How does Ethereum Smart Contract work? What are its characteristics?
Earlier, I have introduced Ethereum smart contract to you. Ethereum is the first platform to propose smart contract. So, how does Ethereum Smart Contract work? What are its characteristics? Next, let's have a look.
How does Ethereum Smart Contract work?
In the Ethereum system, smart contracts are the following work processes:
First of all, building a smart contract is equivalent to making an agreement that specifies the rights and obligations of both parties. However, this agreement must require the technology developer to carry out electronic programming and convert the text protocol into code that can be read by Ethereum. The code contains the conditions for enabling automatic contract execution.
Next, upload the contract to the Ethereum system, so that the P2P network can spread to each node, so that everyone knows the content and effectiveness of the contract, but it can not be modified.
Finally, the implementation of the smart contract. The Ethereum system can monitor the status of the smart contract in real time, activate and execute the contract after reviewing the external data source and confirming that the specific trigger conditions are met, without any interference from any central organization, to a large extent, ensuring the fairness and impartiality of the contract.
Smart contracts are particularly suitable for applications requiring high trust, security and sustainability, such as virtual currency, digital currency, voting, insurance, financial applications, forecasting markets, property ownership management, the Internet of Things, point-to-point transactions, and so on. For example, the popular cup quiz is a typical example. All kinds of prediction results and European claims of the event quiz are made into smart contracts and placed on the blockchain, so that anyone who has participated in the quiz will automatically distribute the relevant rewards to the participants according to the European claims as long as the game results are guessed correctly, and the participants can also query the implementation of the contract. The publicity of the whole stage reassures everyone, There will be no false guesses and roadblocks.
What are the characteristics of Ethereum smart contracts?
Ethereum smart contracts generally have the following characteristics:
Smart contracts are copied and distributed in all nodes of the Ethereum network, which is obviously different from other solutions based on centralized servers.
When the requirements are met, the smart contract only implements the operations designed in advance. In addition, the results are consistent regardless of any node implementation.
Smart contracts can automatically perform various tasks, just like programs. However, in most cases, if the smart contract is not opened, it will remain "dormant" and nothing will be done.
4. Tamper proof
Once deployed, smart contracts cannot be changed. Deletion can only be carried out when a specific function has been completed in advance. Therefore, it can be said that smart contracts can provide tamper proof programs.
Before deployment, smart contracts can be numbered in many different ways. Therefore, it can be used to build many different distributed applications (DApps). This is related to the characteristics of Ethereum's real Turing blockchain.
6. No need to trust
Two or more parties can interact through smart contracts without knowing each other or gaining trust. In addition, blockchain applications can ensure the accuracy of data.
Because the smart contract is based on the public blockchain, its source code is not only unchangeable, but also transparent to everyone.
Speaking of this, I believe you have a certain understanding of how the Ethereum smart contract works and its characteristics. In general, the development of blockchain will lead to the widespread use of smart contracts, which will bring some practical problems. For example, the contract is written by programmers, and the rigor of the contract depends on the level of programmers. Once the program has bugs, it may cause serious losses to users. However, it is believed that with the continuous improvement of blockchain applications, smart contracts will become more and more sound.