Quick understanding of what is a smart contract

发表时间:2020-05-13 19:01

Smart contract is a very popular concept now, so what is smart contract? What problems can smart contracts solve?

Nick Szabo first used the concept of smart contracts in 1997, long before bitcoin, when he wanted to store contracts in a distributed ledger.

Nick szabo is a computer scientist, jurist, and cryptographer best known for his work on digital contracts and digital currencies. He received a bachelor's degree in computer science from the university of Washington's school of computer science and engineering in 1989 and a bachelor's degree in law from the George Washington university school of law. He also received the honorary professorship of Universidad Francisco Marroquin. Saab created the term and concept of "smart contracts" originally to design what he called "highly evolved" algorithms of contract law and convention into e-commerce agreements between strangers on the Internet. "Smart contract" is the main feature of cryptocurrency and programming language E. Saab posits that the minimum guarantee of micropayments is determined by the psychological (expected) cost of the transaction.

Smart contracts are very similar to today's contracts, except that they are completely digital. In essence, the smart contract is a small computer program stored in the block chain network. We illustrate the operation principle of the smart contract with the crowdfunding platform: On product team would have to create their own projects, set up a all the raise goal, and to raise money from those who support their idea, the raised platform is between product teams and supporters of the third party platform, which means that the trust on both sides of the platform will properly deal with their money, raise success, if the product team believe platform the fundraising will be transfer to them, in the same way, supporters believe that the platform will also gave their money to the project they support products. If the crowdfunding goal is not met, investors trust the platform to return the money. In this process, both the product team and its supporters must trust the crowdfunding platform. We can build a similar system with smart contracts, but we don't need a third-party platform.

How do you create such a platform? We can write smart contracts that hold the money they receive until the crowdfunding goal is met, and with this program, the supporters transfer the money to smart contracts. If the crowdfunding is successful, only the contract can automatically transfer the funds raised to the product team. If the crowdfunding goal is not achieved, the money will automatically be returned to the supporters. Isn't that wonderful?

Since smart contracts are stored in blockchains and all this information is distributed, the technology ensures that no one can control the money. Why? Because smart contracts are stored in blockchains, they have some interesting features, they are not tampered with, and they are distributed. Non-tampering means that once a smart contract is created, it cannot be modified, so no one can tamper with your contract behind your back. Distribution means that your contract has to be verified by everyone in the network, so it's impossible for one person to force the contract to release funds, because others will find out about your attempt and mark it as invalid, so tampering with the contract is almost impossible.

Smart contracts can have many applications, not just in crowdfunding. For example, Banks can use it to make loans or provide automatic payments, insurance companies can use it to handle specific claims, and postal companies can use it for delivery and settlement.

There are already a number of blockchain platforms that support smart contracts, the largest of which is ethereum, which was created to support smart contracts that can be written in a programming language specifically designed for ethereum, called soljan, and whose syntax is similar to JavaScript. It's worth noting that bitcoin also supports smart contracts, which are more limited than ethereum as soon as possible

I am a chain dog, focusing on popularizing block chain.