Did you know The idea of smart contracts predates Bitcoin by about 12 years? They were first mentioned in 1997 in a paper by computer programmer Nick Sabo, but they only really took off in 2014. Today Smart contracts revolutionizing many industries, from shipping to insurance, and real estate to e-commerce.
Let’s break down what a smart contract is?
A smart contract is simply a self-executing contract. They are stored on a blockchain and programmed to run when predetermined conditions are met. Every smart contract executed on the Ethereum blockchain needs gas fees. Gas fees is a fraction of an Etherium token and is used by the contract to pay the miners securing that transaction on the blockchain for their efforts. smart contracts eliminate the need for a central authority, or intermediaries, thereby reducing costs and streamlining processes. The blockchain is perfect for smart contracts, because it’s immutable and secure.
Is Anyone Actually Using Smart Contracts In the Real World?
1. First Example of Smart Contract in a Diamond Business
Let’s start with De beers group.
The world’s leading diamond company. Diamonds are one of the world’s most precious stones. For the provenance is a huge source of ethical contention, with many coming from war-torn countries or those with opaque mining practices. To fight this. De Beers uses a blockchain-based project called TRacer, which aims to improve the supply and logistics of diamond production. TRacer verifies a diamond’s lifespan from discovery to retail by recreating a digital fingerprint for the diamond, a nonfungible token for NFT, and does this first by scanning the diamond to collect all the data connected to the diamond so that they can recreate it digitally.
Treasure then registers as information that is stored in a blockchain ledger. In the case of tracer, this is Aetherium. This is then shared securely across the network. So any changes to ownership and new data can be added, and verified, using the smart contract which is programmed into the blockchain.
This verifies its authenticity and ensures it’s been sustainably produced for collectors. It offers an insight into the rarity of gemstones by being able to trace their every movement.
2. Second Example of Smart Contract in Healthcare
Let’s look at a less obvious example. Like through teeth. connected devices are a hugely complementary technology in the use of smart contracts, automating the sending of data that can then trigger conditions and one dental benefits provider is doing just that.
Beam dental gives its customers a connected toothbrush, which shares data with an app, how often you brush your teeth, how well and so this then adjusts premium rates according to predetermined conditions set out in the smart contract. Essentially, the more you take care of your dental hygiene, the lower premiums you pay for your dental insurance
3. Real Life Smart Contract Example in Airline Business
When flight delays are another area smart contracts are having an impact. If your flight is delayed for more than a specific period of time, a blockchain-based application could sources information from the airline and automatically transfer a refund to you and the effective passengers. This saves on a number of costs, and also provides a much better customer experience.
Insurance giant AXA used to have a fizzy flight delay smart contract platform that did just this launch in September 2017.
Fizzy was based on the theory on blockchain and allowed customers to gain automatic flight delay payments via a self-executing elements in the insurance policy
Now You Have Read the First Example of a Smart Contract. Let’s Read Everything in Detail.
NFTs are the real buzzword in today’s digital world. Every business vertical is entering into the NFTs with high speed to make the high revenues. It is no surprise that most industries are disrupted by the NFT smart contract entrance in the IT industry. So, we have numerous real-life examples that represent that the physical world can be reflected in the digital world using the NFTs.Here is the collection of the NFT marketplace smart contracts representing the real-life examples:
List of top 10 examples of NFT Smart Contracts
1. Digital Art – popular NFT example
In the form of NFT, any content creator can represent their artwork in the digital form. It also ensures that it is impossible to copy the digital art files, which guarantees no duplicity of the content. NFTs are rare and unique that increasing their popularity among artists. Moreover, NFTs allow the original owner to cut the amount as royalty and send it to the original owner. That is why many a class celebrities are turning to the NFTs concept to sell their art and make huge money in return. The examples of the NFT trading platforms that support artwork NFTs’ trading are OpenSea, Rarible, etc. These marketplaces are running successfully in the market and are the first choice of content creators.
Instead of using the trivial way to tie the knot, like rather than offering the wedding rings, people can use a more reliable method based on NFTs, which incorporate users’ accounts built on the blockchain network. The users can exchange the NFT virtual rings with each other. People can commit to wedding vows through the use of blockchain future technology. They can preserve for the long term and verify this on the NFT-powered specialized platform.
3. Medical Records and Identity Verification
NFTs are capable of storing people’s medical records without o compromising the individual’s confidentiality. NFTs, ensure that every record on the ledger is safe from malicious attacks. The role of the NFTs in medical care is to facilitate the medical care providers and the patients. Secondly, the NFT-powered birth certificates can be issued to newborn babies to be a lifelong identity for the new baby verified on the official NFT-based platform.
Soon, NFTs will be utilized to replace tickets. Parking passes, for example, can be replaced by NFT that has been assigned a unique ID, which you can use to validate your entry into the restricted area. This eliminates fraud issues and reduces paper usage because NFT owners only require one token rather than several copies (similar to how we don’t print our money). The same approach applies to bus tokens or other modes of transportation when payment is verified at many points throughout your journey using scanners.
