One of the promising applications of the block chain technology are smart contracts. Different startups have been working on launching smart contracts, like Ethereum, but it would appear that a small crypto startup has beaten everyone else to it.
BURST has issued the first coin that enables you to create smart contracts straight out from the wallet. The coin uses a Proof of Capacity. BURST uses fewer resources as it only reads from your hard drive once per block and does not use power hungry graphic cards while mining.
BURST claims to be ASIC proof, an aspect that would encourage home miners to mine for the network without needing any specialized mining equipment. Currently, the largest pool mines less than 2% of the total blocks, something that BURST improves on by making it profitable both for large scale miners and individuals using their computers.
Also read: Ethereums Brave New World
About Smart Contracts
Smart contracts are being hailed as the next innovation that may radically transform the way we work and live. Some are even predicting that they could render lawyers and bankers out of work in the next few years.
Smart contracts are computer programs that can automatically execute the terms of a contract. Anyone familiar with computer programming would be aware of what is known as an if-then-else statement, where a program executes a certain task if certain conditions are met and does not if the conditions are not present. Smart contracts implement this on the block chain and have the potential to extend this into another growing field, and that is the internet of things, bringing the world of sci-fi closer to reality.
Smart contracts were first proposed in 1994 by Nick Szabo, a pioneer scholar in the field of digital contracts and currency. Between 1998 and 2005 he developed a mechanism for a decentralized digital currency called “bit gold” that some see as having been a direct precursor to Bitcoin. Bitcoin’s introduction and adoption have sparked a renewed interest in his work on smart contracts since it is now possible to bake digitally native payments into a program.
How BURST Implements Smart Contracts
BURST at present can support five kinds of smart contracts with plans for additional five later on. The smart contracts are atomic cross chain transactions, auctions, crowdfunding, dormant funds transfers and lotteries.
Atomic Cross Chain Transactions allow for truly decentralized trading between cryptocurrencies. This can, for example, enable a trader exchange BURST with a coin that provides a mixing service for the purposes of privacy, and then send it to a new wallet. Another smart contract that BURST would be able to support, are auctions. BURST enables you to create a smart auction contract. Participants in the auction would then send money to the contract, and anytime anyone sends more money than the previous bidder, the previous bidder’s money is automatically refunded. It also supports the “Buy Now” function.
Crowdfunding is supported by BURST as well. If an account receives enough money from a certain block, the project funds are released. If not, the money is refunded to the senders. BURST also supports Dormant Funds Transfer, which
enables an account to be dormant for a specified period, to automatically forward the balance to another account. This could be useful as a Last Will and Testament and or backup for funds in case the account holder loses a password.
Future smart contracts that BURST intends to support include autonomous corporations, gambling, self-mixing and smart properties. Smart contracts are being touted as the “killer app” of the cryptocurrency industry, and the race is on to develop applications that will radically transform our work, life and play going forward into the future.
Images from Shutterstock.