Being in the world of blockchain and cryptomongering it is very common from the beginning to find a range of new concepts, generally most people are scared and feel overwhelmed with the novelty, more if it is about things that are even related to money a great fear comes (often) when they begin to see that the keys used in the cryptomund are not as they are usually used in some networks, they are also amazed that the data (balances, transfers and other transactions) are visible to everyone, because they generally feel safe with the supposed transparency of the centralized banks.
But, things have been changing for a long time, this time I want to explain with simple words what a Smart Contract is.
I can say that the term contract is handled by most people, those documents that have written the terms of different agreements we reach with some person, entity, company or any entity, and must be executed once it is signed by both.
Of course, it is to be noted that it can happen that some of the signatories do not comply with their commitment and can bring legal problems and all that we already know.
But in this publication I want to talk about Smart Contracts, I started talking about those contracts signed because that's what the common denominator handles but the big difference between the first one and this second one that adds the word Smart is that this last one is executed only, they are fulfilled automatically.
Do you understand? possibly not, or maybe yes, it's very common for people with a traditional belief and background to have a hard time understanding this kind of newer stuff, but, come on, we're in a chain of blocks where a lot of things are automatically executed, or not?you want an example? let's go with it:
- The publications that we make in this platform have a circulation of 7 days, which can be voted and rewarded for what you have brought to the community of Hive, once the 7 days of the post are concluded, no more no less, the benefits are distributed to each one, what goes to the curators, author, beneficiaries, etc. There is no turning back on this.
Haven't you thought about the clever way this works? It's wonderful, isn't it? Everything is pre-set, and when the conditions are met, it runs... I'm not saying that this is a INTELLIGENT CONTRACT specifically, but that it serves as an example to illustrate it.
The SC are basically a Computer Programs that are executed when the conditions previously written in this program are met. If no intermediary, without anyone giving the order. This seems to be difficult to understand for many, who opt for the traditional form of contracts, partly out of ignorance and also, in my opinion, because it is still not as widespread as it should be. As far as the legal aspect is concerned, I could say that it is the computer code of this programme that is responsible for ensuring that the agreement is complied with once the conditions are in place.
Every time its use will be more extended, and I hope more accepted too.
Have you heard about this? What do you think?
I'd like to read your opinion in the comments.
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I think ‘contract’ can well be the confusing bit. As soon as you start to think about a SC as a program it start to make more sense (to me at least).
A Contract is something that most people have handled in one way or another, however, I think that despite using it, they find it difficult to see it as far as the computer part is concerned. But it is what is used. Let's wait and see what happens next.
Grateful for the support @mynima
is an interesting term and I agree with the comment that calling it as programs it is more acceptable.This is information difficult for fans to assimilate, but very interesting, I hope you continue with This series of publications seems very good to me.
Yes, I think that calling it a programme would make it easier to understand for some but less understandable for others.
In the end it is a computer program, certainly, although I think that the contract was used to compare it with something more frequently used.
However, many still prefer written paper...
Thanks for your comment @reinaldoverdu
@tipu curate
Upvoted 👌 (Mana: 6/30)
Thank you
Interesting choice of topic. As you rightly pointed out, contracts are typically written agreements that are usually legally enforceable. Smart contracts are basically contracts version 2.0.
Why? Because it solves the trust issue. With any contracts, you have to trust the counter-party and the party which ensures its enforcement. With smart contracts, code is law. You place your trust on a decentralized smart contracts platform (e.g. Ethereum) instead of your local bank or government.
You are also right on saying these are computer programs. Imagine the entire smart contract platform as one huge computer. Smart contracts are the individual programs "installed" on the computer to execute tasks. Such is the beauty of smart contracts
Why? Because it solves the problem of trust.
This is undoubtedly a necessary point, which in itself allows for a great gain. It allows trust in this type of contract, which is not very susceptible to non-compliance.
Thnak you @culgin
Very nicely written!!
You know, oracles are needed, like link for this smart contracts to get the right information based on which they executed contract actions.
Thanks for the support.
I think later on it will be much more common than it is today. I hope so.