A Guide To The Blockchain Ecosystem | PART 3 | How Smart Contracts Work As A Piece Of Technology | Ravinder Deol | Skillshare

A Guide To The Blockchain Ecosystem | PART 3 | How Smart Contracts Work As A Piece Of Technology

Ravinder Deol, Certified Bitcoin Professional

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6 Lessons (17m)
    • 1. Let Me Guide You Down A Structured Path To Understanding Smart Contracts

      3:04
    • 2. Here’s An Example Of What Ethereum Based Smart Contract Code Looks Like

      1:17
    • 3. Let Me Now Give You Some Examples Of The Uses Of Smart Contracts

      3:37
    • 4. Everything Has It’s Unique Selling Points So Here Are Smart Contracts USP’s

      3:33
    • 5. Every New Technology Has It’s Problems So Here Are Smart Contracts Issues

      2:08
    • 6. These Are The Blockchains On Which You Can Start Processing Smart Contracts

      3:01

About This Class

Have you been hearing about the Blockchain recently?

Are you struggling to understand how the Blockchain works?

Maybe you’re unaware of how the Blockchain ecosystem operates?

Whatever your motivation to start on your journey with understanding Blockchain technology, and the ecosystem as whole, you’ve come to the right place to get started on it.

A Guide To The Blockchain Ecosystem, is the most comprehensive course on helping you to understand Blockchain technology and the ecosystem as a whole anywhere on the web.

It’s the one place with everything you need to get started with understanding Blockchain technology and the ecosystem that surrounds it through the path of least resistance, and become a skilled individual on the topic of understanding this rising technology.

This is an effective and “to the point” course breaking down complex topics, hence taking you from zero knowledge on the Blockchain ecosystem, to becoming an individual who is able to fully understand how the Blockchain works, as well as all that surrounds it.

While there are plenty of Blockchain guides scattered around the web, it’s hard to find a focused Blockchain video course like this one that is updated regularly, and on top of that is instructed by an instructor who has a great understanding of Cryptocurrencies and the Blockchain.

Nothing is kept a secret. I take you through step by step on understanding how the Blockchain technology, and entire ecosystem works. On top of that you’ll have access to me on-demand through the course discussion board should you wish to gain clarification on any issues.

This course is designed for anyone who wants to understand how Blockchain technology works, as well as the ecosystem as whole i.e. Smart Contracts etc. So if you’ve heard of the term “Blockchain”, but still fail to understand how it all works, you’re in the right place to understand it all.

