Smart Contracts are becoming an important part of modern corporations and institutions. But often times most small and medium businesses prefer to stay aside from Smart Contracts, due to associated legal risks (smart contracts often are not recognized by courts because they aren’t always legally binding) and lack of technical expertise. Jincor aims to solve these problems by offering a platform for businesses that want to create legally binding Smart Contracts in a cost-efficient manner.
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Smart Contracts: Blockchain’s Next Killer App?
Blockchain technology has the ability to solve many complex problems in very efficient and smart ways. Finance, KYC/AML, and Healthcare are only just a few areas that can greatly benefit from Blockchain technology.
Huge international corporations and small businesses have now discovered a new exciting component of blockchain technology – smart contracts.
Smart contracts are essentially very similar to traditional contracts, but with the huge difference that they are enforced by cryptographic code.
How can Businesses Benefit from Smart Contracts?
Smart contracts were first proposed by famous cryptographer Nick Szabo in 1996. The idea behind a smart contract is that it can easily allow multiple parties to securely and efficiently exchange shares, properties, and money without having to rely on traditional paper contracts that require a notary.
Companies and big corporations can eliminate potential security risks and save a lot of money on legal fees and manpower with smart contracts.
According to recent reports, SWIFT, one of the biggest financial cooperative in the world, has already started experimenting with smart contracts for its internal systems.
Did you know smart contracts are already used in flight-delay insurance and real estate? Read this new article on our blog to learn exactly what these benefits are.https://t.co/WrD1flq3Mo
— Jincor (@jincor_ico) November 10, 2017
The Current Problems with Smart Contracts
Smart contracts seem to be the next big thing in tech, but why haven’t more companies jumped on board yet? There are several things that need to be taken into consideration in order to answer that. First, Smart contracts are still pretty new and not mature enough yet to be used by huge corporations that transact with billions of dollars daily.
Security concerns are also a valid reason why companies are still only experimenting with smart contracts. Since it’s still a relatively new technology, there aren’t many approved security practices/protocols for it yet.
The infamous DAO hack is a great example of how a buggy smart contract could potentially cause millions of dollars in damages to the infrastructure of corporations. The DAO hackers were able to drain over 3 million ETH, which is currently worth over $1 Billion.
Security audits for smart contracts can be relatively expensive and in some cases, very time-consuming, depending on the complexity of the contract and its functions.
Companies that want to develop such contracts also face another big problem. Currently, smart contracts are developed on Ethereum Blockchain with a special programming language called Solidity. Since Solidity is also very new, there not many developers available in the job market with sufficient experience in it. There is a massive demand for solidity and Ethereum developers in the FinTech and blockchain space, which caused the salaries of Solidity programmers to skyrocket as high as $250,000 per year.
Jincor project, founded by Vlad Kirichenko and Vagan Abelyan, develops a platform that will allow businesses to create and deploy legally binding smart contracts in as easy way as possible.
Businesses will not have to worry about hiring expensive developers or security experts in order to create a proper smart contract. The Jincor platform will allow them to choose smart contract templates that have already been coded, tested, and audited by the Jincor development team and then customize them to their specific needs.
One of the most important things that the platform focuses on is the legal compliance with each contract. The Jincor team ensures that each smart contract will be legally binding and comply with the proper regulations of each jurisdiction.
The Jincor team is planning to hold an Initial Coin Offering on the 1st of December 2017. Here are the key points of the ICO:
- Total Token Supply: 35,000,000 JCR
- Hard Cap: $26,000,000
- Soft Cap: $2,500,000
- Exchange Rate: 1 JCR = 1 USD
It is worth noting that Jincor already has more than 300 beta requests from companies.
Do you think that an easy to use smart contract management platform will make businesses more likely to adopt the technology? Let us know in the comments below.
Images courtesy of Jincor