Smart contracts are contracts that are executed by themselves when certain rules are met. The rules and the terms of an agreement, between two counterparts are written into lines of code. Those contracts allow transactions and agreements to be completed among anonymous parties, without any need of a third-party authority.  

Which are the characteristics of a smart contract? 

• They are immutable, as no one can change what has been programmed
• They are self-executed when certain rules are met in many stages 
• They are self-verifying, because of their automated possibilities 

What are the benefits of adopting smart contracts? 

The adoption of smart contracts provides a unique way of automating processes.  Specifically, smart contracts provide:  

      1. Autonomy: By executing an agreement via a smart contract, there is no need for any third-party or intermediate entity to confirm it. The network manages the execution automatically, making it invulnerable to manipulation or corruption. 

      2. Trust and Safety: Smart contracts are cryptocontracts, thus data is encrypted by secure algorithms that are hard to be hacked or lost. 

      3. Speed: As there is no need for intermediates, smart contracts are executed on the time that they are programmed to do so. Also, smart contracts terminate the existences of bottlenecks and paperwork, making the process move with high speed. 

      4. Accuracy: As the process becomes automated, errors that occur from human misbehavior are eliminated.

Which sectors do smart contracts disrupt? 

Smart contracts have the significant potential of eliminating intermediate parties and central authorities that are currently needed in order to execute an agreement. The main fields that face this risk is legal and financial services as they require high fees from their clients.   

Additionally, Vitalik Buterin, the co-founder of Ethereum has also stated that with smart contracts, there is no need for recurring payments such as subscriptions, donations, dividends, etc. All these instances can be solved by executing smart contracts. 

What are some potential uses cases for smart contracts? 

The flexibility of smart contracts not only set conditions but also execute terms of contracts as well, enables them to be used in a variety of use cases in many different sectors. Some of them are: 

• Ownership Tracking 
• Digital Identity 
• Trading of Financial Products (Derivatives and Securities) 
• Assets and Land Titles Transfers 
• Supply Chain  
• Health Check-ups 

How smart contracts can revolutionize workflows? 

Automated Workflows are already considered as a type of smart contracts because of the fact that they execute the conditions that need to be met. In some cases smart contracts give a major advantage in automating workflows, especially in B2C cases where companies need to act rapidly in order to decrease response time and avoid delays.  

Workflow automation doesn’t require to be accompanied with smart contracts in all instances. There are some cases that need a meticulous investigation of issues and they should not proceed automatically. They are in a pending status that requires a human confirmation before being executed. However, as the blockchain technology rises, every business leader should consider this opportunity to improve his daily operation within the company, which leads to higher profitability and customer satisfaction.  

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Some of the technologies that can be combined with Low-Code BPM platforms are the blockchain technology, the smart contracts and the Internet of Things (IoT). 

Business Process Automation powered by Blockchain Networks

While the companies operate in the fast-changing economic environment, there is an enormous amount of transactions that happen between business entities. These transactions can be supported by a blockchain network that streamlines value-exchanges efficiently and in low cost. Business Process Management (BPM) Platforms can be powered by the integration with a blockchain network which ensures the transparency of the transactions that occur outside the internal systems of a company. For example, a blockchain network ensures the authenticity of information that flows in from one company to another. In other words, the blockchain technology introduces the creation of a new peer-to-peer BPM system.This new peer-to-peer BPM system may develop a more efficient value-added chain and allow the shareholders to collaborate in these processes in a more efficient way.

How Smart Contracts help Enterprise Collaboration

Many Enterprise Blockchain Solutions can be developed by executing smart contracts in a decentralized network that business counterparts are connected to. The implementation of blockchain solutions in enterprises occurs with the execution of smart contracts in the network. Smart contracts, according to Wikipedia, assist companies in exchanging assets when certain conditions are met. This option allows companies to create their own business rules and define penalties when agreements are not completed. The enforcement of the system to work under established rules and follow certain steps for the completion of a process verifies that all parties in the network perform accurately, ensuring the integrity of workflows. Having said that, the blockchain technology provides levels of security, trust, and transparency between multiple participants in a business environment.

Furthermore, smart contracts create real-time auditing for processes and workflows. The developer of the contract can code some guidelines and check the quality of a process.

With Low-Code BPM platforms, which are developed within a blockchain network, organizations acquire automated functions without having any knowledge of blockchain and smart contract development. These contracts are created and integrated based on the need of each company only by the BPM vendors. Comidor provides a starting point for enterprises that want to expand the collaboration with other partners and the efficient flow of data in their network.

All in all, blockchain and smart contracts provide vital features to the already established BPM platforms that exist in the market. They make corporations and fragmented entities to collaborate efficiently and transparent into a given ecosystem. The digital business processes and workflows that are automated by Low-Code BPM platforms can be taken to the next level by utilizing the power of blockchain networks and innovative technological advances.

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