Ensure automatic fulfillment of your contracts as soon as the agreed conditions are accomplish
What is a Smart Contract?
Smart Contracts are computer programs that facilitate agreements between various parties, ensuring that the agreed upon requirements are safely met. They can be agreements between people or organizations. The agreed requirements will be specific conditions that must be met before actions are executed.
Smart Contracts are an independent software (not controlled by any of the parties to the agreement). It ensures that the previously agreed conditions are met. It runs fully automatically when a pre-programmed condition is triggered (pre-agreed in the contract).
That is, IF “x” circumstance occurs, THEN the computer program automatically releases the agreed condition. Eg: IF the order arrives, THEN the payment of the invoice is sent; IF the payment of the taxes are made before the date, THEN you do not receive a penalty fee; IF you send the required documentation, THEN you are allowed to make a reservation for that university.
Advantages of Smart Contracts
It provides greater security in the fulfillment of the agreed agreements, since it works automatically and independently.
What is agreed in a Smart Contract occurs at the moment, in a matter of seconds, whether or not one or more of the parties want it.
It is visibly and clearly registered on the blockchain, where the transparency and immutability of the agreed information is ensured.
Not only the administrative costs compared to a traditional contract. Also the costs of possible lawsuits that would have been necessary in the event of default when a traditional contract is made.
There is no longer any danger of breaches of contract or fraud attempts by one of the parties. The fulfillment of the contract is in the hands of a third party.
Blockchain technology provides the necessary infrastructure to carry out these Smart Contracts in a secure, digital, automatic and independent way. The blockchain ensures that all transactions are verified by multiple participants. Only transactions that follow the rules of the smart contract will be confirmed.
Alastria, the first multisectoral consortium promoted by companies and institutions for the establishment of a Blockchain infrastructure, uses the Ethereum and Hyperledger networks to implement such smart contracts.
NeoCheck, as a member of Alastria, provides the connection to your node and the tools to extract all the complexity and to be able to easily implement all the user-level applications that the project requires (web pages, mobile Apps …).
For whom is the Smart Contract useful?
Smart Contracts are very useful tools to guarantee any transaction that requires a prior agreement between two or more parties. Some use cases would be:
Banks and financial products
Improving the security of digital money and the guarantees of any financial contract. By not needing intermediaries, fees are not paid and transactions are cheaper. In addition, Financial Institutions gain transparency thanks to the blockchain. Finally, times are reduced, thanks to automation. Similarly, Smart Contracts are useful for agreeing on loan conditions. As long as it is agreed, for example, that the loan is canceled due to non-payment, the smart contract would cancel as soon as the first delay occurred.
Smart Contracts combined with IoT devices are revolutionizing business operations and logistics. The traceability of products to the point of sale is now complete. At all times we can know where they are, estimated time of arrival, if it is properly stored and at what temperature. Everything in a totally reliable, transparent and safe way. On the one hand, distributors can trust that they will receive the merchandise on time and in good condition. In the other hand, the suppliers have a guaranteed and automated payment as soon as the product reaches its destination.
With Smart Contracts, a car accident is no longer the version of one part versus the version of the other. The data of everything that happened (speed, time, location …) can be registered on the blockchain thanks to the vehicle’s IoT devices. If everything indicates that the driver is right, the insurance payment is received automatically. Without the need for expertise or paperwork from the insurer.
Copyright and royalties
Especially when there are many parties involved (eg: in a song there are composers, musicians, singers, producers, record companies …). If the licenses are agreed with smart contracts, the payments would be made automatically to each party as the income was generated, without the need for intermediaries and with guarantees. Furthermore, as authorship is registered on the blockchain, the authors would be less vulnerable to piracy.
Thanks to Smart Contracts, all the data of a person can be in a single place, registered through blockchain. This would simplify user access to their own information. They may decide what information about your Digital Identity to disclose, to whom and for how long. It would also facilitate the work of other organizations such as Financial Institutions, which could carry out KYC verification instantly and easily.
Find out what can we do for you
In NeoCheck® we strive to satisfy all the needs of our customers in terms of Document Verification and Biometric Identification. From web-based solutions, mobile applications to specialized components (we have our own research and development team). And of course, we try to deploy the most advanced and flexible technology at affordable prices, as well as providing them with the best support. Therefore, we regularly organize online courses and workshops related to the world we know best: Document and ID Verification.