Education: There are a multitude of ways in which smart contracts can transform the education landscape. Digitizing student records, certificates and badges with authorized access only is one way to increase trust and transparency. Another potential use of smart contract is to track and validate student and faculty attendance to sanction student’s course credits and faculty’s salary according to the hours recorded in the system. This will ensure transparency in the system and also reduce paperwork. Smart contracts can also be used to distribute student scholarships by coding the necessary criteria in the system and releasing scholarship when all the conditions are met by the student.
Supply Chain: Smart contracts can revolutionize supply chain by providing a single version of truth for all stakeholders in a system that is fraud-resistant and resilient. They can be used to manage the approvals of workflow and authorize material transfer automatically on completion of necessary formalities encoded in the contract. Companies can bypass the conventional ways of creating trust thereby saving time and money; and also reduce paperwork and middlemen.
Financial Sector: Financial sector is one of the domains that will be significantly affected by the introduction of smart contracts. Trust is paramount in financial dealings and the industry is riddled with intermediaries and processes that exploit this inherent characteristic. Numerous examples can be provided to elaborate this point, one such case would be:
Banks have strict conditions to provide loans and most of the small sector businesses fail to meet them making it difficult for them to raise funds. This is where micro-lending from alternate sources comes into picture. It enables borrowers to accept loans from individuals by putting their assets as collateral. The parties can enter into a smart contract with clearly coded instructions to liquidate the collateral to repay the loan in case of defaulting. The platform can also monitor the value of collateral and keep it secure to prevent the borrower from using it to raise funds from elsewhere. On repayment of loan, the contract will release the collateral back to the borrower. Peer to peer lending can affect the economy at a macro level and provide a boost to small scale businesses.
Even in such cases where processes currently run smoothly, smart contracts can immensely improve the status quo, bringing about a drastic change in the way we conduct business. Prevailing systems may become redundant in the near future leading to the extinction of many erstwhile processes and procedures. For example, claims verification, credit ratings, loan disbursal, property sales etc. will no longer require the assistance of established firms or intermediaries. Gone are the days where people used to vouch for each other — smart contract has found a way to digitize trust.”