The very concept of smart contracts revolves around fraud prevention and is a major fraud mitigation factor in the global payment industry. Across the globe, cross border remittances and payments form a crucial component of the business ecosystem? It drives revenue, settles payments and forms the core of major business networks across the globe. Frauds and unauthorized access have been two of the major pain areas associated with the global payments industry. Blockchain has come up with a revolutionary solution to permanently solve the problem of payment fraud by introducing the concept of smart contracts.
The need for physical mediators has been completely eliminated with the involvement of blockchain-based payment systems. These are modern-day smart contracts. The ‘How, What, When and If’ criteria should meet for a smart contract to mature. Thus the payers and the merchant end beneficiaries are not at risk of losing any money in the process. This technology promises to be a game-changer in every sphere of human life. This technology is also beneficial for large and small players alike. Thus, it does not matter whether you are big or small! You would benefit substantially either way with the incorporation of smart contracts.
With blockchain, we can expect tighter and smart supply chains. Previously the supply chains were plagued with several problems with lack of transparency and data security. But, blockchain will time stamp everything right from the manufacturing units to the selling points. Thus, everything can be managed and streamlined to ensure high-performance supply chains. The loopholes involved in the supply chain will be completely eradicated with the implementation of smart contracts.
Taking the example of jewelry purchases; you can always question the authenticity of the products. Blockchain will ensure that you would have detailed information about the origin of your jewelry and the sourcing. This would be an automatic stamp of authenticity.
The concept of permissioned networks would also minimize or prevent instances of identity theft. Identity theft has been a major pain area, especially with paperless payments. For example, someone accesses your credit or debit card to do a transaction. Blockchain-based secured networks would have multiple checkpoints to ensure the safety and authenticity of the user. Permissioned ledgers will replace existing trading systems and would bring about a new chapter in the payment processing industry. Once blockchain becomes more common, the chances of identity thefts and siphoning of money would become a thing of the past!