What is a Smart Contract?

What is a smart contract / smart contracts?
A smart contract is code, and it is called smart because it can often do the tasks itself.

The contract is called a contract because it implements agreements and procedures between people.

This idea is credited to Nick Suzabo, who proposed it since the 1990s, arguably the beginning of the modern decade.

For example, the user performs a simple contract with the machine, where he enters the currency and provides him with the product he wants to get.

In a simpler form, a statement can be written in this code and it will be sent to the address of the contract after doing what is programmed as a salutation.

Here, we note that the developer alone has the authority for his smart contract, and others cannot delete it if there is a condition he specified.

In addition, each nodes contains an address that can only be interacted with by sending it to two first.

Idiomatically define a smart contract:
Well, we can define a Smart Contract as a developer program that runs on the blockchain. Often, this is done in the form of a digital agreement, defined by a set of databases, according to the codes whose tasks are to copy and send them to the connected networks and computers.

Smart Contract / Smart Contract Features:
Pre-established trusted communication protocol: both parties can directly provide data over the blockchain without getting to know each other.
In the event of non-compliance with the terms of the agreement stipulated by one of the parties, the smart contract will not take place.
No middlemen needed.
It costs less.
These many advantages, especially in keeping with blockchain technology, have made it very popular among investors and recent entrants.

Vitalik Buterin’s Smart Contract Optimization Intervention:
It is also worth noting that the Russian founder of the Ethereum base, Vitalik Buterin, may indirectly intervene in the improvement of the Smart Contract through Ethereum programming, so to speak, because Ethereum provides many ways to implement contracts.

How about deleting or changing a smart contract?
It is impossible to add secondary or new posts after it is published on the network.

On the other hand, there is a special service, SELFDESTRUCT, which enables the future contract to be changed to another contract. That is, substitution is possible, but deletion is not.

Smart Contract Upgrade:
There are smart contracts, and they are scalable and upgradeable, and vary among themselves according to their complexity.

For example, imagine that we have two nodes A and B, the smart contract A is divided into mini-contracts, the A contract is already designed to be unmodifiable in any form systemically, while the B contract is in turn designed to be replaced by a new third contract,

Let’s say it’s contract C.

If the upgrade is in the extent of the contract’s ability to evolve and change, and this is what legitimizes its description as one of the smart systems, and of course many people have benefited from these upgrades, in the event of the “failure” of their contracts, or rather their plans.

Examples of systems that a smart contract is compatible with:
There are many systems with which the smart contract is compatible with multiple cases of its use, including but not limited to:

digital wallet systems
voting systems
Trading platforms
mobile phone system
gaming system

Cons of the Smart Contract:
We will not forget to remind you, dear learner, of a set of limitations and shortcomings, including:

Risks of Gaps and Errors: Limitations may not be programmed by a professional developer.
Difficulty of change: the inability to make modifications in exchange for replacement is not always a good “protection” characteristic, quite the contrary.
With fixed smart contracts, hacks and attacks may not be repaired due to the non-code change mechanism, you can imagine the damage!
Smart contracts may not comply with some laws of a country, such as if one of the parties is under the legal age.
With the last negative, we can note that some brokers may cancel their responsibility for this, and we note with the third negative, that hacks may cause damage and certainly material losses. Encryption is beautiful and important, but too much of it causes trouble, it’s like closing a door with too many locks in the name of excessive fear and you’re stuck inside forever!

As for the second negative, we see that this technology, which does not allow modifications, causes inconvenience, despite the many advantages: (transparency, lower costs…) causes inconvenience.

With the second negative, it can be said that high-complexity technology is really very interesting but makes us question the data we’re putting in. Of course, the party is not obliged to put its real identity and real name to conduct a smart contract, but, it makes us ask about “information integrity” despite that!

With the first negative, we have historically noticed that there are hacker developers who are more professional than the developers of the code or the programmed systems themselves, and they discover their vulnerabilities.

In recent years, the rates of hacking have increased, making social media companies, for example, Facebook, for example, resorting to developing more self-protection for their applications.