What is a Smart Contract?
Functions implemented inside of Smart Contracts
The ASSEMBLE Protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers and merchants.
We’re pretty sure that our beloved readers are fully aware of the features and functionalities of Smart Contracts, but we wanted to provide a Smart Contract 101 post for those who do not possess knowledge about them. Also, we highlighted the use cases for smart contracts inside of the ASSEMBLE Protocol.
Smart Contract
According to Investopedia, a smart contract is a self-executing contract that has the terms of the agreement between the buyer and seller written directly into lines of code. The important thing about smart contracts is that they do not require human intervention. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.
What are the Pros?
Smart contracts do not need brokers or other intermediaries to confirm the agreement; thus, they eliminate the risk of manipulation by third parties. Moreover, the absence of intermediaries in smart contracts results in cost savings. Hence, the pros are:
- They’re executed quickly (Speed)
- Highly accurate
- The number of intermediaries can be reduced or eliminated.
- Costs will be reduced.
Smart Contract Use Cases
Initial Coin Offering (ICO): The most prominent use case of smart contracts is Initial Coin Offerings (ICO). ICOs are smart contracts that issue tokens without an intermediary. If token sales are carried out with smart contracts, token sales, token issuance, and other data can be transparently disclosed.
Car sharing: US car-sharing companies Lyft and Uber register vehicles based on the IoT. They automatically track how popular certain vehicles are, where the vehicles are, and which vehicles are available through smart contracts.
ASSEMBLE’s Smart Contracts
Here’s the actual illustration of how ASSEMBLE utilizes smart contracts on its platform:
The image above is the execution process of the DApp. It interacts with local Ethereum nodes using RPC protocols via solidity code compiled locally or with Web3. It is finally deployed in the form of smart contracts based on pre-designed logic which cannot be changed.
