In order to understand the Usage, one must be familiar with the concept.
Smart contracts can be understood as a digital code that offers a set of promises on predefined conditions that the parties have agreed to.
In other words, the parties can set a condition that can start an action or a series of actions when met. That way one can exclude the Third-Party, buyer and seller can contact directly having no trust issues, because the contract has been digitalised no one can revoke it.
Benefits of smart contract:-
Autonomous
The first and most important of all is it is, I would say self-aware. Has the power to auto-complete when the conditions are met, which implies that no third party interruption. No one can alter what has been digitised unless you own the 51% of the whole blockchain.
Secured
As I mentioned earlier no one can alter or remove the Contract once it is written. That being said it is evident that Transactions are secured. Yeah I also said if you own the 51% of it you can alter what ever you want, but in order to do that one must create a super computer which will be more costly than the benefits that it will get. So no!!!!!
Interruption Free
Once the smart contract is executed it can never be revoked. No one has the power to interrupt you transactions. Well at certain point for sure, there are some computer wizards out there who can do most amazing magic tricks of all time.
Trustless
Remember I said no trust issues, well there you go. You do not have to trust the person you are dealing with. That may sound counter-intuitive, however it implies that because the Contract is automatic you do not need to personally know the person to do the transaction. It will be executed when both sided conditions are met.
But still you haven't told the real life use cases of Smart Contract??
Let's do that:-
Digital Identity
One of the most obvious smart contract use cases is Digital Identity. Individual identity is one of the biggest assets for any human being. It contains reputation, our personal data, and assets. The digital identity, if used rightly, can bring new opportunities to the person.
As we explore the internet our likes our dislike are monitored by the internet, and get shared with big corporations in order to make profits. Our data being shared is biggest fraud with us all. We as being humans do not wish to be used as lab rats.
Smart contracts in this case can help counterparties learn about the individual without knowing their true identity or verify transactions. Which in turn can help improve compatibility and compliance — thanks to Smart Contract.
High Securities
Another important Smart Contract real use cases would be security. Security as we mentioned earlier is the most important factor, So it can be achieved using Smart Cantract. It also can be used by the companies for automatic salaries, dividends. It would save the extra time and effort by doing the predefined Transactions itself.
Cross Border Payments
Think about it companies can Trade directly with cross border corporations without the need of government support and surveillance, one can pay funds directly.
For sure, being able to use smart contracts can improve the liquidity of the financial assets, in return, improving the suppliers, buyers, and companies’ financial goals.
To make smart contracts work in Trade finance, especially in cross-border one must be able to implement it on the corporation level, which wil take time for sure.
With proper usage, it would solve legal complications and offers a better way to solve problems most effectively among parties.
there are so many other usages which I couldn't include. Please let me know the most important usage of smart contracts according to you in the comment.
