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What is smart contract? Take you to read smart contract in three minutes

Time : 19/10/2021 Author : zk2m3q Click : + -
        It is to decentralize the whole market more macroscopically, use blockchain technology to convert many different digital assets, not just bitcoin, and create the value of different assets through transfer. The decentralized ledger function of blockchain technology can be used to create, confirm and transfer various types of assets and contracts. Almost all types of financial transactions can be transformed into blockchain, including stocks, private equity, crowdfunding, bonds and other types of financial derivatives such as futures, options, etc. Blockchain technology has many practical implementations &mdash& mdash; In the form of cryptocurrency, decentralized applications and decentralized financing.
        Therefore, today's financial market is full of blockchain technology and smart contracts. However, blockchain inventions such as defi or decentralized finance and cryptocurrencies operate at the other end of the spectrum and try to completely decompose users from traditional financial systems. Therefore, smart contracts are becoming the core of the new decentralized financial system. More distributed applications are sweeping the world. These new applications run on decentralized open source blockchains that use the computing power of the network rather than relying on centralized servers. Smart contract and DAPP are fundamentally connected. Knowledge of Ethereum smart contracts is needed to build dapps. Long before the release of bitcoin and other cryptocurrencies, computer scientist and mathematician Nick · Saab first created the term "smart contract", which he defined as "a set of commitments specified in digital form, including the agreement of all parties to fulfill other commitments".
        Such contracts can be created and executed without using artificial intelligence. He put forward this idea in 1995, and his article on smart contracts was published in a magazine called extropy in 1996. Szabo basically first defined "what is a smart contract?" And various scenarios for using them are proposed. Bitcoin issued a white paper in 2008, which is the first demonstrable form and the earliest successful implementation of smart contracts on blockchain, although the scope is limited. Bitcoin deliberately uses simplified smart contracts to eliminate security threats to its systems. Bitcoin is mainly regarded as a payment method or electronic currency. It applies smart contracts to be within the parameters of the main currency design of its blockchain.
        After bitcoin, other protocols have expanded the idea and application of smart contracts. Ethereum was the first person to do so. Ethereum shows the world that smart contracts can be applied to countless use cases. Smart contracts based on blockchain technology can not only give full play to the advantages of smart contracts in cost efficiency, but also avoid the interference of malicious acts on the normal execution of contracts. The smart contract is written into the blockchain in the form of digitalization, and the characteristics of blockchain technology ensure that the whole process of storage, reading and execution is transparent, traceable and unalterable. At the same time, a set of state machine system is constructed by the consensus algorithm of blockchain, so that the smart contract can run efficiently.
        Ethereum is designed as a "world computer", which requires the computing power of all Ethereum nodes. These nodes can be run voluntarily by anyone anywhere in the world. Joining Ethereum's network can bring many benefits. The main benefit is the ability to conduct untrusted transactions with anyone else in the world through blockchain. This introduces so many possibilities not only in the financial field, but also in various contracts &mdash& mdash; This means that anything involving human protocols can be transformed into smart contracts on the Ethereum blockchain. Smart contract runs on Ethereum virtual machine or EVM, which is a digital device completed by Turing, allowing you to choose from a large number of operations on the table and execute on the network protocol.
        This is a truly unique and unprecedented invention that opens the door to blockchain innovation. In order to create incentives in the network, participants must pay transaction fees, also known as natural gas fees, to execute any smart contract code. The cost of natural gas is based on the calculation capacity required by the node. A toll market has been created, which is the current structure for node operators to earn revenue. Ethereum smart contracts are created using Ethereum's main coding language, solid. Unlike other object-oriented programming languages, solidity is contract oriented. It uses a high-level language that mimics the expression of human instructions.
        This language is very similar to JavaScript. It supports inheritance, libraries, and complex user-defined functions through statistical typing. Solid smart contract is a smart contract programmed in solid language and compiled into byte code of Ethereum virtual machine or EVM. Solidity is the key language to learn when coding for Ethereum. One of the most exciting applications of smart contract technology is dapps or distributed applications. These new applications use the power of smart contracts to convert transactions online without relying on trusted third parties such as banks or verifying the identity of people at the other end of the transaction.
        The current set of DAPP has absorbed many complex financial activities, which used to belong to the jurisdiction of traditional financial institutions. Decentralized applications enable their users to conduct a large number of financial transactions using cryptocurrencies such as transactions, savings, insurance, and loans without banking supervision. Defi or decentralized finance means that such things happen independently on a voluntary point-to-point network, without any large banks interfering or occupying a certain percentage of each transaction. Some smart contract applications have become very powerful and popular, attracting a large number of users. The daily transaction volume is equivalent to millions or billions of dollars of cryptocurrency.
        There are also different models. For example, you can lend cryptocurrency to other users and earn income at a predetermined interest rate, or convert your cryptocurrency into new coins at the best exchange rate and use new coins in various other transactions. This provides space for converting every bit of financial activity into equivalents on defi. Nowadays, blockchain developers who are proficient in Ethereum smart contracts are in great demand. The wages of Ethereum smart contract skills and other blockchain development skills hit a record high. There are also many opportunities to start a business in smart contracts and dapps.
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