Lecture 2.0.0. Five Components of DMS
If there are smart contracts on a blockchain, it means anyone can start to use them for his purposes. But you may ask: “How do these smart contracts function and how do I use them?”
Consider this example:
Charis operates a business that lends out money to customers. She has decided to hire an IT expert to build a website for her business. With the help of the IT expert, she has been able to package her lending services as software and upload it onto her website.
Therefore, anytime any client needs to borrow money from Charis’ lending business, the client goes to Charis’ website to access the software. With the help of the software, the client can open an account, complete all the documentation online, and submit them.
Subsequently, Charis will receive the client’s submission on her computer.
After reviewing the client’s submission, Charis will then decide to either approve or reject the submission, using the criteria she has set up for giving out loans.
This software that Charis has set up online with the help of her IT expert is what is referred to as an Application. In other words, Charis has an online lending application.
Charis is the central figure in that online business because she authorizes each client’s submission.
The problem here is that if the number of submissions for loans increase sharply, Charis may start having backlog and many submissions will have to wait for a long time for Charis to get to them.
The pressure may even make Charis to start to make mistakes as she may not be able to go through all the submitted documentation properly to see if they are in line with her lending criteria before authorizing approval.