Smart contracts: Difference between revisions
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What is a smart contract? A basic definition is: A smart contract is a tamper-proof program that runs on a blockchain network when certain predefined conditions are satisfied.<ref>https://blog.chain.link/how-to-read-smart-contract/</ref> | What is a smart contract? A basic definition is: A smart contract is a tamper-proof program that runs on a blockchain network when certain predefined conditions are satisfied. | ||
What does that mean? Smart contracts, simply put, are programs. The code is transparent and often immutable or unchangeable. Smart contracts are hosted and executed on blockchain networks.<ref>https://blog.chain.link/how-to-read-smart-contract/</ref> | |||
--[[User:Reggie|Reggie]] ([[User talk:Reggie|talk]]) 03:10, 24 July 2022 (UTC) | --[[User:Reggie|Reggie]] ([[User talk:Reggie|talk]]) 03:10, 24 July 2022 (UTC) | ||
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Revision as of 03:11, 24 July 2022
Smart Contract Discussion Page
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Welcome to the talk page for discussing improvements to the Smart Contract article. Talk pages (also known as discussion pages) are Wiki administration pages where editors/contributors discuss improvements that can be made to an article. NOTE: Discussion pages are not a forum for general discussion of the article's subject. When you post a message on a talk page, you should always sign and date your comment so that other editors can follow the thread of the conversation. To do this, either type four tildes (~) at the end of your comment or just click the signature button on the row of buttons above the edit box. |
What is a smart contract? A basic definition is: A smart contract is a tamper-proof program that runs on a blockchain network when certain predefined conditions are satisfied.
What does that mean? Smart contracts, simply put, are programs. The code is transparent and often immutable or unchangeable. Smart contracts are hosted and executed on blockchain networks.[1] --Reggie (talk) 03:10, 24 July 2022 (UTC)
Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.--Reggie (talk) 07:37, 23 June 2022 (UTC)[2]
- Speed, efficiency and accuracy: Once a condition is met, the contract is executed immediately. Because smart contracts are digital and automated, there’s no paperwork to process and no time spent reconciling errors that often result from manually filling in documents.
- Trust and transparency: Because there’s no third party involved, and because encrypted records of transactions are shared across participants, there’s no need to question whether information has been altered for personal benefit.
- Savings: Smart contracts remove the need for intermediaries to handle transactions and, by extension, their associated time delays and fees.--Reggie (talk) 07:38, 23 June 2022 (UTC)
Smart contracts work by following simple “if/when…then…” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified. These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. That means the transaction cannot be changed, and only parties who have been granted permission can see the results.
Within a smart contract, there can be as many stipulations as needed to satisfy the participants that the task will be completed satisfactorily. To establish the terms, participants must determine how transactions and their data are represented on the blockchain, agree on the “if/when...then…” rules that govern those transactions, explore all possible exceptions, and define a framework for resolving disputes.
Then the smart contract can be programmed by a developer – although increasingly, organizations that use blockchain for business provide templates, web interfaces, and other online tools to simplify structuring smart contracts. [2]