Development of a smart contract for your business

A smart contract is a self-executing contract in which the terms of the agreement between the parties are directly written in lines of computer code. The code and the agreements it contains exist on a distributed, decentralized blockchain network. A smart contract monitors the fulfillment of the terms of agreements, and transactions are tracked and irreversible.

By providing transparency, controllability and speed, smart contracts have the potential to fundamentally change the face of modern business.

Let’s list some industries in which this technology is already successfully used:

• Health care
• Banking
• The property
• Public and administrative services sector
• Electronic commerce
• Recruiting
• Insurance
• Logistics
• Copyright

 

 

To understand how smart contracts work, consider a simple but regular scenario for any business – launching a monthly payroll calculation and distribution cycle. Traditionally, this task is performed manually by personnel hired to handle payroll including vacations, taxes, performing the necessary calculations, etc. This requires skilled personnel, as well as a lot of time and effort. But despite the significant costs, mistakes are inevitable, because as you know, it is human to make mistakes. What if this task is automated?

Using smart contracts to generate and process payroll data would definitely solve this problem. Let’s see how it works. This technology works according to the “if = then” principle. The smart contract contains a code that automatically transfers the salary amount to employee accounts.

The code contains the data of each employee, business logic for withholding amounts for holidays and weekends, taxes, etc. As soon as the Nth day of the month comes, the smart contract is automatically launched and the payroll cycle is processed. No manual work and minimum effort in a matter of seconds! And, of course, no data forgery and errors!

Of course, this is a very simple use case for the technology. Smart contracts can be used to control and enforce the terms of an agreement between companies, to automate business processes, control the supply chain, etc. The possibilities are truly endless. And this applies not only to the financial sector, but to any type of business.

Since smart contracts are one of the use cases for blockchain technology, they have all the advantages that blockchain has.

• Trust and transparency

The development of smart contracts starts with the fact that both parties define a set of rules and conditions that are triggered at some point. This data is written in the code. After fulfilling the agreed conditions, the contract is drawn up automatically. This eliminates the need for litigation or contract enforcement.

Once the smart contract is implemented, no one can change it. Due to the immutability and transparency of the blockchain, once saved data cannot be changed by anyone throughout the entire life cycle of a smart contract.

• Data security

The development of smart contracts provides complete security in terms of data protection. Blockchain cryptography mechanisms store data in an encrypted format, making it impossible to hack or manipulate.

• Decentralization and independence

Independence from any intermediary is what business is striving for in modern conditions. While blockchain provides decentralization, smart contracts eliminate manual intervention by automating redundant and complex processes, thereby eliminating manual errors.

• Speed ​​and efficiency

Smart contracts are automated and significantly reduce manual labor and time spent processing transactions. This automatically improves the performance and efficiency of the system.

Stages of smart contracts development

The development of a smart contract takes place in several stages. This ensures that business requirements are correctly defined and protected by technology. Let’s list the main stages:

• Defining business conditions and requirements

The parties involved determine the specific terms of the contract and communicate them to the developer.

• Architecture development

After defining the business logic, developers design a contract architecture to represent that logic. This serves as a blueprint for the development process.

• Smart contract development

This stage involves writing the code for the chosen blockchain platform. This step also includes unit testing to determine if the contract works as intended.

• Internal audit

Internal audit is conducted through the local blockchain and then the testnet is launched. An audit verifies that the contract is functioning properly and that it meets all security standards.

• Deployment on blockchain

The contract is placed on the market in which it will operate.

Develop smart contracts for your business needs with us and our custom development tools. If you already have a smart contract that you would like to protect, please contact us for an audit. Based on our audit methodology, we can identify potential problems in your contract and

provide you with a detailed report on its vulnerabilities and potential uses. We have significant experience in this area. Contact us to learn more about our development experience and to discuss your needs and requirements!