Smart Contracts on the Blockchain Will Become an Important Part of Conducting Business
The business world is increasingly global, but the borders that persist cannot be ignored. For instance, laws and directives change from one country to another, rendering businesses operating internationally unnecessarily complicated.
The complications means that businesses have to waste in a lot of hours trying to comply to legislation in order to make sure contracts can be enforced whenever needed. However, there’s an alternative that’s not only more efficient but also cheaper – smart contracts.
Smart Contracts: A Global Alternative
Based on the blockchain technology, smart contracts are basically a native digital system allowing businesses to operate seamlessly without the need of third parties. The system works similar in any part of the world, and the best thing is that it’s functioning cannot be interfered with.
Smart contracts are non-bribable because, in most cases, they are enforced by software automatically. Better still, because they run on the blockchain, they can’t be manipulated. The price of running that is also significantly low, not to mention faster compared to having a document notarized. These are just a few of the reasons why blockchain and smart contracts are proving to be a big part of businesses.
Smart Contracts in International Payroll
One of the areas of global businesses that hurt the most by the disjointed bureaucracy is payroll. Looking at the current employed systems, they are plagued by fragmented laws and regulations, inefficient intermediaries and communications. These issues make the system unnecessarily complicated and, as a result, error-prone.
The middleman (aggregator) who’s contracted by organizations to handle payroll are incentivized to go for the lowest bidders in respective countries, even if the quality of their services is not par. Moreover, the aggregators charge an exorbitant price on the services they offer.
Enter smart contracts and these issues are eradicated completely. The system eliminated middlemen, thereby simplifying and increasing the efficiency of procedures, which in the end cuts down on the hours wasted. Smart contracts are also 50-80% cheaper and the entire process is automated, streamlining business operation to ensure there’s almost zero probability of mistakes.
Smart contracts have also been known to directly and quickly interact with funds. Rather than using wire transfers, which are extremely expensive, the system utilizes token payments. This option is cheaper and almost instant – courtesy of the EOC blockchain.
Data Security is Guaranteed
Smart contracts have an upper hand when it comes to improving data security. The system stores many different copies of information, and if any of them is compromised and data edited, it’s still possible to retrieve the original versions. All the data is well encrypted, and even if much of it is stored off-chain, it can still be verified through the blockchain. Furthermore, blockchain-enabled key managements forms another layer of security and convenience, eradicating any chance of getting hacked.