Growth of Smart Contracts

Before we can talk about the benefits of smart contracts in blockchain, we must understand what it really is. For
a smart contract to run, the developer must predetermine conditions for it to meet. It is stored on a blockchain.
Most often, smart contracts are used so that all participants can know the outcome of an agreement that has been
automated to be executed. When a set of conditions are met, smart contracts in blockchain can also help to
execute actions.

Applications of smart contracts

Smart contracts in different industries benefit them and the application of smart contracts is wide and varied.

Airline Industry

For example, smart contracts can be used in the flight insurance industry. Smart contracts can be used if it is
linked to the database that records flight status. If the flight is delayed by a predetermined number of hours, or if
the flight is cancelled, smart contracts can be activated to disburse the insurance amount. The money is held
back until the predetermined conditions are met. The smart contract can be given to the nodes on an EMV for
evaluation. If all the nodes come up with the same result, then the smart contract can enable the result to be
recorded on the blockchain. The smart contract executes itself once the conditions are met, without any
interference from people. Smart contracts are immutable and cannot be altered to change the predetermined
conditions in the middle of execution.

Governance

Another example of application of smart contracts is voting, whose process can be simplified with the use of
smart contracts. Tracking votes is important to avoid problems like double voting, miscounting, identity fraud
and other issues, some of which are done by voting officials themselves. With a smart contract, it would become
difficult for people to vote outside their digital identity. Counting is automated. All votes are logged to the
blockchain, and the counting is automated without interference. Voting entirely takes place on the blockchain.

Trade Finance

Smart contracts can be used in the trade finance industry and create a saving of more than $20 billion per year.
The smart contracts can be used in the workflow process to approve workflows automatically when they meet
certain conditions. The smart contracts can also be used to make tedious and labour-intensive calculations in the
business. It will help clear people to do other tasks that require creativity or other skills that cannot be
automated. It will reduce work hours and errors as well.

Healthcare Records

Records must be kept in every industry and business, from libraries to health industry. Smart contracts can be
used to increase the speed and security of the records in the healthcare and other industries. Billions of patient
records are kept by the healthcare industry. There is a lot of money spent annually on protecting and securing
these records. However, the methods sometimes fall short and cyber-attacks take place. Blockchain and smart
contracts technology can be used to encrypt the files and keep the records secure. This technology allows for the
use of a private key or password that means only the users with this information can access the records. Issuing
prescriptions, storing receipts, stock management, test results storage and so on are possible with smart
contracts.

Insurance

Insurance companies spend millions of dollars each year to process claims. In addition, millions of dollars are
lost to fraudulent claims. Smart contracts can be used to support in the initial policy. But besides this, they can
also be used in the claim process. Smart contracts can be automated to check for errors and consolidate pay out
amounts on predetermined conditions while considering if the policy was held by a group or individual. It can
be used to reduce process errors and avoid fraudulent claims. Smart contracts can be combined with the Internet
of Things to allow pay-as-you-go insurance policies. They can be used to immediately approve and disburse
claim amounts after an accident.

Mortgages
Speaking of insurance, mortgages and property market industries also stand to benefit from smart contracts.
Transactions in the industry can be made cheaper, faster and more secure. Smart contracts can allow both parties
to agree to the sale before processing the payment. The entire process can be digital and more secure with the
fact that the unique key code authorization lies with the original owner.

MSRVantage can work on smart contracts that can be used across different industries to automate and
streamline the business process. We can guarantee tamper-proof and effective execution of transactions with
these smart contracts on blockchains.

In this way, blockchain becomes the supporting or underlying technology that enables smart contracts. Use
cases for smart contracts can be very simple or very complex based on the goal they are trying to achieve. Smart
contracts can be used to disrupt how many different industries work. They are the future of banking, voting, e-
governance, energy and insurance industries.