How Smart is Smart Contract?

[Wenbing]

As i progress in my cryptographic and blockchain course, I'm now in ethereum topic. It has been a great progressive journey.

But, I want to share what I'm learning and also to ask relevant questions in regards to the this topic. This will also help others that have vague knowledge or shallow knowledge about this topic to learn better.

Here is an excerpt from the course.

Ethereum, as well as Bitcoin and tons of other cryptocurrencies, at first sight, is just a blockchain-based system that provides us a decentralized payment system for our needs. So why it is so different?

The main idea of Ethereum is not only just a payment system but also building additional logic that allows us to implement our own needs in the blockchain system.

In Ethereum it is done by Ethereum Virtual Machine (EVM) that can execute code in the Ethereum network written on a specific language called Solidity. The programs created with Solidity in a blockchain network are called Smart Contracts.

What I want us to discuss on are as follow:


1.What's actually a smart contract in practical sense?

2. How does it make etheruem different from bitcoin?

3. What are the real world applications of a smart contract?

4.Is Ethereum Virtual Machine (EVM) a function in blockchain? How does it work with solidity programming language.?

Kindly share your insight with the community.

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[cryptoaddictchie]

Lately, Ive seen your active inquiries here about different scope of cryptocurrency and blockchain. But I am glad you are studying it and even ask questions here.

For all we know both are decentralized and not govern or under any authorities or entity. So whats the big difference?

Ethereum si also a blockchain same like with bitcoin however the only difference that quite notable for me. Is the block time or the transaction set on both network. No doubt ethereum is faster that it could take seconds compared to the minutes of bitcoin. Ethereum utilize ethhash while bitcoin uses SHA-256 well comparing technology I am way favor on bitcoin efficient and more profound mechanism.

1.What's actually a smart contract in practical sense?

_{Smart contract is a method of computer code algorithym created to have a more transparent and irreversible way of transactions. Practically depends on how you viewed it but having a smart contract and leaving third party fees would be beneficial right?}

2. How does it make etheruem different from blockchain?

_{This is quite a confusing question. Ethereum uses blockchain so I am not sure how to answer this, in my little senses.}

3. What are the real world applications of a smart contract?

_{Perfect usage of having a smart contract is tokenization. Example of these are ICOs and IEOs where they used the function to create tokens under the ethereuk network known as erc20 tokens. Also can be used on dApps.}

4.Is Ethereum Virtual Machine (EVM) a function in blockchain? How does it work with solidity programming language.?

_{This is quite a long answer but Ive search this and how it relates on solidity progamming of ethereum software.}

[1]. https://medium.com/mycrypto/the-ethereum-virtual-machine-how-does-it-work-9abac2b7c9e
[2]. https://github.com/ethereum/wiki/wiki/Ethereum-Virtual-Machine-(EVM)-Awesome-List

[Wexnident]

Smart contracts are basically automated contracts/agreements facilitated by the system. It basically acts as something similar to a third party, that enforces the agreement between the two parties. Ethereum and blockchain are different things, so comparing them isn't really anything good.

Ethereum uses the blockchain system, just like how BTC does, but it has included a smart contract system to it, hence the difference between the two.

Some practical uses of the smart contract would be anything that rewards a user once a certain achievement is done. Just imagine in a game when User X achieves achievement A, the contract done at the start of the game would automatically reward the user. There's a bit of discussion hereif you want more detailed explanations regarding examples.

[Wenbing]

Lately, Ive seen your active inquiries here about different scope of cryptocurrency and blockchain. But I am glad you are studying it and even ask questions here.

For all we know both are decentralized and not govern or under any authorities or entity. So whats the big difference?

Ethereum si also a blockchain same like with bitcoin however the only difference that quite notable for me. Is the block time or the transaction set on both network. No doubt ethereum is faster that it could take seconds compared to the minutes of bitcoin. Ethereum utilize ethhash while bitcoin uses SHA-256 well comparing technology I am way favor on bitcoin efficient and more profound mechanism.

1.What's actually a smart contract in practical sense?

_{Smart contract is a method of computer code algorithym created to have a more transparent and irreversible way of transactions. Practically depends on how you viewed it but having a smart contract and leaving third party fees would be beneficial right?}

2. How does it make etheruem different from blockchain?

_{This is quite a confusing question. Ethereum uses blockchain so I am not sure how to answer this, in my little senses.}

3. What are the real world applications of a smart contract?

_{Perfect usage of having a smart contract is tokenization. Example of these are ICOs and IEOs where they used the function to create tokens under the ethereuk network known as erc20 tokens. Also can be used on dApps.}

4.Is Ethereum Virtual Machine (EVM) a function in blockchain? How does it work with solidity programming language.?

_{This is quite a long answer but Ive search this and how it relates on solidity progamming of ethereum software.}

[1]. https://medium.com/mycrypto/the-ethereum-virtual-machine-how-does-it-work-9abac2b7c9e
[2]. https://github.com/ethereum/wiki/wiki/Ethereum-Virtual-Machine-(EVM)-Awesome-List

Thanks for your contributions. It was really helpful insights.

Correction to question 2:
I mean to ask how does smart contract make ethereum different from bitcoin.?

Smart contracts are basically automated contracts/agreements facilitated by the system. It basically acts as something similar to a third party, that enforces the agreement between the two parties. Ethereum and blockchain are different things, so comparing them isn't really anything good.

Ethereum uses the blockchain system, just like how BTC does, but it has included a smart contract system to it, hence the difference between the two.

Some practical uses of the smart contract would be anything that rewards a user once a certain achievement is done. Just imagine in a game when User X achieves achievement A, the contract done at the start of the game would automatically reward the user. There's a bit of discussion hereif you want more detailed explanations regarding examples.

Thanks so much. I've made a correction to question 2.

Smart contract can be seen as an agreement between party's and partyB with a third party (party C) as the intermediary.
party A is the company, partyB is the investors or users of the coin and party C is the technology.

So, instead of human legal system serving as party C it is decentralized and make technology to replace it.

I believe this explanation explain it in part.

[LbtalkL]

They have already answered your questions so I want to answer your thread title instead " How Smart is Smart Contract?" For me, It depends on how smart is the programmer, smart contract is programmable it depends on how did you program it. We have testnet like on ethereum platform called "Ropsten" and many more. On testnet we can test everything and find some error and fixed it. Because on mainnet you can't undo everything that is why some tokens do a swap to fixed an error or bug.