The terms of the business are stored in smart contracts. These contracts help verify and execute the terms that are agreed upon.
Blockchain technology is becoming a priority when it comes to budget planning. More than 40% of the executives who participated in the Global Blockchain Survey year 2018 stated that their respective organizations will invest $5 million in technology over the forthcoming 12 months.
Several businesses are in agreement with the fact that without using the blockchain technology, they might lose their competitive advantage in their market segment. About 33% have to state that they are uncertain about the return on investment if they invest in this technology.
The report from Deloitte has to state that the main mistake that organizations will make regarding blockchain is to do nothing. Even those who do not have a solid business case should be keeping an eye on the blockchain to take advantage of the opportunities that present themselves.
The value of blockchain concerning smart contracts is already well-established. Almost every business will need a contract, and the smart contracts in every business across different market sectors will land up adopting and implementing blockchain at some point in time.
While technology is still in its infancy, applications for using this technology are still under development. The unique properties of the distributed ledger are well known, and several companies have enjoyed success in streamlining of data using this technology.
Every member in the network will have an identical copy of the ledger. This provides for people to sign up contracts with each other. The terms of the agreement are documented verifiably. The data cannot be altered. In this process, if either of the parties’ wish they need to keep a few of the information encrypted, they can do so. There will be no failure even in a single point using this system. If there is a cyber-breach in just one point, it will be known visibly.
Smart contracts help businesses communicate directly, and they need not thus depend on a third party for this purpose. The agreed terms can be verified and executed as agreed. The transactions are executed based on an event. Thereby, helps to prevent the human element of communication. The elements of error and other kinds of interactions related to this are as well avoided using this technology.
The automation and speed in the supply chains are improved greatly when smart contracts are used in the transaction process. Thus, reducing the need for agents and also preventing manual record keeping.
XinFin with the XDC Protocol can customize smart contracts for Enterprises.