The blockchain buzz is growing louder in business circles, as businesses are jumping on to the smart contract bandwagon. According to an Accenture report in 2017, investment banks can save up to USD 12 billion annually by adopting smart contracts and blockchain technology, through program codes that perform actions when certain conditions occur.
Gartner even estimates by 2022, the ratified unbundled smart contracts will find applications in over 25% of global organisations. Technology providers like Microsoft and IBM are also offering blockchain solutions for enterprise clients. I find that even tech startups are cashing in on the boom by building services and products that are based on technology.
How Smart Contracts on Blockchains Benefit Businesses
Companies have established business relations, streamlining legal and contractual procedures through smart contracts and conduct cryptocurrency transactions in an easy and safe manner. The beauty of smart contracts on blockchain is that all the advantages can be availed, without making any adjustments. With new blockchain-based platforms like Jincor which allow businesses to work with smart contracts and cryptocurrency payments sans operational, legal and technical complications, I find this is a sunrise sector.
I hold that lower barriers will serve to enable more businesses to explore the technology apps for certain industries. Blockchain can be used when transparency is essential. Smart contracts ensure safety from fraud.
Smart Contracts: An Intelligent Choice
Among blockchain-driven technologies, I find smart contracts and cryptocurrencies to be beneficial to e-commerce businesses too. Merchants online can even use smart contracts to automate order fulfilment especially for delivery of goods that are digital.
Additionally, the increased admissibility of blockchain records for legal purposes by specific US states also creates a chance for smart contracts to be used for high value real estate property deals.
Saving on Costs With Smart Contracts
Record keeping, fulfilment and cash flow can be handled under a single platform, thanks to these blockchain technologies. Consolidation of tasks and automation can streamline business operations and improve efficiency. Businesses save on a lot of costs by using cryptocurrencies and smart contracts. Smart contracts can help businesses legally, financially as well as for escrow services.
Such blockchain platforms help individuals to navigate the implications of using blockchain for businesses and even arbitration methods to help in dispute resolution. McKinsey estimates that blockchain can save businesses money in B2B transactions. Cutting out middlemen means business savings. According to me, the future’s ripe for smart contracts and other blockchain technologies to mature and help business.