Thread by @0xViking

Well in the last thread of "WTF is" about ETHEREUM we said it pioneered the concept of a blockchain smart contract platform.

But have you ever wondered what is this "SMART CONTRACTS" is and what it does?

Lets dive into this "WTF is SMART CONTRACTS?" thread and learn more

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In simple words Smart contracts are translations of an agreement, including terms and conditions into a computational code.

- The term "SMART CONTRACT" was coined by a well-known computer scientist, law scholar & cryptographer Nick Szabo( @NickSzabo4 ) in early 1990's.

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@NickSzabo4 - It is a piece of code that can be executed automatically in a deterministic way

- Usually stored and executed on the blockchain

- Smart contracts can store, send and receive crypto currency

- Even call other smart contracts

- Smart contracts once deployed are immutale

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@NickSzabo4 - In Ethereum smart contracts are written in @solidity_lang created specifically for this

- As of now Ethereum is the most famous general-purpose smart contract platform

- There are many other platforms like Cardano, Tezos, Solana, EOS etc., with different charecteristics

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@NickSzabo4 @solidity_lang Usecases of Smart Contracts:

- Banking & Financial Services - DeFi Dapps
- Digital Identity
- Organizations - DAO's
- Tokenization(Including NFT's)
- Initial Coin Offerings - ICO
- Legal Applications
- Games
- Crowdfunding

5/

@NickSzabo4 @solidity_lang Few Risks:

- Common to every other software "BUGS"
* The DAOHACK which resulted in exploiting 3.6 million Ether
* Parity’s Multi-signature Wallet Hack worth 150,000 Ether
* Parity User-Triggered Wallet Freeze "freezing more than 513,774 ETH"

- Regulations & Tax

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@NickSzabo4 @solidity_lang As there are both positives and negatives for every product, here it is for smart contracts:

* But majority of problems are solvable over time.

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@NickSzabo4 @solidity_lang If you are a developer take advantage of the technology, be part of the revolution and develop something which will change the way we use it now.

If you are a normal person, be ready to expereince the ride which is going to change everything the way we use in near future.

8/

@NickSzabo4 @solidity_lang That brings an end to the pretty short thread on Smart Contracts. I hope it is clear and useful.

Here are further Resources:

by @WhiteboardCryp1
by @finematics
by @Savjee

&

ethereum.org/en/smart-contr…

9/

@NickSzabo4 @solidity_lang @WhiteboardCryp1 @finematics @Savjee Thank you for reading it till here.

I am a budding developer in web3, Started #21DaysOfLearnandShare to learn more and share.

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Thanks again
0xViking