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From bitcoin to the world: 5 keysThe blockchain or blockchain is the technology behind bitcoin and other cryptocurrencies
Smart contracts are based on blockchain. They are used to register agreements, diplomas, certificates and even marriages. More and more organizations, banks and companies are betting on this technology.
1 . What are they?
Smart contracts are registered in the blockchain or chain of blocks. They are integrated by small pieces of software that run autonomously and decentralized. "This means that the code of the contract is executed in each node of the blockchain network, and independently all must reach the same result", explains to Infobae Juan Diego Bonelli, responsible for the blockchain innovation laboratory at the software firm Belatrix .
2 . Where do they come from?
Smart contracts emerge as a new application of the blockchain, the technology behind bitcoin and other digital currencies that allow distributed accounting, without intermediaries. It is estimated that by 2022 smart contracts will be used by more than 25% of the agencies and companies in the world.
3 . Characteristics
In intelligent contracts, clauses are agreed and the network certifies if they were met. It also stipulates what steps to follow in case of non-compliance. The most interesting thing is that it allows a monitoring of operations and greater security.
"These smart contracts are safe because they are executed by the decentralized network of thousands of machines in which they reside, that is, by the blockchain protocol where they are stored and operated without the intervention of third parties," explains Henry Sraigman, Development Director of Business of RSK.
In turn, they allow some autonomy within the system. "A fundamental characteristic of intelligent contracts is that in addition to executing the programmed logic, they can receive and store data, tokens, cryptocurrencies, or a combination of the previous ones, and then from the predefined rules decide autonomously what to do with them", analyzes Bonelli.
4 . Cost and speed
Generating a smart contract can cost between 3 and 12 cents. The price varies depending on the type of contract and the amount of instructions included.
Regarding the level of processing, it also varies according to the blockchain used. In bitcoin, for example, between 6 and 9 transactions per second are processed; Ethereum processes about 15 and in RSK, 100 per second.
With Lumino, a new layer of infrastructure in which RSK works, 20,000 transactions per second could be processed.
5 . What are they for?
Smart contracts are used in the education sector, in financial and public administration. A few months ago, the UBA incorporated the system to register the titles it issues.
We can say that adoption is increasing, from companies in the financial sector, to the education sector and public administration. Some of these examples range from loyalty programs to registration of titles in a blockchain and bidding platforms and public spending.
CurrencyThe marriage of David Mondrus and Joyce Bayo was the first to be registered in the blockchain
"Smart contracts are automatic programs that represent a specific business process, for example, a contract could be a scheduled application to manage the tracking of goods or merchandise within a production chain, or an application for handling documents or approval. record of documents in a blockchain ", details Sraigman.
For his part, Bonelli notes that "being flexible pieces of software capable of solving any computer problem, make possible the construction of so-called Apps, or distributed applications, which are applications without a server or central control entity, and run to through a computer network, they are the ones that give origin to what is called blockchain 2.0 ".
