Ethereum Smart contracts
Some people are not familiar with the blockchain, but they are likely to heard about Ethereum. Nowadays we are using the blockchain in a number of applications. Many companies are also using blockchain for their day-to-day activities. But it is very important to understand Ethereum, it is crucial to get some information about smart contracts or do some research about the Ethereum Smart Contracts. Ethereum is a cryptocurrency with a total market valuation of about $45 billion and there are a number of changes that this value will increase a lot in the future.
Many people think that Ethereum is only a currency, but they are not aware that its also a platform that is a part of the blockchain and used to develop blockchain applications also. One application is Ether which is used to pay for the transaction.
Ether is not a regular cryptocurrency. It is used to run smart contracts and also the Ethereum blockchain applications. Ethereum blockchain developers are also working in the research domain to create some innovative applications through this technology. With the increase in demand for Ethereum now, the question arises What is a Smart Contract? And How do the Ethereum Smart contracts work?
Let’s take a deeper look to understand the Smart Contract?
A smart contract is the agreement between two people, but this agreement is in machine language or computer code. They are stored on the database, publicly available and cannot be altered as its run on blockchain. In this Contract, parties are not replied to any third party as it runs and processed by the blockchain. It is highly secure as no third party is present in the agreement, so there is no trust issue. Also, the online transaction only occurred when the particular criteria or conditions according to the agreement met. This Contract is executed by using the Ether, and Ether is created through the Ethereum Development.
How does Smart Contracts Uses and Works?
To understand how this contract work, first, we need to know how this Contract is used. We are taking an example to explain this Contract.
Let’s assume that Minni wants to buy the property of Ash. They formed the agreement by using the Ethereum blockchain and also use the Smart Contract. The agreement between the two parties, i.e. Minni and Ash, is done through Smart Contract.
In simple words, we can say that according to this agreement, when Minni pays 500 Ether, then Minni will receive the ownership of the property and once the payment is made then this agreement cannot be altered or changed.
The benefit of using the Smart Contract is that there is no third party involved, and also safe to do Contract through this.
How the Smart Contract Works and how is it possible to not rely on the third party?
This is possible only through the blockchain. It is only possible with blockchain technology that we decentralize the Smart Contract, and it is possible only through this that it is fair and trustless.
By Decentralization, we mean that it’s a shared database that is run by the computer or in other words, we say nodes.
Uses of the Smart Contracts?
Smart contracts are not only used in any transaction. The financial transaction is one of the best use of these Contracts. We can use Smart Contracts for any transactions like services, legal processes and much more.
Use of the Smart Contracts in the various Industries
Let’s understand how smart contracts use in the insurance industry. Let’s take an example of an insurance company named X and air services company Y. They have the intelligent Contract like if the flight does not reach on time, then X will pay to the Y and vice-versa. J
The best use of the smart Contract will be in the health industry as its possible to control the expenses through the Smart Contract. The hospitals can agree with the patients by using the smart Contract. It will help in saving time, and also, the changes in fraud from both sides can reduce.
It is possible for the government also to do the agreement with the private, public or any country through the Smart Contract. It saves a lot of time and efforts. We can also use the voting systems through smart contracts as they will be transparent and trustworthy. Smart contracts are the very secure and transparent online solution for any problem.
There are also many applications which is using blockchain technology. FollowMyVote is one of them. This technology uses the blockchain and helps to prevent voter’s fraud. When the voting transactions are written by using the blockchain transaction, it cannot be changed so that according to the Smart Contract, we will get the winner through fair means only.
There will be the massive benefit of the Smart Contract if every business uses this. We can use the innovative contract system instead of the payroll.
As we see from the number of examples of how we can say time and effort using blockchain technology. There is also the scope of inventing several future applications using blockchain technology. If in future, every industry will use the concept of the smart Contract, then there will be no need for intermediaries, and it will help to save time and efforts.
Smart Contracts will make the world the best place to live in as they will reduce fraud, cheat, trust issues, and control expenses. It is possible to use this technology to develop the number of applications that can create several jobs and help deal with the unemployment problem worldwide. Suppose the concept of the smart Contract will implicate every domain, then its possible to control the cost of production also. It is highly recommended to use the Smart Contract whenever any agreement needs to be done between them. If you also want to develop such excellent applications, it is better to earn Ethereum certification, and the best institute is the Blockchain Council for the same.