Block chain annual report – (seven) smart contract


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5.1 Introduction to Smart Contractsn
nA smart contract is a set of automated computer programs that can facilitate, validate, or enforce a contract by controlling the transfer of money or assets under certain conditions. A smart contract can ensure that a specific result is obtained. In this process, an asset or currency is transferred to the program, then the code is run and the condition is automatically verified, and then it is automatically determined whether the asset is transferred to the other party or whether to continue Money returned to the sender and so on. An intelligent contract based on a chain chain can validate contract conditions by running a specific set of nodes in the system, which is an advantage that traditional contracts do not have. This method can automate the digital business and speed up the transaction, complete the automatic remittance, while ensuring asset security. Smart contracts can be used to capture the relevant obligations of financial institutions, thus ensuring that the transfer of funds is no problem to reduce operational errors.n
nIntelligent contracts based on block chains can be used in a variety of industries, such as the automotive industry, tourism, and media and entertainment. In the car rental and sales process, you can automatically create an order through the smart contract to achieve “click – signature” easy car rental. Visa and electronic signature company DocuSign is also working together to develop a simplified car rental platform. In the online music industry, block-chain technology allows consumers to pay directly to the artist’s fees without having to go through any intermediaries. The smart contract will advance the process of “main delivery of the main delivery”, that is, the audience successfully remitted to the music after listening to music.n
nThe figure below shows the market size of smart contract applications by vertical industry, which is expected to rise from $ 40 million in 2016 to $ 447 million in 2021 and a compound annual growth rate of 62%. The government and public sector applications will become market-driven and are expected to increase from $ 16.1 million in 2016 to $ 162.4 million in 2021, representing a compound annual growth rate of 58.7 percent. Media and entertainment compound annual growth rate is highest, is expected to reach 70.3%.n
nThe size of the market is marked by the vertical industryn
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nThe figure below will mark the size of the market for smart contract applications, which is expected to increase from $ 40 million in 2016 to $ 447 million in 2021 and a compound annual growth rate of 62%. North America is expected to be market-driven and its market size will rise from $ 18.8 million in 2016 to $ 169.4 million in 2021, a compound annual growth rate of 55.1%. While the Asia-Pacific region is likely to hit the highest compound annual growth rate, that is, from $ 6.1 million in 2016 to 2021 $ 95.7 million.n
nThe table is marked by the size of the market for smart contract applicationsn
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nSource: Auxiliary Literature, Wall Street Block Chain Alliance, R3 CEV, Expert Interview and MnM Analysisn
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n5.2 Application cases of intelligent contractsn
nIntelligent contract based on block chain can be used in various industries, including financial (such as payment, clearing and settlement), energy, supply chain, intellectual property and other fields.n
n5.2.1 Paymentn
nPayment refers to the process of shifting the value from the process of the individual or organization to the other for the goods, the service, or the fulfillment of legal obligations. Global payments are an extension of this concept, and payments can be made in a variety of legal currencies in countries around the world. With the help of block chains and smart contract technology, the global payment process is presented as follows:n
nGraphical block chain technology supports the global payment operation processn
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n5.2.2 Insurancen
nInsurance is a financial risk management product that an individual or entity can obtain from the insurance company for loss protection (eg property, assets, casualties and health). Commercial assets and casualties (P

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