Digital transformation is disrupting global businesses. The legal industry must consider digital technologies to keep changing tech trends. Blockchain-based smart contracts are one example of such technology.
Digital transformation is a process that involves all industries adopting new technologies to improve efficiency and streamline business processes. According to a Deloitte survey, 71% of legal professionals believe their departments are not ready to adopt rapid tech adoption.
Due to its high risk and exposure, the legal industry resists change. Traditional paper-based contracts can be costly and time-consuming to create. These contracts can be tampered easily by forging. The contract signing process is opaque because there are no time logs in traditional contracts. This adds to the storage and printing cost.
What is a Smart Contract?
Smart contracts are self-executing and self-enforcing contracts. They are subject to the terms and conditions that they contain.
These virtual agreements allow for the exchange of content, money, shares, property or any other value.
These contracts are self-executing and offer tremendous potential for use in any industry that relies on data to drive transactions.
Smart contracts, a key piece of technology that allows developers to create innovative solutions in industries like DeFi (decentralized financing). Smart contracts are a crucial part of developing dApps (decentralized apps). But not everyone knows how to create a smart contract.
What are the Business Benefits of Creating Smart Contracts with Solidty?
Contracts already offer many advantages over traditional arrangements. As technology improves, this number will likely increase.
Reduction in Operational Costs
With Ethereum smart contracts, companies can lower their operational costs. This is the best way to automate transactions. Manual data processing can take up much of your time and require human effort. This increases costs.
Brilliant contracts based on Ethereum will automate all business logic, thus reducing errors to zero. It reduces processing time and improves efficiency and accuracy.
Transparency
All parties can see and access the terms and conditions of these contracts. Once the contract has been established, there is no way to contest them.
High Security
Smart contracts employ the highest level of data encryption available. For modern crypto-currencies, security standard is an important factor. They are among the most secure items available on the internet because of this level of protection.
Reduction in Fraud Cases
Business transactions are a common target for fraud. It is also difficult to trace the hackers because there is not enough transparency. This makes it difficult to know about where and how much money was exchanged. However, with blockchain smart contract development, it is easy to monitor all transactions in your business ecosystem.
Confidence
Smart contracts are stored on the blockchain. Parties can be sure their counterparts will not change the terms after signing. These cryptographic guarantees may eliminate expensive legal arguments about the battle of forms and incumbent debates over whether terms are extra or different, material or incidental.
Simplifying the HR Process
Intelligent contracts can implement the terms and penalties of an agreement. This makes it easier for HR Department leaders and employees to fulfill their obligations and adhere to company policies and regulations.
Industries Benefitting from Blockchain Smart Contracts
Apart from the payment example, many other potential innovative contract implementations could automate the world. These are just a few examples of innovative contract applications.
Insurance
Smart contracts could be an excellent benefit for insurance policies. Signing up for a policy will entitle the user to a smart contract with a provider. The smart contract would contain all policy requirements, which the user would then read and agree to.
Supply Chain Management
Supply chain management refers to the management of goods flows and the streamlining of supply-side activities. Once an item reaches its final destination, ownership of it changes in a supply chain network. Smart contracts allow everyone in the supply chain to track the item’s location using IoT sensors or intelligent contracts.
Financial Data Recording
Organizations can use smart contracts to improve speed and security while ensuring accurate, transparent data recording. Smart contracts allow for uniform financial data recording across organizations. This eliminates the need to share other documents, such as invoice images. It enhances financial reporting and data integrity, which helps to increase market stability.
Property Ownership
Smart contracts can be used to speed up the process of property ownership. Programmable property ownership change contracts are possible and can be executed immediately. A smart contract, can change the ownership of an asset automatically based on payment information stored on the blockchain. Prophy, for example, enabled the first intelligent contract property transaction in 2017. Their first transaction was a $60,000 Ukrainian apartment.
How to Create Smart Contracts in Solidity?
Smart contracts are programs. Therefore, you will need a programming language to create them. Solidity was a programming language created by Ethereum core contributors to create intelligent contract software. These computer programs run on the blockchain. Solidity is a high-level object-oriented language that JavaScript or C++ inspired. It is very similar to JavaScript in syntax.
Define the Purpose
Make sure that you understand what your smart contract does before you start. What is its value? What should it do? It is possible to ask whether it needs to be a Blockchain application. It would be more effective to implement it on established technology platforms.
Create a Wallet at Meta-Mask
MetaMask can be installed in Chrome and enabled. Click on its icon at the top of the browser page to activate it. It will open in a new tab when you click on it.
Click “Create wallet” to continue. Now you have to create a passoword.
Once you have created a password, the system will send you a secret backup key. It can be used to back up or restore your account. This phrase could be used to take your Ethers.
Select any one test Network
You may also find these test networks in your MetaMask account.
- Robsten Test Network
- Kovan Test Network
- Rinkeby Test Network
- Goerlich Test Network
- Smart contract with ethereum
These networks are used for testing only.
Is It a Standalone Smart Contract?
Sometimes the smart contracts become lengthy as well as extremely complicated. Consider using multiple smart contracts instead if your contract is complex and has too many responsibilities.
Truffle Suite is an excellent framework if you plan to have your project span multiple intelligent contracts. Truffle allows you to add DApps to your contract easily.
Chose Solidity Version
Get the most recent stable version of Solidity. Learn its syntax. If you are extending libraries, ensure that your version is compatible with the library version.
Openzeppelin Contracts Library Version 0.2.5 supports Solidity version 0.5.5 but not 0.6.x.
Use Editor Remix to Write the Smart Contract in Solidity
Remix Browser is preferred by developers to create Solidity code. Remix Browser IDE is the best choice for writing smart contracts. It offers a few features and a complete development experience.
Deploy your Smart Contract
You can deploy the smart contract to the Ethereum based application test network by clicking the deploy button on the right-hand side of the Remix window.
Do not proceed until the transaction is completed.
The smart contract’s address will be visible on the right-hand side after the transaction has been committed successfully.
Initially, all the ERC20 tokens will be stored in the wallets of users that are deploying smart contracts.
Go to the Metamask window and click on add tokens. Enter the smart contract address, then click ok to view the number of tokens.
Test Thoroughly
Write as many tests as possible. Test every possible code path and consider all the possible scenarios to ensure result every time.
Test on your local blockchain. Also, test on as many Testnets and deploy them. These Testnets are more like the Mainnet environment and better represent your app’s performance once it is life.
Make Sure It Works
Is it possible to write an application front-end, turning your smart contract into full DApp? Do you think it does what you want? make sure it is serving the reason why you create the smart contract.
The Key Takeaway
Now you have understood about Solidity and Smart Contracts. You’ve created and successfully deployed a fully functioning smart contract. It allows tenants to pay rent directly in ether (ETH) without having to pay any fees to mediators.
