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