A comprehensive case study
They say there are no unbreakable promises. This expression lies at the heart of contemporary commerce and business relations where contracts contain subtle complexities that are often dictated by a fear of your counterpart not being able to fulfill their end of the agreement while cheating you out of your money. Luckily, new technology creates new tools that eliminate all the risks of others to follow through on their end of the agreement via smart contracts. Users of these smart contracts utilize advanced tools to ensure both parties commitment to their agreement remains intact. Take a look at the following use cases highlighting the benefits of smart contracts and learn how you can confidently start using them today!
Guaranteed insurance
Each one of us have encountered unpleasant or downright painful of experiences when dealing with the insurance bureaucracy regarding compensation tied to accident claims. Rather than help out it’s insured, the intricate insurance system is designed to discourage and undercut any reasonable person of claiming what is rightfully owed to them. On top of that, it can take the insured over a month to receive any compensation after filling their application and gathering the proper documentation. It is clear that there is a problem with this system on multiple levels: on the one hand, the insurers’ goal is to pay policyholders as little as possible to maintain profits, while on the other hand, cases of customer’s faking claims to receive a payout has become almost commonplace.
This scheme of undermining a once noble industry has been going on for centuries, however, now with Blockchain and Smart Contracts there is an opportunity to break this vicious cycle.The solution smart contracts offer can be deployed by simply as pressing a button. The guidelines for a successful smart contract-backed insurance policy is as follows:
- Have the policy written into the code
- Remove any unnecessary third parties and their leach fees
- Add some Ethereum blockchain
- Relax and feel confident in your secure insurance agreement
In practical terms, Smart Contracts will be able to calculate the payout amount based on the initially agreed upon conditions. The issue will be resolved quicker and more efficiently because of these self-executing features inherent in such contracts. Another bonus is less paperwork since there is zero possibility of language ambiguity in the wording of these smart contracts as contract execution would only be triggered in compliance with their coded rules. As a result, your insurance payout will be transferred immediately after the occurrence of a verified insured event. Another positive would be reduced insurance policy costs resulting from the limiting of administration and management costs.
There is no denying that time and resources spent on navigating through these daunting mazes to get your rightful compensation could be spent more productively. Smart contracts are easy to read and understand with neither party requiring a Zuckerberg level of intelligence to deploy successfully. Services like Confideal offer an accessible and easy to use platform where anyone can create a smart contract within a few clicks. With such services already available today it will only be a matter of time before smart contracts totally remove the horrendous bureaucracy that accompanies the insurance industry in the years to come.
A Letter of Credit — letterless credibility
Another sector that is unreasonably riddled with legalese, administrative hurdles and extra cost is finance. Any commercial trade transaction, especially when it is international, has to let in a third-party intermediary often in the form of an established letter of credit with a major bank.
Letters of Credit are generally considered to be indispensable especially when the buyer and seller are separated by a great distance and subject to different legal systems. In most basic transactions, banks issue and confirm such a letter, verify a handful of documents including the bill of lading before finally releasing the payments. Document verification is conducted by humans which consequently means billions spent on labor costs as well as people hours better spent elsewhere.
Did I mention that humans are also prone to committing mistakes once in awhile? All these unnecessary steps make the whole process sound quite archaic and dated, but this is also where smart contracts can come into play. How? By the contractual obligation provisions laid out directly inside of these smart contracts.
These contradicting beliefs that state you need to know as a much as possible about your counterpart while at the same time not revealing too much data about oneself are successfully addressed by smart contracts because parties are only allowed to access information they have permission to. For example, a smart contract service offered by Confideal allows users to create smart contracts with only cryptocurrency wallet addresses of the two sides involved. The user friendliness and simplicity of the Confideal platform allows users to streamline the process and to design a set of interrelated deals quickly! The possibilities of smart contracts in business and commercial transactions is limitless. If there is anything that is able to revolutionize the world of business and commerce it is the mass adoption of blockchain technology via the use of smart contracting.
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Thank you for this information. :)
You are welcome! Our mission is to deliver interesting and educating information about the awesome feautures of the revolutionary smart contract technology! Stay tuned for more :)
good project
Thanks!