Blockchain Uses What Are Smart Contracts? Guide for Beginners Published 8 months ago on June 9, 2018 By Coinnounce - Coin Announcements Share Tweet Getting an exposure to smart contracts by understanding it completely In this complicated world, it is very difficult to buy or sell huge assets such as a house or a farm which generally requires a large amount of money and a lot of paperwork. Hence an estate agency is used as a middleman in order to make sure that the transaction is secure and safe and there is no betrayal from any side. They also act as an escrow which is a very crucial thing when large amounts of money are involved. The seller may not completely sell the property once he has received the money and the buyer also can betray the seller and therefore the agency makes sure that there is no betrayal, by charging some amount of fee on the transaction. This fee can be a huge amount for larger transactions. This problem is effectively solved by the usage of smart contract, a small contract act as a middleman and is a self-evaluating digital contract. Here it is completely similar to the agency which we discussed earlier but doesn’t charge that significant amount of fee and is also very trust-able. The transaction is done when certain conditions are met which is specified in the smart contract. Also, the transaction is witnessed by a large number of people and hence fault in the transaction is just Impossible. Here the functions of an estate agency are pre-programmed into the smart contract which then automatically execute by itself and it cannot be stopped until the transaction is completed. A smart contract is basically like a vending machine where you put a certain amount of cryptocurrency and a respective item which is chosen is dropped into your account. all the rules and regulations are not only predefined but also enforced by the smart contact effectively. There can also be interdependence between two or more smart contracts where the completion of one of the conditions in a particular smart contract can trigger an action in another smart contract and vice versa. Therefore any number of smart contracts can be chained in order to provide a proper functioning of a particular organization or any field for that matter. Objects of a smart contract. There are particularly three basic objects which are present in any smart contract: Signatories. The signatory is referred to as two or more parties which are going to use the smart contract on agreeing to the legal terms and conditions of the digital smart contract. Subject. This refers to the subject of the agreement and is probably the only object which stays completely within the smart contract’s environment. A smart contract is necessary to have direct and uninterrupted access to this particular object. Specific terms. All the possible specific terms and conditions must be specified in a particular smart contract, in the form of codes, depending on the environment which the smart contact is using. The terms include rules and regulations the punishment and reward conditions and all the possibilities. This part is very important as if there is any specific term or condition which is not specified here the smart contract might come to a grinding hold blocking the resources from both the parties. Environment. The most important feature in an environment that a smart contract should possess is the usage of the public key cryptography which is used by both the parties in order to sign off a transaction on the contract. The next most important feature that a smart contract needs to possess is a completely decentralized automated database which all the parties of the smart contract can trust and witness the transaction. And finally the source of the digital data that the smart contract is getting. This included the extreme usage of the root SSL Security certificates, https and all the other similar criteria required for an increased security. How is it important The smart contract gives the uses and number of powers and significant features which is not provided by any other existing Technology. Some If they are. Autonomy. It effectively eradicates the need for a third party and hence giving the users a complete autonomy. Trust. All the documents and the money which is entered into a smart contract can be played with or stolen by others. They are completely secure by its distributed ledger technology. Moreover, we need not worry about trusting the other party as the smart contract intelligently replaces the trust. Savings. By the traditional method of enforcing an agreement, a number of notaries are developed, Advisors and lawmakers have their own set of fees excluding the corruption required to get your work done. Smart contracts are effectively eliminating all of these saving you a lot of money. Efficiency. The usage of smart contracts in contrast to the traditional method a lot of time is being saved by preventing the lot of paperwork and their transfers that is to be done from authority to authority. Smart contacts are really the future of enforcing an agreement in this revolutionizing digital world. Related Topics:AltcoinBlockonixDecentralizedEthereumICOInitial Coin Offeringsmart contractsmart contractsTokenbellsTokenmarketunderstand smart contract Up Next What is Bitcoin Cash? How is it different From Bitcoin Don't Miss Should you invest in Litecoin in 2018 Continue Reading You may like Bitcoin Still Stays Strong: Gamblers Prove ICOs Keep Failing: How Not to Fall for a Scam 2019 Blockchain Adoption: The Next Cryptocurrency Price Catalyst Ethereum hard fork vulnerability: Constantinople delayed yet again. 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Will it reach $0? - One Crypto News Pingback: Bitcoin Extortion Case India, Nalin Kotadiya Arrested – Bitcoin & Altcoin News Pingback: ADA a great investment? Cardano Full Analysis – BTC News Paper Pingback: ADA about to rise? Cardano Price Analysis 8 Oct – BTC Crypto News Pingback: ADA a great investment? Cardano Full Analysis | Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News Leave a Reply Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website #Bitcoin How Accepting Bitcoin Can Help Your Business Published 2 weeks ago on January 5, 2019 By Guest Author Recently, cryptocurrencies and bitcoin have become the main topics in the financial industry. A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining characteristic of a cryptocurrency and arguably its most endearing allure is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Cryptocurrencies have their benefits and drawbacks. The paper elaborates different aspects of cryptocurrencies, starting with their early