Re: Make even more profit on crypto trading with trade-mate.io
What is a smart-contract: how it works and what it is for
Individuals and companies have to resort to the services of intermediaries when exchanging digital values, which increases operating costs. Transactions without intermediaries are accompanied by risks of fraud. To solve this problem, smart contracts were developed.
A smart contract is a software code that controls and provides information about ownership of something. A smart contract allows you to conduct transactions without intermediaries and guarantees fulfillment of both parties obligations. This eliminates the risk of exchange fraud and reduces transaction costs.
Nick Szabo, a legal expert, and cryptographer, first proposed the idea of a smart contract in 1994. In a simplified form, a smart contract appeared in the first Bitcoin Protocol. Smart contracts became known to a wide audience after the appearance of Ethereum, on which blockchain they were implemented.
How smart contracts works
The implementation of smart contracts is provided by a distributed network of nodes under blockchain control. To ensure that smart contracts work, you need a digital environment that meets technological conditions and requirements. The best environment for self-executing contracts is blockchain, since its structure is based on the principle of signification-confirmation of sending funds using digital signatures.
At the conclusion of the transaction by both parties (signatories), the contract enters into force. The smart contract reserves the necessary amount of cryptocurrency for its duration and monitors fulfillment of the conditions. If one of the parties complied. This is the algorithm of a simple smart contract. Now there are many blockchains (Cardano and Sawtooth, which are based on more advanced smart contracts with advanced features).
Where smart contracts are applied
The most widelysmart contracts are used in the field of ICO -a n analogue of crowdfunding in crypto. Investors transfer coins to the project's smart contract and receive tokens in return. Smart contract guarantees fulfillment of obligations: if the tokens are not issued, the digital coins will be returned to investors. Therefore, ICO tokens were most often issued on the Ethereum platform.
You can use smart contracts in almost any business area. There are such projects in the field of logistics, gambling and rental housing. The governments of some CIS countries are considering the possibility of conducting voting procedures using smart contracts, which eliminates the possibility of election frauds.
Trade on Binance, BitMEX and Poloniex using Trade-mate.io automated platform with trailing and autotrade functions. We provide a seven-day trial period for testing the platform.