We are sure that many people sometimes think how nice it would be to forget about bureaucracy. Fiddling with contracts, the desire to get the best terms, a lot of clarifications, signatures, confirmations, checks, calls… You can already feel the nervous tension!
But stop, calmly, imagine that all processes work automatically – there are no errors, no intermediaries are needed, and the concept of “human factor” does not exist at all. Pretty cool, isn’t it?
And what if we say that all this is quite real? That’s exactly how innovative smart contract technology works. And we at KISS Software implement such solutions for business here and now! We will tell you more about everything together with our leading expert in this field Yevhen Kasyanenko.
A smart contract is, in simple words, a blockchain software algorithm that makes and enforces self-executing agreements in the network. The term is taken from the English term Smart contract. In essence, it is a digital code that specifies all the terms and conditions of the transaction, as well as the system’s response to them. Everything works on an automatic basis: a given condition is fulfilled – immediately the action programmed for it takes place. This is an automated way to fulfill the terms of the contract without intermediaries, bypassing bureaucracy and other time-consuming processes that bring only nervousness.
The concept of smart contracts was proposed by cryptographer Nick Szabo back in 1994. He clearly demonstrated it on the example of a vending machine:
This is the process that has become the foundation of today’s digital agreements in DEX applications. Smart-contracts are really a kind of vending machine, only instead of chips, there are documents, actions, rights, assets.
Yevhen Kasyanenko, as an experienced specialist in this area, over the years of implementation of electronic agreements has identified 3 main principles of their work, which provide them incredible popularization:
Reports from analytics company Chainalysis show that already more than 60% of users are convinced that smart contracts for cryptocurrency and business processes are the most convenient and secure solutions. They are already actively used in insurance, supply chains, NFT, DeFi, DAO. It is not without reason that digital giants such as IBM and Microsoft are already actively applying electronic agreements in their processes. And as Yevhen Kasyanenko noted, the number of adherents of this technology is growing rapidly, smart contracts are definitely the future! And not distant at all.
We clarified the work of digital agreements with Yevhen Kasyanenko in more detail, he emphasizes the following stages for a general understanding:
Yevhen Kasyanenko is committed to the fact that personal selection of the right blockchain for each business and its tasks should be individual. This is the basis for the correct implementation of smart technology. That’s why we at KISS Software attach serious importance to this point:
Interesting fact! In 2015, Ethereum-based smart-contract was first successfully used to automate in the management of the voting process in DAO. This was a real breakthrough for the subsequent implementation of digital agreements in management. And in one of the crowdfunding campaigns, the smart contract allowed for the return of funds to investors if the collection goal was not achieved.
Thanks to the classification of digital contracts, KISS Software experts analyze their use for different scenarios.
According to open data on the web, now about 80% of such smart contracts are DEX. However, our expert Yevhen Kasyanenko predicts an adjustment due to the widespread adoption of blockchain technologies.
Right now, almost 70% of smart contracts in blockchain are exactly automatic. Although there are still some corporate systems that favor manual contracts. Over time, according to Yevhen Kasyanenko, there will be more and more automation. And whoever is the first to resort to it will gain an advantage in the market.
The future is already here, especially where there is active use of smart contracts on the blockchain. For the sake of clarity, we want to demonstrate just a small part of those real-life examples. Pay attention to the scale, the globality of the technology and how it is already influencing processes in different niches.
Our team leader Yevhen Kasyanenko believes that very soon all leading world governments will come to use smart contracts and blockchain. After all, it gives control over all spheres of life in the country, transparency and protection from manipulation and corruption. Namely, this is what the outdated model of bureaucracy lacks.
This niche is already very zealous in implementing digital contracts that automate, for example:
As a prime example, the DEX service Aave already offers loans without intermediaries, with unchanging terms and conditions spelled out in smart contracts. Many decentralized exchanges are also launching automated staking with APY payments and token exchanges via liquidity pools.
Yevhen Kasyanenko explains that decentralized autonomous organizations via smart-contract allow users themselves to manage processes on automation. In particular, the famous MakerDAO project gained huge popularity because it was one of the first to implement smart technology in its processes.
According to Statista forecasts, in 2025 the volume of funds in the turnover of DAO-services will exceed 1 trillion dollars. That’s quite a scale!
There is no need to talk about the fact that digital assets are increasingly replacing real works of art, everyone knows about it. Today at auctions are already more often sold NFT-paintings than exhibits of artists. And this is not surprising, which is easy to demonstrate with a simple example:
Smart contract is the basis of all interchangeable tokens. After all, it is through it that digital objects – pictures, music, videos, etc. – are tokenized. A smart contract also provides ownership to the owner of the NFT and transfers it to the new owner after the purchase.
Blockchain games like the popular Axie Infinity or the meta-universes The Sandbox and Decentraland are completely tied to the operation of smart contracts. All in-game processes and assets are controlled by programmed conditions and actions.
For 2023-24, the industry has already raised over $5 billion dollars. This is just the beginning! Being a supporter of the GameFi industry, Yevhen Kasyanenko predicts the growth of the niche and the attraction of huge capital here.
Our whole team is convinced, modern realities are already dictating new conditions for the survival of businesses. The main focus now is on automation, transparency and security of processes. And these, as you remember, are the basic principles of smart contracts, which we voiced at the very beginning of our article.
Every year more and more companies will switch to this technology. That is why our expert Yevhen Kasyanenko invariably advises all clients to implement smart contracts now in order to be among the first, occupying their niche. As an example, we have recently developed such a solution for commercial real estate leasing business. Our team helped to automate and simplify the entire transaction cycle, minimizing time and money spent on the final result. This is convenient not only for the owner, but also for the tenants – everything works in a few clicks, and the terms of transactions are completely transparent.
To put any misunderstandings aside, we have highlighted for you the clear pros and cons that go along with the implementation of digital contracts. This way, any startup and business can already realize how important it is to pay attention to this technology right now. Most importantly, a professional approach is essential here.
| Advantages | Disadvantages |
| Processes happen instantly, work on automatic | Difficulty of development – it is important to find an experienced technical partner to make everything work correctly |
| No human factor, errors in processes are reduced to zero | It is important to specify everything precisely from the beginning, because it will be impossible to change the conditions later |
| Operations and actions are completely transparent | If the developer does not configure it correctly, there may be errors in the code, which means vulnerabilities. |
| Saving time and money | Need to take into account possible overloads in some blockchain networks, as a consequence gas charges will increase |
| Full security, fraud or some kind of trick is impossible | |
| Global interaction – you can work with clients all over the world |
Smart contracting is indeed an incredibly progressive tool. But only in skillful hands, without a professional approach.
“When people ask me what we do at KISS, I usually smile and answer: we make your contracts smarter than some people in the office,” shares Yevhen Kasyanenko, a leading expert and head of our team.
In all seriousness, we help startups and companies to adopt cutting-edge blockchain technologies to take their business to the next level, with the goal of staying ahead of the competition and making the most of their niche. This way businesses can keep their focus on growth rather than bureaucracy.
Yevhen has built such basic principles into our team’s approach:
It cannot be ignored that Smart-contracting is becoming the backbone of every modern business. It is what allows you to scale your business, simplify transactions, increase security and transparency.
A future without routine processes, full automation and more free time – what is available here and now! We make what yesterday seemed like a dream come true with the help of blockchain-based smart contract technology.
“Want to learn more about how this can improve your business? Request a free consultation now! Get one step closer to implementing a modern solution into your business!”
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