5. Restaurant Chains
Another NFT contract example is the restaurant chains and the ghost kitchens that are virtually running. These are virtual restaurants without dining arrangements. They offer online catering and delivery services, and the major examples are UberEATS, Door Dash, etc. These apps eliminate the need for costly premises and the serving staff. Another example is the VCR group. The company plans to start an exclusive indoor restaurant in NW known as Flyfish Club. To enter the restaurant, the customers need to purchase an NFT-based membership.
NFTs represent the in-game items as the non-duplicate things with the ownership assigned to the creator. The smart contract NFT-based play to earn games constituent the gaming NFTs.The users can buy these digital assets through cryptocurrency and make a collection of unique digital items. When the value of these assets increases, the users can sell them further to earn more money. The most popular virtual games are decentraland, Sandbox, and many other names gaining immense popularity among the audience.
7. Collectible NFTs
Collectibles are also a significant entry on the list of non-fungible token use cases. Cryptokitties, for example, is regarded to have been one of the first ways that consumers learned about the use of NFTs in their daily life. As the Ethereum network became increasingly congested, the use of Cryptokitties grew in popularity in 2017.
They are essentially one-of-a-kind digital kittens that users may breed to create even more unique kittens. Individual traits, like hair texture or eye color, differentiate each crypto cat from the others, becoming more desired. Users can obtain two unique cats, a Sire, and a Dame, to breed them by simply clicking on a button.
8. Trade Finance
The finance industry has also tasted the flavor of NFTs.The purpose is to provide a platform to the end buyer, whether a small or a big enterprise. The payment is tokenized in the form of NFTs to create a financial mechanism that is safer and more secure for the users. The decentralized NFT-based platforms make it possible to execute many transactions with high scalability and in less time.
9. Fashion & Luxury Goods
The fashion industry is no exception when all the other industries have entered the digital landscape. The traditional fashion industry is lagging behind with the introduction of NFTs in the fashion market. The luxury brands can create valuable and unique designs with the help of the NFT smart contracts, which also help the brands to get recognition across the globe with fewer efforts. The brands like Louis Vuitton, etc. are the first to enter the NFT world. The fashion designers can experiment with the avatars wearing NFT-based clothes and costumes, which is an innovative way to demonstrate the new collection.
10. Music & Entertainment
Like the other industries, the music artists are not away from the NFT and smart contracts. The music artist can interact with the fans without the need of any third party. They can avail the one-to-one music experience to their users or fans with live sessions or broadcasting.
The funds directly go to the musician’s account, so the music artists do not need to face any struggle to get their due payments. NFTs are the right way for the creators to strengthen their bond with the fans through NFTs. NFT-based digital art representation supports the newcomers as they can earn the same as the famous artist as they do not need to collaborate with any music label company to release their artwork.
11. Supply Logistics
Blockchain technology has played its part in supply logistics to offer more privacy and transparency to the supply chains. The usage of the high-tech blockchain technology enables the end-user to keep track of the whole process to check if their products are in transition and safe and fresh. Many companies have implemented the idea of NFTs in this field. British start-up Provenance is the biggest and the first example that has experienced blockchain technology in this field, and they state the outcomes are fabulous. The company uses the NFTs-based blockchain technology to track the tuna movement and its delivery and other related things.
12. Academic Credentials
NFTs are a unique way to represent academic credentials. These can facilitate with the attendance proof, degree issued, and other details stored on the blockchain network. The information stored on the network cannot be changed or altered, so is safe from hackers. NFTs are responsible for maintaining the immutable records for the courses adopted. And unique tokens are assigned for the courses issued through the smart contracts. Shortly, getting paper-based degrees will be out of trend. Instead, the students will get the NFT-based unique degrees.
13. Real Estate
In the real estate industry, NFTs are widely popular as they represent the physical land on the blockchain network. The NFTs-based virtual land has all the information like price, location, measurements, etc. With the use of the NFTs, it is almost impossible for the malicious actors to tamper with the land ownership and other factors connected to the digital property. The foremost example is TechCrunch Founder Michael Arrington’s Kyiv Apartment sold in the world’s first NFT Real Estate Auction!
Another excellent NFT smart contract example is voting in the newer future in many countries. It can be a little hectic to the users to bring their identity cards and proof of residency when going to the polling booth. On the other hand, if the voting process is associated with the NFTs, it can be quite interesting and fun for the users. Users can show their digital identities for the voting process. Also, it can mitigate the chances of cheating or voting fraud since NFTs are the official record of everything impossible to alter.
While art may be the largest market for NFTs, sports are large and expanding rapidly. Sports NFTs are digital souvenirs and trading cards of your favorite athletes from any sport. Athletes, as well as teams and organizations, are developing their digital souvenirs. This implies they can further monetize their brand and shift and remove some of those intermediaries, serving your fan base directly.
NBA Top Shot effectively serves as a marketplace for fans to buy and sell highlight video clips from high-level basketball games. These reels are accompanied by NBA-licensed digital merchandise.
Smart contracts have the ability to make all of our lives so much easier by personalizing policies and automatically executing payments triggered by specific events.