Businesses can use various smart contract use cases in different sectors, including

finance, healthcare, retail, to name a few to streamline current workflows. Essentially, a

contract is a written document that outlines the terms and conditions of a service agreement

or partnership.

One of the core challenges facing the administration of contracts currently is the issue

of interpretation. Primarily, one party's understanding of the terms may differ from the other

entity's interpretation. Typically, contracts have several complex terms and conditions, which,

if misinterpreted, they may result in ambiguity.

The issue of ambiguity necessitates the services of a third party to enforce the law and

make vital decisions in case of a disagreement. However, this entire process involves a lot of

paperwork, in addition to the fact dispute resolution can be a time-consuming and complex

procedure.

Enter the digitization era, and now it is possible to store and share important

information online. Consequently, the use of paperwork for legal agreements is now an

outdated practice. Contemporary technologies such as blockchain have introduced to digital

contracts commonly referred to as smart contracts. Therefore, in this article, we will explore

what smart contracts entail and identify their potential daily consumer and business use cases.

Defining Smart Contracts

This concept refers to the translation of an agreement, including the terms and

conditions into a computational code. Blockchain developers write the script using

programming languages such as Java or Python in a manner that is void of ambiguity and

does not require interpretation. The code deciphers a set of regulations that are automatically
executed and validated. For instance, an example of this type of translation is; “if A offers the

service, B pays for it.”

Smart contract codes are added to the blockchain to authenticate the agreement and

facilitate the necessary steps. Characteristically, a smart contract is automatically executed

from the instance it is initialized. Therefore, the core distinguishing factor between smart and

conventional contracts is the fact that the former does not rely on a third for enforcement.

Instead, a cryptographic code enforces it.

Daily Consumer and Business Use Cases of Smart Contracts