Progressing from our first article explaining smart contracts, how they are executed and the benefits of adopting them in business, and the second article on the use cases, we move forward to exploring some of the industries like fintech and energy, which are deriving real value from Smart Contracts. In this article, we’ll use real-life use cases to understand how smart contracts are being adopted in leading industries. Since this digital tech is beneficial to every industry, readers can extrapolate for their organizations as well. And, if there are any specific doubts that need to be addressed, we can think of taking those up in our future articles.
So let’s begin by taking a look at some use cases for Smart Contracts in a function that is common to many industries:
From the infographic above, it’s clear that smart contracts offer the flexibility that makes their adoption easy in almost every industry — from financing for various trades to energy distribution, from insurance to loyalty and rewards operations in retail and e-commerce and for digital rights management (DRM) and micropayments systems as well.
Indeed, smart contracts can adapt and be shaped based on business requirements, because they are encrypted pieces of software code and are thus of value to every industry.
Let’s take a look at how smart contracts are aiding the insurance industry.
Smart Contracts and Insurance
The core requirement of insurance companies is a formal agreement with the insured person that guarantees coverage as per the documented terms. Besides this, they also need to manage the claims arising from various incidents and life events that trigger the activation of the agreement. Smart contracts can execute this entire business process — from creating the formal agreement, its issuance to the insured till the settlement of claims in case the policy features need to be executed.