development, challenges and risks, opportunities, advantages and disadvantages, and their future. Also, the paper covered issues related to the practical and technical function of cryptocurrencies. It was concluded that it is not easy to predict the future of cryptocurrencies since there is a lot to be done especially in the field of formal regulations. However, the banks and other financial institutions should see and consider cryptocurrencies as an alternative for the financial transactions in the future. Faster, Cheaper Payment Solution Bitcoin transactions can occur at any time, are fast and have lower fees. The average Bitcoin transaction is executed in 10 minutes with fees for simple P2P transfers to remittances coming in at under 1%. This is due in large part to the fact that traditional third-party financial institutions like banks are removed from the transaction process. Merchants and individuals using bitcoins are not restrained by set banking hours, withdrawal limits or long transaction execution periods before funds become available. Safeguards Against Currency Manipulation Bitcoin is not owned or controlled by a country or governing body. Additionally, unlike many other forms of currency, the number of bitcoins that will be issued is finite, exactly 21 million. The benefit of this lack of ownership and the limited amount is that the bitcoin supply cannot be artificially manipulated. When it comes to fiat currency, governments can easily print additional paper or mint coins, devaluing existing money in circulation and causing inflation. The decentralized nature of bitcoin decreases monetary concerns and mostly leaves fluctuations in value up to natural supply and demand economics. Greater Consumer Protections The use of bitcoin as an alternative to fiat currency protects the downside that can occur with traditional bank accounts. This includes the threat of bank failure or skimming. In the event of a bank failure, a customer can face frozen bank accounts while liquidation plans or bailouts are hashed out. In some countries, traditional bank customers may even find that banks will skim money off of customer’s accounts to remain solvent. This occurred during the banking crisis faced by Cyprus in 2013. With bitcoin, individuals remain in full control of when and how their assets are retrieved, transferred and spent. Essentially, digital currency users become their bank. Greater Transparency Because all bitcoin transactions are permanently recorded on the blockchain, all sales are public and traceable. The balance associated with each address is also part of the public record. The blockchain makes bitcoin much more transparent than many other monetary systems. Private and Secure Although all bitcoin transaction details are stored publicly on the blockchain, the identities of the users involved remain relatively anonymous. Because payments can be made without including personal identification information, Bitcoin provides inherent security against identity theft. Additionally, there is no risk of being charged twice or of fraudulent charges being assessed to your wallet thanks to the blockchain, which monitors unique coin addresses and eliminates the possibility of paying multiple people with the same bitcoin. Bitcoin doesn’t offer the complete anonymity of cash but is undoubtedly a far more private experience than making online payments or transactions using debit or credit cards. Final Thoughts Bitcoin is currently the most valuable and widely adopted digital currency. A growing number of businesses, charities, and other organizations are accepting bitcoin payments ranging from e-retailers to law firms to sports franchises. Further, recent inflationary and banking crises across the globe have highlighted some of the critical threats inherent to fiat currency. This creates additional opportunities for decentralized digital currencies. Education will be essential to increasing Bitcoin’s acceptance and usage by merchants, institutions, and individuals. The system will also need to address common criticisms around illicit use of bitcoin and work diligently to build regulatory and legal frameworks around the world. A guest post by KillerLaunch.com Continue Reading #Blockchain Crypto Liquidity Problem: Is There Really A Solution? Published 1 month ago on December 19, 2018 By Aubrey Hansen One of the most significant problems facing new exchanges and smaller decentralized exchanges is liquidity. Roughly defined, liquidity refers to the volume of assets within a market, and affects how much trading of an asset can be executed. Small exchanges and startups often suffer liquidity issues simply because inadequate levels of an asset are available to them. According to Encrybit, 36% of people are concerned about the liquidity an exchange has before signing up to trade on it. To compound the problem, small order books and large bid/ask spreads can slow trading down or bring it to a grinding halt, in some cases, further driving away customers who bring more liquidity. It’s not all bad news, however. The last year has witnessed some significant developments for exchanges, including the recent Blockchain Exchange Alliance partnership with ONEROOT and the announcement of Blockstream’s Liquid sidechain for the Bitcoin blockchain. One idea for solving the liquidity issue faced by small exchanges would be to decouple from BTC and ETH pairings and instead offer a greater range of fiat and stablecoin pairings, which would allow people to purchase specific tokens without the need to buy BTC or ETH first. Complexity is a known factor that inhibits crypto adoption. Simplifying the process would bring more liquidity to the market. Another idea, proposed by the BXA/ONEROOT partnership, is to create a network of exchanges with shared liquidity. To put this into context, BXA is the majority shareholder of Bithumb, South Korea’s largest decentralized exchange. With a shared liquidity pool of that size, small exchanges that join the alliance would benefit from Bithumb’s and each other’s liquidity and order books. ONEROOT has spent the past year developing the technology and tools for the BXA to provide this service. A big turn off for liquidity providers (i.e., market makers) are the unappealing fees that some exchanges charge. Market makers have been around since trading began and are highly necessary for developing or enhancing liquidity on an exchange. Some exchanges are well aware of their necessity and have created more appealing offers. For instance, ETERBASE has a zero fee market maker program to ensure liquidity when they launch. The acquisition is also a potential solution. There are over a