Smart contracts for dummies

  • Posted by: Zulu X
  • Category: Uses of Blockchain Technology
Smart contracts for dummies

Excuse the title, it was done to appease the search engine optimization team lead. The term SEO was foreign to most a decade ago but today, most people have a reasonable understanding of its impact, costs, and applications. The same can be said of smart contracts today. Though it is not possible to be Master of all trades, to exist today we will have to be a Jack of many to maintain a reasonable competitive edge in society and the job market.

A smart contract is simply a digital version of a normal contract. As a contract is written in a language that both parties can understand outlining rights, responsibilities, and remedies, smart contract endeavors to accomplish the same.  Smart contracts will outline the responsibilities of one party and rights due upon the successful completion of a task. The authentication of a task being successfully completed will sit with the Oracle. This can be anything that both parties agree can accurately authenticate real-world occurrences. For example, if your employment contract was a smart contract, your salary could be paid based on you clocking card with your fingerprint when you enter and leave the office with the fingerprint reader acting as an oracle.

As we progress with greater levels of decentralized workforce’s, oracle authenticators could take the form of a camera recording that you are at your computer and you are working on what you are being paid for. Ideally, these smart contracts will work best on very higher volumes of transactions where society can accumulate insignificantly small quantities of resources efficiently in a larger, ultra-significant resource. Any developing world internet café entrepreneur can show that renting out a Celeron or i3 power computer can be profitable. A supercomputer customer might have the need for immense computing power but that need is only for a short period for such uniquely large computing power. As in the case of Avatar the movie, the Weta Digital supercomputer was used intensively for a month which 40 000 processors strong. Smart contracts will eventually allow large tasks, like the rendering of Avatar, to be broken up into several million little tasks to be performed by 100s of thousands of computers whilst they are inactive either at night or during periods of inactivity. This will allow projects to be completed faster as larger numbers of resources can be pooled at far cheaper costs, allowing asset owners to sweat those assets further than previously possible.

 

References

https://golem.network/use-cases/
https://www.geek.com/chips/the-computing-power-that-created-avatar-1031232/
https://blockchainhub.net/blockchain-oracles/

 

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