Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. They render transactions traceable, transparent, and irreversible.
How smart contracts work
It’s worth noting that bitcoin was the first to support basic smart contracts in the sense that the network can transfer value from one person to another. The network of nodes will only validate transactions if certain conditions are met.
But, bitcoin is limited to the currency use case.
By contrast, ethereum replaces bitcoin’s more restrictive language (a scripting language of a hundred or so scripts) and replaces it with a language that allows developers to write their own programs.
Ethereum allows developers to program their own smart contracts, or ‘autonomous agents’, as the ethereum white paper calls them. The language is ‘Turing-complete’, meaning it supports a broader set of computational instructions. Smart contracts can:
- Function as ‘multi-signature’ accounts, so that funds are spent only when a required percentage of people agree
- Manage agreements between users, say, if one buys insurance from the other
- Provide utility to other contracts (similar to how a software library works)
- Store information about an application, such as domain registration information or membership records.
We can create Smart contacts for your ICO launch and other crypto needs.
Jeoffrey Mathews
Jeoffrey Mathews is an ICO consultant, blockchain enthusiast and an cryptocurrency investor. He had started his career with Dell as a Systems engineer after which he had worked for several companies in technical profile, Moved to startup JMGCapital in 2014 and has built this company successfully for about 4 years while, His first interaction with Bitcoin was in 2014 when he started mining. In 2017 he consulted and launched the ICO for first of its kind decentralized logistics company named Dafzo and there has been no looking back.
He also started his crypto news and Crypto indstry update journal/website www.ethers.news. Since then there has been no looking back.