In 1994, Nick Szabo, a legal scholar, and cryptographer realized that the decentralized ledger could be used for smart contracts, otherwise called self-executing contracts, blockchain contracts, or digital contracts. In this format, contracts could be converted to computer code, stored and replicated on the system and supervised by the network of computers that run the blockchain. This would also result in ledger feedback such as transferring money and receiving the product or service.
Smart contracts are far from perfect.
- What if bugs get in the code? Or
- how should governments regulate such contracts? Or,
- how would governments tax these smart contract transactions?
- What happens if I send the wrong code, or,
as lawyer Bill Marino points out, I send the right code, but my apartment is condemned (i.e., taken for public use without my consent) before the rental date arrives? If this were the traditional contract, I could rescind it in court, but the blockchain is a different situation. The contract performs, no matter what.
The list of challenges goes on and on. Experts are trying to unravel them, but these critical issues do dissuade potential adopters from signing on.
Ethereum: ethereum is a public blockchain platform that PXCGhost (currently ETH 2.0) runs on as our chosen platform and is the most advanced for coding and processing smart contracts. You can code whatever you wish but would have to pay for computing power with “ETH” tokens, this where we step in to provide a commercial single wrapper to get started quicker and more securely, focus on the business and we will focus on the network for connecting the apps to a secure, predictable network. PXCGhost is the only peering exchange that has built a reputation table to remove all the risks and give you all the facilities to develop your business whilst reducing the costs of IPR, Legal and engagement with customers.
As to the potential of smart contracts itself, there’s no end to the range of industries it can impact, from healthcare to automobiles to real estate and law. The list goes on and on. Indeed that list has just now expanded into tracking costs of a network connection utilising AR/VR interconnects, the future is very bright.
To quote, ethereum CTO, Gavin Wood
“The potential for [smart contracts] to alter aspects of society is of significant magnitude. This is something that would provide a technical basis for all sorts of social changes, and I find that exciting.”