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Author Topic: SMART CONTRACTS, simply explained...  (Read 187 times)
vphasitha01
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July 29, 2018, 03:19:07 PM
 #1

I have found a video which simply explained the Smart Contracts. So I would like to shared transcribed that content with for other members( specially newbies who loves to learn about crypto field and it's usages).

What is a Smart Contract?

Smart Contracts are just like contracts in the real world. The only difference is they are completely digital. In fact smart contracts is a tiny computer programme that stored inside a block chain.

Let's see one example in order to understand how smart contracts are works. Think about large fund rising third party platform, like kickstarter. Product team can go to the "Kickstarter" then create a project, set a funding goal and start collecting money from others who believing the idea. Both the product team and supporters need to trust the "Kickstarter"  to handle their money directly.

"Trusting a third-party is required if we are not having Smart Contracts"

If the project gets successfully funded, the project team expect "Kickstarter" will give them the money. On the other hand supporters want their money go to the project if it was funded or to get refund when it hasn't reached it's goal.

With smart contracts we can build the similar system that doesn't require third party platform like "Kickstarter". We can programme a smart contract to added holds all the received funds until the certain goal is reaxhed. The supporters of project can now transfer their money to the smart contract. If the project gets fully funded, smart contract automatically passes the money to the creator of the project. If the project fails to achieve those goals, money automatically goes back to the supporters. Because smart contract stored inside a block chain, everything is distributed. With this technique no one isn't control of the money.

But Why We Trust Smart Contracts?


Well because smart contracts stored on a block chain. They inherit some interesting properties.

"They are immutable and They are distributed"

Being "immutable" means once smart contract is created. It can be never changed again. So no one can go behind your back and tamper with a code of your contract.

Being "distributed" means that the output of your contract is validated by everyone on the network. So a single person cannot forced to released the funds because other people will spot this attempt and Mark this as invalid. Tampering with smart contract become all most impossible.

Where and How Can We Use Smart Contracts?


Smart Contracts can be applied in many different things bot just than crowd funding.

  • Banks - issue loans or to offer automatic payments
  • Insurance Company - process certain claims
  • Postal Company - payments on delivery

This is only few areas where we can use smart contracts. Right now hand full of block chains who supports smart contracts. But the biggest one is "Ethereum". It was specifically created and designed to support smart contracts. Smart Contracts can be programmed in a programming language called "Solidity". It's also would noting that "Bitcoin" also supports smart contracts although it was lot more limited compared to Ethereum.
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July 29, 2018, 04:49:07 PM
 #2

I did never try to learn about smart contract. Thanks for sharing the video link here and also for the text.

Smart contracts are supposed to be one of the best blockchain technology. Now I realized why we should really respect Vitalik Buterin.
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July 29, 2018, 06:03:28 PM
 #3

Smart contracts are really a very important tool. But there may be a mistake in testing the smart contract as happened with the infamous the DAO. The best insurance against errors will be attentiveness, expert advice and thorough market analysis.

vphasitha01
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July 29, 2018, 06:37:35 PM
 #4

Smart contracts are really a very important tool. But there may be a mistake in testing the smart contract as happened with the infamous the DAO. The best insurance against errors will be attentiveness, expert advice and thorough market analysis.
Yeah sometimes high profile Smart Contracts can be contains vulnerabilities caused by programming mistakes, like   "unchecked - send bug" in DAO. So better to do a security audit and get expert advise before launching a smart contract.

<...snip...>
Tampering with smart contract become all most impossible.
<...snip...>
That's why I never said impossible but all most impossible. Wink
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August 01, 2018, 05:09:35 PM
 #5

Friendly bump
Bump for someone get learning
Or,
Bump for earning merit

I really appreciated your post because I learned something but didn't expect that you did it for having merits. Sorry, but yeah, it's the reality of your bump.

P.S- It's another unintentional friendly bump  Wink
vphasitha01
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August 01, 2018, 06:30:21 PM
 #6

Friendly bump
Bump for someone get learning
Or,
Bump for earning merit
Merits are something that can't be earned by making bumps, bumps are not allowed, do I created a thread which already discussed or am I missing something?

