Smart Contracts and what’s it worth

What are smart contracts?

A smart contract is a peculiar algorithm that operates on and is recorded in a blockchain. In other words, it’s a code with self-executing conditions inscribed within it. Nearly like the ordinary contracts we see on paper or a computer, but computer code. The conditions described in such a contract are fulfilled automatically. Therefore, smart contracts are a fully trustworthy, secure and confidential system.

Back in time for a bit

Smart contracts were first proposed by Nick Szabo in 1994, and in 1998 he wrote a paper about Bit Gold, which became the progenitor of Bitcoin. His ideas were not welcomed at then, due to time and lack of interest. 10 years later, Bitcoin appeared, whose creator was Satoshi Nakomoto. Ethereum came after that, and it became the first blockchain with an implemented smart contract system. Thanks to Vitalik Buterin and his Ethereum, which made a breakthrough in the whole industry, we can easily use such a complex system.

How do they work?

There are always prescribed conditions for both parties in contracts, although the third party is always included interline, kind of a power broker. It could be a bank, another person, an escrow, or something else. In smart contracts there is no third party — all the terms are written in the contract itself, which runs on a blockchain and actions are performed automatically.

Features and benefits of smart contracts

Smart contracts are perfect for business between unfamiliar users. This code is sure to perform the function that has been prescribed to it, so that each party can be assured that the conditions are satisfied.

Where can smart contracts be used?

The applications for smart contracts are varied, and so is the blockchain itself.

  • Finance, trading
  • Deals and agreements
  • Commerce
  • Law
  • Real estate market
  • Gaming Industry
  • Health
  • Identity and legal documents

Smart Contracts in Decimal

The Decimal team is continuously updating and improving the network, doing systems and processes better. The latest technologies of the cryptocurrency industry are used and included in the chain. For example, Decimal blockchain operates on DPoS consensus algorithm. It’s considered as a more improved version of the original PoS.

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