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6 Smart Contract Use Cases Gaining Traction in 2018

Although smart contracts are of great interest to a lot of people, finding the real use cases for this technology is still very challenging. Hundreds of potential applications of smart contracts exist, and some industries are getting more attention than others. Below are some examples, in random order.

#6: Multiparty Smart Contracts

In the world of cryptocurrency, multisignature solutions have become the new normal over the past few years. This does not just apply to wallet solutions, but also to smart contracts. A multiparty smart contract allows user A to lend money to user B to buy a property, car, etc. In this instance, a smart contract can serve as a legally binding agreement between the involved parties.

#5: Distributed Autonomous Societies

One of the more ambitious plans involving smart contracts revolves around creating distributed autonomous societies. Users can form groups in their preferred location to establish trade agreements with other groups of users. These agreements are self-enforceable due to the nature of smart contract technology.

#4: Distributed Autonomous Governments

Setting up a fully distributed autonomous society may be a challenge, and the same can be said for an automated government. Smart contracts allow, in theory, users to create their own self-enforcing government services. Whether or not this will ever lead to a disruption of the traditional governmental model is a different matter altogether.

#3: Exchanging Digital Value

The most common use case for smart contracts today is as a means of exchanging value between parties. Although this use case doesn’t even require smart contracts, it’s always good to have a log of all transactions and proof that a previous agreement existed between both parties prior to the transaction being made.

#2: Smart Rights

One of the more exotic options to explore comes in the form of smart rights solutions. These are especially useful when dealing with digital content. They also change the way people think of ownership in general, especially where blockchain assets are concerned. Translating this approach to real-world assets and products is a big challenge, for the time being.

#1: Distributed Autonomous Organizations

The DAO idea has been tried before on a large scale, and it quickly failed. The DAO is the best example of how good ideas are not sufficient to sustain an untested business model for a lengthy period of time. Even so, the concept still holds merit, as smart contracts can allow for peer-to-peer deliveries, purchases of electricity from the cheapest provider at any time automatically, and so forth. This particular approach may have the most potential in the long term.

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Huobi Global Will Support Stablecoin Trading Through its HUSD Offering

It would appear there is still plenty of stablecoin action on the horizon in the cryptocurrency industry. More specifically, there has been an influx of such currencies over the past few months. Huobi Global is now planning to introduce its own stablecoin, although it is a bit different from what one would expect. The Huobi Global Stablecoin Plan On the surface, it is rather commendable to see so many exchanges offer stablecoins to its users in quick succession. Gemini issued its own stablecoin a few weeks ago, and Circle has their own currency pegged to the US Dollar as well. Combined with the likes of USDT and TUSD, it is evident there is a fierce battle for market traction taking place right now. That should introduce more market liquidity moving forward, although the reality may be very different. Assuming stablecoins will take off, however, Huobi Global might be on to something in this regard. More specifically, the company acknowledges there is a demand for trading with stablecoins, but the exchange is doing things a bit differently first and foremost. They are effectively launching a program which seems much like yet another stablecoin, however it is nothing along those lines. To put this in perspective, Huobi Global will support deposits of Paxos Standard, TrueUSd, USD Coin, and Gemini Dollars. These four stablecoins have all come to market in 2018 and are quickly bringing some much-needed competition to Tether. As a result, a lot of exchanges are rushing to integrate support for these stablecoins Huobi Global is no different in this regard, even though the company will not necessarily allow for trading in either of these stablecoins. Instead, the platform will convert deposits of these four stablecoins into something known as “HUSD”. It is a bit similar to how Bitfinex converts USDT deposits into USD, even though they should be treated as to separate currencies. In the case of Huobi Global, their conversion to HUSD makes sense, as users can still withdraw this balance in any of the supported stablecoins. It is simply the actual trading which will not occur in PAX, TUSD, USDC, or GUSD. To a lot of users, this might seem a bit unusual. After all, there is not necessarily a need for converting stablecoins to a native “currency” and then converting it back to said stablecoins. For Huobi Global, the company is evaluating this approach and they might integrate support for additional stablecoins in the future. Any stablecoin not meeting the company’s risk control standard will be removed from the platform accordingly. The bigger question is whether or not this project will generate a lot of success. After all, this added layer on top of dealing with stablecoins will not necessarily appeal to a lot of investors, but the concept also has a fair bit of merit in the end. It is good to see the exchange not necessarily introduce its own stablecoin, even though HUSD will serve that specific purpose. The post Huobi Global Will Support Stablecoin Trading Through its HUSD Offering appeared first on NullTX.

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