Even though, with such autonomous power, the possibilities are limitless, it’s mainly on how we choose to utilise them that defines the major use-cases of Smart Contracts.
Some of such use-cases of smart contracts are listed below:
Due to a lack of automated administration, it can take months for an insurance claim to be processed and paid. This is as problematic for insurance companies as it is for their customers, leading to admin costs, gluts, and inefficiency. Smart contracts can simplify the process by automatically triggering a claim when certain events occur. For example, if you are travelling and your car mets with an accident, the smart contract would recognise this and begin the claim . Specific details such as extent of damage, car number, location where the incident occurred could be recorded on the blockchain in order to determine exact amount of compensation.
Supply chain management
Supply chain management involves the flow of goods from raw material to finished product. Smart contracts can record ownership rights as items move through the supply chain, confirming who is responsible for the product at any given time
Protecting copyrighted content
Smart contracts can ensure that royalties go to the intended recipients by recording ownership rights in a decentralised blockchain system. A blockchain would keep track of all ownership rights.
Smart contracts can allow individuals to own and control their digital identity containing data, reputation and digital assets.
Financial Data Recording
Financial organisations can utilise smart contracts for accurate, transparent financial data recording.
Smart contracts can automate mortgage contracts by automatically connecting the parties, providing for a frictionless and less error-prone process. The smart contract can automatically process payment and release liens from land records when the loan is paid.
More detail: https://medium.com/acycliclabs/why-are-smart-contracts-so-important-81883d93a0cc