Smart Contracts revolutionized the way of changing ownership through the internet. A Smart Contract is basically a self-executing contract. It directly writes the terms of agreement between a buyer and a seller into lines of code. The codes that bind the agreement will then exist across a distributed, decentralized blockchain network. This trackable and irreversible technique eliminates the need for a central authority, legal system, or any mediatory.
As this is a more formal explanation about a Smart Contract, let’s look at some more information for better understanding. Right now, a Smart Contract is most commonly used for Non-Fungible Tokens(NFTs). So far, an NFT is a great example and one of the common current use cases of a Smart Contract. So let’s dive deeper into this.
A Smart Contract allows the buyer to be able to know they’re purchasing a specific entity of a digital item. For instance, if you’re going to buy a digital meme of something, you’d want to be the only person purchasing that specific copy of the meme. And this is where a Smart Contract comes into play. By executing a smart contract, it will let you own that portion of the blockchain. This ultimately ensures you the ownership for the copy of the digital meme that you just bought.
As you buy the digital meme and the smart contract is executed, the transaction will get written in lines of code. Therefore, in the actual blockchain definition, you now own that Non-fungible token.
For anyone that didn’t know, we’ve been working on a new project centering around smart contracts. For this, we’re building on top of Cardano. The Smart Contract in the Cardano blockchain is relatively new and exciting, thanks to Alonzo Fork, revealed on mid September, 2021. It now contributes to the ability of smart contracts to be built and used on Cardano.
The reason we chose this technology explains the possibilities of Cardano as a rising cryptocurrency. Cardano (ADA) is currently the fourth largest cryptocurrency being by volume. Cardano is a fascinating new currency with a lot of different reasons why it pushed through the ranks. One of the nice things is that Cardano allows transactions to be charged at a fraction of the cost of what Ethereum is costing.
This makes Cardano pretty similar to Ethereum, making it decentralized, anonymous, and secure, but at a much more inexpensive way. And here’s more reasons why Cardano is a winning currency!
While NFTs are the most popular use cases of smart contracts, there are a lot more opportunities coming down the pipe. For instance, you can even execute a real estate deal on a smart contract. Upon successful purchase and sale with Cardano, we can really set up the entire contract in lines of code for the successful real estate agreement.
Ultimately, smart contracts are opening up a lot of potential for things that we don’t want to lose ownership from. While a smart contract ensures your right to ownership, Cardano let’s you execute it easy and fast in a much cheaper way than many other mainstream currencies.
That winds up today’s piece of information. Thank you for sticking with me to the very end. We’re all excited for the opportunity that Cardano could carry into the future and the chance to build on top of Cardano. I hope it’s been some valuable time and information for you! And as always, keep your kids protected with CleanRouter and CleanPhone to monitor and keep them safe 🙂
If you’d like to learn more about the same, kindly check out this video:
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