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

1
(No Transcript)
2
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.

N. Ameria
3
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.

N. Ameria

• 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.

4
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.
N. Ameria
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.
5
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..
N. Ameria
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.
6
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

N. Ameria
7
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

N. Ameria
8

• 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.

N. Ameria
9
Thank You
hello_at_espay.exchange
espay
Espay Exchange
Espayexchange