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20 January 2019 05: 30 & nbspUTC
| updated:
20 January 2019 at 05: 30 & nbspUTC
Bitcoin could be the first use case applied to the world of Blockchain technology, but Ethereum is the second generation blockchain that is making waves in the technological ecosystem. The Ethereum Blockchain facilitates the encoding of Smart Contracts in a way that is not possible with Bitcoin's Blockchain. This article gives you details on the 5 popular use cases of Ethereum Smart Contracts.
Before reading our article, what are the smart contracts, could you want to improve your understanding of Smart Contracts? first.
Ethereum founder, Vitalik Buterin, devised the Ethereum Blockchain, which has advanced scripting capabilities such as Turing completeness and intelligent contracts, in order to build an advanced Blockchain network that can provide the platform for application development or dApp decentralized.
Today, the Ethereum Smart Contracts can be applied in real life and have several use cases.
You can also read: How big is the Ethereum blockchain?
5 Use cases of Smart Contracts
1. Intelligent contracts in financial services
The financial sector can benefit greatly from the deployment of Smart Contracts. The digitally automated protocol is applicable to various areas of the financial and banking sector such as bonds, insurance claims, payments and mortgages.
For example, take the example of a status link. If managed with a Smart Contract, the bond will automatically provide the amount upon maturity to the bearer. Yes, the application of Smart Contracts in the financial sector can work wonders by automating and streamlining processes.
2. Intelligent contracts in the initial token offerings
Smart Contracts integrated into the process of supplying coins can make it more transparent, democratic and effective. Buterin, the founder of Ethereum, suggested a model for ICO called the DIACO model. It is considered a hybrid of the Aunomous Decentralized Organization and the Intial money offering.
DAICO foresees the launch of the DAICO Smart Contract on the Ethereum network with a variable "tap". This variable determines the amount of Ether's cryptocurrency that developers can withdraw per second. It is interesting to note that the limit of "touches" is authorized by DAICO contributors. As a result, DAICO avoids scams because developers can not run away with all the money at once. To understand how developers create Smart Contracts with Solidity, read our article on it.
You can also read: Ethereum Classic Blockchain
3. Smart contracts in the management of digital identities
Today's issues related to data monopoly and identity theft can easily be solved through the implementation of smart contracts in digital identity management processes. Projects like uPort return the digital identity of users in their hands, allowing them their own sovereignty.
4. Intelligent contracts in the forecast markets
Platforms of decentralized forecasting market protocols such as Augur and Gnosis have already implemented Smart Contracts. This protocol allows participants to predict the results (for example, an election result) and when their forecasts are true, they are incentivized through Smart Contracts without trust.
You can also read: 10 reasons to buy Ethereum in 2019
5. Intelligent contracts in escrow services
Smart Contracts can easily replace intermediaries, so they find one of the most important use cases in escrow services. One thing that needs to be taken care of is that the Smart Contracts used as escrow services must be equipped with all pre-conditions.
Conclusion
Smart Contracts seem to pave the way for the automation of various processes. To conclude, Smart Contracts are not just a word of order, but actually serve real cases. 2019 could be the year in which these protocols find their niches in different vertical sectors. To understand, Smart Contracts in detail, read our article entitled Blockchain Smart Contracts.
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Swati Kishore
Swati has a keen interest in emerging technologies and loves to write them. He loves trance and is also interested in the philosophy of life.
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