In this article I'll try to explain what smart contracts are ? How they're so developing the trustless system ? And some other information about it.
So let's dive in...
What Are The Smart Contracts ?
You are familiar with playstore and apps, you go to the playstore search for the app and download it and that's it. That's a very easy thing right ? Yes, it's easy but for users like you not for the engineers who designs the User Interface (UI) and User Experience (UX). In background, some set of code is continuously running to provide what you do with just a one touch on the screen of your mobile.
Smart contracts performs the same things. Simply, smart contracts are the bits of computer code which performs some set of instructions. They replace the central authorities with the set of codes, which completely removed the issues like corruption and other fraudulent activities.
If you know the basics of coding then you can think like 'if...else' statements and if you're not then you can think like, 'if this happens, then do this', smart contracts works on the same principle.
What Was The Problems ?
Let's understand the problem with an example.
Let's say you've to buy a car online, so following are the basic steps you'll follow to buy a car online :
📃 You'll search for the listing site where you can get information of the car you want to buy and the sellers information.
🛰️ Now you'll need a way to communicate with the sellers.
💸 After talking to the seller and locking the deal, you'll need a payment system to pay to the seller for car.
🔄 You'll need some capacity to get a refund if you found bugs in car.
👩⚖️ Now you've to do lots of paper work and register the exchange of car ownership with the authorities.
In each of the step I listed above you've to trust the site or the service provider and of course a lot of time. Each of the step is controlled by different company or an individual.
Actually it won't take much for a sneaky person or company to misdirect you, which will make the whole process a void.
Smart Contracts Solves All The Problems
So now take a look in same way, how Smart Contracts solves the above problems.
🔐 Secure : they use cryptography so it's almost impossible to tamper the records.
🤖 Autonomous : They work automatically, so you don't have to depend on someone to do something to take your process to next level.
👁️ Transparent : As it is a part of blockchain, anyone can see what smart contract is and how it's being used.
✅ Accurate : Smart contracts are basically the computer code, so there's no human interference, so it works accurately.
A single smart contract removes so many middlemen of any process and it also removes the main trust factor, smart contracts make things completely distributed, transparent and trustless.
Due to the features Smart Contracts brings in the ecosystem, they're one of the major contributors in the world of crypto & blockchain technology. DApps are the decentralised applications which use multiple smart contracts together as package that people can interact with.
As Vitalik Buterin and Ethereum believes
" If Bitcoin is the gold of the business world, s.art contracts are the oil the business world runs on".
So guys this is it from my side, hope you enjoyed and learn something from my article.
Don't hesitate to upvote 🤪
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