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Smart Contracts: When contracts are made between computers

Smart contracts are becoming increasingly popular. The Internet has made it possible for not only people but also devices to communicate with each other. These links and data that arise form the basis for so-called smart contracts, i.e. “reified” or “intelligent” contracts. Smart Contracts are therefore computer protocols. They map contracts, support the execution of a contract technically or review the negotiations that ultimately lead to the conclusion of the contract. As a result of the Smart Contracts, it may become superfluous to additionally fix the contract in writing.

Examples of Smart Contracts
The History of Smart Contracts
The replicated title and contract execution for Smart Contracts
Smart Contracts in everyday life
An example of practical implementation

Important: the reliability of Bitcoin Code

This is because Smart Contracts usually a Bitcoin Code review also have a user interface, which in a sense represents a connection between man and machine. Furthermore, Smart Contracts provide technical security for the logic of the contractual regulations. Proponents of this new technology believe it is possible that many types of contractual clauses can now be implemented and enforced in whole or in part. Compared to traditional contract law, Smart Contracts offer a higher degree of contractual security, while at the same time transaction costs are at a significantly lower level.

Examples of Smart Contracts an Bitcoin Revolution

In the area of digital rights management, for example, it is possible that the copyright licenses are mapped by these protocols; in the financial area, the transactions can be mapped. Furthermore, the user can use various quality of service mechanisms onlinebetrug such as token bucket algorithms or access control to map so-called service level agreements. This term refers to the agreements that a service provider has agreed with its client for recurring services. By precisely describing the scope of the services, the response time and the question of how quickly the processing takes place, the customer has a better possibility of control and possible discrepancies in the course of invoicing can be eliminated in advance.

Some peer-to-peer networks also require such mechanisms. The aim is to ensure that partners who are far apart contribute to the network to about the same extent as they benefit from it. Written contracts are not absolutely necessary in this case either.

The History of Smart Contracts

The term “Agoric Computing” was coined in the 1970s and 1980s. This term derives from the name of the central market, festival and meeting place of ancient Greek cities. Because court and popular assemblies were also held here, the Agora played a central role in community life. Agoric Computing fulfilled a similar function: It was used to map different market mechanisms such as resource management or auctions in one software. Today, public-key cryptography is used for this purpose, which represented a revolution for the previous possibilities: Thanks to the public-key infrastructure, it is possible to issue, distribute and verify digital certificates. The certificates generated within the corresponding infrastructure are used to secure computer-aided communication.
The computer scientist Nick Szabo finally coined the term Smart Contracts. He wanted to emphasize the close connection between highly developed contract law, related dispositions and the design of e-commerce protocols. He was inspired by researchers such as cryptologist David Chaum, who is considered to be the inventor of various cryptographic protocols and also had a decisive influence on the further development of various electronic means of payment. Nick Szabo had expected that specifications based on clear logic and verification based on cryptographic protocols could also be significantly improved in traditional areas of application in order to achieve other digital security measures compared to conventional contract law.

Bitcoin Core 0.16.0 released | New features

The Bitcoin Core Wallet is now in the 16th generation of the original software, which was launched by Satoshi Nakamoto just over nine years ago. The latest version was developed under the direction of Vladimir van der Laan and over 100 contributors in five months.

The Bitcoin Core 0.16.0 contains several improvements, as is usual for new releases. Performance has been improved, bugs fixed and other optimizations made. But the most important change is that the Bitcoin Core 0.16.0 now provides users with Segregated Witnesses (SegWit). Most people have been waiting for this change. Read more about the changes here.

SegWit is displayed in the Wallet interface

Segregated Witness, the most important Bitcoin protocol upgrade from 2017, is now the “standard” for the new Wallet.

SegWit offers some advantages and changes for the user. For example, SegWit uses block weight instead of block size, allowing blocks to grow up to four megabytes, allowing more transactions for the network.

Segregated Witness was already implemented in Bitcoin Core 0.13.1 in October 2016, but the upgrade was not activated until August 2017. Although almost a year passed, the Bitcoin Core 0.16.0 is the first core wallet that users can use to generate SegWit addresses. If the utilization of the Bitcoin network remains as it is now, SegWit should result in less fees to be paid.

Bech32: New look for bitcoin addresses

A new format – called “bech32” – has been added to SegWit for bitcoin addresses. This format was developed by former Blockstream CTO Gregory Maxwell and Blockstream developer Dr. Pieter Wuille. Bitcoin addresses started/started with a 1 (initial bitcoin address) or a 3 (Segwit address), with “bech32” they start with “bc1”.

Bech32 addresses use fewer characters than current addresses and there is no longer any distinction between upper and lower case, which is of particular benefit to the end user.

However, not all Bitcoin Wallets support bitcoin addresses in bech32 format, so you have to choose between bech32 (bitcoin address with bc1) or P2SH (bitcoin address with a 3) format. You can send the bitcoins with the Bitcoin Core 0.16.0 to all addresses.