperproof cross-border transactions.
Smart contracts control the transfer of digital assets or currencies between buyers and sellers. The advantage of a smart contract is that it automates the verification of the terms of an agreement and execute transactions.
Conventional business agreements require a lawyer and a broker to monitor and complete a transaction. Lawyers and brokers are the middlemen who oversee agreements including payments, delivery scheduling, invoicing, and meeting terms and conditions. They usually charge a significant amount to execute contracts.
Smart contracts eliminate middlemen by enabling parties to define their own terms and conditions for reducing overhead costs. Digital contracts are registered with a database and then cleared legally as a legitimate agreement. Steps in a smart contract are automated and triggered only when critical events occur.
Oodles Technologies build smart contracts to automate transactions, eliminate third parties, and enhance user trust. Our Smart Contract developers use Stellar, Ethereum, NEM and other blockchain technologies to create smart contracts for efficient business operations.
Smart contracts simplify business processes and ensure that the company has enough resources and information to fulfill orders.
Let's explore why smart contracts are beneficial for a business:
Some businesses require their clients to keep credit card information on file for automated payments. Blockchain powered smart contracts are a better alternative for such requirements since they keep customers’ financial data safe. They enable businesses to earn trust and confidence of customers. Business can also use smart contracts for paying their expenses. Contract ledger automatically records each business transaction, keeping businesses informed when and what they paid for.
Leading businesses like Amazon adopt smart contracts to inform their clients the hierarchy they will follow for delivering products. Smart contracts break the project into multiple goals and keep track of each one. They trigger payments automatically when the final goal is accomplished. The entire process maximizes cash flow and customer satisfaction.
Real estate businesses require substantial paperwork with multiple contractual requirements. Smart contracts can streamline real estate processes and reduce costs. From escrow to closing, the entire process can be administered from afar irrespective of where the party is situated. Smart contracts can automate each phase of the buying and selling phase including title clearance, closing cost, and registration. Enterprising mortgage companies have started using smart contracts to manage their finances. Rental companies are creating digital leases too for efficient operations and saving costs.
Read: An Overview of Blockchain Powered Real Estate Rental Services
A smart employment contract can alert employees about the remuneration of their work. The smart contract offers transparency to the organization and its employees. Wages can be paid through the contract after calculating hours logged into the dashboard before preordained funds are credited to the employee's account. The digital contract can also be re-written in case an employee is promoted, so as to easily monitor his professional growth.
Supply chain management.
Smart contracts improve businesses coordination and communication with goods suppliers and service providers. It can automate each step including payment so that supplier stays pre-informed about stock availability and consumer demand. Smart contracts automatically generate requirement so that the entire system runs smoothly and efficiently.
Smart contracts provide several benefits to small scale and large scale businesses. Digital agreements improve communication and transparency while saving time and money.
Would you like to explore the benefits of implementing smart contracts to improve your business processes? We are an India based smart contract development company that has a team of blockchain experts who develop solutions using Stellar, Ethereum, NEM and other blockchain technologies. We enable businesses to implement the latest technologies to thrive in a competitive environment. Our smart contract solutions facilitate coordination between different departments to meet the organization’s emerging challenges. The aim of our blockchain development services is to improve customer loyalty and build long-term relationships. Contact us today for more details!
Khushboo is a Technology enthusiast. As a content strategist , she has a great affinity for discovering and sharing unique insights and resources with the tech community.