Smart contracts are one of the clearest benefits of blockchain technology. They have broad applications across various industries and use cases and provide value that is clear and tangible. As more industries use blockchain to track many different systems and processes, the usage of smart contracts has evolved as well.
Smart contracts aren’t really “contracts” — they are small pieces of executable code that are set up based on pre-set parameters defined in an agreement or contract. When specific conditions of an engagement are met, an action automatically takes place without the need for human involvement. The code and the relevant agreements and arrangements are all stored on the blockchain.
By executing smart contracts on a blockchain platform, terms and conditions are transparent, visible, and accessible to all parties involved. Smart contracts are possible because of the immutable nature of data on a blockchain. Even if parties doing business don’t trust each other; everyone can trust the blockchain data. The implications for increased speed, efficiency and security are vast.
Businesses are realizing that smart contracts can reduce administrative functions and eliminate some intermediaries such as lawyers, agents, loan officers, and some support staff. Beyond automating purchasing and invoicing, smart contracts can ensure the quality, authenticity, and availability of goods.
In addition to direct cost savings, the chance of introducing human error is greatly reduced. And since the data is tamper proof, transactions are far more secure and better protected from malicious intent. The speed and transparency for purchasing and payments reduces overhead and can also ease audit requirements and streamline regulatory compliance.
Blockchain has begun to streamline many industries when it comes to how goods and services are transferred throughout the world. Healthcare, real estate, finance, education, and other industries that are heavily reliant upon supply chain management, are taking advantage of this technology and adopting smart contract functions along the way.
WaveDancer’s smart contracting module allows the customer to track acquisitions, interact with vendors, gather electronic signatures, maintain one centralized repository of questions and answers, capture vendor performance, and conduct invoicing; all from one easy-to-use dashboard. When procurements are integrated, all purchases are identifiable by lot number, vendor, date, quantity, style, and so on.
Gray Matters’s platform is not built on a proprietary blockchain, but as a permissioned network using the flexible and proven open-source, Hyperledger™ Fabric framework. Now when our customer has a problem, they can immediately identify who, what, where, and when, saving companies millions of dollars in lost production time.