Smart Contracts – an introduction

Smart Contract
07/05/2018

Florian Protschka

administrator

Often, connected with the blockchain technology, you hear and read, about Smart Contracts.

Because of the decentralized system of a blockchain, it is possible to execute transactions without a third party, which would check the process and settlement.
A smart contract is a come together of two parties who want to exchange money, property or other value. The special feature now is the process of this exchange.

After the smart contract has been set up, prior defined agreements must be made. These agreements are defined in the smart contract. Such an agreement can for example be the price. Here, the smart contract takes over the function of an escrow and is also the executive tool. Because of this, an extern escrow (like a lawyer) or a second programme, to execute the process, is not needed anymore.

On the one hand, this system offers transparency because of the blockchain and security against falsification, and on the other hand it is respecting the privacy of each party.
The most smart contracts nowadays are based on Ethereum blockchain and there will be used the coding language solidity.

Smart contracts have an important role at token sales. In these contracts will be expressed and stipulated the legal framework of token sales. There are also more areas to use a smart contract.

Always, a smart contract must be coded professional. The code is open to see for everyone in the internet. Isn¬īt the smart contract developed very well, projects can fail, because people do not trust anymore.

Chainsulting is developing professional smart contracts, which are following the highest standards.
Also already developed smart contract, Chainsulting can check in an Audit.

 

The information on this site is for educational purposes only and is not investment or financial advice. Please do your own research before making any investment decisions and don’t invest more than what you can afford to lose. Cryptocurrency investments are volatile and high risk in nature. [Read full Disclaimer]