Top 6 Most Popular Smart Contracts
Despite the interest generated by smart contracts, this technology is difficult to apply in real world use cases. Currently, there are multiple potential application areas for smart contacts, yet some sectors are being favored over others. The following are some of the most prevalent smart contract applications, in no particular order.
Multiparty Smart Contracts
In recent years, the concept of multi-signatures has been gaining popularity in the crypto space. While they were traditionally used in digital wallets, multi-signatures are have expanded their scope to include smart contracts. A multiparty contact allows a user to lend money to a fellow user to buy goods or services form a third-party. In such cases, the smart contracts acts as the legally binding agreement for the involved parties.
Distributed Autonomous Societies
As the name suggests, this smart contracts involves the creation of groups of users known as autonomous societies. The societies can agree with other similar groups to conduct trade between themselves. The resultant transactions are controlled by self-executing smart contracts.
Distributed Autonomous Governments
If establishing a distributed autonomous society is hard, then the creation of an autonomous government is an extremely challenging task. Nevertheless, smart contracts enable users to set up their own self-executing government services, albeit theoretically. Because this model is still in its conceptual stages, it is difficult to predict whether it will eventually disrupt the traditional governmental model.
Exchanging Digital Value
As of now, the mots prevalent application of smart contracts is as a mechanism of exchanging value between various parties. Even though smart contracts are not a necessity in the exchange of value, they provide a means of keeping records of all transactions as well as the proof an existing agreement between the involved parties before the transaction was finalized.
Smart rights solutions are perhaps one of the most exciting aspects regarding smart contracts. These contacts are particularly resourceful to users who deal with digital content, as they change people’s perception on the ownership of digital assets. However, its main bottleneck is its non-compatibility with real world assets.
Distributed Autonomous Organizations (DAO)
The concept of DAO has been a huge disappointment since its inception. While the ideology behind it is promising, the results after its implementation have been appalling. Still, DAO holds merit, because smart contracts can significantly improve the efficiency of daily transactions. In the long run, DAO holds the most potential of all the currently available smart contracts.