A lot has been said about the relevance of Blockchain technology in the technology sector in addition to its obvious relevance in cryptocurrency. Apart from being one of the most secure technologies in today’s world, Blockchain technology is a technology that functions perfectly in the absence of any middleman. As a result of the reliability and transparency of Blockchain technology, it has been made use of in writing smart contracts. One form of Smart Contract that exists as a result of the transparency of Blockchain technology is the Ethereum Smart Contracts. Let’s get to know what Smart Contracts are really all about.
Smart Contracts are one of the products of Blockchain technology. They are also known as Blockchain contracts and digital contracts. Just the same way as regular contracts ensure that a business deal is smoothly executed and that all the parties involved get all that they think they deserve, these Contracts are used in ensuring the transparent exchange of anything of value in the absence of a middleman.
These Contracts function in a way that is comparable to the workings of automated teller machines (ATM) as well as vending machines. With this technology, you can get what you deserve without the services of anyone to ensure transparency.
Ethereum Smart Contacts
Now that we know what Smart Contracts are, getting to understand how Ethereum Smart Contacts function will be a lot easier. Ethereum is a de-localized computing program that is known to generate a cryptocurrency token called Ether. Ethereum is basically a platform for programmers to write these Contracts which get carried out according to whatever automated scripts that they have written. Ethereum was invented by a 22-year-old computer programmer known as Vitalik Buterin and is often put in the same category as Bitcoin. However, unlike Bitcoin, it was built with the sole aim of making these Contracts.
Now, the first time that this contract was ever made use of was in the transfer of Bitcoins (BTC) from one individual to another. While this Bitcoin transaction is a perfect example of the way smart contracts function, Ethereum takes it even further. The Ethereum platform functions in a way that gives programmers the freedom of issuing Smart Contracts that can be used in other business sectors apart from Bitcoin transactions.
Basically, Ethereum can be applied in three ways. They are Financial applications (financial derivatives, sub-currencies, saving wallets, hedging contracts, wills, etc.), semi-financial applications, and Non-financial applications e.g. decentralized governance and online voting systems.
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