A smart contract is a code-based agreement between two parties deployed on a blockchain with pre-defined terms.
Although many associate smart contracts with cryptocurrency, numerous real-life applications exist outside the crypto sphere.
However, figuring out where a smart contract is used isn’t easy.
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Finance
Smart contracts are extensively used in cryptocurrencies, making them a valuable asset for the finance sector.
DeFi not only facilitates peer-to-peer (P2P) transactions, but it also offers lending and borrowing services.
But this market can be risky, and it is advisable to stay cautious of liquidity crunches and scams.
In addition to DeFi, smart contracts are finding their way into traditional finance.
They can automate trades at both P2P and enterprise levels and are widely used in insurance services.
For example,Insurwavecaters to insurance companies with smart contract-based solutions.
Healthcare
Smart contracts have the potential to revolutionize the healthcare industry by bringing transparency and efficiency to data recording.
In addition, smart contracts can benefit hospital databases, laboratories, and health-related research.
Gaming
Blockchain and smart contracts in gaming have transformed the industry.
It has introduced a new genre known asplay-to-earn blockchain gamesthat allow players to make money while playing games.
The crypto coins these games offer can be used for purchasing in-game items and liquidated to get real-life items.
Furthermore, smart contracts are also used in fantasy sports, which are rapidly gaining popularity.
According toStrait Research, the fantasy sports market will be worth around $78.5 billion by 2030.
Real Estate
Smart contracts have the potential to revolutionize the real estate industry.
Legal Industry
The legal industry is another domain where smart contracts can thrive.
It can be used for binding legal contracts for both business and social arrangements.
In some parts of North America, the government has even permitted using smart contracts for digital agreements.
One platform that implements this technology in legal documents isCertoshi.
It is a certificate issuance and verification system that works on Ethereum smart contracts to cryptographically secure documents.
For example, smart contracts can automate complex money transfers such as insurance or facilitate clinical trials.
This article has explored five industries that have implemented smart contracts.
However, smart contracts are not limited to these industries alone.
They can also be utilized in supply chains, voting systems, and even the music industry.
The technology can potentially enter and revolutionize any domain where virtual agreements are required.
