{"id":5266,"date":"2023-02-14T15:47:33","date_gmt":"2023-02-14T15:47:33","guid":{"rendered":"https:\/\/kriptomat.cash\/smart-contracts-eng-smart-contracts\/"},"modified":"2024-06-19T11:25:15","modified_gmt":"2024-06-19T11:25:15","slug":"smart-contracts-eng-smart-contracts","status":"publish","type":"post","link":"https:\/\/kriptomat.hr\/en\/smart-contracts-eng-smart-contracts\/","title":{"rendered":"Smart contracts (eng. smart contracts)"},"content":{"rendered":"\t\t
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Smart contracts in general<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A smart contract is a blockchain-built program that automates the actions of a traditional contract. Currently, smart contracts are mostly used in the field of technology and finance, but there is a huge scope for expansion of this innovative technology that we will talk about in today’s blog. It’s a simple principle; if the X condition is satisfied, then the Y action (if then) is carried out, this is almost all the science behind smart contracts. Smart contracts allow transactions and agreements between two anonymous entities on the Blockchain, without the need for a third party, as is the case with traditional contracts. With the creation of Bitcoin, the existence of smart contracts was possible, but the first cryptocurrency to apply smart contracts was Ethereum. Today, almost all applications built on Ethereum use smart contracts for their work, and in addition to Ethereum, numerous other networks have appeared that by applying smart contracts, they allow the construction of various applications on the Blockchain. At the time of writing, just under $48 billion is locked in smart contracts, and this number will grow by finding new and innovative ways to use smart contracts.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Source: https:\/\/cointelegraph.com\/news\/the-future-of-smart-contract-adoption-for-enterprises<\/a><\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The emergence of smart contracts<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The smart contracts were originally introduced by US computer scientist Nick Szabo, who in 1998 acquired the title of a computer scientist. created the digital currency Bit Gold, 10 years before the creation of Bitcoin. There are also a number of people who believe that Szabo is the anonymous creator of Bitcoin, but he has disputed this. Nick proposed the use of smart contracts in the purchase and sale of bonds and other financial instruments, and as we will find out a little later, today, 25 years later, smart contracts are used precisely when trading cryptocurrencies, but also other value instruments.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The use of smart contracts<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Since smart contracts serve to execute agreements, the scope of this innovative technology is huge. One of the simplest examples is buying and selling between two parties. The buyer will lock his money into a smart contract. A smart contract will unlock that money and only send it to the seller when the seller locks his product into a smart contract. At the moment when both entities perform the requested action (deposit of money and products), the smart contract will send money to the seller, and deliver the purchased product to the buyer. This example shows us how we can completely eliminate the need for third parties such as eBay or another online auction platform. The smart contract in this case would serve as an intermediary, the only difference is that the smart contract can remove the large transaction fees charged by online auction platforms, and is fully decentralized and autonomous. Currently, some of the most well-known smart contracts are decentralized cryptocurrency exchanges and other decentralized financial platforms (DeFi). Buying and selling real estate, stocks and other goods, lending, dispute resolution and health care are just some of the areas that would prosper by applying smart contracts.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Source: https:\/\/cointelegraph.com\/ethereum-for-beginners\/what-are-smart-contracts-a-beginners-guide-to-automated-agreements<\/a><\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Good Side of Smart Contracts<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The most noticeable positive side of smart contracts is the elimination of the need for a third party when executing a particular agreement. In addition to this, the speed at which smart contracts are executed, is immeasurably higher than that of traditional contracts. The reason for this is simple, at the moment when all the required conditions are satisfied the contract allows the execution of the requested action. Some other advantages compared to traditional contracts are digitalisation and implementation costs. While traditional contracts require a physical presence, smart contracts are fully digital and you can access them anywhere in the world, if you’re connected to the Internet. The cost of using contracts is also much more affordable with smart ones compared to traditional ones given that smart contracts are used in a larger volume, so a small commission for using the same multiplies many times as the contract is used by more and more people. This allows smart contract developers to make satisfactory profits while providing low-cost services to contract users.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The downsides of smart contracts<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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One of the first things to define before using smart contracts is the risks you expose yourself to using them. If the developers of the smart contract have missed some detail that allows the abuse of the smart contract, it is likely that someone will try to “cheat” the smart contract. In this way, in the past, large amounts of funds locked in smart contracts have been lost. Only in 2022. Smart contract hackers stole over $2 billion, and the biggest theft was the ronin bridge hack, where over six hundred million dollars in Ethereum and USD coin were stolen. The problem with hacking smart contracts is as follows; The stolen money, in most cases, is located on one of the decentralized networks such as Ethereum. This means that there is no central authority (e.g. a bank) that has the ability to freeze the funds in the wallet of hackers, and that once the funds are stolen it is difficult to recover them. However, there is also a solution to this problem. Some of the hacked smart contracts contacted the hackers and offered them a cash reward, sometimes even a job, if they returned the stolen funds. In this way, both sides benefit from hacking. The hacker received a cash reward, and the developers of the smart contract saw a flaw in the code that needed to be corrected.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Source: <\/span>
\n https:\/\/cointelegraph.com\/news\/cryptopedia-learn-the-basics-of-smart-contracts-and-how-they-work<\/span>
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Conclusion<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Smart contracts are ready for great growth and development in the coming years. With the advancement of Blockchain technology, smart contracts have the potential to revolutionize different industries and technologies, and bring a new era of cheap, transparent, confidential and decentralized contracts, i.e. applications. As an increasing number of people become aware of the many benefits that smart contracts offer, so will the demand for them grow, this in turn will contribute and encourage the development of new, more sophisticated platforms and tools for smart contracts, further expanding their capabilities and areas of application. The possibilities are truly endless, and the future of smart contracts is bright. By leveraging Blockchain technology, smart contracts can contribute to the progress of a fairer and more efficient world.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Smart contracts in general A smart contract is a blockchain-built program that automates the actions of a traditional contract. Currently, smart contracts are mostly used in the field of technology and finance, but there is a huge scope for expansion of this innovative technology that we will talk about in today’s blog. It’s a simple […]<\/p>\n","protected":false},"author":1,"featured_media":4528,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[48,50],"tags":[],"class_list":["post-5266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dive-deeper","category-general"],"acf":[],"yoast_head":"\nSmart contracts (eng. smart contracts) - Kriptomat<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kriptomat.hr\/en\/smart-contracts-eng-smart-contracts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Smart contracts (eng. smart contracts) - Kriptomat\" \/>\n<meta property=\"og:description\" content=\"Smart contracts in general A smart contract is a blockchain-built program that automates the actions of a traditional contract. 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Currently, smart contracts are mostly used in the field of technology and finance, but there is a huge scope for expansion of this innovative technology that we will talk about in today’s blog. 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