Bitcoin has been considered to be the first applied use of the blockchain technology, while Ethereum ranks to be the second generation blockchain that has been able to make waves on the tech ecosystem.
With the Ethereum Blockchain, it is able to properly facilitate coding of smart contracts in a manner that it has not been possible on the Bitcoin blockchain. Thus, below is a list of the five famous use cases of the Ethereum Smart contract.
Vitalik Buterin, who is the founder of the Ethereum technology was able to devise the Ethereum blockchain and designed it with some advanced scripting abilities; it is the likes of Turing Completeness together with Smart Contracts. All this was made to ensure they build an advanced blockchain network that will be able to provide the platform with adequate development of the decentralized applications.
At the moment, the Ethereum smart contracts are able to be applied on the real life and have been able to acquire several use cases.
Some Of The Five Use Cases Of The Smart Contracts
1. Smart Contracts Being Used In The Finical Services
The finical sector has been able to benefit from the deployment of smart contracts greatly. It is an automated digital protocol that is able to be used in various areas within the banking and financing sector; this is in the likes of insurance claims, bonds, mortgages and the payment settlements.
A good example would be the government bonds; when these have been managed with the smart contracts, the bond will be able to automatically disburse the amount at the time of maturity to the bearer. It is clear that smart contracts can work wonders in the financial domain.
2. The Use Of Smart Contracts In The Initial Coin Offering
When a smart contract is integrated into the coin offering process, it will be able to make it more democratic, transparent and even effective in the long run. Buterin, went ahead to suggest a model for the ICOs that can be used, this is the DIACO model. It has been designed as a hybrid of the Decentralized Autonomous Organization and the Initial Coin Offering.
3. The Use Of Smart Contracts For Effective Management Of Digital Identities
With today’s issues of having data monopoly together with identity theft is being resolved very quickly, it is through the deployment of smart contracts in the management process of digital identity. Having projects like the uPort will give you the powers of your digital identity back to your hands, it is by allowing them self-sovereignty.
4. Having Smart Contracts In The Prediction Markets
The decentralized prediction markets platforms, such as the Gnosis and Augur have gone ahead to take the necessary steps in implementing the Smart Contracts. With such protocols in place it will allow the different participants the ability to predict the outcomes, and once their prediction comes true, they get incentivized through the use of the trustless Smart Contracts.
5. Smart Contracts Being Used In The Escrow Services
Smart contracts have been able to replace the middlemen; therefore, they have been able to find the most important use cases in the escrows services. But the one thing you will need to take note of is that smart contracts using the escrow services should be adequately equipped with all the pre-conditions.
It is clear that smart contracts have found their way in automatization of different processes. Thus this is not just a buzz word running in the web, but rather something that has been able to serve some of the real world use cases.