In 1997, it was much earlier than the creation of Bitcoin. He was a computer scientist, lawyer, and coder.

He wanted to use distributed global code to store smart contracts. Now they are just like regular contracts. The only difference is that they are completely digital. In fact, a smart contract is a computer program that is stored inside the blockchain.

You are most likely familiar with Kickstarter – a platform to raise funds for the implementation of new ideas. The development team can go to Kickstarter, create a project, set the required amount and start collecting money. People who believe in their idea will be able to give money for its implementation. Kickstarter is a third party who sits between the development team and the people who financially support them. This means that both parties must trust Kickstar to manage the money.

If the project has successfully raised money, the development team expects Kickstarter to issue it to them. On the other hand, investors want their money to go to the development of the project if the amount is accumulated or a refund if the required amount has not been collected. We see that both teams have to trust Kickstarter. But with Smart contracts we can build a similar system that does not need a third party like Kickstarter.

We program the smart contract so that all the funds received are frozen until the moment the required number is collected. Investors can transfer money directly to a smart contract. If the project has successfully accumulated the necessary amount, then the smart contract automatically issues money to the project creator, if he could not collect the necessary amount – the money is automatically returned to investors. Very simple, isn’t it?

Also on the smart contract is the ForkDelta cryptocurrency exchange, created by the Ethereum team, it is considered to be the safest in the world. All tokens in the world are issued using the launch of a smart contracta, banks can use them for issuing loans, insurance companies – for automated payments in some cases. Even network business companies are beginning to use them for accounting and distribution of rewards, a prime example of BestROI.

Why should we trust smart contracts? Because they are based on the blockchain and they inherited interesting properties, they are immutable and decentralized. After creation, contracts cannot be edited or modified. No one can falsify the source code of a smart contract, every action or transaction is confirmed by all network nodes.

Huge advantages: they replace the database, most of the standard operations can be assigned to a smart contract, they can not be falsified or hacked.

955 total views, 3 views today

11 thoughts on “What is a smart contract”

  1. Децентрализованные приложения, это тоже как смарт контракт?

  2. I am sure this paragraph has touched all the internet visitors, its
    really really fastidious piece of writing on building up new web site

  3. Hello, I enjoy reading all of your article post.

    I wanted to write a little comment to support you.

  4. Hi, I log on to your blogs on a regular basis.
    Your writing style is awesome, keep up the good

  5. Great blog here! Also your site loads up very fast! What web host are you using? Can I get your affiliate link to your host? I wish my site loaded up as quickly as yours lol

  6. Thanks for sharing excellent informations. Your web-site is so cool. I am impressed by the details that you¡¦ve on this blog. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my pal, ROCK! I found just the information I already searched everywhere and just couldn’t come across. What a perfect site.

  7. This is very interesting, You’re a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your wonderful post. Also, I’ve shared your site in my social networks!

  8. I¡¦ve been exploring for a little for any high-quality articles or blog posts in this sort of area . Exploring in Yahoo I at last stumbled upon this site. Studying this info So i am glad to express that I have a very good uncanny feeling I came upon just what I needed. I most definitely will make certain to do not put out of your mind this website and give it a look regularly.

  9. Wonderful beat ! I wish to apprentice while you amend your web site, how could i subscribe for a blog website? The account helped me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear concept

Leave a Reply

Your email address will not be published. Required fields are marked *