Nick Szabo, a legend in the field of computer and cryptography, is often considered the inventor of smart contracts. He had imagined the idea of ​​registering contracts in a code since 1994. His work laid the foundation for smart contract technology. Software that adds information layers to digital transactions through the blockchain. Smart contracts are self-learning contracts that are executed in an if-then manner that allows transactions to be completed once the terms of the contract are met. The terms of contract are set out directly in the smart contract. We can illustrate with the purchase of a car; When the funds are released through a smart contract, the digital title of the car is also transmitted to the buyer through a smart contract.

Ethereum is one of the oldest and most popular blockchain projects designed specifically to support smart contract functions. Since then, a large number of projects have focused on the implementation of smart contract technologies such as NEO, Lisk and Waves.

Smart contracts enable transactions that are much more complex than simply exchanging digital currencies for services or products. You can also perform many other functions. Imagine a blockchain version of a social networking site like Facebook or Instagram. The homepage of the UI could be a blockchain dApp, while each interaction, comment, or similar publication is controlled by multiple smart contracts.

unhash

Several Contracts can be Used in Each DApp.

Most distributed applications use multiple contracts to accomplish their various tasks. Each intelligent contract must be implemented independently and will have its own blockchain address that you can interact with. If different intelligent contracts need to interact, for example, the number one contract should contact the number two, in the first contract, the address of the second contract need to know. The two contracts, one and two, are “prime citizens on the net,” though one depends on the other.

Many applications use smart contracts. In fact, most projects use smart contracts to facilitate their Initial COin Offerings (ICOs). Investors sent their initial investment, usually in the form of Ether (ETH), the ICO management contract to smartly and automatically receive ICO native tokens in proportion to their investment. By using smart contracts, the ICO would eliminate the need for intermediaries to manage investments, as smart contracts would automate the entire process.

There are also blockchain projects that enable smart contract across multiple sectors. For example, social networking experts can use smart contracts with BOOSTO to track customer transactions, store transactions, and literally any scenario when / if trust and security are required. And for extra security and support, projects like Hosho, based on blockchains, have their smart contracts checked to make sure each item runs properly and efficiently. If multiple contracts are required for a given dApp, it is recommended that you use additional tools to simplify the process.

Leave a Reply

Check Also

3 Major Ways to Generate Wealth in Cryptocurrency Market

There are many ways to generate wealth in cryptocurrency market. The major and well-known …