Smart contracts are being heralded as the technology solution to disrupt, empower and impact any industry which utilises payments, contracts and milestones. This is a wide range of industries and businesses including contractors, freelancers, professionals, attorneys and practically anyone who uses a legal document to indicate terms and consensus for agreement.
For those who are not familiar a Smart Contract is essentially a computer program that enforces itself through code rather than courts. When the programmed terms are met the code executes automatically and transfers the digital assets thus enforcing the contract.
The implications are tremendous. The need for lawyers, brokers and third parties is greatly reduced or eliminated. Profitability is increased. Time is saved. And the need for trust is minimized because all parties know the technology will deliver the goods as initially promised and programmed.
The main concern regarding the smart contract ecosystem is security. In the wake of many high-profile programming errors that lead to malicious theft of funds, concern about security is growing every day. With any new technology there are lessons to be learned but for entrepreneurs money-burning is a lesson we prefer to avoid.
At AlfaToken we understand the struggle Entrepreneurs can face when trying to develop a company and transforming an idea into a profitable business. Our platform makes Smart Contracts as well as ICO Crowdfunding accessible to Entrepreneurs who are not familiar with coding, or that cannot afford a Software Engineer in the early stage of their development.
AlfaToken service can also be used by Entrepreneurs to improve their cash flow since they can create ICOs without having to pay the fees until their ICO is complete. Yeah, you read that right.
There are 14 different use cases for our platform including ICOs, real estate rentals, p2p lending, p2p insurance, smart things sharing, hiring, e-commerce, auctions, trade finance, supply chain management, delivery by drones, smart homes, manufacturing automation, and business process management.
Practical Use Cases
One real world company that has jumped on using smart contracts is the French insurance giant AXA. Their new flight-delay insurance product, Fizzy, stores and processes payouts via smart contracts.
The company said using smart contracts stands to deliver two major benefits:
- Streamlining the compensation process for both providers and claimants. When an AXA customer buys flight-delay insurance on the Fizzy platform, the purchase is automatically recorded on an Ethereum-based immutable ledger, and a smart contract is created on the blockchain.The smart contract is linked to global air traffic databases, which means that as soon as a delay of over two hours is registered on the ledger, compensation is automatically triggered. Moreover, the customer is told how much they will receive when they first buy the coverage.
- Improving the insurer-customer relationship. This process means the need for a customer to file a claim is removed, and the compensation decision is delegated entirely to an automated arbitrator — the smart contract — which eliminates potential disputes between insurer and client.
Barclays Corporate Bank uses smart contracts to log change of ownership and automatically transfer payments to other financial institutions upon arrival.
In real estate, it is possible to create smart contracts for p2p real estate rentals. This will allow rental of a room or an apartment without middlemen.
The volume of other key target markets is as follows:
- Real estate rentals – $2 800 000 000;
- P2P lending market (including mortgages) – $180 000 000 000;
- Insurance – $4 500 000 000 000.
The AlfaToken platform will help the blockchain technology to evolve into a mainstream tool for today and tomorrow’s businesses. ICO investment into early-stage blockchain projects has now totaled more than venture capital, the primary funding source for the industry in every previous year.
With AlfaToken, a smart contract can be any kind of computer program. Creating a smart contract for Pre ICO/ICO is now as easy as filling out the form on our website. The process is painless since you can create tokens and smart contracts without coding skills.
AlfaToken will start our Initial Coin Offering (ICO) on Monday, January 22, 2018 at 11am GMT.
Visit the AlfaToken website: www.AlfaToken.com
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