Smart contracts are self-executing contractual states, stored on the blockchain, which nobody controls and thus everyone can trust. They make transactions and other contractual arrangements enforceable by software. Take a look at the infographic for the detailed list of smart contracts features.

-
The purpose of this blog article is to discuss with you 2 main objectives of smart contracts; firstly, we'll look at what are the features that enable smart contracts to act and behave like real contracts.
The concept of smart contracts was first introduced by Nick Szabo in 1994. He described the concept of a smart contract as "a set of promises, specified in digital form, including protocols within which the parties perform on these promises." A Smart Contract is basically a computerized transaction protocol that allows for the performance and enforcement of a contract. This is distinguished from an ordinary contract by the fact that it consists of a computer-readable code rather than mere text.
A smart contract is a form of computer code that records and enforces the terms of an agreement between two parties. 
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.Smart contracts will make applications much easier to create. You don't need to hire programmers or lawyers, it's like having your own little legal system behind your application. A smart contract is not a real (physical) contract. It is basically a small computer program that is stored in an Ethereum blockchain, in other words on the cloud. The code of the smart contract is executed by the Ethereum Virtual Machine (EVM) which simulates a Turing machine. Smart contracts allow for the automation of complex transactions and can operate without the need for intermediaries such as lawyers or notaries.
Smart contracts are typically stored on a blockchain, which is a distributed ledger that records all transactions in a secure and transparent manner. Because of their ability to self-execute, smart contracts are often used in decentralized applications, or dApps, which are applications that run on a blockchain network.
Smart contracts can be used to automate a wide range of transactions, including financial transactions, supply chain management, and even voting systems. For example, a smart contract could be used to automatically transfer funds between parties when certain conditions are met, such as the completion of a project or the delivery of goods.
Additionally, by using cryptography, these contracts can be made immutable, meaning they cannot be altered or deleted once deployed. Smart contracts are also cost effective as the use of intermediaries is eliminated, resulting in faster execution times compared to traditional methods.
These applications offer increased reliability and security due to their distributed nature making them more resistant to manipulation or fraud.
However, smart contracts are still a relatively new technology and there are some potential risks and limitations to consider, such as the potential for bugs or vulnerabilities in the code, the need for a reliable and secure blockchain network, and the lack of legal clarity and regulation in some jurisdictions.


Smart contracts can include a self-destruct function that allows the contract to be destroyed or removed from the blockchain. This function can be useful in situations where the contract is no longer needed, or in cases where there is a serious vulnerability or flaw in the contract that cannot be fixed.
Note that the self-destruct function is typically controlled by the contract owner or administrator, and can only be used by someone with the necessary permissions and access to the contract. It's not something that can be easily triggered by a malicious actor or random individual.
That being said, smart contracts can be vulnerable to attacks and exploits, particularly if there are flaws in the contract code or if the contract has not been properly audited and tested. It's important for developers and contract owners to take measures to secure their contracts and minimize the risk of attack or exploitation.
In the context of liquidity pools, it's important for investors to carefully evaluate the smart contract code and security measures of the pool before providing liquidity. Investors should also be aware of the potential risks and should carefully consider their investment goals and risk tolerance before participating in a liquidity pool.
Randomly picking two wallets and trying to trigger the self-destruct function of a smart contract is not a good idea. In fact, attempting to exploit a smart contract in this way is likely to be considered a malicious attack and may be illegal.

Smart contracts are designed to automate transactions on the blockchain and to execute code in a secure and transparent manner. Attempting to exploit vulnerabilities in smart contracts or trigger the self-destruct function without proper authorization is a serious issue and can cause significant harm to investors and the blockchain ecosystem as a whole.
It's important for investors to do their own research and due diligence before participating in any investment opportunity or utilizing any blockchain platform. This includes evaluating the security measures and smart contract code of the platform or project in question, as well as considering the potential risks and rewards associated with the investment.

Comments

Post a Comment

Popular posts from this blog

Not all cryptocurrencies are Ponzi schemes

-
Image
A Ponzi scheme is a fraudulent investment scheme in which returns are paid to earlier investors using the capital invested by newer investors, rather than from profits earned by the scheme. The scheme is named after Charles Ponzi, who became infamous for using this method in the early 20th century. Ponzi schemes are typically marketed as legitimate investment opportunities with promises of high returns, but in reality, they are unsustainable and destined to collapse. As more investors join the scheme, the operator must use their funds to pay returns to earlier investors, creating a cycle of dependence on new investors to keep the scheme afloat. Ponzi schemes are illegal in most countries and are considered a form of fraud. They can cause significant financial losses to investors who may not realize they are participating in a fraudulent scheme until it's too late. It's important to thoroughly research any investment opportunity and be wary of promises of guaranteed
Read more

Hedge funds

-
Hedge funds are alternative investment vehicles that typically use a combination of long and short positions, leverage, and other advanced investment strategies to generate returns for their investors. Unlike traditional investment vehicles such as mutual funds, hedge funds are not subject to the same regulations and restrictions, and as a result, they are often able to employ a wider range of investment strategies and tactics. Hedge funds are typically structured as limited partnerships, and as a result, they are only available to a limited number of accredited investors, such as high net worth individuals, institutions, and pension funds. Because of their exclusive nature, hedge funds are often associated with higher risk and higher returns compared to traditional investments. Hedge fund managers employ a variety of strategies to generate returns, including long/short equity, event-driven, macro, and quantitative trading, among others. Some hedge funds also use leverage to amplify re
Read more

Moving Average Convergence Divergence MACD

-
Image
MACD stands for Moving Average Convergence Divergence, and it is a popular technical analysis indicator used to identify trends and potential buy and sell signals in financial markets. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. The result is the MACD line. A 9-day EMA of the MACD line is also plotted, called the signal line. When the MACD line crosses above the signal line, it is considered a bullish signal, indicating that it may be a good time to buy. Conversely, when the MACD line crosses below the signal line, it is considered a bearish signal, indicating that it may be a good time to sell. The MACD also includes a histogram that represents the difference between the MACD line and the signal line. When the MACD line is above the signal line, the histogram is positive and when the MACD line is below the signal line, the histogram is negative. The MACD can be used to detect different types of market movement. Dur
Read more