- The second link I shared shows pictorially that the smart contract has some rules and which both parties agree and the third party verifies it. "Rules" "Third party" all this things makes it centralised?
No. There is no third party to verify.
When you create the contract with the rules, rules are registered in the blockchain (which is decentralized).
Once conditions are met, the rules are applied and all nodes will record it, as it will be on the blockchain.
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- If smart contract makes it centralized then why NXT, ETH and BTC are using it?
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- What is the difference between a ETH contract payment and other ETH payments?
- Does the rules mean the puzzle in mining and Third party refer to miner?
Can someone please explain this "Smart Contract" thing easily. An better article or book will also work for me will put effort to learn
. As and when I am continuing exploring this it is confusing me more. Please help.I will make an example.
Let's suppose I make a contract for my ico. If someone deposit 1 eth on the smartcontract addres (which I cannot get the funds)s , the smartcontract will automatically send 1000 shitokens back. There is no way to send only 900, as the contract is registered in blockchain and is registered in all nodes. Once the conditions are met (1 eth sent) the smartcontract will automatically send 1000 tokens to whoever sent the eth, and the eth to an address which belongs to me
There is no third party verification. It's a digital agreement which cannot be changed once it is registered in the blockchain, this is why it is an immutable and tamperproof digital agreement (without third party verification as all ethereum nodes are verifying it)
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