5 Digital, Crypto and Blockchain predictions for 2021

For example, an insurance company could use smart contracts to automate the release of claim money based on events such as large-scale floods, hurricanes or droughts. Or, once a cargo shipment reaches a port of entry and IoT sensors inside the container confirm the contents have been unopened and remained stored properly throughout the journey, a bill of lading can automatically be issued.

Smart contracts are also the basis for the transference of cryptocurrency and digital tokens (in essence, a digital representation of a physical asset or utility). For example, Ethereum blockchain’s ERC-20 and ERC-721 tokens are themselves smart contracts.

But not all smart contracts are tokens, according to Martha Bennett, a principal analyst at Forrester Research. “You can have smart contracts running on Ethereum that trigger an action based on a condition without an ERC-20 or ERC-721 token involved,” she said.

Smart contracts are also the basis for the transference of cryptocurrency and digital tokens (in essence, a digital representation of a physical asset or utility). For example, Ethereum blockchain’s ERC-20 and ERC-721 tokens are themselves smart contracts.

ERC-20 and ERC-721

George Georgiev All articles this author

For example, an insurance company could use smart contracts to automate the release of claim money based on events such as large-scale floods

Latest author articles

What’s a DAO?Proof-of-Work vs. Proof-of-Stake