BAYAN TOKEN SMART CONTRACT: A CONTRACT WITH REAL VALUE

In 2017, Ernst & Young (EY) issued a damning report on ICO. Among others, the report highlights on ICOs that utilise the Ethereum platform to take advantage of the smart contract application. It says, “Terms and functionality of a token are defined in smart contracts with program code that can hide risks for all ICO participants. It can contain errors or latent terms or use unsafe algorithms that may result in losses for investors, founders or platform users.” (EY, December 2017)

But is this always the case?

The idea of smart contracts was originally described by computer scientist and cryptographer Nick Szabo in 1993. He explained his idea by portraying smart contracts as a digital vending machine where users could input data or value, and receive a finite item from a machine, in this case a real-world snack or a soft drink.

Ethereum’s smart contracts work very similar to what Szabo had in mind. To put it simply, smart contracts are applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. In this, smart contracts are very transparent and with high integrity.

However, the very advantages of smart contracts can also be their downsides, as highlighted by the EY report. The owner or programmer of the smart contracts can easily manipulate the coding of the contract to benefit themselves. This is when auditing of smart contracts become an utmost importance. Potential investors must make sure that the tokens they plan to purchase have been properly audited.

Bayan Token (BYT) is one of such tokens.

BYT’s smart contract has been audited by Coin Mercenary and they have concluded that the contract is free from any security issues and logic errors.

Built on the ERC20 platform, BYT contract represents ownership of 16 hours’ worth of private cloud server space for each BYT. Users can claim the usage of the cloud server via a smart contract, where the smart contract will execute API to the cloud server provider. At the same time, any amount (minimum 0.1 BYT) claimed will be burned in the smart contract whenever the API is successfully executed. The BYT issued ensures that the smart contract automatically transfers private cloud server space from the tokens to their owners once redeemed.

One can check the truth of this claim simply by searching ‘Bayan Token’ at etherscan.io, an independent block explorer and analytic platform for Ethereum. Click at the contract code then choose the ‘Code’ tab. At line 1479, you will find the source code is linked to bizcloud.io which is the website of the cloud server provider.

This confirms that each BYT is backed by a private cloud server through the smart contract; the very feature that defines the intrinsic value of BYT and makes it stand-out from many other tokens out there.