New to Crypto Logo

What is a Smart Contract

New To Crypto Podcast Logo image

What is a Smart Contract

SUMMARY KEYWORDS

smart contracts, crypto, blockchain, coins, nick szabo, podcast, computer scientist, execute, ethereum, injective protocol, inj, cardano, ada, eth, ethereum, polkadot, dot, vechain, vet, algorand, algo, chainlink, link, neo, stellar, xlm, zilliqa, zil, avalanche, avax, harmony, one, kardiachain, kai, eos, ethereum classic, internet computer, tron, tezos, celo

00:00

Welcome to the New to Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to Crypto Podcast brings you new episodes daily, Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto? Don’t know where to start? Are you more experienced too but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the Lifestyle Dezign Studio. Here’s your host Crypto Travels Michael.

00:53

Hey, welcome to today’s show. I’m excited about what we’re going to go over today. The podcast was just recently launched. And we already have listeners in 77 cities around the world in 15 countries. And I’m looking forward to the future as we dive into more. So without further ado, let’s jump into today’s podcast. 

01:16

What is a smart contract? smart contracts. It’s a term used to describe computer code that automatically executes all or part of an agreement that is stored on a blockchain based platform. So smart contracts are a critical component of many platforms and applications being built using blockchain or distributed ledger technology. 

01:48

A smart contract is a self executing contract. smart contracts allow trusted transactions and agreements to be carried out with anonymous parties without the need for a central authority. 

02:05

So who created smart contracts? Smart contracts were first created in 1994 by Nick Szabo, an American computer scientist who invented a virtual currency called bit gold, which he did in 1998. Szabo defines smart contracts as computerized transaction protocols that execute terms of a contract. He wanted to extend the functionality of electronic transaction methods, such as point of sale into the digital realm. Szabo was a computer scientist and cryptographer. 

02:45

Szabo uses the quotes around the word smart when comparing smart contracts to paper based contracts. smart contracts may be smarter than paper contracts because they automatically can execute certain pre-program steps. Smart contracts are like regular contracts, except the rules of the contract are enforced in real time on the blockchain, which eliminates the middleman and it adds levels of accountability for all parties involved. This isn’t seen with traditional agreements. This saves businesses time and money, and it also ensures compliance from everyone involved. Blockchain based contracts are becoming more and more popular. 

03:36

Some of the coins or tokens which have smart contracts are the following. These are some of the largest market cap coins and blockchains which have smart contracts operating now. Ethereum is the blockchain and the coin is Eth, Cardano and ADA is the coin or token. Polkadot and DOT, Vechain and VET, Algorand and Algo, chainlink, NEO, Stellar has XLM, Zilliqa and the coin is ZIL, Avalanche has AVAX, Harmony has ONE, Injective Protocol has INJ,  KardiaChain has KAI, Others include EOS and Ethereum Classic, Internet Computer, Tron, Tezos and Celo. 

04:41

According to cryptoslate.com, smart contract coins make up about 25.43% sector dominance, which translates into roughly $329 billion worth of market cap amongst these different coins. combined. As you can tell, the demand for smart contracts on blockchains is growing, and very important.

05:11

So let me share with you the best metaphor for a smart contract that Nick Szabo shares, he compares it to a vending machine. To get a snack from a vending machine, you have the money, plus the snack equals you receiving the snack. A smart contract is like a vending machine. It has logic programmed into it. It’s permissionless. Anyone can write a smart contract and deploy it to a network. You just need to learn how to code the specific language that smart contracts are written in and deploy it on a blockchain. So I hope this is unpacked and sort of revealed to you provided some more light on what is a smart contract. So that concludes today’s episode. And I look forward to our next one.

06:02

Thanks for tuning in to New to Crypto Podcast. If you liked the episode, be sure to follow and subscribe. You can listen to every episode on all major platforms and have an interest in being on the show or one advertising reach out at newtocrypto.io. Head over to our site newtocrypto.io to access the resources mentioned in each episode. Until next time, remember to navigate the crypto landscape with pinpoint accuracy

By: cryptotravelsmichael
0

Table of Contents

What is a smart contract? It’s a term used to describe computer code that automatically executes all or part of an agreement that is stored on a blockchain based platform. So smart contracts are a critical component of many platforms and applications being built using blockchain or distributed ledger technology.

(Institutional investors) tend to only buy bitcoin – but they're starting now to use utility impact, environmental concerns and other things as investment criteria, which excludes bitcoin

- Charles Hoskinson

Here's What We Discussed in Detail in This Interview

  • How a smart contract is a self executing contract
  • Discover who is credited with inventing or starting smart contracts
  • Learn the top cryptocurrencies which use smart contracts
  •  Blockchain based contracts are becoming more and more popular

Killer Resources

HOW TO REACH OUT TO CRYPTO TRAVELS MICHAEL

Final Thoughts

Many of the current crypto projects are using smart contracts on their blockchains. I think it’s fair to say that the use of smart contracts is only going to increase as time goes on.

Share this podcast with a friend or family member, join our newsletter at https://newtocrypto.io/ and leave a review on Apple Podcasts. Let me know your thoughts on this episode.

Share This…

Subscribe

Related Posts

Leave a Reply

Your email address will not be published.

team

Crypto Travels Michael

Founder

Helping those to navigate the crypto landscape with pinpoint accuracy.

  • Really helpful podcast
    June 12, 2022 by Peter S. Pickett from United States

    Great listen for anyone interested in what is going on in their crypto - It's been great listening to them.

  • Loving this podcast
    June 12, 2022 by Ray S. Penny from United States

    Very informative

  • Great discussions
    June 12, 2022 by Daniel E. Houston from United States

    Really appreciate you crypto making this! Much appreciated

  • Brilliant
    June 12, 2022 by Abrams231 from United States

    This is a well informed, interesting podcast for anyone looking to find out more about crypto matters. The topics are varied and well researched and I’ve learnt so much from it

  • Fantastic Podcast
    June 12, 2022 by Jeremiah E. Crowe from United States

    A great podcast, not so long as to ramble but discusses a wide range of topics, well presented and easy to listen to.