What is a smart contract?

🤝 Smart contract is a computer algorithm aimed at forming, controlling and providing data regarding ownership of something.

By smart contracts we mean a set of functions and data (of current state) located at a certain address within blockchain.

Smart contracts based on cryptography are able to provide better security than traditional contracts based on law, and reduce transaction costs associated with concluding agreements and likely legal costs.


🔗Operating principle

1️⃣Parties sign a smart contract using methods similar to the ones used in sending transactions on blockchain.⠀
2️⃣Once it has been signed, the contract is stored on the blockchain and enters into force.⠀
3️⃣Having an unrestricted access to objects, smart contract tracks the implementation or the violation of contract’s conditions under the indicated terms and makes autonomous decisions based on the programmed terms.

Thus, the main principle of smart contact is to ensure full automatisation and execution of treaty relations.

✅As DecimalChain is the new-generation blockchain, it also uses the smart contract technology.

For example, while registering your token on the Decimal network, you create a smart contract and record there the coins’s name, ticker, CRR and other token parameters. Smart contract is stored on blockchain as well as other unconfirmed transactions, and this keeps it open and secure.

The security reserve in DEL is directed to the newly created smart contract address, and therefore this ensures the opportunity to buy and sell coins directly without intermediaries (exchanges and so on).

📝The initial code of the smart contract is open and publicity available which makes it transparent and therefore credible for execution.

Decimal helps communities to issue and manage blockchain assets.