The buzz around the Korean startup ecosystem is incorporating blockchain and cryptocurrencies into their startup. Smart contracts are very popular in Korea right now. They are seeing global startups and corporations incorporating smart contracts to make their business run smoothly.
Korean startups are now looking to use distributed ledgers to store contracts. Smart contracts are just like regular contracts used in the real world. The only difference is that they are digital contracts (paperless). In reality, it is a computer program that is stored INSIDE the blockchain.
Here is an example
GoFundMe is a large fundraising platform. Project teams can go to GoFundMe, create a project and set a target goal and start collecting funds from people that believe in the project. So GoFundMe acts as a third party between the project teams and the supporters. This means that GoFundMe needs to be a trusted organization. If the target budget is met, the project team expects GoFundMe to give them the money. Also, supporters expect GoFundMe to give their money to the project team or give it back if their goal was not met.
Smart contracts do not require a third-party. It can be programmed to hold all the funds until it reaches a certain point. The supporters can now transfer the money to the smart contract. If the project gets fully funded, the contract automatically passes the money to the project team. If it doesn’t reach the target goal, it will automatically go back to the supporters. Since smart contracts are stored on a blockchain, everything is completely distributed. Therefore no one person has all the power. Smart contracts on the blockchain can never be changed again. The smart contract is distributed to everyone so if one wants to tamper with it, they would have to convince the whole blockchain which is virtually impossible.
How Korean Companies can use it
Korean Banks like Nonghyup and Shinhan have shown a lot of interest in cryptocurrency, especially the use of smart contracts for loans or automatic payment solutions. There are a lot of blockchains that support smart contracts but the biggest is Ethereum. Smart contracts can be programmed using the programming language Solidity.
How Korean Startups can use it
Korean Startups in the e-commerce space can use smart contracts to make online shopping easier. Instead of going through a real estate broker, the blockchain can be formed to transfer titles. Whether it is Korean beauty products or K-pop tickets. The world is slowly moving towards the blockchain and it could become the next internet.