Blockchain technologies along with the smart contracts are drastically transforming the insurance industry worldwide. This new evaluation of smart contracts is fastly replacing the traditional structures. The adoption of blockchain technology increased after the introduction of bitcoins in the year 2009. Initially, blockchain is used only to solve the double spending problem in the digital currency.
The blockchain is the decentralized data record for the transactions. In general, blockchain provides the decentralized and open platform for creating the robust data records. It is a transparent, decentralized and flexible database. The blockchain is a decentralized distributed database which is stored on every system. It is the trustful database which contains a record of all events that have been shared and executed by the participating parties. Blockchain provides high transparency by providing the history of all transactions performed by the system. smart contracts are performed on the top of the Blockchain technology. The applications of Blockchain are as follows:
Smart contracts can be considered as the state-driven program which can be implemented on the blockchain platform. The main drawback of smart contracts is its sustainability and malicious use that can be prevented by using Ethereum. The smart contract is a program which is stored in the BlockChain network. It acts as mediator which check for the all conditions if the conditions met then only specific will perform. The blockchain is used to automize authentication and computation of the processes which may exhibit any abuse. The applications of Smart contracts are as follows:
This is an introduction to the Blockchain and Smart Contracts. This technology has several applications in the digital finance and provides a lot of possibilities for decentralized business and removes the need for any third party.