Have a Peek into Smart Contracts Universe
So Smart, so Contract
The term ‘smart contract’ is now familiar to many. It was known in academic community for at least two decades but full-weight implementations had appeared only recently with Ethereum Foundation EVM and IBM Hyperledger family of frameworks as most prominent ones.
In most general sense, smart contract is a program with code and current state of variables being stored in the decentralized network. Code is public and can be assessed by any participant, but interaction with the contract can be permissioned for a certain limited group of network participants.
The language of a smart contract is Turing complete, allowing to code nearly anything. These limitations, though, are to be taken into account especially when developing decentralized financial applications where some ambiguity can pose serious risks. Feel free to pass the code your development team have provided to as many independent auditors as you consider sufficient. We recommend at least one security audit and one efficiency audit to be run by two independent entities.
Unfamiliar yet Awesome: the Smart Contracts Universe
Each smart contract inherits decentralized nature of a blockchain - once deployed there are no chance to modify it above initially allowed degree. So post the code into the network only if you absolutely confident about it being correct.
Named after traditional contracts, ‘smart’ ones are naturally considered as a binding obligation with ensured implementation of once defined terms. Being useful and practical, this use case does not cover all the possibilities of smart contracts usage.
Combining reach options of Turing-complete virtual environment and decentralized network, smart contracts open gateway to the universe of decentralized applications: as diverse as one can imagine, and beyond.
Some areas of usage include:
It seems, Fintech applications can gain the most from the smart contracts - ability to work with huge datasets of customers, application of complex logic, e.g. of dividends distribution among all the investors however small their contribution was, all this backed by total transparency of transactions and tamper-proof blockchain ledger.
“We enter the era when financial services can operate in a transparent, fair manner, establishing provable trust of each and every customer, regardless of the share” - Imagine your customers reading something like this at your site. Sounds great, isn’t it?
Read more articles about blockchain in our blog