a system of agreements that is concluded between two or more
parties, allows you to do without intermediaries, to avoid conflict
situations and save time.
Smart contracts control the transfer of digital currencies or
other assets and compliance with specified conditions. Also one contract can
provide the conditions for the performance of another contract that
conditions follows from the first.
Being transparent, self-contained and self-sufficient, smart contracts
know how to prescribe penalties for failure to comply with conditions, so they
they are the guarantor of fulfillment of obligations. They can also be
the "multi-signature" function is incorporated, which makes it possible to write off
funds and other conditions only after the operation
confirm a certain number of people who have access to this
agreement.
What are the advantages of smart contracts?
Independence and cost savings. You don't need lawyers anymore.,
brokers or notaries. You can safely make deals and not be afraid
the fact that biased and interested in another outcome of the transaction person
will monitor their execution.
The reliability and trust.
Apart from the fact that each party to the agreement has
its backup is a smart contract, the system also stores data
distributed, which gives confidence that the data will not be lost or lost.
will be changed.
Security.
Data in smart contracts is encrypted, so hack them,
it is almost impossible to access or modify data.
Speed. The process of registration and approval takes place at times faster than
due to the lack of paperwork and manual processing of documentation. In
smart contracts replaces all of these processes with a task automation algorithm.
Difference between bitcoin and ether smart contracts
For the first time the opportunity to enter into smart contracts was laid in
bitcoin. Its blockchain is able to automatically carry out
the transfer of funds from one address to another. Nodes check conditions
transfers and confirm the validity of the transaction. Smart problem-
bitcoin contracts that it is limited to only one scenario.
The air also offers much wider possibilities. Into it
it uses a scripting language that supports a wide range of
computational commands that enable developers to create
own smart contracts.
Translated from russian community "Coin base" by Damir Koshkarov
