No matter what vertical your business is in, it is vital to keep your company data safe and secure from cybercriminals. Whether it is your customer’s data, proprietary content, or corporate training material, security should be of prime concern – especially when you share your content or company information.
Smart contracts, together with blockchain technology, can help you protect your company information and share securely. It is a software program that can control your digital assets. Smart contracts are the components of the blockchain platform of the next generation.
Blockchain technology is a pathbreaking innovation that can keep all your company information secure. Blockchain technology is not just the building block for Bitcoin exchanges, but it has also generated interest in the financial sector.
Let us walk you through what smart contracts are, how they help share your records securely, and how they help supply chain management.
What are smart contracts?
As defined by BlockGeeks, a smart contract is a computer protocol intended to digitally facilitate, verify or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. Blockchain technology is a decentralized system, which is why there is no third-party involvement.
Nick Szabo, in 1994, thought to use the decentralized ledger for smart contracts – also referred to as blockchain contracts, self-executing contracts or digital contracts. Contracts here are in the form of computer codes, which can be stored and replicated on the system governed by the network of computers that propel the blockchain.
With smart contracts, you can exchange anything that you consider valuable – such as property, money, document, shares, etc. – in a transparent and upright manner without the involvement of a third party.
The smart contract technology is comparable to a vending machine. In your routine life, you would go to a lawyer or notary if you wanted a legal document. You will have to pay the lawyer and wait for the document. In the case of smart contracts, you just need to drop a Bitcoin in the vending machine (read the ledger), and you get the document or anything in your account. Just as in traditional contracts, there are rules and penalties in smart contracts. Moreover, in smart contracts, you have automatic enforcement of obligations.
Share your records securely
The blockchain market is a growing vertical. And, smart contracts use blockchain technology to facilitate information sharing between people. Apart from such benefits as cost-saving, autonomy, faster speed, trust, etc., smart contracts also offer increased security. You can share your records securely without the fear of losing your valuable information. DevTeam.Space provides several examples of smart contracts use, some of which we include here:
Peer-to-peer transactions – Smart contracts can be used for peer-to-peer transactions – from launching ICOs to selling goods online. Companies also use smart contracts to secure the services of development teams.
Product development –Smart contracts can keep a ledger about the stages of development of a product. When two parties sign a contract, it becomes activated. You can safely record the stages and other relevant information in the contract. You can also agree upon the payment methods.
Records – When it comes to record-keeping, every industry can benefit from smart contracts. One vertical that can accrue major benefits is the healthcare industry. Currently, patient medical records are vulnerable to cyberattacks. However, blockchain technology offers secure record-keeping methods. The technology can encrypt entire patient databases, providing protection from cyberattacks.
Insurance – Insurance companies need to process numerous insurance claims every year. But they also have to deal with numerous fraudulent claims. Apart from supporting the initial insurance policy, smart contracts can also streamline the process of claim processing.
Medical research – Like the healthcare industry, the medical research vertical can also benefit significantly from smart contracts. Blockchain technology can encrypt highly sensitive data – such as patient records, which can be shared securely between departments and other research centers. Also, medical research companies have other sensitive data – including test results and new drug formulas – which they can easily protect with blockchain technology.
Stocktaking – Another vertical that can significantly benefit from the blockchain-based smart contracts is the supply chain sector.
Smart contracts and supply chain management
Modern supply chains are essential to our society. Many products that we get in stores reach us after they have traveled across continents using various modes of transport and a plethora of invoices and regulations. There are numerous stages of supply chain management. Effective supply chain management in modern times boils down to transparency and strict quality control.
Smart contracts and supply chain management make for an interesting combination. Nathan Nakahara’s insightful article for PlugandPlay covers this topic in detail, but we offer the main points.
Like the finance sector, blockchain technology can help the transportation and logistics business tremendously. Earlier supply chains were simpler because most of the goods were sourced locally. However, the growth in the transportation vertical has facilitated the movement of goods from one place to another in a much faster and cheaper way.
Lack of transparency in the traditional supply chain management makes it difficult for consumers to know the exact value of a product. It also becomes difficult for government and regulatory bodies to check illegal or unethical business practices due to a lack of transparency.
Lack of trust in traditional supply chains results in losses and thefts. To overcome this problem, supply chains now have the option to use smart contracts to streamline their operations.
Smart contract supply chains can help in eliminating in-house thefts, as supervisors can keep a close watch. In large warehouses, supervisors can see real-time stock levels and monitor product movement through the supply chain. Supervisors can use this information to check stock levels and formulate new ways to speed up deliveries. Big supply chains can also benefit from smart contracts because they can initiate automatic reorders. Smart contracts can also assist in determining what products to stock up during specific periods during the year.
By now, it should be evident that smart contracts represent a brave new world that has the potential to effect profound changes in society. Of course, the success of this protocol depends upon reliable data encryption solutions for the cloud to protect your proprietary data against outside threats. Whether it is sensitive customer information or corporate training materials, data encryption can keep your information protected from unauthorized access and theft.
As an industry leader in encrypted data security, eServe provides content security in the cloud, mobile access, security at rest and in motion, remote wipe and much more. Contact us to learn about our solutions.