Smart contacts is a revolutionary new aid that simplifies trade extremely. With smart contracts, you eliminate the hassle of a middleman.
In the past when it came to purchasing or trading of property, shares, large sums of money or anything that has great value, you would first need to approach a lawyer or a notary in order for you to get the legal documents to move forward with your forex or CFD trade. This would sometimes take days and in the end, you would pay the lawyer or a notary a sum of money as well. Now with the help of smart contracts, the whole process can be done fast and effective.
You only need to pay with data that holds value and provide the requested documentation and you are set to move forward with the transaction without even involving a middleman.
You could also use a whole host of other cryptocurrencies like monero XMR to facilitate the transaction. The difference between a normal contract is where the normal contract is written up based on legal terms and the relationship between the buyer and seller, the smart contract is completely enforced by cryptographic code. A more basic understanding would be to classify smart contracts as computerized programs that sole duty is to perform the tasks that they are designed to do.
In 1993, computer scientist and cryptographer Nick Szabo described the idea of smart contracts as a type of “virtual vending machine”. As one would put a coin into a vending machine and receive an item such as a cool drink or snack, smart contracts work the same way. You insert data that holds value and you receive an item of equivalent value. When smart contracts are involved, so would Ethereum Cryptocurrency usually be.
Ethereum is basically a unique decentralized internet and a decentralized app store.
Ethereum might not be actually owned by any party, there is still a price to pay. In order for Ethereum to be available, the network needs “ether”, “a unique piece of code that can be used to pay for the computational resources needed to run an application or program.” Ethereum was first developed in 2013 with the purpose to develop the nascent cryptocurrency technology.
They aimed to work on the concept of Bitcoin with more improved transaction speed and overall security. Just as Bitcoin can be described as a virtual asset, so can ether. So as established smart contacts are a type of digital contract, and to process these contracts requires ether. So think of ether as “fuel” for processing smart contracts, and with Ethereum, transaction fees are calculated based on how much “fuel” was used in the process.
There are many resources which can show you how to trade ethereum. One of Ethereum’s main benefits is their improved security. Ethereum allows the clients to be their own server. Where Bitcoin runs mainly of one server entity, they are more vunerable to hacking or security breaches. Ethereum’s servers have no downtime as well, even if the network is non-working, this is because records and transactions are saved constantly.
Ethereum, being the blockchain network behind the application, it’s certain that all transactions are executed as ordered, this ensuring that everything happens according to plan.