Quote
I really appreciated your post because I learned something but didn't expect that you did it for having merits. Sorry, but yeah, it's the reality of your bump.
I'm more than satisfied even one member learn a something from my thread and you can't demotivate me or my works by just making some false accusations. Actually have you checked my posting history? I'm just a member( not a bump bot) who believes sharing of knowledge is the best way to learn. I just want to be interactive with other members, I think that's what you misunderstood with my bump which is nothing to with merits. I think you have no idea about how the merit system works. Members didn't give any merits for just making a bump.

Just for knowing, do you have any psychic powers? Cheesy

P.S.- I don't expect any merits for a  educational guide either, I do my part for making a spam free( less spam is actually good when considering to the current situation) forum. Do you?

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August 01, 2018, 07:47:17 PM
 #7

bumps are not allowed
Bumps are allowed, in case. You can bump your post once every 24 hours. But that should be logical. For example, I have offered a service and didn't interact for 2 days. Of course, it will not be on the first page. I can bump my post for bringing it up.
13. Bumps, "updates" are limited to once per 24 hours.[2]

Members didn't give any merits for just making a bump.
Bump= Bring up my post = Get attention   Grin
vphasitha01
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August 02, 2018, 02:28:13 AM
 #8

Bumps are allowed, in case. You can bump your post once every 24 hours. But that should be logical. For example, I have offered a service and didn't interact for 2 days. Of course, it will not be on the first page. I can bump my post for bringing it up.
I know how bumps should be done and what time interval. Where have you been mate all these days? Bumps are not only for servise threads. Even welsh(staff member) also used bumps for his "report effectively" thread. Oh no.. Welsh or other members don't know about how to be logical, LOL. You're giving false interpretation about the bumps for other members. Actually try to be post with facts, rather being just beat around the bush. Do you have some kind of urgency for getting merits? Because I'm not.

Quote
Bump= Bring up my post = Get attention   Grin
Get attention = New member can learn something that he missed

P.S.- you're the person here making redundend posts with your false interpretations and false assumptions. Do you have anything to add this thread about Smart Contracts? Because I'm more than happy to discuss and learn.
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August 02, 2018, 05:03:29 AM
 #9

Thanks for this mate. Hope everyone could understand the importance of SMART contract nowadays compared to the traditional where they are completely losing lots of money.
Jrashid
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August 02, 2018, 05:44:14 AM
 #10

Bumps are not only for servise threads.
Who said? Did I?
Come on. People bump because they have logic behind the bump.

Do you have anything to add this thread about Smart Contracts? Because I'm more than happy to discuss and learn.
I said I didn't know anything about the smart contract.

Quote
Bump= Bring up my post = Get attention   Grin
Get attention = New member can learn something that he missed
That's how it doesn't work actually, imo. New member who want to learn, will definitely find out what he/she needs. I found your thread on 2nd page, as far as I can remember.
BTCforJoe
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August 02, 2018, 06:41:07 AM
 #11

I never truly understood smart contracts because... Well, I'm a huge Bitcoin fanatic, but I haven't used Ethereum or its network to any extent that required me to learn about smart contracts. This post was very valuable, so thanks for "posting" it.

However, I hate to play devil's advocate, but this isn't related to Bitcoin, so I don't believe that it belongs on the Bitcoin board, regardless of how useful it is for newbies. Additionally, it could be considered plagiarism, as you've obviously used this article as your source without citing it. Some parts of your post are blatantly copied and pasted.

Not cool, unless you can prove that you are the author of the Medium post...

Archived link, in case you edit/delete your original post.

vphasitha01
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August 02, 2018, 06:57:00 AM
 #12

That's how it doesn't work actually, imo.

