Introduction To Smart Contracts

What are smart contracts? We know that the world of Bitcoin and all its technology is very wide.

Bitcoin is usually referred to as the Bitcoin protocol and has the background of being widely reliable due to the block linking technology, that’s why this technology is proposed to be used for smart contracts as well.

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Introduction to smart contracts

At this moment there are already people and companies in different parts of the world who are studying the viability of projects of this type in which, for example, they are looking for their application to control the property of a legal entity.

That is to say when two or more partners join together to start a new venture, their participation is registered. For example, by assigning shares of the company to each of these partners.

The proposal is to use the technology that makes Bitcoin work to control this property and to make the registration and its control easier and even more reliable and transparent.

In this way, if someone wants to, for example, be assigned or sell part of their share, they would simply transfer their titles in the same way that today millions of people transfer Bitcoins from their portfolio to a recipient’s portfolio.

smart contracts

 

Smart real estate contracts

This is an interesting application, but the impact is already proposed to be much greater. For example, by extending the use of technology for the registration and control of properties such as real estate in a region or country.

In other words, the entire property registry in the vast majority of countries currently takes a long time.

Some parts of it have been digitized but in most cases the process is slow and in some countries, it depends heavily on a large amount of paperwork.

The proposal is that just as you have a complete record of all transactions that occur with Bitcoin, they are chained in blocks and so you have complete control of the ownership of these values.

So the idea is that you do the same with these public real estate records.

Again, simplifying the process as well as making it more reliable and transparent. This would impact the work of the notaries.

 

Smart contracts for elections

Another application that many times is raised by the different people who are very involved with the Bitcoin protocol and that is also supported by anyone who starts using Bitcoin and understand its ease and most of all its reliability and definitely something that many citizens from all countries would appreciate very much is to apply the concepts to the processes of electing a president and other government positions.

It is proposed that the votes of all citizens can be controlled in a natural and transparent way by using the technology of the chain of blocks and in this way avoid electoral frauds that in some occasions have come to happen, giving once again the power to the one who really belongs to it, that is to the citizens.

 

Conclusion

Other applications of the technology that has been developed for Bitcoin have been proposed and we have no doubt that new and better applications will continue to emerge but for now, the applications we have referred to are some of the most mentioned.

It is also important to note that practically all cases refer to improving and making transparent processes carried out by public institutions and not so much by private institutions.

In some cases, it would take away or reduce the power of governments, something that in many cases they do not want.

Read also: Blockchain Technology: The Value and Future of Blockchain

That’s why in some countries or maybe even where you are, there has been only news and comments or even official pronouncements that Bitcoin is harmful or we’ve even seen direct attacks and the usual rumor that it’s illegal or suspicious to use it.

These types of institutions and in general people who don’t like change have taken it upon themselves to spread these rumors because it is precisely not unpleasant that if Bitcoin and all the technology that makes it possible continues to grow, and comes to realize its full potential, it will somewhat reduce our powers that have been unjustifiably enjoyed for centuries and that have even at times allowed them to commit abuses to the detriment of society.

If you hear these kinds of attacks from Bitcoin as a means of payment or against their technology and protocol, it is because of this kind of retrograde ideology and not because Bitcoin was designed for illicit purposes or anything like that, but quite the opposite.

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