Smart Contract Fundamentals
In this chapter, we will explore the basics of smart contracts. While in Bitcoin we store value, in Ethereum, we can also store code. The code that we store in Ethereum is called a smart contract. A smart contract is a trustless piece of code, which means that the integrity of the code is guarded by algorithms and cryptography. We can store the code, which is censorship-resistant and can avoid third-party interference, even from the original developer of the smart contract. This opens up possibilities for creating many types of applications, such as transparent digital tokens, trustless crowd sales, secure voting systems, and autonomous organizations.
The following topics will be covered in this chapter:
- Flaws in traditional programs
- Smart contracts
- Secure from cheating
- Censorship resistance
- Practical applications