Are you an Admin to interpret why actually "bumps" introduced and how it's working in the forum Grin

Quote
New member who want to learn, will definitely find out what he/she needs. I found your thread on 2nd page, as far as I can remember.
Yeah for that part I totally agree with you. New member who want to learn, will definitely find out what he/she needs without making redundant posts with his/her delusional beliefs Cheesy

 
BTCforJoe
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August 06, 2018, 07:09:46 PM
 #13

I just wanted to make a public apology for getting you tempbanned.

In my defense, your wording is a bit confusing in the top post. While you do link the source of where you transcribed this content from, the "I would like to shared that content with you" part made it sound like you just wanted to share the video, and not the actual content of it.

I think that in the future, it's important to indicate that you've transcribed content, as a simple google search revealed that your content is very similar to an existing article on the web.

Either way, I'm sorry for getting you banned. And thanks for not breaking the rules lol

vphasitha01
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August 06, 2018, 08:39:00 PM
 #14

I just wanted to make a public apology for getting you tempbanned.
It's okay. Are we cool now? Wink. Actually it happened(auto banned thing)so quickly while  I'm writing my explanation for what you claimed.

Quote
In my defense, your wording is a bit confusing in the top post. While you do link the source of where you transcribed this content from, the "I would like to shared that content with you" part made it sound like you just wanted to share the video, and not the actual content of it.

I think that in the future, it's important to indicate that you've transcribed content, as a simple google search revealed that your content is very similar to an existing article on the web.
Lesson learnt and pardon me for my English is not having top notch like yours. Because English is not my native language. I added the word "transcribed" to my vocabulary and I will use it surely.(actually that's what I want to said in the first place in my thread, but it seems like I missed the right word for it )

I just shared transcribed the content of video only because some users didn't like to be viewers but, readers. Wink

How about plagiarism check instead of just Google search. Sometimes simple Google search didn't work.

Quote
Either way, I'm sorry for getting you banned. And thanks for not breaking the rules lol
I will not breaking any rules in future too and I'm a well wisher of this forum. Today I have learnt another lesson regarding forum..

That`s quite simple: do not take things too personally. There are some people here really suffering from some contrarious quotes. This is a huge site with a lot of minds, so do not take anything too personally or too serious. That`s, for me, the magic formula  Cool


P.S.- can I participate your rounds of Merit competition?
justin86
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August 06, 2018, 08:43:38 PM
 #15

Smart contracts are one of the important things in the crypto because they will also be used by things outside the crypto then this network will be huge.

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August 06, 2018, 10:57:13 PM
 #16

smart contract is what makes blockchain technology more interesting and changes the old traditional way of transaction, smart contract technology is why crypto is new revolution in the tech industry that others must follow.

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August 07, 2018, 12:08:27 AM
 #17

Attornies don't know how to code.
Coders don't know legal.
We need people to connect these guys and make smart contracts more real.

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RiotCats
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August 07, 2018, 11:20:08 AM
 #18

It’s very simple and clear explanation of smart-contracts. Just wanted to add one more popular direction for using smart contracts – crypto games and dapps in general Smiley

Blockchain-based game about restless cats in a post-apocalyptic world
riotcats.co
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August 07, 2018, 01:00:22 PM
 #19

I once read an excellent explanation what smart contracts are.  It really expanded my understanding of what this technology is capable of.  I forgot where I have read it so I can't cite the site, but I'll share the example anyway.

Example of smart contracts every day use:

You want to book a hotel.  But there is no staff in the hotel that would do your booking, charge you and give you the key of your room.  Instead you book your room online and recieve digital key that will open the door after your payment has been sucesfully validated and the reqirements has been met - your reservation time, the room number.  Once you arrive at the hotel you simply input the key either manually or scan it and you have the access to that room.

There are quite few advantages of using smart contracts: lower costs - since the middleman is not required, faster processing, privacy…  And there are so many fields were smart contracts can be used - and I'm sure they will be once the technology will support it.
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August 10, 2018, 04:43:09 AM
 #20

The smart deal is a very smart app, almost like a lawyer specializing in contracting between companies. They were created so that when companies sign contracts with investors, they do not need to resort to a third party.
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