Connect with us

Blogs

What Smart Contract Services Can Do for a Business

Published

on

smart contracts
READ LATER - DOWNLOAD THIS POST AS PDF

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.

For the latest cryptocurrency news, join our Telegram!

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.

Image courtesy of Pexels

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

Continue Reading

Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

Continue Reading

Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

Published

on

SonicX
READ LATER - DOWNLOAD THIS POST AS PDF

When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

Continue Reading

Elite