How Smart Contracts Mimic Business Rules

How Smart Contracts Mimic Business Rules

123 View

Publish Date:
June 14, 2021
Yield Farming
Video License
Standard License
Imported From:

Smart contracts are self-executing agreements consisting of the terms of a contract amongst peers. The smart contract performs on the Ethereum blockchain's decentralized platform. The arrangements facilitate the exchange of cash, shares, property, or any property. Given that the 2015 launch of the Ethereum blockchain, the term "smart contract" has actually been more specifically applied towards the idea of general function computation that occurs on a blockchain or distributed journal.

Subscribe to BEES.Social on Youtube

Thus, the smart contract transaction can be submitted to any node on the blockchain, which relays it to the entire network so that all the nodes will see the transaction. Utilizing a blockchain network, we can turn these agreements into executable programs-- understood in the industry as smart contracts-- to open up a variety of brand-new possibilities.

The neutrality and automation required of smart contracts can run contrary to how business celebrations in fact work out arrangements. Throughout the course of negotiations, parties implicitly take part in a cost-benefit analysis, knowing that eventually there are lessening returns in attempting to consider, and address, every imaginable possibility.

It allows blockchain designers to check the program at runtime rather than compile-time. While the smart contract code is installed inside a chaincode bundle on an organizations peers, channel members can only perform a smart contract after the chaincode has been specified on a channel.

The smart contracts inside the chaincode can then be executed by channel members, based on the recommendation policy specified in the chaincode definition. Smart contracts enable relied on agreements and deals to be undertaken among distinct confidential celebrations without requiring a legal system, external enforcement, or a main authority.

Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary's involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.

Smart contracts work by following simple “if/when…then…” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified. These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. That means the transaction cannot be changed, and only parties who have been granted permission can see the results.

Within a smart contract, there can be as many stipulations as needed to satisfy the participants that the task will be completed satisfactorily. To establish the terms, participants must determine how transactions and their data are represented on the blockchain, agree on the “if/when...then…” rules that govern those transactions, explore all possible exceptions, and define a framework for resolving disputes.

Then the smart contract can be programmed by a developer – although increasingly, organizations that use blockchain for business provide templates, web interfaces, and other online tools to simplify


Who is BEES.Social
"We are a community of retail investors that are educating themselves, supporting others, and profiting from cryptocurrency investing. We're normal people seeking to take control of our personal finances... we are growing significantly, by inviting friends and family to join us and learn about the cryptocurrency ecosystem."

Why BEES.Social
"We are not an investment group, nor are we day-traders... as a community we recognize that effective communication, respect, transparency and sharing of information builds a strong community... to that end, we are a group that has invited friends and family to participate, so we can grow together..."

BEES.Social is the #1 Crypto Education System in the World For Everyday People!

Subscribe to this BeesSocialTV

Learn more about DeFi Yield Farming Crypto

00:00 Blockchain Smart Contracts Explained
00:11 What is a Smart Contract in Blockchain
07:05 Why Does Blockchain Need a Smart Contract
09:23 How Does a Blockchain Smart Contract Work
12:25 Who Controls a Blockchain
15:49 Which Blockchains Support Smart Contracts
16:36 Can Bitcoin Do Smart Contracts

Visit BEES.Social exchange to purchase crypto tokens

Learn more about crypto and DeFi

Watch On YouTube