hundred exchanges, and crypto assets are divided up between them. Therefore, liquidity is divided too. If exchange owners have such big egos that they don’t want to partner up, as in the solution proposed above, then maybe it’s time for good old acquisition to come into play. Instead of competing for liquidity, perhaps some of the better off crypto exchanges could buy it. Continue Reading #Blockchain Bitcoin Coffee: The first blockchain coffee is a fact! Published 1 month ago on December 18, 2018 By Guest Author Blockchain can be used for beautiful things. You can arrange and settle a lot through blockchain. Property rights, identity, but also, for example, the origin of products. How about coffee on the blockchain? Today you can buy the world’s first blockchain coffee: Token. This newly established coffee brand is an initiative of Moyee Coffee and FairChain Foundation that want to offer you full transparency about where your coffee comes from. Thanks to the blockchain, more money can go to the poor farmers. And that must make the world a little more honest. The token is the first coffee brand that is entirely transparent with blockchain technology. No more hard time for coffee farmers Nowadays, many coffee farmers have a hard time. They can barely cover their production costs, let alone social and environmental costs. According to the recently launched coffee brand Token, blockchain could provide the transparency and efficiency needed to change that. Blockchain technology makes the massive inequality in the coffee chain transparent for consumers. Token embraces this transparency and offers a solution. The first cargo of 60,000 kilos, produced by small coffee farmers and blockchain-traceable, is going to prove that an honestly distributed value chain is possible. Transparency Token attempts to become the world’s first complete end-to-end blockchain coffee. The token is a collaboration between Bext360, Moyee Coffee and the FairChain foundation. Their blockchain system makes it clear precisely what everyone deserves in every step of the chain. Inefficiencies and unnecessary intermediaries can thus be identified. According to the organizations, this transparency makes a fairer distribution of value throughout the chain possible. Blockchain technology makes the massive inequality in the coffee chain transparent to consumers. Token embraces this transparency and offers a solution. Does blockchain make coffee more honest? Most coffee is produced by a handful of large coffee companies that do not distribute the profits equitably. For example, the vast majority of the 25 million coffee farmers in the world can barely cover their production costs. Fortunately, there are more and more coffee brands who believe that blockchain can be used to make coffee more honest. This technology provides the transparency and efficiency needed to change this unfair system. The coffee chain Cryptocurrencies provide various modern opportunities; you can use on your daily basis. Presently, you can easily gamble with cryptocurrencies or invest your money in betting with crypto. For example, you can use a betting site Fairlay to bet on anything you want. You can also choose to build up more gradual assets by investing in the blockchain technology that lies behind all cryptocurrencies. The success of digital coins is possible thanks to the revolutionary blockchain technology. You can see that there are great opportunities for companies that develop blockchain services and for other companies that benefit from the digitization of the financial sector. To make the benefits of blockchain real, each bag of Token coffee is provided with a token. Every token is worth 50 cents that you can invest in part of the coffee chain via the KrypC Technologies platform. You can give it to the farmers who produce the coffee, but also to yourself by offering yourself a discount on your coffee. Gradual growth instead of a supercharger It is, of course, nice if you have made a significant profit with cryptocurrencies. Earning a lot of money gambling with crypto is possible. However, the chance that you have burned your fingers on the bitcoin is also quite significant. If you are tired of waking up every day with the uncertainty of having become 10% richer or poorer with a digital currency that night, you may want to consider putting your money in mutual funds. You then become for a tiny part owner of a large number of companies that make all kinds of articles and provide services. To be honest: you will not get rich with an investment in the fintech sector. Although the underlying trend is healthy, you run the risk with your assets, and it is essential to build a financial buffer and invest only with money that you can miss for a long time. How blockchain makes the world fairer? The blockchain ensures that the world becomes fairer. It offers safety and transparency. This technique can be used for all kinds of applications. How does blockchain work? The blockchain can be seen as a ledger containing the accounting of each transaction that has ever been done. Every time a new transaction is registered, it comes to a chain of existing data blocks of transactions. That is why we call this chain the blockchain. Information about companies can be recorded on the blockchain. This increases the chance of fair trade. Scandals can be prevented because the right information is available. Just think of the fraud with software in cars. That would not have been possible if all the information had been recorded on the blockchain. Multiple parties check the information. It would immediately have been discovered that something is not right. The registration on the blockchain would, therefore, be rejected. With such a discovery you are almost assured that it is made public. The blockchain can also work with clothing manufacturers. There could be registered where sweatshops are located. If a piece of clothing comes precisely from that area, it could be observed on the blockchain that it was not produced with respect for the man. Another example: elections are not fair all over the world. By registering votes on the blockchain, no more results can be tampered with. The blockchain tracks the information and verifies that the information is correct. Voice fraud is then impossible Fair gambling These days, we see that blockchain technology is being used more and more often in online casinos. Not only to be able to support payment instruments such as Bitcoin and altcoins but also in games themselves. For example, players can check whether a round in a game has been fair. We thank Davey Cross for this guest post. 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