Introduction to the development of smart contract
Smart contract, also known as encryption contract, is a computer program that can directly control the transfer of digital currency or assets between parties under certain conditions. Smart contract not only defines the rules and penalties of the protocol in the same way as traditional contract, but also enforces these obligations automatically. By accepting information as input and assigning values to the input through rules, it lists and performs the actions required by these contract terms in the contract - for example, determining whether the asset should be returned to one person or to another person from whom the asset originated. This concept is easy to explain with an example. Imagine life insurance, where a smart contract pays benefits to a designated beneficiary after the policyholder's death. The contract can check the online death registration form in real time to determine the payment time. Smart contracts are unreliable, autonomous, and self-sufficient.
Advantages of smart contract development
Autonomy: using smart contracts means it's up to you to reach an agreement: you don't have to rely on a broker, lawyer, or other organization for confirmation. By the way, this also eliminates the risk of third-party maintenance agreements, as execution is automatically managed by the network, rather than by one or more individuals.
Trust: smart contracts ensure that your documents are encrypted on the shared ledger. So no one would say they lost it.
Backup: imagine your bank losing your savings account. On the blockchain network, each of your friends has your backup, and your files have been copied many times.
Security: cryptography, website encryption, are to ensure the security of your files. No hackers, in fact, need a very smart hacker to decipher the password and penetrate it.
Speed: smart contracts can use software code to automate tasks, instead of using a lot of time and paperwork to manually process documents, thus saving you a few hours in a series of business processes.
Solution: smart contracts can save you money, because they can crush middlemen. For example, you have to pay a notary to witness your transaction.
Accuracy: automatic contract is not only faster and cheaper, but also can avoid the mistakes caused by filling in a large number of forms manually.
How smart contracts work
Bitcoin is the first network to support basic smart contracts, but it's worthless because networks can transfer value from one person to another. If some conditions are satisfied, the node network will only verify the transaction. But bitcoin is limited to the use of money.
In contrast, Ethereum has replaced bitcoin's more restrictive language (a script language of about 100 lines) with a language that allows developers to write their own programs. As the Ethereum white paper says, Ethereum allows developers to write their own smart contracts or 'autonomous agents'. The language is "Turing complete", which means it supports a broader set of computer instructions.
Smart contract development can use the function of "multi signature". Only when the fund is within a certain proportion agreed by the user, can it be used. Manage agreements between users, such as one party buying insurance from another provider (similar to the way a software library works). Stores information about the application, such as domain name registration or membership record information.
Smart contract is a new technology brought about by public blockchain, because it partially confuses the core interaction described, so this term will be difficult to understand. Smart contract helps to achieve a decentralized system. It exists among all the allowed parties and does not need middlemen. It can save your time and energy. Although blockchain has its own problems, because of its high efficiency, undeniable, more block, cheaper and safer than the traditional system, banks and governments have begun to understand and use it.