Blockchain development is progressing faster with each passing year.
Where Ethereum was considered revolutionary in 2014, the Ethereum blockchain’s underlying technology has since been superseded by projects like EOS and Cardano.
However, it’s not just core blockchain technologies which are evolving, The use case and technology underpinning Smart Contracts first pioneered on Ethereum are evolving also.
Smart Contracts are Taking on More Complex Use Cases
Smart Contracts were initially presented to the world as alternatives to traditional Escrow services. More importantly, this use case is just as relevant today as it ever was. However, Smart Contracts are already capable of much more than just rule and penalty based automatic asset transfers.
Smart Contracts & AI
In an exciting recent development for future Smart Contracts, a new Artificial
Intelligence-based platform called Cortex, promises to bring executable AI equipped Smart Contracts to the cryptocurrency market.
Coded in Solidity just like regular Ethereum Smart Contracts, Cortex AI Smart
Contracts can be used to perform several autonomous functions. (Including
predicting the outcome of sporting events with an 80% accuracy rate.) Future AI Smart Contracts could, therefore, be used in several FX trading and international commodity market trading scenarios, in a similar way to automated trading bots.
Smart Contracts & Derivatives Trading
In 2018, the International Swaps and Derivatives Association proposed that Smart Contracts could be used to streamline mainstream financial market derivative trading. Specifically, by using Smart Contracts to transfer potential derivative trading risks between traders and organizations automatically. Barclays bank in the UK has since confirmed that using Smart Contracts in this way could boost interbank derivatives trading efficiency by up to 25%
Smarter Digital Copyright Management
While not a new idea, protecting copyright using Smart Contracts is gradually
becoming possible.Using a process called “Trusted Timestamping” blockchain technology and Smart Contracts will soon be able to assert the intellectual rights of content creators, by applying digital fingerprints to web content and media.
Multi-Asset-Trading Possibilities
Cryptocurrency and blockchain technology is gradually piquing the attention of major institutional investors. However, at present, it is not possible to directly trade coins like Bitcoin for real international commodity market assets like gold and crude oil.
In an attempt to make multi-asset trading possible, new decentralized exchanges like UPROSE, plan to use Smart Contracts to tokenize real world commodities and foreign currencies. Using smart contracts in this way will not only democratize trading but also, make it possible to instantly exchange real-world commodities for cryptocurrency and fiat cash, without any need for separate broker accounts or consideration of international trade restrictions.
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