It has been nearly 10 years since the emergence of blockchain technology. Blockchain is essentially a distributed database, and bitcoin, the digital currency that accompanies it, has become a hot, high-value digital asset. From the beginning of the digital currency, the development to the present future Internet grassroots, also experienced a lot of iterations. For blockchain related system development, please contact Our consultant: Tel/ V: 138//2886//7935Copy the code

But the value of blockchain technology goes beyond digital currencies. It builds a decentralized, autonomous community. The financial field will become an important application field of blockchain technology, and blockchain technology will also become the key underlying basic technology of Internet finance.

The technology wasn’t perfect at first, but it has been iterating over the course of a decade, ready for commercialization.

So far, blockchain technology has been transitioning from 1.0 to 3.0.

The blockchain 1.0 era is known as the blockchain currency era. Represented by Bitcoin, it is mainly to solve the decentralized management of money and means of payment.

Blockchain 2.0 era, known as the era of blockchain contracts.

Represented by smart contracts, decentralize the entire Internet application market more broadly, rather than just the circulation of money. More digital assets can be converted using blockchain technology, thus creating value of digital assets.

Blockchain 3.0 era, known as the era of blockchain governance. It is an era of the combination of blockchain technology with the real economy and real industry. Chain accounting, smart contracts and real fields are combined to realize decentralized autonomy and give play to the value of blockchain.

At present, in the initial stage of blockchain 2.0, the key technology is the application of smart contract.

The origins of smart contracts

A contract is a contractual agreement that both parties have to abide by. For example, the savings card we set up in the bank to deduct water and electricity expenses is a kind of contract.

When certain conditions are met, such as when the gas company sends the monthly gas payment bill to the bank, the bank will transfer the corresponding fee from the account to the gas company as agreed.

If the account balance is insufficient, it will be alerted by means such as text messages. Long-term arrears will result in death. Different conditions trigger different processing results.

Smart contracts were born around 1993, long before blockchain technology. It was proposed in 1993 by computer scientist and crypto guru Nick Szabo, who published his 1994 paper “Smart Contracts”. Smart contracts are a set of promises defined in digital form, including agreements on which contract participants can enforce those promises. Smart contracts control the execution of contracts by digital means by writing the execution clauses and liability for breach of contract of both parties into software and hardware.

Features of smart contractsCopy the code

1. Automation: The smart contract can automatically execute the corresponding next transaction according to the trigger conditions, so that the conditions can be judged accurately and timely. Traditional contracts require manual judgment of trigger conditions, and are less efficient and accurate than smart contracts.

2. Subjective and objective dimension: Smart contract is suitable for the scene of objectivity request, while traditional contract is suitable for subjective judgment indicators. Subjective judgment indicators are difficult to be incorporated into automata for judgment, so it is difficult to execute the next transaction.

3. Cost: The cost of smart contract is low, and all judgment conditions, execution and disposal are automatically executed.

4. Execution time: Smart contract is pre-agreed and preventive execution mode, while traditional contract is post-execution.

5. Liability for breach of contract: Smart contracts have high cost of breach. Once breach occurs, digital assets, margin and other collateral will suffer losses.

6. Application scope: Smart contract technology can be adopted globally. Traditional contract is greatly affected by region, and legal and cultural factors in different regions will affect the execution process.

Essentially, smart contracts are like if-then statements in computer programming languages. Once a predefined condition is triggered, the contract is intelligently executed to exchange digital property.

Smart contracts have not been widely used because of the need for underlying protocols and the lack of digital systems and technologies that naturally support programmable contracts.

The emergence of blockchain, not only can support programmable contracts, but also has the advantages of decentralization, non-tampering, transparent and traceable process, so it is naturally suitable for smart contracts. Data cannot be deleted or modified, so there is no need to worry about the contents of the contract being tampered with. Contract execution is timely and effective, and there is no need to worry that the system will not execute the contract when conditions are met. At the same time, the whole network backup has a complete record, can achieve post-audit, trace history.

Block chain-related system development please contact source Rutan consultants VX/ communications consulting: 13828867935 Tencent Penguin: 1993018750 Address: Shenzhen Longhua District Minzhi Avenue 1079 Zhantuo Technology building A 15 / F for more details: tq.ruiec.comCopy the code