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.
I invite you to visit Project.hope and learn about the benefits of this project for all those interested in growing while helping others to grow.