What are Smart Contracts? How Does BuddyDAO Smart Contract Work?

When it’s about Distributed Ledger Technologies, Smart Contracts comes first. While there are many elements of blockchain technology, smart contracts are one of the key concepts of Blockchain.

With ever-increasing applications and innovations in the DeFi space, it’s important to demystify some of the fundamental aspects. Let’s talk about Smart Contracts today!

What Is A Smart Contract?

The smart contacts come with a set of promises specified in digital format including the protocol.

Simply put, Smart Contracts are self-executing contracts enforced by cryptographic codes that offer a set of promises on predefined conditions that the parties have agreed to. Like regular contracts, smart contracts help enforce the terms of an agreement, whether it’s about an exchange of cryptocurrencies, tokenized rights, proof of identity, or practically anything else.

These contracts can be accessed through public blockchains. The ultimate goal of smart contracts is to enhance the verifiability, privity, observability, and enforceability of a contract.

What Can Smart Contracts Do?

Smart contracts have a huge scope. They can replace any agreement that needs a clear and traceable account. Think bank loans, supply chains, property sales, or even crowdfunding, smart contracts can automate tasks or the whole network.

Let’s take an example of a real-estate deal. Both the parties — the buyer and the seller can create a smart contract to automate the deal once the buyer has paid the property value to the seller.

With a traditional contract, an intermediary is required whereas in a Smart Contract, you can buy anything using cryptocurrency.

Smart contacts are definitely smart! Smart by their names, smart in nature!

Whether you wish to use them for selling a house or to raise crowdfunding for a project, they are always accurate and traceable which are also their highest key features why people trust them so much when making an online transaction. Smart contracts utilize the blockchain to leverage all its security advantages.

How Does BuddyDAO Use Smart Contracts?

The BuddyDAO smart contracts work with the Binance Smart Chain (BSC) and Chainlink chain to ensure all lending and borrowing functionalities on the platform work smoothly and efficiently.

All HTML pages including CSS and images that will be shown on the user’s browser will support the user to make smart contracts work efficiently. Additionally, users can call the wallet plugins to work with the BuddyDAO contract.

Other building blocks of BuddyDAO smart contracts will be -

• Price contract — It runs on the Chainlink chain to keep users updated with the latest price for the coin.
• BSC Dataseed service: In the ethernet, it is infura, and for BSC, it is a dataseed service provided by Binance.

Smart Contracts - The Future!

Smart contracts are becoming increasingly popular in the insurance field. More and more businesses are adapting and evolving with it. There’s no denying that successful businesses are open to bringing innovation to attract more attention.

Smart contracts are unlocking new ways to do business!

• They can open public registers that have previously been limited to officials.
• Private transactions can be done without requiring an intermediary.
• Disruptive fintech firms can easily interact with systemic financial infrastructure.

All of this means a revolutionary transformation we’re yet to witness!

With a large number of buyers and sellers entering the crypto space. The Smart contracts would freeze the cryptocurrency, in effect making a payment that the seller can’t spend until the buyer confirms receipt of the goods.

In an age where speed, transparency, and security are everything, smart contracts are standing out, and so does BuddyDAO with its smart approach!

To stay smart, visit BuddyDAO and spend wisely! Learn more here -

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