Smart contracts

In this moment of great innovations across the web the most notable standing giant is the Web 3, many speak of it, few dare to question the challenge it solves and the opportunities it brings.

Smart contracts arising from this giant are what you ca fathom as not only reading and writing how the data flows but now also own what is digital and much more. The landscape seems too vast for an idea like owing above reading and writing to make such a difference until you realize that Web 3 in these terms has been predicated on writing and watching alone.

Since the first era of the blockchain, the so called Bitcoin era, we moved from the paradigm of sparse networks of very audacious innovators coming together to theorize and theory craft as all mathematicians do about models of every possible thing to what they call the Ethereum era that carries this time a strong sense of programmability.

So what arose from these differences that we now possess smart contracts? Now we are able as the new stage of the internet rises to program what has been left called by many “bitcoins” and how we do this is by possessing a new programming language and its virtual machine, the EVM.

This language , for the Ethereum network called Solidity allows to validate an exchange of assets, coins or goods for you to create what you needed lawyers and bureaucrats for and that is “the agreement to exchange” and in computer terms “save” that transaction on the blockchain, now famously the Ethereum L1 chain.

So how do these contracts work?

Two parties have a need to exchange, one of them, let’s suppose the party wanting to sell a token amount creates tokens that are programmed to validate that an exchange has occurred.

This contract now, being also a token now can possess an amount of tokens that holds in storage to send to the seller and a percentage of coins that can be withdrawn by the chain to lend a contract program execution its so called gas and some defined amounts withheld for both parties to respect the agreement.

The technology sounds complicated at first but this second era of blockchain lets you have many traditional web 2 technology interfaces that you wouldn’t have otherwise on innovative technologies and these include interfaces to code smart contracts online, websites that let you use their code for the most notable forms of smart contracts, otherwise coded from scratch and requiring programming knowledge.

Calculating the incognitas

Some of these websites already have indexes to value what are the most technology bound variables such as the retention for executing the smart contract, leaving you metaphorically hands free on exchanging your valuable assets and now also tokens.