What is a Smart Contract?

One of the many uses of blockchain is Smart Contract, which is also one of our reason in choosing blockchain as our platform technology.

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A smart contract is a computer code running on top of a blockchain containing a set of rules under which the parties to that smart contract agree to interact with each other. If and when the pre-defined rules are met, the agreement is automatically enforced. The smart contract code facilitates, verifies, and enforces the negotiation or performance of an agreement or transaction. It is the simplest form of decentralized automation. It is a mechanism involving digital assets and two or more parties, where some or all of the parties deposit assets into the smart contract and the assets automatically get redistributed among those parties according to a formula based on certain data, which is not known at the time of contract initiation. Information source.

One of the best things about the blockchain is that, because it is a decentralized system that exists between all permitted parties, there’s no need to pay intermediaries (Middlemen) and it saves you time and conflict. Blockchains have their problems, but they are rated, undeniably, faster, cheaper, and more secure than traditional systems, which is why banks and governments are turning to them. Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman. Information source.

Smart contracts can:

  • Function as ‘multi-signature’ accounts, so that funds are spent only when a required percentage of people agree
  • Manage agreements between users, say, if one buys insurance from the other
  • Provide utility to other contracts (similar to how a software library works)
  • Store information about an application, such as domain registration information or membership records. 

With those being said, Smart Contract will be a perfect vehicle, that works to deliver the best result for both Entrade IO and all the related partners, donors, investors, energy producers, and consumers. To learn more on how blockchain and smart contract can push renewable energy technology forward, check out our social media channels or join our Telegram group!



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