Bitcoin hits the new record highs in ever-declining time frames. When we talk about blockchain technology, it’s the principles and codes which enable bitcoin to exist, but which take place separately. The uses of blockchain are far wider than just changing cash in a transaction or serving as a store of value.
Blockchains are no doubt effective wherever there are trust and paperwork. It enables a market to bring automation and complete trust into place. Particularly, the smart contracts of Ethereum can enable for situations such as:
- Distribution in property rental agreements and automated deposit holding
A tenant has the power to deposit his funds into a secure wallet. After the period of tenancy, when the criteria for a complete return of deposit are seen, payment could be made automatically. When the complete amount isn’t due, the smart contract can divide the reduced deposit consequently.
Why is Peer-to-Peer Market Open to Blockchain Improvement?
There’s a massive amount of administration involved in a P2P platform. The list of administration tasks is wide, and not limited to:
- Interest payments to investors
- Repayment status of funded deals
- Investor involvement in individual deals
- Understand your customer activity for investors
- Due diligence on prospect borrowers
All of these tasks take resources and time. Smart contracts, as part of the blockchain technology, can automate most of these activities according to a pre-defined set of rules. For example, a process can be initiated automatically on completion of repayment of a deal to return investment yields and capital to lenders.
Following are some appealing blockchain-based applications which will benefit the consumers:
Tech startup Everleder utilizes blockchain technology to create a system of warranties. It allows diamond mining firms to confirm their assets aren’t utilized by militias to fun conflicts.
Car leasing corporations could also benefit massively from the shared ledger. In reality, they make it look simple. However, the management of all the various ledgers within the network is time-consuming and complicated.
With smart contracts, ownership can be attested and linked to the terms of a specific contract. Smart contracts are kept on the blockchain and performed automatically as a part of the transaction. For instance, the XDC blockchain is constructed upon Quorum. The power smart contract functionality which exists in the Ethereum protocol is accessible easily via Quorum. XinFin created a smart contract manager which enables for interoperability between the public blockchains and XDC blockchain. The platform included punitive smart contracts which link to the QuorumChain consensus smart contracts to guarantee those who stake at XDCs to operate network infrastructure remain truthful.
The purpose of the smart contract is to present better security than conventional contract law can guarantee. It can also lessen the delays and costs connected with traditional contracts.
Peer-to-peer lending and blockchain technology look like natural allies. Blockchain can have a completely transformative effect on the peer-to-peer sector. It provides greater scalability, efficiency, and visibility – and possibly, reduced cost.
Utilizing blockchain-powered smart contracts would allow p2p providers to verify transactions, validate the legitimacy of counterparties and execute routine account administration activities.