What Are Smart Contracts And How It IS Related To Trading - Espay Exchange - PowerPoint PPT Presentation

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What Are Smart Contracts And How It IS Related To Trading - Espay Exchange

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This is all you need to know about smart contracts. Smart contracts play a major role in the crypto world. After blockchain, smart contracts are going to change how the crypto world, as well as other industries, function. – PowerPoint PPT presentation

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Title: What Are Smart Contracts And How It IS Related To Trading - Espay Exchange


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Introduction
  • Do you know what smart contracts are? If yes, you
    might know how it is being used in major sectors
    like Finance, Healthcare, Real Estate,
    Automobile, Supply Chain, and Management. Even
    the Government is planning to use it for
    elections.
  • But it was first introduced in the crypto market.
    Do you know the technology behind crypto trading?
    The main technology is blockchain. But nowadays,
    trading platforms are using smart contracts to
    facilitate crypto trade.
  • White label cryptocurrency exchange uses smart
    contracts to facilitate crypto trade. Do you know
    how ICO tokens are created and sold? It is done
    by using smart contracts. It is safe to say that
    smart contracts have become a very important part
    of the crypto market and crypto trading.
  • Many people still dont have any idea about smart
    contracts. So in this post, we are going to help
    you understand what exactly smart contracts are.
    We are also going to discuss how it is reacted to
    trading in the crypto market.

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Smart Contracts
  • In technical terms, it is a computer protocol.
    This protocol works like a contract. It is like a
    digital contract. Do you know how a contract
    works? In a contract, two parties agree to
    certain terms and conditions. Once these
    conditions are met, the contract is executed.
  • Similarly, a smart contract is a computer program
    which works on the blockchain. Here the terms and
    conditions are written in codes. When the terms
    and conditions are fulfilled by both parties, the
    contract gets executed on its own. Once the
    contract is executed, it is updated across the
    blockchain network.
  • The idea was coined by Nick Szabo. He was a
    cryptographer. In 1994, he taught of using
    computer codes to write contracts and make it
    digital. However, it took 21 years for this idea
    to be implemented. In 2015, the first smart
    contract was developed. It was done by Vitalik
    Buterin. He is the founder of Ethereum.

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  • A smart contract basically can be understood with
    the help of these three terms.
  • Agreement It is an agreement between two
    parties. The agreement is in the form of a
    written code. It runs on the blockchain. These
    codes are stored in a public ledger, which
    everybody can see but cannot be changed.
  • Processing The blockchain network processes
    the transaction agreement. There is no third
    party or mediator involved.
  • Execution Once the conditions of the
    contract are met, it gets executed automatically.
    There is no one to stop or intervene.
  • If you still have doubts about smart contracts,
    this example will help you.

