✍Aenco Academy #11: What is a Smart Contract?✍
Educational essays sustaining the Aenco Community and Ecosystem
We all know what’s a contract and the reason we need them - to document a transaction or event in a form of a legally-binding agreement. In our digital age, people are learning to issue smart contracts Join us at ✍Aenco Academy #11 What is a Smart Contract? as we walk you through the kinds of crypto exchanges in the market.
✔ Q: What is Smart Contract?
A Smart Contract is a self-executed contract that records the terms and conditions of a transaction. It usually involves the buyer and seller’s information.The smart contract is ‘smart’ because it is driven by a computer program and the transaction becomes less dependent on intermediators, minimizing the risk
✔ Q: Who invented Smart Contract?
Nick Szabo, an American computer scientist who invented a virtual currency called “Bit Gold” in 1998, defined smart contracts as computerized transaction protocols that execute terms of a contract. A vending machine is said to be the oldest piece of technology equivalent to smart contract implementation.
✔ Q: Why do we need Smart Contract?
As a program that governs the transaction protocol of an agreement, a smart contract is expected to reduce the dependency on intermediators, thereby saving up costs on administration, documentation, as well as minimizing risks of intermediator-induced frauds and errors. It goes without saying that a smart contract saves more time and manpower than traditional agreements given it’s reliance mainly on computer programs.
✔ Other Thoughts:
Thanks to blockchain, smart contract is run on a decentralized atmosphere, meaning that all protocols and transaction records are marked on the chain of blocks and it is not likely to be hacked — since decentralized contracts are not controlled by one or several intermediators. We hope you enjoyed the simple digestive piece and we look forward to engage further on any fintech topics!
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