The promise of smart contract adoption is held back by crypto silos

By Dominik Schiener, Coin Telegraph, 3/29/2021

Smart contracts present one the most promising tech solutions for business, but there are still barriers that have to be addressed.

The internet is buzzing over recent developments in decentralized finance, or DeFi — smart contracts are hotter than ever. You might think you missed the coronation ceremony, but smart contracts are actually used in only a small corner of the crypto world, albeit a corner worth billions of dollars. It’s a promising concept that has gone widely unused in the business world.

Despite the headlines and in spite of crypto-cloistering, smart contracts are not overhyped. The ability to execute secure and complex business transactions is a barrier that keeps plenty of people out of business altogether. Moreover, every major company in the world would jump at a meaningful chance to reduce expenses, due to the endless legal fees involved with business transactions. Although tedious and expensive, unknown business partners must develop a sense of trust between each other to ensure the fulfillment of contracted work. Smart contracts can streamline this process and lower costs for everyone.

While all of this is true and exciting, smart contracts are almost only used in the world of cryptocurrencies. Although there are billions of dollars flowing through smart contracts, they remain locked in this speculative world of crypto trading. What are smart contracts, and what will it take to turn these transformative promises into a popular process?

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