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Example
You have conducted an ICO. The smart contract is
made on Ethereum Blockchain. The smart contract
will contain an agreement between you and the
investors. Suppose you have 100,000 Tokens. Now,
you want to raise 1,000,000 Ether, so you need to
sell one token for 10 Ether. Now, you need to
create a smart contract which will help you to
transfer 1 Token for 10 Ether. The smart contract
will look like, WHEN the investor pays 10 Ether
to you, THEN he will get ownership of 1
token. As per the smart contract, when you
receive 10 Ether from an investor, he will
automatically receive one token. You dont need
to go to any lawyer to create an agreement. With
smart contracts, you can develop your own
contract. The mechanism behind smart contracts is
simple. Once the terms and conditions of the
contracts are met, it gets executed.
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Smart Contracts and Crypto Trading
Nowadays, people are starting to use smart
contracts for every sector and industry. But
smart contracts are mostly used in the crypto
world. Most of the white label crypto exchange
software is developed using the smart contract
and blockchain technology. After blockchain
technology, it is the second most adopted
technology. Here, we will show you how smart
contracts are related to crypto
trading. Crowdfunding We all are aware of the
crypto crowdfunding technique. If you want to
raise money for your business, the simplest way
to so is by using crypto crowdfunding techniques
like ICO, IEO, and STO. To do this, you need to
smart contracts. You can start your own project
using the blockchain technology. Now in order
to raise funds, you need to choose a blockchain
platform. Lets assume you are raising the money
through the Ethereum Platform. So first, you need
to create a token and then a smart contract to
sell the token to raise money.
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Now, lets say you want to raise 1,000,000 for
your project. The value of 1 Ether is 1000. So
you need 1000 Ether for your project. Now, if you
sell 10,000 tokens, you need to sell one toke for
0.1 Ether in order to raise 1000 Ether. 10,000 X
0.1 1000 Ether The smart contract will be
written as, IF 0.1 ETH is transferred to the
companys address, THEN 1 token will be sent to
the investors address who sent 0.1 ETH..
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Cryptocurrency Value
Smart contracts not only facilitate transactions
but also helps to provide value to
cryptocurrencies. It will help to attract more
people towards crypto trading. People are so used
to fiat currency that they seldom appreciate
cryptocurrency. People are risk-averse and tend
to stay away from crypto trading. But smart
contracts are changing that. It is a bridge. New
businesses are moving towards cryptocurrency
because of smart contracts. As well, all know
cryptocurrency has many applications. The fact
that smart contracts are created on the
blockchain, it can only accept cryptocurrency.
If you want to use smart contracts, you need to
use cryptocurrency as the payment medium. It does
not work for fiat currency. Because of this, many
sectors, industries, and companies have started
using cryptocurrency. Nowadays,
cryptocurrencies are used as payment options in
many business applications. People have become
more liberal towards crypto. Many people have
started investing and trading in crypto because
of this.
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Crypto Trading
  • When you use a decentralized platform for crypto
    trading, you can easily trade using the P2P
    trading service provided by them. For centralized
    trading development of smart contracts are not
    used. It only uses blockchain technology and is
    regulated. But decentralized platforms are
    different than centralized trading platforms.
    They use smart contracts to manage the
    transactions. As there is no authority, all the
    trading and transactions take place due to smart
    contacts.
  • You can directly enter into transactions with
    other people on this platform. Instead of keeping
    the funds with the exchanges, you can handle your
    own funds.
  • You can operate these funds however, you want
    without any interference. Binance is one of the
    most famous examples that adopted a decentralized
    platform. The main technology behind
    decentralized platform is smart contracts. Here
    are the advantages.
  • It is more secure
  • Lesser risk of manipulation
  • Independent
  • No regulators
  • Accessibility

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Ethereum
  • After Bitcoin, Ethereum is the second-largest
    cryptocurrency. The coin is known as Ether. It
    works as a coin as well as a platform from
    developing tokens. Many ICOs are conducted using
    this platform. It was launched in 2015. They use
    smart contracts which run on the blockchain
    technology. The first smart contract was
    developed by Ethereum. It also helps to develop
    decentralized applications that are known as
    DApps. These apps work on smart contracts.
  • Ethereum is a pioneer in smart contract
    development. If you want to raise an ICO, you can
    do it using this platform. Now, may other
    platforms are using the same technology.
  • Smart Contracts Development Platforms
  • Ethereum
  • NEM
  • Stellar
  • Waves

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  • Cryptocurrencies which can work on smart
    contracts
  • Ethereum
  • EOS
  • Cardano
  • Tezos
  • TRON
  • NEO
  • Ethereum Classic
  • This is all you need to know about smart
    contracts. Smart contracts play a major role in
    the crypto world. After blockchain, smart
    contracts are going to change how the crypto
    world, as well as other industries, function.
  • People are in favour of smart contracts because
    it is safe, accurate, speed, trustworthy,
    affordable and maintains privacy. If you want to
    develop a smart contract for your business, you
    can approach a smart contract development
    company. There are many reliable companies who
    offer this service.

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Thank You
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