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What Smart Contract Services Can Do for a Business

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Smart contracts often generate a certain level of confusion. Coming from different perspectives, people define them in different ways, thus causing misunderstandings of the term within the context of what they can do for businesses. Some of the haze ensues from common definitions that don’t draw a clear distinction between legal contracts and smart contracts.

Smart Contracts vs. Legal Contracts

Though smart contract services can replace some aspects of contractual law, they are definitely not a legal concept. They do support business transactions, but more in the sense of a technical solution for the digital realm in which companies search for new ways to make their projects more profitable. Smart contracts work by delegating certain transaction elements to the computer by giving it instructions with cryptographic code.

Smart contracts are a piece of code, which blockchain developers implant in decentralized networks. They work under a set of predefined, self-executable, known-to-all-parties rules.

Smart contract services simplify many of the processes that need to be otherwise completed or verified by humans, by transferring them to a computer. In this sense, a smart contract can be a reliable auditor.

Types of Smart Contracts

Bitcoin can be considered the first smart contract in the sense of current blockchain technology. However, the cryptocurrency is a fairly limited representative of the concept, as it doesn’t depict all ways in which smart contract services work. Bitcoin is a smart contract executed on a fully decentralized network, without the interference of intermediaries or third-party fees.  

The Ethereum platform, in contrast, is not simply finance-based. Its Solidity development projects extend to business solutions. On Ethereum, developers create an open-source code to apply decentralized technologies in areas such as digital identity, voting, utilities and computing resources, to name a few.

Smart contracts can be applied to closed organizations. The Hyperledger project, for example, develops blockchain projects where decentralized networks are available only to specific participants who can join the group by invitation. Hyperledger is not fully public; businesses need to gain permission to be accepted in the inner circle. The difference between the Hyperledger projects and a 100 percent decentralized blockchain is in the business logic. It’s more viable and efficient to create a closed platform for organizations that meet the integrity and trust criteria than to give every member of the public the same level of trust.

How Do Smart Contracts Work?

If you are considering smart contract services, a blockchain developer can create a contract that sets a range of criteria to validate multiple transactions. Transactions will not be limited to a simple give-and-take exchange of value. They can also include dates, qualities or quantities, and other specifications that must be met if the transaction is to be considered valid. The event takes place only after all conditions have been met by all transactional parties.

The instructions are embedded within the code and are impossible to change unless all parties agree to update the smart contract. For instance, a second stage of the transaction can’t take place until the first one is completed. A typical example of a smart contract is a group signature, where a business transaction is valid only after a certain number of people have signed.

With smart contracts, businesses can gain a new level of protection against unknown outcomes. Because the records in a decentralized ledger are permanent, immutable and traceable, it’s virtually impossible to get an outcome that wasn’t planned by the parties.

Smart contract services have proven to be an effective solution for supply chain management. Each participant in a supply chain built on a decentralized blockchain has insight and access to the recorded transactions and can keep track of what happened at a certain point in time or location.

Immutability, permanency, and consensus are three important aspects of smart contracts that protect participants from unscrupulous activity. However, smart contracts are still executed on a computer network and are therefore vulnerable to mistakes made during their processing. Despite their imperfections, smart contracts can potentially help you develop new business solutions, such as avoiding multiple transaction fees, letting computers run secure transaction records, verifying recorded data, and even creating your own cryptocurrency.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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