Smart contract is the name of a computer code created to organize the exchange of money, content, property, shares or some other value. Since a smart contract is performed on top of the blockbuster, it works exactly as programmed – there is no censorship, fraud or third party intervention.
Subtleties of work of Ethereum online system
Ethereum is a platform for application developers, built on decentralized blockchain technology. For some people, phrases about cryptocurrencies and block-book are automatically associated with the most popular development on blockbine – Bitcoin cryptocurrency. However, blockchain is not Bitcoin, as Ethereum has completely different goals.
Blocking Etherium is, in essence, a transaction state system. In computer science, such a concept as a “system of states” or “state machine” is a system that processes input information and, on the basis of latter, is transformed into a new state.
At first glance, bitcoin and ether seem to be identical. But even though both crypts are built on block, they do not have much in common. Practical purposes of using Ethereum platform by any company or user, which were announced in 2013, are completely different.
The main practical goal of bitcoin is an anonymous, decentralized means of performing payment transactions that are irreversible and open to all network members. Blockade of bitcoin is used only for one purpose – to record information about all transactions that have ever been conducted on network and current ownership rights.
In blockbuster of Etherium, information about software codes is recorded and all decentralized applications developed on Etherium are maintained.