Knowledge pills on SMART CONTRACTS

in #blockchain7 years ago

1) What is a smart contract?

 

Basically it is code that runs on blokchain and controls the transfer of digital currencies or assets between parties under certain conditions. An example could be: if the x address receive some tokens than send a percentage to the B address. Another example could be: when the tokens are deposited in the A address then send this transaction with this data to B. Therefore they could reduce the need for litigators, judges, and arbitrators.


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2) Advantages of smart contracts

 

  • Elimination of third party and brokerage - you are the one that accepts a contract without the need of a third party

  • savings- since it eliminates the need of a intermediary you can save its cost

  • trust - documents are encrypted in the blockchain

  • backup - eanch node in the netowrk has a backup of it since it is in the blockchain

  • multisignature - it is possibile to allow certain transactions only when more than one has signed it


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3) Notable implementations of smart contracts

 

  • Ethereum - the ethereum blockchain allows the deployment of smart contracts on it

  • Counterparty - Counterparty enables anyone to write specific digital agreements, or programs known as Smart Contracts, and execute them on the Bitcoin blockchain.


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4) Some challenges for smart contracts

 

  • build a bridge between them and paper contracts.

  • produce a 100% bug-free code

  • find a way to update them to take into account evolutions in laws


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