Smart contract is a computer protocol designed to spread, verify or execute contracts in an information-based way. Smart contracts allow trusted transactions without a third party, which are traceable and irreversible.
This concept was put forward by prolific interdisciplinary jurist Nick Szabo in 1995. Its definition is as follows:
A smart contract is a set of commitments defined in digital form, including the agreements on which contract participants can execute these commitments.
The numerical form means that the contract must be written into computer readable code. The rights and obligations established by a smart contract are executed by a computer or computer network.
A smart contract is a "computer transaction agreement that executes the terms of the contract".
All users on the blockchain can see blockchain based smart contracts
Smart contracts play a role in data execution and application in the blockchain,
Smart contracts not only define the rules and penalties of protocols in the same way as traditional contracts, but also automatically implement these obligations
Autonomy and cost saving - eliminate intermediaries and third parties, and you are the one who reaches an agreement; There is no need to rely on brokers, lawyers or other intermediaries to confirm. It also eliminates the danger of third-party manipulation because execution is automatically managed by the network. Smart contracts can save your money and eliminate intermediate costs
Trusted and secure data management (basic data).
Reduce errors and improve efficiency - Standardized contract templates help reduce errors. Using software code to automatically execute tasks can improve efficiency in all aspects.
With the blessing of human wisdom, smart contracts are almost omnipotent. We can take some examples as references and continue to expand in the process of implementation:
Based on the value of the subject matter, financial derivatives contracts are the company's tools to hedge investment or transaction risks, such as bulk commodity or currency risks. Value Gold can collect price information from multiple sources, integrate data, send it to smart contracts, send payment data for settlement, and automatically execute derivative contracts. Companies in the market usually delay payment as much as possible until the establishment of positions. Therefore, the use of super chain network smart contracts is very helpful to rebuild the trust relationship between counterparties.
Debt issuance before repayment is also an ideal way of short-term financing. Bond contracts can be written into automatic, trust free and decentralized smart contracts. The value gold net can be settled in public currency, and at the same time, it can eliminate counterparty risk, because various decentralized certified data (such as bank lending rate) will automatically trigger payment
The listing prices of assets on different exchanges are different, so it is necessary to summarize data from multiple sources to obtain an accurate price of an asset. The hyperlink network will provide sufficient data uplink services as resources for other smart contracts.
In a decentralized exchange, the funds are completely controlled by the user in the user wallet address or trading smart contract. When a user initiates a transaction, the exchange executes a smart contract to complete the transaction, and the asset transfer is completed on the chain. The transaction record is available on the chain and transparent. Achieve free allocation of resources.
Homogeneity token (FT), also known as token or translated as token, is a homogeneous token on the blockchain in a narrow sense, and its standard code is SRC-20. It can be used in various application scenarios such as equity, enterprise points, software usage days/times, user consumption points, game coupons, etc.
Non homogenous tokens can be understood as non interchangeable tokens. To put it simply, each Token is unique and cannot be exchanged. It can be used for copyright, specific property rights, game props, domain names, etc.