Imagine for one second that you are into real estate, and you got some properties up for sale. In most cases, the usual practice is that you might need to employ the services of an agent in order to get a buyer. Some may view this as an overhead and the processes involved might be rigorous and will definitely involve some numerous paper works, signing agency agreements, etc.
In this context, the agency is the third party serving as a link between the buyer and the seller. And of course, it’s not a free service, at the close of a successful deal there is always an agency fee that may be as high as 10% of the total money realized from the business. This is an extra cost for the seller.
This is where smart contracts have really disrupted and re-defined how we can do business more effectively today. Business operations like this could be automated using a smart contract. Since the advent of blockchain technology, it has birthed several other revolutionary applications, smart contract is one of them. It totally eliminates the need of a third party when signing and executing an agreement. Not only it gets rid of high commissions paid to such third parties but it also brings in a higher level of transparency into the picture.
A smart contract, therefore, is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties.
Even though many scholars have argued that the idea of smart contract was originally conceived in 1993 by computer scientist and cryptographer Nick Szabo who described it as a kind of digital vending machine. However, a smart contract became an industry name after the advent of blockchain.
Importance of leveraging on the smart contract application
The benefits that come with the use of a smart contract cannot be understated. It provides autonomy which completely eliminates the need for a third-party in a business or contract process. Information in a smart contract is encrypted and safely stored on a secured, shared ledger thereby creating a trustless unbiased system.
In addition, by eliminating the third party, it enables projects and businesses to cut down cost on contract executions while transacting in a secure and safe environment. A smart contract fosters a high level of efficiency and eliminates backlogs.
Businesses utilizing smart contracts
The popular type of smart contract known to almost everyone in the blockchain community is the Ethereum smart contract – the ERC20 and ERC271 smart contract type. In the mainstream sector, a recent report by Forbes reveals that a coalition of 61 Japanese and South Korean banks has been testing Ripple’s Blockchain and smart contracts to enable cross-border money transfers between nations.
The use of smart contract cuts across all spheres of human endeavors such as breach contracts, property law, credit enforcement, financial services, legal processes, supply chain, crowdfunding agreements, real estate, healthcare, finance, governance, etc.
Blockchain-based startups relies on smart contracts to successfully launch their products. It’s important to note that smart contracts aren’t perfect and therefore fail if the codes aren’t enforced correctly or contain some bugs. Many blockchain projects have failed due to incorrectly written and poorly audited smart contracts.
In the business environment, startups and well-established enterprises are continually faced with the hurdles of facilitating monetary exchange between buyers and sellers in a trusted environment. Imagine dealing with a buyer who wants to pay with fiat for goods or services received, the challenge is then it is impossible to upload fiat currency into a smart contract. Burency, therefore, goes a step beyond and provides facilities to convert the fiat currency into crypto & then execute the contract, thereby accelerating blockchain adoption in the UAE.
The Burency solution to businesses looking to utilize smart contract protocol
As businesses look for faster, more efficient, secure ways to conduct trade across local and international borders and to reach better contractual terms with customers, platforms like Burency are rising to the occasion of helping these businesses reach their goal.
Burency, a blockchain-based company is profiling a one-stop-shop to this bottleneck. Burency positions itself as a smart contract consultant in this regard. The company is involved in executing a legal framework and agreements into a workable and reliable contract for all sizes of business – both startups and big enterprises across all industries.
When companies and businesses utilize the services of Burency, it gives customers on their platform the privilege of transacting within the Burency exchange. Customers can easily exchange their fiat currency to other cryptocurrencies in order to activate the smart contract and enter a binding agreement with the seller. This solves the challenges associated with customers transacting with fiat currency within the smart contract.
The potential that lies within this technology are limitless, there is a crystal-clear growing number of interests in the use of smart contracts for daily businesses, some scholars allege that the technology will likely render agencies completely redundant. Whichever direction the radar points to, onboarding your business with this technology will be a smart move to stay at the top of things in the near future.