What Are The Smart Contracts ? (Explained)

Avatar for Ashma
Written by
4 years ago

It's been two weeks I've been writing about various cryptocurriencies & blockchain technologies here at read cash platform. At the very first I started with simple things like What is Blockchain ? What are ERC-20 tokens ? and What DeFi (Decentralised finance) is ?

But in this article I'm going little technical & discussing about the 'smart contracts', generally referred as the oil which powers the future of business. In this article I'll try to explain what smart contracts are ? How they're so developing the trustless system ? And some other information about it.

So let's dive in...

What Are Smart Contracts ?

You are familiar with playstore and apps, you go to the playstore search for the app and download it and that's it. That's a very easy thing right ? Yes, it's easy but for users like you not for the engineers who designs the User Interface (UI) and User Experience (UX). In background, some set of code is continuously running to provide what you do with just a one touch on the screen of your mobile.

Smart contracts performs the same things. Simply, smart contracts are the bits of computer code which performs some set of instructions. They replace the central authorities with the set of codes, which completely removed the issues like corruption and other fraudulent activities.

If you know the basics of coding then you can think like 'if...else' statements and if you're not then you can think like, 'if this happens, then do this', smart contracts works on the same principle.

What Was The Problems ?

Let's understand the problem with an example.

Let's say you've to buy a car online, so following are the basic steps you'll follow to buy a car online :

πŸ“ƒ You'll search for the listing site where you can get information of the car you want to buy and the sellers information.

πŸ›°οΈ Now you'll need a way to communicate with the sellers.

πŸ’Έ After talking to the seller and locking the deal, you'll need a payment system to pay to the seller for car.

πŸ”„ You'll need some capacity to get a refund if you found bugs in car.

πŸ‘©β€βš–οΈ Now you've to do lots of paper work and register the exchange of car ownership with the authorities.

In each of the step I listed above you've to trust the site or the service provider and of course a lot of time. Each of the step is controlled by different company or an individual.

Actually it won't take much for a sneaky person or company to misdirect you, which will make the whole process a void.

Smart Contracts Solves All Of The Problems

So now take a look in same way, how Smart Contracts solves the above problems.

πŸ” Secure : they use cryptography so it's almost impossible to tamper the records.

πŸ€– Autonomous : They work automatically, so you don't have to depend on someone to do something to take your process to next level.

πŸ‘οΈ Transparent : As it is a part of blockchain, anyone can see what smart contract is and how it's being used.

βœ… Accurate : Smart contracts are basically the computer code, so there's no human interference, so it works accurately.

A single smart contract removes so many middlemen of any process and it also removes the main trust factor, smart contracts make things completely distributed, transparent and trustless.

Due to the features Smart Contracts brings in the ecosystem, they're one of the major contributors in the world of crypto & blockchain technology. DApps are the decentralised applications which use multiple smart contracts together as package that people can interact with.

As Vitalik Buterin and Ethereum believes

If Bitcoin is the gold of the business world, s.art contracts are the oil the business world runs on.


So guys this is it from my side, hope you enjoyed and learn something from my article.

If you've any doubts or like to discuss on some blockchain related topics, you can comment down.

And definitely share your feedback about this article cause your feedback helps me improve my skills. If you're interested in getting notified for my future articles then please subscribe me.

Thank You For Your Time And Appreciation...!!

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4 years ago
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Comments

Sometimes I've faced some bugs.. I hope they will develop and resolve those bugs

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4 years ago

Some of it are scams like forsage πŸ™„

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4 years ago

Some people might use it for scamming, And anyway smart contracts is a part of technology (simply a code) anyone with little knowledge can write it. You've to double check whether it is smart contract & it's functionalities.

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4 years ago

Yeah you are right. Like forsage πŸ˜ͺ

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4 years ago

πŸ™„

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4 years ago

Edited bro. It was a mistake hahaha

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4 years ago

πŸ˜…πŸ˜… πŸ‘

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4 years ago

Sorry again hahah

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4 years ago

Wow. So easy to understand. Thanks dear for sharing this one😊 keep on writing!

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4 years ago

Unfortunately, most people associate the smart contracts with the Ponzi systems like forsage. This is a pity.

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4 years ago

Yup, that shows the lack of technical education or knowledge about the blockchain those people have. They simply throw their opinions without any knowledge/basis.

$ 0.01
4 years ago

And all I ever did was to sign without knowing what it actually does. Thank you for this, now I know what I'm doing

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4 years ago

Another informative article. Thank you very much.

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4 years ago

I heard about this before and I also read about this somewhere but I didn't pay attention. So much details for me. I didn't know it can be understood this easy reading your article. As usual, thank you for making things more easy to understand.. :)

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4 years ago

Thanks for this great compliment @Jdine

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4 years ago

Thanks for it. I have a lot to learn from you.

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4 years ago

Thank you @Saha99saha Hey Saha please read your twitter.

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4 years ago

Ok. I check my Twitter.

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4 years ago

πŸ‘

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4 years ago

Thanks for making easy this topics😍

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4 years ago

You're welcome @kFatema

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4 years ago

Wow,today I also learn about a new topics.Normally I also follow the simple process to download a new apps.Go to play store,then search and download. But it's new for me.

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4 years ago

I'm glad you learned something new from my article, thanks @Hiyamoni123

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4 years ago

Tou are always welcome dear.Really it's getting so informative for me,

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4 years ago

πŸ‘

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4 years ago

when you got no knowledge about such things and this genius here @ashma is breaking it down for you only to digest..I dont know what compliments anymore to say to thank you

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4 years ago