Blockchain, ICO and Ethererum Smart Contract Development Services
Like so many business ideas in the blockchain industry, a common confusion which is called 'smart contracts'. Yes….!
A new trending technology that made possible by the public blockchains, smart contracts are little tough to understand because it partly confuses the core connection described in blockchain technology.
What is Smart Contract?
While a common contract represents the term of a relationship which is usually one enforceable by law, but here a smart contract enforces a relationship with the cryptographic code.
Smart contracts were first proposed in 1994, the idea was originally explained by computer scientist and cryptographer Nick Szabo as a kind of digital vending machine. Yes, and he described how users could input data or value, and receive a finite item from a digital vending machine.
How smart contracts used in cryptocurrency marketplace?
In a simple & real time example, ETH users can transfer 10ETH to a friend on a certain time or date by using a smart contract. In this case, the user would create a digital contract, and push the data to that contract so that it could execute the desired command.
Ethereum is a crypto platform which can build especially for creating smart contracts. Yes…!
What is the business connection between ICO & Smart Contract?
Initial coin offering (ICO) now becomes the gold bot for entrepreneurs to raise funds and to release a new cryptocurrency into the blockchain technology. But in order to make a successful ICO and to negotiate the complexities, it should comply with two different smart contracts.
1. Token Smart contracts
2.Crowd selling smart contracts
The need for classification on smart contract system is to diminish the pitfalls and to prevent the entire ICO campaign from chaos.
SMART CONTRACTS - TOKEN CONTRACTS ON ETHEREUM
Token contracts define about the method of transferring the tokens and the methods of retrieving the balance amount for particular ethereum address. Aside from that, it also explores the number of associated tokens with an ethereum address. To transact the token between two ethereum addresses a request will be processed based on the written contract.
How to Build Standardized ICO — Smart Contracts Business?
ERC20 is a token standard which describes the functions that an ethereum token contract has to implement.
Why ERC20 to integrate into ICO — Smart contracts?
In general, a crypto token or digital token is virtually senseless. It will gain a specific value if the people start using it on other blockchain applications.
Notably, the applications are,
1. Cryptocurrency exchanges (bitstamp, bitfinex).
2. Altcoin or Etherum wallets.
3. Block chain explorers.
In order to make a token to contribute and interact with those applications, ERC20 was developed and implemented. So be sure whether your token smart contracts comply the above standard otherwise it will become a useless attribute in the etherum blockchain.
Bitdeal provides business software solution for smart contracts which underlies the ERC20 standard. Token smart contracts have the number of tokens and the owners name, but which part will explain the distribution/selling of the tokens? Wanna know more Book an Inquiry below!...