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Use-cases & Applications

Autonomous smart contracts offers a wide range of compelling use-cases that were either impossible, too costly, or risky to do with benchmark are met.

Here are some of the best use cases for autonomous smart contracts:

  1. Decentralized Finance (DeFi): Autonomous smart contracts can revolutionize DeFi applications by enabling automated and self-executing actions. Some notable use cases include:

    • Automated liquidations: Smart contracts can automatically trigger the liquidation of under-collateralized positions in lending protocols when predetermined thresholds are breached.
    • Yield farming strategies: Contracts can autonomously perform yield farming strategies, automatically swapping and reinvesting tokens based on predefined conditions.
    • Dynamic portfolio rebalancing: Smart contracts can automatically adjust portfolio allocations based on market conditions, ensuring desired asset ratios are maintained.

  2. Supply Chain Management: Autonomous smart contracts have the potential to streamline supply chain processes by automating specific actions triggered by predefined conditions. Key use cases include:

    • Automatic inventory management: Contracts can initiate purchase orders or trigger production when inventory levels reach predefined thresholds, ensuring optimal stock levels.
    • Quality control and compliance: Smart contracts can autonomously perform quality checks and audits based on predefined criteria, ensuring compliance with standards and regulations.

  3. Insurance Claims: Autonomous smart contracts can revolutionize the insurance industry by automating claims processes. Notable use cases include:

    • Instant claims settlement: Contracts can automatically trigger claim payments when specific conditions, such as verified damage or loss, are met, accelerating the claims settlement process.
    • Parametric insurance: Smart contracts can leverage external data feeds, such as weather or seismic information, to autonomously determine and process claims without human intervention.

  4. Gaming and NFTs: Autonomous smart contracts can bring enhanced functionality and interactivity, and cost-reduction in on-chain execution, to gaming and non-fungible token (NFT) platforms. Key use cases include:

    • Dynamic NFTs: Contracts can imbue NFTs with evolving characteristics or abilities based on predefined conditions, creating captivating and unique gaming experiences.
    • Automated auctions: Contracts can autonomously initiate and manage auctions for rare items, with bidding and settlement executed automatically when predetermined criteria are met.

  5. Decentralized Autonomous Organizations (DAOs): Autonomous smart contracts are instrumental in enabling self-governance and decision-making within DAOs. Notable use cases include:

    • Voting and governance: Contracts can autonomously trigger voting processes based on predefined conditions, empowering token holders to participate in important decision-making. There are various applications for this: from voting in local communities to democratic processes in corporate governance.
    • Automated fund management: Smart contracts can autonomously allocate funds, distribute dividends, or trigger investments based on predefined rules and performance metrics.

  6. Real Estate Transactions: Smart contracts can streamline various aspects of real estate transactions, increasing efficiency and reducing the need for intermediaries. Key use cases include:

    • Escrow and payment automation: Contracts can securely hold funds in escrow and automatically release them when specific conditions, such as successful property transfer or completion of milestones, are met.
    • Streamlined rental agreements: Contracts can automate rental payments, manage security deposits, and enforce the terms and conditions stipulated in the agreement.

These examples illustrate just a few of the many compelling use cases for autonomous smart contracts. The self wake-up functionality empowers automated processes, reduces reliance on intermediaries, and enhances efficiency and transparency across diverse industries.

Going further​

If you want to go further and start coding your own autonomous smart contract, head to the Build section.