WALLEX: ETHEREUM AND SMART CONTRACTS
What we don’t know yet can drive us smart
Ethereum and Ether.
(June 22, 2020) — Ethereum is a decentralized software platform running as an open-source on blockchain where developers can build, publish, and run any kind of distributed applications (DApps) that they can think of. According to its whitepaper, Ethereum can be used to “codify, decentralize, secure, and trade just about anything,” as it is empowered by a Turing-complete programming language, prominently featuring Smart Contracts.
Ether is its own cryptographic token being utilized to run applications within Ethereum, and which can also be traded as a digital currency exchange. Ethereum was proposed by Vitalik Buterin in 2013 and was launched in 2015 to improve on bitcoin and to enable digital transactions without any third-party interference, downtime, control, or fraud.
A 2019 market statistics revealed Ethereum to be the second-largest digital currency next to Bitcoin, with more ether circulating than bitcoin, which may be owed to the fact that it only takes 15 seconds to acquire ether currency as compared to bitcoin’s 10-minute wait.
Contracts can actually be encoded on any blockchain but the Ethereum blockchain is widely used due to its unlimited processing capability. It is called a contract because that simple code running on Ethereum can control things of value like ether (ETH) and other digital assets. This computer protocol can digitally facilitate, verify, and enforce the performance of a contract without expensive intermediaries such as a judge or a legal panel, thereby saving precious time, cost, and conflict. Blockchain, in general, aside from the security it guarantees, is now being seriously considered by traditional branches of governments, financial institutions, and other vital sectors of society.
The voting system is already hard to tamper with but, nonetheless, the more secure smart contracts provide ledger-protected votes that would almost be impossible to decode and excessive computing power to access. Obsolete vote-casting processes produce long lines due to hard-to-find precincts, proving identities, and completing forms. Smart contracts will make it possible for a surprisingly massive turnout via online vote transfer.
A distributed ledger that is accurate, transparent, and automated is a great source of trust with accompanying fluid communication and workflow. Traditional business operations can say goodbye to internal and external issues of paper trails going back and forth for approvals of which, inadvertent discrepancies can lead to expensive litigations and delays.
Automated tasks and payments will provide a digital and accessible version of contracts to all parties involved in the supply chain. Thus, eliminating the snail-paced flow of paper-based processing as it has to go through countless channels for physical stamps of approval. It will also trigger a newer version of the product in a lot less time since supplier payments are made fast.
In the Internet of Things, that is, everything becomes automated such as phones, lenses, cars, and what not, smart contracts will be the default transaction. Details in the history of smart cars from parking tickets to traffic violations to crashes can greatly help insurance companies to charge rates accordingly.
Brokers, real estate agents, lenders, and others involved in the real property investment business can gain more profit since smart contracts can cut significant costs by bypassing middlemen.
The blockchain can store encoded personal health records, including history receipts of surgeries and kept secure with a private key which can only be accessed by authorized specific personnel such as insurance providers. The ledger is useful, too, for general healthcare management like drug supervision, testing results, supply management, and regulation compliance. Medical research can be conducted confidentially through the ledger according to HIPAA laws.
Benefits of Smart Contracts.
The smart contract network’s automatic management saves the user from relying on lawyers or brokers or other intermediaries for confirmation. What is more, errors, manipulations, or biases from third parties are completely eliminated.
Documents are encrypted and run on distributed ledger technology where loss is an impossibility.
Blockchain documents are backed-up or duplicated in as many times that copies will always be available.
Encrypted websites are impossible to hack, giving the user the peace of mind that documents are safe and its storage is gravely challenging to decode or infiltrate.
Smart contracts utilize software codes for task automation, saving hours, and hours of precious business processing time.
Smart contracts eliminate the need for third parties, thereby saving money to pay for individuals or entities needed to witness or execute a traditional transaction.
Smart contracts live up to its name due to its accuracy of entries unlike the manual filling and filing of a bunch of paperwork.
Filling out the void not covered by Bitcoin, whose main line is for money and payment through the blockchain technology, the Ethereum economy’s concentration on applications in all its forms via the distributed Ethereum Virtual Machine with its built-in scripting language is proving to be another game-changer. Smart Contracts will be the choice of an increasingly legalistic culture long-suffering from want of speed and security. The use of its internal digital currency, ether, can run decentralized apps and the growing existence of decentralized autonomous organizations can present a value of infinite price.