I DO NOT PARTICIPATE IN PAID REVIEWS OR PROMOTIONS. IF YOU HAVE BEEN APPROACHED BY SOMEONE ON TELEGRAM CLAIMING TO BE A PART OF THE CRYPTO TIPS TEAM, THEY ARE SCAMMERS! Twitter: https://twitter.com/blockchainchick Instagram: https://ift.tt/2E5DrVi LBRY: https://ift.tt/36pu4eS Patreon: https://ift.tt/2UF864N Suggested Videos: Nick Szabo: https://youtu.be/0z83uXy29tY What Can I Do With Cryptocurrency?: https://youtu.be/yV1kZqtlixU How To Stake Your Coins the Smart Way: https://youtu.be/n66Iz2-1-6Y Your Intro into DeFi: https://youtu.be/mqdD_2rX4-0 LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW: Here’s a brief explanation for the beginnings of smart contracts and ETH: https://ift.tt/3dPVtdS Common situations where smart contracts can be used: https://ift.tt/2BJu22w Examples of platforms currently using smart contracts: https://ift.tt/2ZayLJa First introduced to the world by Nick Szabo in 1996. But the foundation that would ultimately allow smart contracts to function wouldn’t come to fruition until 13 years later on January 3, 2009. Yes I’m talking about Bitcoin and the subsequent blockchain technology with which it functions. Blockchain technology enables transactions to occur in an honest way, without a centralized third party needed to oversee and ultimately control and censor those transactions. Smart contracts add additional functionality to those peer to peer transactions. For example, blockchain technology enables me to make a transaction from me to you. A simple transaction with point A and point B, good old Alice and Bob. Smart contracts enable me to make a transaction from me to you with the added ability to set certain conditions that need to be satisfied first before the transaction is completed. Also, just like how blockchain tech has removed the middle man out of “simple” transactions, the implementation of smart contracts allow for the removal of centralized third parties from complicated transactions. This translates to improved efficiencies for both time and money. If you’ve been wondering why smart contracts seem to be synonymous with Ethereum, there’s a reason for that. Although Ethereum is no longer the only network who’s programming language allows for smart contracts, it was the first one that was built to specifically facilitate smart contracts. This idea, initially presented by programmer and publisher of Bitcoin Magazine, Vitalik Buterin got rejected in the Bitcoin community — the main reason being that Scrypt language was specially designed to lack those features for security reasons. The Bitcoin language is “Turing incomplete” by design, meaning developers don’t have all the complex operators and structures that exist in most of the other programming languages. Being Turing incomplete ensures that there’s less room for bugs in the code, making it more secure, but at the same time, less flexible. From that refusal, Vitalik Buterin wrote the white paper of Ethereum. A general-purpose blockchain with a “Turing complete” programming language called Solidity that allows developers to program a limitless amount of possible scenarios. Which explains why we have seen so many different dApps built on Ethereum and on these other smart contract focused blockchain networks like EOS, TRON. How smart contacts can still fail us: All smart contracts involve code, code that was created by humans and as such are subjected to their errors and this might result in the smart contract not always performing as intended. We have been seeing this play out within the DeFi space this year as the smart contracts used for the purposes of lending have been compromised and the funds were able to be siphoned off by hackers due to the loopholes found within the code. For those of you who have been around for a few years in this space, I probably don’t need to remind you about Ethereum’s DAO debacle which involved a loophole that enabled a hacker to siphon off millions of dollars worth of ETH, enough to prompt a contentious hard fork which resulted in Ethereum Classic. The attack vectors of these smart contracts are being identified either hackers and the bugs are being found by the users, over time these smart contracts will become more secure and robust but let me remind you yet again, this is what it looks like to be early. We get to witness the efforts put forth and the struggles that are encountered along the way.
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