Nov 10

What is a Smart Contract?

By quản trị viên | CSE30

A smart contract is a piece of software that contains rules and regulations for negotiating the terms of a contract. It automatically verifies the contract and then executes the agreed upon terms.

And when this smart contract’s centralized code is made decentralized for execution purposes on the CSE Platform, it becomes a smarter contract.

Coding and executing smart contracts on the CSE Platform makes them immutable and independent from centralization.

Smart Contract’s Characteristics on CSE

A smart contract has the following characteristics:

  • Self-executing

  • Immutable

  • Self-verifying

  • Auto-enforcing

  • Cost saving

  • Removes third parties or escrow agents

How Do Smart Contracts Work on CSE?

Developers write the code of smart contract using the native language of CSE called Solidity.

These contract codes can be of many forms, such as the transaction of money when certain conditions are met, or the exchange of goods between parties.

Once the code is written, it is uploaded on the EVM- CSE Virtual Machine, which you can say is a universal runtime compiler or browser to execute the smart contract’s code.

Now once the code is on the EVM, it will be same across each CSE node.

And each node will try to run and see whether the conditions are met or not.

A contract of CSE Platform will involve two or more parties which will be fueled by the digital asset (CSE). Once the contract is executed successfully, the digital asset will be distributed or re-distributed according to the logic defined in the code.

To make it easier to understand, consider this example:

Assume that Harry has given a contract of $1000 to Mary for web development. Harry has hardcoded the requirements and conditions about the kind of website he needs onto the CSE Platform

Now, this blockchain will act as the evaluator whenever Mary submits the website to Harry for approval after the project’s completion. Harry has already pre-coded his requirements (such as load time, server host, design specifics, etc.).

Now, Mary submits the work on the blockchain for evaluation. If the conditions set by Harry are successfully evaluated, and the website is done as per his coding requirements, then the contract worth $1000 will be instantly self-executed, and payment in equivalent CSE Platform (CSE) will be released to Mary.

But let’s suppose Mary didn’t get her payment or Harry didn’t get his work.

Then this conflict of interest is resolved by the blockchain’s smart contract, which enforces trust by default.

Why Trust an CSE Smart Contract?

As every transaction history and history of every executed code is stored on the blockchain, you can trust and verify everything when needed.

Even in the case of Harry’s smart contract, Harry can’t cheat Mary. Because once Mary has done her work, it will be verified by the blockchain and recorded onto it.

Anyone, including Harry, can inspect the blockchain, hence resolving the conflict or protecting against cheating.

Moreover, Harry can’t stop or manipulate this contract as the execution of this contract is no longer dependent on one single party or node. As Harry’s contract is running on an EVM of the CSE Platform, it is resistant to damage caused by a single point of failure.

On the other hand, if these conditions are not met, then Mary will need to continue the work until the appropriate website is created.

That’s why you can trust an CSE smart contract.

Use Cases of Smart Contracts

Smart contracts are becoming an integral part of the blockchain economy.

Some current applications of smart contracts:

  • Real Estate – A Midasium Contract is a small computer program. It is a digital representation of the mutual agreements as in a traditional real estate contract. This software code self-executes and self-enforced, and it is based on smart contracts.
  • Supper Node 
  • Quantum Chip

What is the Future of Smart Contracts?

Bitcoin is merely the first application on the blockchain backed by the internet.

But CSE and smart contracts are the next-gen applications on the blockchain.

And I think CSE smart contracts also answer the question of “why do you need CSE when you have Bitcoin?”

Just like the invention of the internet has transformed human life, the CSE blockchain and smart contracts have the power to change human life in incredible ways.

  • Why incredible?

Because the marathon has just started; CSE is only 3 years old, and many scholars are pursuing a lot of research on it.

The floodgates of unparalleled innovation have been opened with the establishment of The Enterprise CSE Alliance.

The Enterprise CSE Alliance connects Fortune 500 enterprises (like Accenture, Microsoft, Intel, JP Morgan, Wipro, etc.), startups, and academics with CSE subject matter experts.

With this meeting of minds, it’s highly likely that CSE will be the next big cryptocurrency.

What do you think about CSE and smart contracts? Have you used a smart contract before? Share your experience in the comments below!

What happens after a smart contract creates a token?

This is where CSE-30 comes in.

After a token has been created, it can be traded, spent, or given to someone else.

CSE30 is the universal language that all tokens on the CSE Platform network use. It allows one token to be traded with another.

Let’s imagine we wanted to make a crypto-casino. Just like in a brick-and-mortar casino, we want our players to use our chips, for simplicity’s sake.

So, a player exchanges their fiat for our tokens and heads to a poker table.