I did never try to learn about smart contract. Thanks for sharing the video link here and also for the text.
Smart contracts are supposed to be one of the best blockchain technology. Now I realized why we should really respect Vitalik Buterin.
Topic: SMART CONTRACTS, simply explained... - page 2. (Read 383 times)
I have found a video which simply explained the Smart Contracts. So I would like to shared transcribed that content with for other members( specially newbies who loves to learn about crypto field and it's usages).
What is a Smart Contract?
Smart Contracts are just like contracts in the real world. The only difference is they are completely digital. In fact smart contracts is a tiny computer programme that stored inside a block chain.
Let's see one example in order to understand how smart contracts are works. Think about large fund rising third party platform, like kickstarter. Product team can go to the "Kickstarter" then create a project, set a funding goal and start collecting money from others who believing the idea. Both the product team and supporters need to trust the "Kickstarter" to handle their money directly.
If the project gets successfully funded, the project team expect "Kickstarter" will give them the money. On the other hand supporters want their money go to the project if it was funded or to get refund when it hasn't reached it's goal.
With smart contracts we can build the similar system that doesn't require third party platform like "Kickstarter". We can programme a smart contract to added holds all the received funds until the certain goal is reaxhed. The supporters of project can now transfer their money to the smart contract. If the project gets fully funded, smart contract automatically passes the money to the creator of the project. If the project fails to achieve those goals, money automatically goes back to the supporters. Because smart contract stored inside a block chain, everything is distributed. With this technique no one isn't control of the money.
But Why We Trust Smart Contracts?
Well because smart contracts stored on a block chain. They inherit some interesting properties.
Being "immutable" means once smart contract is created. It can be never changed again. So no one can go behind your back and tamper with a code of your contract.
Being "distributed" means that the output of your contract is validated by everyone on the network. So a single person cannot forced to released the funds because other people will spot this attempt and Mark this as invalid. Tampering with smart contract become all most impossible.
Where and How Can We Use Smart Contracts?
Smart Contracts can be applied in many different things bot just than crowd funding.
This is only few areas where we can use smart contracts. Right now hand full of block chains who supports smart contracts. But the biggest one is "Ethereum". It was specifically created and designed to support smart contracts. Smart Contracts can be programmed in a programming language called "Solidity". It's also would noting that "Bitcoin" also supports smart contracts although it was lot more limited compared to Ethereum.
What is a Smart Contract?
Smart Contracts are just like contracts in the real world. The only difference is they are completely digital. In fact smart contracts is a tiny computer programme that stored inside a block chain.
Let's see one example in order to understand how smart contracts are works. Think about large fund rising third party platform, like kickstarter. Product team can go to the "Kickstarter" then create a project, set a funding goal and start collecting money from others who believing the idea. Both the product team and supporters need to trust the "Kickstarter" to handle their money directly.
"Trusting a third-party is required if we are not having Smart Contracts"
If the project gets successfully funded, the project team expect "Kickstarter" will give them the money. On the other hand supporters want their money go to the project if it was funded or to get refund when it hasn't reached it's goal.
With smart contracts we can build the similar system that doesn't require third party platform like "Kickstarter". We can programme a smart contract to added holds all the received funds until the certain goal is reaxhed. The supporters of project can now transfer their money to the smart contract. If the project gets fully funded, smart contract automatically passes the money to the creator of the project. If the project fails to achieve those goals, money automatically goes back to the supporters. Because smart contract stored inside a block chain, everything is distributed. With this technique no one isn't control of the money.
But Why We Trust Smart Contracts?
Well because smart contracts stored on a block chain. They inherit some interesting properties.
"They are immutable and They are distributed"
Being "immutable" means once smart contract is created. It can be never changed again. So no one can go behind your back and tamper with a code of your contract.
Being "distributed" means that the output of your contract is validated by everyone on the network. So a single person cannot forced to released the funds because other people will spot this attempt and Mark this as invalid. Tampering with smart contract become all most impossible.
Where and How Can We Use Smart Contracts?
Smart Contracts can be applied in many different things bot just than crowd funding.
- Banks - issue loans or to offer automatic payments
- Insurance Company - process certain claims
- Postal Company - payments on delivery
This is only few areas where we can use smart contracts. Right now hand full of block chains who supports smart contracts. But the biggest one is "Ethereum". It was specifically created and designed to support smart contracts. Smart Contracts can be programmed in a programming language called "Solidity". It's also would noting that "Bitcoin" also supports smart contracts although it was lot more limited compared to Ethereum.
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