A smart contract is a self-executing contract. Basically, it codes the agreement terms between two counterparties and it is this code that defines the agreement on a blockchain like Ethereum. The network of computers that underpins the blockchain help execute the actions defined in the agreement. When the predetermined conditions are met and verified, the terms of the contract are executed. Interestingly, these transactions are trackable, transparent, and irreversible. This helps establish a trustless environment between two parties without the need for a central authority. Owing to these benefits, smart contract and cryptocurrencies are being leveraged to build crypto network marketing software that eliminates the problems with the conventional MLM process and enables a more transparent, secure, and cost-efficient MLM ecosystem.
• Speed and accuracy
In a traditional environment, executing agreements is an inaccurate, time-consuming and inefficient process. There is a lot of paperwork involved and intermediaries are required to process these documents. This kind of setup lengthens the process and due to much manual work, the chances of errors and delays are also amplified. However, the smart contracts are automated contracts; once set up, these can be changed only if both parties agree. As a result, it eliminates the need for any paperwork which translates into speedier contract execution and higher accuracy.
• Trust and transparency
Smart contracts are transparent because these run on blockchain. Additionally, every event related to the contract is recorded on the blockchain. This helps create an intermediary-free trustless and transparent environment.
• Secure setup
Blockchain records all the transactions in an encrypted manner. Effectively, the ledger becomes immutable and very hard to hack. To mutate or hack a single smart contract, a hacker needs to alter the entire set of blocks below the block of that particular smart contract. This is nearly impossible.
Empowered with the capability to execute in an automated fashion, smart contracts eliminate the intermediaries. As a result, the time delays and exorbitant fees are eliminated from the scene.
Crypto network marketing software is becoming increasingly popular. The software uses smart contracts to overcome the existing challenges of the traditional MLM infrastructure. Basically, the above-mentioned advantages of the smart contracts help MLM organizations in multiple ways:
· Eliminate fraudulent activities:
Multi-level marketing is not a scam but it operates on a highly distributed business model of network participants. And because of the traditional infrastructure, it becomes prone to fraudulent activities like outrageous and unfounded product claims, non-transparent centralized operations, and more. However, smart contracts help establish a very transparent and automated infrastructure for the operation of the MLM industry.
· Build Trust
Every transaction on a public blockchain can be traced by anyone. As the MLM industry is all about the trust among the network participants, crypto network marketing software allows users to trace how their money is flowing in the system, what is the exact commission payout and when will the payouts be processed.
· Reduction of operational costs
The traditional MLM software is inefficient and not very scalable to support the growing demands of a rapidly expanding network. However, by using a smart contract-driven MLM set up, the operators can eliminate the need for intermediaries and laborious paperwork, and enjoy access to scalable blockchain platforms.
· Data safety
A smart-contract driven platform stores all the transactional and network participant data on the blockchain which is an immutable ledger. As a result, no hacker can tweak the data that can breach the privacy of the network participants or impact his commission earnings.
· Near-instant and timely commission pay-out
Calculating the commission pay-out of the MLM network participants is a tedious job. That’s because, for every level of participation, multiple channels contribute to the commission. Due to this, the industry is notorious for delayed or incorrect commission pay-outs. However, smart contract automates the process and helps re-establish trust in the industry.
Smart-contract-based MLM solutions will empower the industry. Currently, there are many blockchains like Ethereum, Bitcoin, TRON, Binance Smart Chain, and more that can run a smart contract MLM platform efficiently. However, each one of them offers its own unique set of advantages like scalability, shorter block times, less transaction execution fees, and more.
As blockchain development experts, team Antier Solutions can help you identify the right fit for your business model and deliver a glitch-free platform. Apart from providing consulting services, we offer development solutions to help you build your blockchain-based MLM software. Whether you need binary plan, unilevel plan, or crypto matrix MLM software, we cater to your needs with our mission-driven services.
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