4 Ways to Use Smart Contracts

Key Takeaways

hello world SJ here let's talk about four ways to use Smart contracts a smart contract is just a piece of code that is stored on a blockchain instead of a server that means no one can alter or delete it since blockchains aren't controlled by anyone it enables people to do business with strangers without the need to trust a third party the first way to use it is to bring voting online the US government has never brought voting online because of the security risks involved if they sort everyone's vote on a server that server could easily be hacked and votes altered if only there was some kind of system that could securely and synonymously store votes online all right the blockchain to do this an engineer could create a smart contract and push it to the blockchain a smart contract would then get an address citizens could then just send a transaction to that address with their encoded votes and social security number the contract would then verify that the citizen had never voted before and then store it because this code runs on the blockchain a hacker would have to have more computational power than the 500 fastest supercomputers on the planet combined to break the system Ain't nobody got that much computing power once the government implements this voter turnout will Skyrocket voting would finally become just another app on our phone no having to wait in line at some paper ballot Booth a 30-minute Drive Away Millennials would actually vote this would fundamentally improve the quality of the politicians we elect the second way is to increase spending transparency think about all the cases of government corruption or evil corporate dealers all of them every single one has to do with money stealing money spending money on personal interests giving and taking money from Shady businesses the list goes on with smart contracts we as citizens of a Nation or shareholders in a company can demand that all spending happen on the blockchain smart contracts can be instituted to Route money as we see fit so for example let's say a politician promises to increase spending on healthcare for their state if there is a smart contract that will route money sent to it every time to 20 hospitals and 10 insurance companies the public can audit it since all transactions are public on The blockchain's Ledger and verifi to be unaltered by cryptography the more companies and governments that Institute this kind of transparency the more those who don't will be pressured to do so it'll slowly become the norm the Third Way is to increase autonomy as our species has progressed we've automated more and more we've offloaded more and more work to our machines this trend will continue as our machines get better smart contracts bring us one step closer to full artificial intelligence take ride sharing for example Uber is a software app run by humans soon Uber will Implement self-driving car so it won't need drivers but with smart contracts Uber could become even more autonomous even more independent of humans a self-driving car could live as an independent entity picking up passengers paying for its own repair filling its own gas parking itself coordinating with other cars if these tasks were all smart contracts that the car communicated with it wouldn't need humans at all instead of humans having to run the logistics and plumbing of the Uber Network they could focus on more fun creative Pursuits the fourth way is to create smart property smart property is an object whose ownership is verified by the blockchain traditionally we use humans to verify these things like a stranger can't rent out your apartment on Airbnb because Airbnb has verify that it's yours but with smart contracts you wouldn't even need Airbnb to rent out your place you could create a digital token that would represent your apartment and then a smart contract that said something like if you send money to this address transfer the ownership token to the sender for x amount of time and because there's no middleman to take a cut you get more money for renting out your place this can be applied to everything from patents to cars to fridges anything with internet communication capability The Internet of Things if You' like to learn more about smart contracts please check out the links in the description below and please please subscribe for more technology videos I'll definitely keep them coming and as always thanks for watching