Smart contract is a code that carries out a number of directions. Decentralized applications or Dapps combine these smart contracts and make them usable for interaction.

Is there a person today who has not used an application and visited an application store?We do not think so! Whenever we need something we search, find and download the application we need.

Behind the stunning interfaces UI and UX, the applications are playing out a particular arrangement of directions as set up by the founder. It can be a schedule, game or an option to purchase merchandise and services.

Smart contracts fundamentally act in the same capacity.

These contracts are represented in a form of a code that is intended to execute a set of guidelines.

What is different is the non existence of middlemen. Unlike the case with the apps, here we do not have a company that takes and verifies the information, but this is performed by the blockchain.

Many people claim that this is what the future holds for blockchain. The smart contracts are resources that are essentially required for running the world of business.

Detailed Look of Smart Contracts

Let’s say you want to purchase a vehicle but you do not have this contract. This is what you have to do:

📇 A page that lists data about a particular type of vehicles you would like to purchase

📯 The communication channel with the traders

🤑 System for paying that enables you to transfer the money after you made your decision

💳 Possible refund options in case something goes not as planned

👨‍⚖️ Finally you will have to register this type of transaction for transfer of possession with the governing bodies

For the entire process to be successful you should rely on the page you are using for the purchase and more than often separate individuals or companies supervise different part of the procedure.

Unfortunately it is very easy to make the process non legally binding at any of its stages for a dishonest person or devious company.

So this is where smart contracts come. They basically remove the requirement people to rely on the honesty of the site in the purchase process.

What are smart contracts like:

🔒Reliable – change of records is not possible due to cryptography.

🔍Explicit – It is evident what smart contracts represent and which are their uses on the blockchain.

🙏Direct – The blockchain  confirm all the info as a smart contract does not require a middleman.

🤖 Independent – These contracts operate automatically.

✅ Exact – the exactness of the contracts come from their code language so there is no chance of misunderstanding due to wording.

In case this occurs follow this step

Smart Contracts are actually based on mechanism expressed as code that states – in case this occurs the step that you should undertake is this.

This is possible nowadays. Let’s take this scenario as an example: You just purchased something and would like to use your credit card for the purchase. The bank software will send a message with meaning ‘in case this occurs the step that you should undertake is this’ as follows:

💸If the sum on your balance is bigger than the asked one, you should release the assets

🙅‍♀️ 💵If the sum on your balance is less than the asked one, you should not release the assets

What is the role of the smart contract in this case is, rather than a bank (or any other intermediary) being the controller of the choice now the controller is the blockchain.

If we take the above model and apply it in the case of smart contracts based on a blockchain this is what we get:

💸If the sum in the electronic wallet is bigger and not spent until now, you should release the assets.

🙅‍♀️ 💵If the sum in the electronic wallet is smaller, or is spent until now, you should not release the assets.

The good thing with these contracts is the opportunity for every individual to conclude a contract with another individual and while blockchain is tracking the entire thing.

What’s up with the Dapps?

Decentralized Applications are best defined as a package of different types of smart contracts.

For each transaction there is a need for one separate smart contract. The decentralized applications combine a number of smart contracts and thus enable them to perform better and more complex things.

Dapps, the same as applications nowadays are able to insert an interface in the lead of a contract.

Popular  Dapps

🖥️Golem – This is a decentralized application that enables people who do not use the power of computing to lend it to people who need it.

📉Augur – A kind of tool that assists people to hypothesize on derivatives

🤑Melonport – If you want to invest and manage digital assets this tool is for you

🙀Cryptokitties – a game where you can buy, trade and collect virtually cats.

What to expect

This is only the beginning for the decentralized apps and smart contracts and their use. But the beginning is here and many organizations and state authorities are trying its capacity.

🇪🇪State Authorities – States such as Estonia use Blockchain to operate the country.

🔗Supplies – Startups such as Provenance help the production firms by using blockchain operate the process of purchase and shipping

📓Insurance – Startup companies assist in creating platforms for insurance in the field of farming and aviation.