Blockchain technology is beginning to grow on several companies, the tech giants, small-scale and large-scale businesses, and every institution from Fintech to whatever, automobiles? Electronics? The urgency to build on this emerging technology is growing at a fast pace.
Looking back at the past industry takes on what crypto assets and blockchain could do to the financial system, 7 out of 10 comments point to the merits and robust solutions it brings to the table.
With irreversible transactions, avoiding double spending, and eliminating "intermediary" in financial contracts, we see it solve debit card flaws, the growing business space suffers from product forging hurting top brand names, blockchain tackles that with non-fungible data types, and for once, an actual solution for numerous system fraud could be deployed and activities controlled with technology so powerful yet free.
Smart Contracts for a smart living
What are smart contracts?
From Leoglossary
A smart contract is a self-executing agreement between two parties. Both the action of buyers and sellers are determined by the code that is in the contract. There are no external entities that are involved in the transactions.
Smart contracts are tied to blockchains. This is a vital part of Decentralized Finance since there is no need for any third-party involvement.
Before Ethereum, one couldn't dream of actually impacting the larger business network because there just wasn't the technology or tools to do so. With smart contracts, a specialty that allows building unstoppable financial products and executing diverse contracts with numerous trigger points, we can see a restructuring of financial settlements and an easing of the global working force.
In the crypto space we see it apply most in DeFi protocols, the biggest financial system there is to be in the coming years.
Decentralized Finance works because smart contracts work. Mastering the art of creating, growing, and distributing value become easier and easier. When a strategy is built into this, a bankless economy is developed.
Today the industry bust of a couple of billions in valuation, using the dollar as a unit of account and suggesting it stays hung on its current economic value, we can see DeFi growing into trillions if not more.
This is easy to speculate because we are not dealing with a "stand-alone" technology, this is something SBF has talked about from a "social media view" citing that they are just not interoperable applications and this is where things change with crypto assets and blockchain technology.
Built to communicate beyond the base layer
The beauty of blockchain with smart contracts is that they can communicate beyond its base layer network. This is why the growing business space will be robust, interoperability plays a crucial role.
Do you know how a sidechain works with a native blockchain? The ability of a smart contract to read the transaction history of another network and facilitate transactions on the current network is an example of how things are going.
Smart contracts can communicate with diverse on-chain protocols and with the help of blockchain oracles, they can communicate with off-chain networks. The ability to seamlessly interact, read and execute transactions following commands from wherever that meets the base program will greatly impact the nature of future financial products and how transactions or contracts are being settled between two parties of individuals or organizations.
Thank you and please leave a comment, your thoughts matter to me
Posted Using LeoFinance Beta
