Smart contract application examples and use cases

With the evolution of blockchain, smart contacts that were built to further expand the decentralized database into a decentralized application for further implications seems to be coming up everywhere.

Nearly every third-gen blockchain now carries the capability of running a decentralized software based on smart contracts. However, are smart contract chains any different?

Every platform carries its own particular disadvantages and advantages. However, when it comes to building a dApp (decentralized App), will one chain have greater benefits over the other chain?

Blockchain technology still seems to be at a rather infant stage. This is because this technology has had rather slow progress over the years, especially when it comes to its usage in real-world applications. Today, there are a number of challenges that blockchain dApp development has. At the same time, there are a number of financial risks associated with the development of untested and new technology.

Let us consider a number of examples in which smart contract platforms are being used to support services and products that make use of this technology.

ICOs and Sub-tokens

Most of the blockchain ICOs that occurred in the last two years were released through the ERC-20 standard, on an Ethereum network as Sub-Tokens. Indeed, Ethereum is the king of the sub-tokens nowadays and no other blockchain could even come close to it. This is primarily because Ethereum had the first-mover benefit as in 2017, it was the only smart contract that was functioning at a large level.

Currently, more than 128000 ETC-20 contracts with sub-tokens exist on the Ethereum network. These, account for almost 80% of the dApps. This is simply a reflection of Ethereum’s popularity.

Digitalization of assets

Assets digitalization has become the latest buzzword when it comes to the blockchain technology. Many people wonder how it is even possible to own a physical asset using blockchain, which includes silver and gold.

NEO is one of the latest smart contract blockchains that carries goals that are different from that of Ethereum. The prime objective of NEO is a ‘smart economy’ which includes smart contracts, digital identity, and digital assets.

Primarily, NEO works towards developing a platform through which services and goods can be traded in a digital format, with trading rules that can be enforced. For instance, every asset in the physical form will be entered into the blockchain with its corresponding entry. This will allow the owner to be recorded and tracked. All stakeholders will have a record of the ownership of these assets, and the record will remain decentralized.

Personal finance

Blockchain and personal finance are two terms that seem to go well with each other. Eventually, these terms may be even be used together.

Launched in the month of September in 2018, Tezos blockchain carries some highly promising decentralized applications that aim to unite blockchain technology with the traditional financial applications/services.

Currently, the decentralized application is in its early stages of development. According to the statement, it takes a long time for traditional insurance to process the claims and costs a lot. The TezSure app, on the other hand, will make use of the blockchain technology to carry out all major financial transactions in virtually no time.

This process will also be streamlined as a result of which an entity will be able to create insurance products, based on the rules of the smart contract. Then, the coins will be moved into the pool, until claims are filed. Once a claim gets verified, payment from the pool goes out directly based on the smart contract rules that define the scope of the insurance.

Prasobh V Nair Prasobh V Nair on May 21, 2019

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