The age of digital technology is tirelessly throwing more and more innovations to mankind. The economic sphere of life has not become an exception. Today, mankind no longer understands how to function without the so-called “digital money”. Most routine processes have long been automated, and the number of new electronic payment systems is growing “by leaps and bounds.
Naturally, humanity has decided to go further and try to change the economy completely. Thus, the vector of future development got a completely new form in the form of cryptocurrencies and technologies that ensure its existence. World-renowned corporations – giants such as Google, Microsoft, Intel, Samsung, Mastercard, Visa, Nestle, and many others, in one way or another, have introduced new technologies in their work. Along with huge companies, cryptocurrency and its possibilities are used by all progressive people.
From small business owners to artists to high school gamers. Why is this happening? What is beneficial about cryptocurrency? First of all, it possesses a decentralized system that is independent to conduct transactions between users’ wallets. Cryptocurrency coins are not issued by central banks, accordingly, their rate is not tied to the exchange rate. To be clear, it is not tied to any country, which allows you to dictate the rules within the system around the world. Another advantage of cryptocurrencies is the anonymity of transactions. When making them, you will not know more about the recipient than the number of the wallet to which you transfer assets. Thus, cryptocurrency and the technologies associated with it are taking the public perception of finance and economics to a new level of understanding. All we have to do is try to “catch the wave” and understand the development options for ourselves.
So, above, we have understood cryptocurrency, its technology, and how tightly it is already implemented in our lives today. But, again, it is still not clear how it all works. This is where blockchain and smart contracts come into play.
Blockchain is a continuous, sequential chain of information blocks. The trick is that the data entered into each block cannot be changed or tweaked. You can only enter a new block of information that is next in the sequence. In other words, blockchain is a kind of accounting system that eliminates the fraud factor.
A smart contract, in turn, is an algorithm of clear actions that are integrated (sewn into) the blockchain code. If all the prescribed agreements are followed, the sequence is triggered automatically. In other words, if, for example, you need to conduct a cryptocurrency sales transaction between wallet holders, the process is anonymous and not regulated by intermediaries. Thus, the smart contract is a clearly prescribed algorithm for the transaction. Such a variant of a simple financial operation enables maximum transparency of the users with their own deposits.
Such contracts are analogous to simple paper contracts, only inside the network and with the help of mathematical calculations. Again, because the algorithm of a smart contract is prescribed taking into account all the participants of the transaction, and its conditions – it is impossible to change something in the process of conducting it. If you agreed to the execution of the transaction, it will be carried out. After all, in the end, the entire algorithm is designed to get a result.
Smart contracts have found their niche far beyond the cryptocurrency market alone, which makes sense. It allows many industries, including critical infrastructures, to systematize and accelerate routine processes, and virtually eliminate human error. Thus, smart contracts are widely used in healthcare. They have squeezed out paper files and case histories, which, in turn, were lost with enviable regularity. Such mistakes could cost a patient’s life. Precisely for this reason, the entire system was reformatted into a smart contract, which allowed the data to be stored safely and securely, and to be accessed in seconds. Thus, the need to pull up old file cabinets of medical histories to figure out how to help rather than harm a person has been exhausted. The use of blockchain technology, based on smart contracts, has also found its way into the lending system. With their help, billions of payment histories, security system operations, and automatic lending became much more accessible and greatly facilitated financial transactions. The media sphere is also actively using smart contracts to speed up the processes of crediting and distributing profits between the author of intellectual property and the production company. Smart contracts are used in logistics to provide a huge layer of data on suppliers, recipients, carriers, and so on.
All of these examples are just a small part of the areas in which smart contracts are widely used. In fact, if we were to list them all, I doubt that anyone would read the rest of this article. In any case, now you have the information and can figure out all the new sectors of implementation of this technology in life.
Let’s imagine for a moment that you have a business and you plan to streamline its work with a smart contract (it’s the future!). But then again, every technology, no matter how much it is praised, requires an adequate setup. Even a basic television will first ask you to set the algorithm you want to use. It’s the same here.
So, it’s worth doing a smart audit in order to avoid mistakes in the system. As we have already discussed above, once the algorithm is running, there is no way to stop it. Accordingly, any “gaps” should be removed before the start. A small oversight, associated with the human factor, can deprive the company of all of its resources. By the way, most often it happens by accident since very few people know how to use the system professionally enough. When choosing a firm to conduct a smart audit, it is worth applying to the one that is classified on it. For example, such might be Smart Contract Audit Companies, because it fully meets the above requirement. Most firms audit in the Ethereum chain, which may not meet the objectives you set for yourself. It is worth giving preference to companies that also support Solana or Binance Chain. Lastly, there is the cost of an audit. Qualified professionals are expensive, accordingly, you need to weigh your need against the cost of the cash equivalent in order to balance the processes.
Anyway, if you go through the stages of adopting innovations consistently, take the time and pay attention to the opinion of professionals – the result will surprise you and not make you wait long.