Smart contracts are seen as a trend-setting technology that could reduce bureaucratic structures. But what are smart contracts about?What is a smart contract?Smart contract is an agreement that involves two or more parties and is capable of executing and enforcing itself. All this is possible thanks to the source code with which the contract has been developed, which allows it to be executed in an automatic and autonomous way when it is necessary to apply the smart contract. Smart contracts are not really contracts, but computer codes that replace the letter of a contract. The contractual clauses are thus written instructions in a specific code that, given the occurrence of a certain condition, is self-executing.
Types of Smart Contracts? Prevention of non-compliance: This type of contract does not take or process tickets, but simply imposes itself by making it impossible for you to break the contract by acting in an unauthorized manner, for example, copying music or a video file that is protected by copyright.? Property Law: Crypto-currencies such as Bitcoin can be thought of as a set of intelligent contracts that enforce the property law.There are already several decentralized asset markets, which expand the range so that many different digital assets can be traded in a single chain of blocks. The same principle can also be extended to physical products with electronic controls or integrated microchips.? Financial services: Cryptocurrency obviously opens up a wide range of different use cases for smart contracts that would not otherwise be possible. Smart contracts in EthereumWhile bitcoins also offer the possibility of creating contracts, those that can be created by the Ethereum protocol are much more powerful and complex. Due to this, the value and demand by ethers has increased exponentially.
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Ethereum takes the Bitcoin smart contracts to another level and is the one who, mainly, has inspired other solutions, such as Counter Party(the protocol implements and supports the creation of assets, the issuance of bonds of those assets, payment of dividends, the trading of assets using a decentralized market, binary bets, and contracts-for-difference) or Rootstock (It is an open source platform for creating smart contracts that will reward miners who participate actively), that want to achieve the same thing but on the Bitcoin network.These applications are executed exactly as they were programmed without these having the possibility of suspending all their execution or that they may suffer some type of fraud or the interference of third parties (people, etc). Ethereum applications run on a platform that has been created to the extent that it is called Blockchain, and is an incredible and powerful global structure that can transfer assets and property titles, this makes programmers Create markets and be able to store all your data, from accounts, debts, transactions or payments.
The future of Smart ContractsIt is expected that in the future the blockchain system will cause changes of a magnitude as powerful as that caused by the invention of the Internet. In fact, there is consensus on the idea that this system constitutes the new industrial revolution of our time.