Crypto Contest - Season 19

mateenfatima (68)Pakistan | Club5050in Steem4Bloggers • 2 months ago (edited)

Greetings to All

I hope that you all will be great by the blessings and mercy of Almighty Allah and enjoying beautiful days of your life. Today I will talk about the blockchain technology especially about the smart contacts that is actually the part of crypto contest organized by @waqarahmedshah .So lets start....

^{Image taken from Source}

What is a Smart Contract?

A smart contract is a self executing contract with different terms and agreements that are directly included into the code. It does not need intermediaries like lawyers or brokers it simply when the towns and conditions are meant and enforced. This contracts run on blocks and networks making them decentralized immutable and transparent.

Smart contracts function on if and then logic it it means if the conditions written into the contracts are met then action is executed. As an example we can take if two parties agree on trading cryptocurrency is smart contract could automatically transfer funds from one party to the other when the specific conditions are met such as price date etc that automatically remove the need of intermidaries or decrease the risk of fraud.

^{Image taken from Source}

Smart contacts are most commonly associated with Ethereum that is a blockchain platform pioneered their use now to be used in other blockchains.

What is the role of smart contracts in decentralized finance (DeFi)?

Smart contacts have a very significant or important role in DeFi. It also enables the automation and execution of complex financial transaction. It also helps to remove the need of any central authorities.

`Automated Market`

Smart contacts also enable the creation of automated market makers like uniswap and pancakes web that allow the users to trade cryptocurrencies directly without the need of a centralized exchange. Smart contacts automatically adjust the prices on the basis of supply and demand.

`Lending and Borrowing`

Some platforms use smart contracts to facilitate decentralized landing and borrowing system. User can land their results to earn interest or borrow assets by providing collateral. All the procedures are controlled by the smart contracts that enforce the terms of loan.

`Staking`

DeFi platforms Use smart contracts to allow user to stake their tokens or provide liquidity to earn rewards. These contracts automatically distributed rewards based on conditions that are predefined.

The use of smart contracts has enhanced the access to financial services by providing users with greater control over their assets and reducing the cost associated with traditional intermedries.

Essential Security Measures for Smart Contracts

While smart contracts offer many advantages they also introduce the new risks. As these contracts are immutable and operate on the public lock chain so in case of any vulnerability code can be exploited. So that ensuring the security of smart contract is really important.

Conducting complete orders of this smart contract code by reputable third party security film is really necessary. These identifications help to identify the problems.

^{Image taken from Source}

This is mathematical approach to prove the correctness of smart contract named as formal verification it also involves creating mathematical model of the contract and verify that it behaves as expected
Use a standard libraries instead of custom code for common functions developer can establish an audited community.
Keeping smart contracts simple limit the contract complexity. Complex contracts are more difficult to test and audit thrououghly.

So by implementing these security measures developers can reduce did he score vulnerabilities.

*Smart contacts are transforming the way we think about contacts and financial system and their role enable wide range of decentralized application that operate without intermediaries.*

So that was all from my side about the topic and I hope that you all will like to read the post and support the content

I would like to invite

to participate in the contest

Thanks for Reading

`Regards @mateenfatima`

#waqar-c19s4b #steemexclusive #pakistan #club5050

2 months ago in Steem4Bloggers by mateenfatima (68)Pakistan | Club5050

Sort:

steem.history (78) 2 months ago

Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.

_{please click it!}

_{(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)}

The weight is reduced because of the lack of Voting Power. If you vote for me as a witness, you can get my little vote.