Smart contract #ETHA

Smart contract #ETHA can revolutionize the supply chain by providing one version of the truth for all stakeholders in a system that is resistant to fraud and resilience. They can be used to manage workflow approvals and authorize material transfers automatically on completion of the necessary formalities coded in the contract. Companies can bypass conventional ways to create trust, saving time and money; and also reduce documents and intermediaries.

The financial sector is one of the domains that will be greatly influenced by the introduction of smart contracts. Trust is the most important in financial transactions and the industry is full of intermediaries and processes that exploit these inherent characteristics. Many examples can be given to describe this, one example is:

Banks have strict requirements for lending and most small sector businesses fail to fulfill them, making it difficult for them to raise funds. This is where micro loans from alternative sources emerge. This allows borrowers to receive loans from individuals by placing their assets as collateral. The parties can sign a smart contract with clear code instructions to liquidate collateral to repay the loan in the event of a default. This platform can also monitor the value of collateral and remain safe to prevent borrowers from using it to collect funds from other places. On repayment of the loan, the contract will release the guarantee back to the borrower. Peer to peer loans can affect the economy at the macro level and provide incentives for small-scale businesses.