Transcripts

1. Let Me Guide You Down A Structured Path To Understanding Smart Contracts: Now I want to jump right into the sexual with you. So let's get started with what we're here to learn on. Understand? So what? Smart contracts. So smart contracts are contracts, which dare I say it? A smart. They aid you in transferring something off value, such as property or shares in a transparent, yes, secure way, making the whole process super efficient whilst eliminating often expensive on time consuming middle men. Let me now give you an example here because you'll then be up to understand exactly how the Blockchain works in a theoretical aspect. Now let's say I'm purchasing your home. You're tired of living where you do. I'm one to sell on. Move on. I'm the person that's going to be buying your own Now. This transaction will be handled through the Blockchain on all Be paying we Let's say Bitcoin now. Once I paid, I gave receipt off that transaction, which is held in a virtual smart contract. Then you give me the n tricky, which comes to me by a day that we specified beforehand. Now if you decide that you knew longer, want to sell the house to May on cough all communications hence me not getting the actual key that we agreed upon. The blood shame will automatically issue me a refund on the day that the key should have arrived. Now, if, however, I get the district key beforehand, the Blockchain contract holds this until the day that we agree the transaction would actually happen. Hence is both getting what we wish on the same date of all. Cut the day that we agreed within the contract. So you will be the cash and I would get the cape. Now, as the Blockchain is peer to peer technology, it is witnessed This contract by many notes on many notes will witness this contract that way, agreed upon ensuring that the obligations in the contract are complied with Andi. No kind of breach has gone within that contract. And Lucky says there no part of the contract can be altered with once its being created. And if someone is audacious enough to try and alter it, all the parties will we know to fight. This is when the issue will be fixed. Now I've given you an example that in regards to us buying and selling a property but this sort of agreement could be point place for let's send transfer of shares. Car insurance propped insurance on so much more 2. Here’s An Example Of What Ethereum Based Smart Contract Code Looks Like: now, as you should be aware, this course isn't a let's a technical base course on the Blockchain. What I mean by that is I don't show you how to develop decentralized applications and so on . This cause is more about helping you to understand the Blockchain on all the technology that actually surrounds it. Because a large part off getting involved in this ecosystem is actually just understanding the theoretical underlying aspects, which is what this course is all about. So in this lecture, I actually want to show you a piece of code they used to code a very basic smart contract. This piece of code has actually been taken from the link Ashkan see yet, so dooby dooby doo beat up in theory of dog forward slash on. Then you'll see the end domain. So just fill out this entire domain and you'll be up to gain access to this kind of example cold. So that's how a basic smart contract will be structured. We do cover this in more depth in another course of my but this is how the basics are structured in regards to smart contract code 3. Let Me Now Give You Some Examples Of The Uses Of Smart Contracts: So in the previous section, I mentioned that the uses off the block chain in specific industries are more specifically how the blood Chaim will impact them now. The technology behind most of why I mentioned is smart contracts. But rather than repeating those companies that are using the Blockchain to move specific industries forward, what I'm going to do share some that I haven't mentioned yet. So first, everything I'm going to mention isn't actually an industry. It's more of a function on its supply chain management, so smart contracts will help to streamline the supply chain management process. Let me explain just how it will do that. So supply chains are complex things, especially the more larger the chain gets. So if you look at global logistics companies such as UPS, you can just imagine the complexity off their chains. They're smart Contracts will help the streamlining off these chains by providing self executing contracts. Now, for example, let's say there's a valuable load coming from the US to the UK, and he used to be delivered urgently by a lorry once it lands at the depth a smart contract , self executing smart contract could be put in place to ensure that this specific Lori doesn't leave until it has that loud on the back of its Laurie. I mean, that's just such a broad example of higher supply chains within businesses will actually benefit from smart contracts, but we still are, in the very early days out smart contracts on. Secondly, this is the final smart contract example that I want to share with you. So another industry that it is set to enhance is the automobile industry. So if we look at the world now, from a technological standpoint, everything seems to be what we call smart. We've got smartphones, smart glasses. Pretty soon, smart cars on the auto industry could utilize smart contracts with autos. So this is how so, If you are not aware within smart vehicles, there are senses which actually kind of measure absolutely everything in terms of distant to the next car. If anyone is you in your blind spot, how gently to apply brakes and so on. But it is inevitable that there will be accidents even with smart vehicles. So this is where smart contracts actually come in. Because smart contract could be the thing which stipulates which vehicle was at fault as well as the insurance company, then being able to utilize them toe have self executing contracts, depending on the phone off who the accident was and so on. Now, self driving cars are a little while away. You on. There are a lot of gray area. Some, naturally, it's a gray area. When it comes to high, smart contracts will play their role in this specific area. First time goes by on the ecosystem moves forward, this will all become a lot more clear. 4. Everything Has It’s Unique Selling Points So Here Are Smart Contracts USP’s: so there are 70 reasons as to why smart contracts are so arrived about in this lecture. I'm going to point them out of U. S. So you'll have a clear idea of order. Those seven reasons that way, like, say, go forwards with your journey with smart contracts, you'll know exactly why smart contracts role play such a pivotal role in certain industries . Now the first reason is down to autonomy. Smart contracts can't be manipulated by any third party because you're going to be the one making the agreement with the other person or the other organization. You don't need to rely heavily on lawyers, as many of us do now when it comes to complex that same negotiations or complex agreements . So when he comes to contractor or obligations, we won't have to rely on those middle men. The second reason people love or will start to live smart contracts is because of trust. Now it's impossible to lose it. These smart contracts are encrypted and stored on a shared ledger. So as I mentioned, you'll never run into any issues of, let's say, losing that piece of contract. This reason is the kind of linking to the last on its back up. So this is the third reason. So you personally kantra smart contracts because they are backed up. You'll never run into the issue off one copy being lost, hence losing the contract. That simply won't happen. Next up we have safety, which once again links to the last so your contracts will be secured by the power of you've guessed it. Cryptography. This once again linked back to trust because you can trust the power and security off cryptography. It will be near impossible for a smart contract to be there, say hacked. The fifth reason smart contracts are going to excel is juice its speed that they're deployed him. Traditional contractor or processes do take a large amount of time to go through the chain . On. A lot of third party people are involved. Where is cold Help? Smart contracts excel, saving a love time, helping deals get completed far quicker. They're the six Friesen smart contracts Work on. Gets many excited is because it helps save us money now for deals where a smart contract is needed. We won't have to employ the services. Often expensive lawyers are legal professionals, but can just utilized smart contract technology. And finally, a big point I'd like to mention is accuracy. As long as all the details are putting correctly the accuracy with smart contracts being fulfilled is for greater than is currently. Don't so those of the seven reasons as to why smart contracts all the way forward. We've got autonomy. Trust, backup, safety speed saves money on accuracy. 5. Every New Technology Has It’s Problems So Here Are Smart Contracts Issues: Now we're at the end of this smart contract section. I do hope that you gained a valuable insight into smart contracts it. So just before we do end, I'd like to let you know the block chains on which you can actively process smart contracts on. Now the big quoted up chain is one as it's the Big Corp luxury. It's great for processing Bitcoin transactions, but for documents, it does have its limitations. So that's where so I changed come into play these run adjacent to Bitcoin and offer much more flexibility allowing the processing off smart contracts So all I know a very powerful medium. Now we have the NXT e block Jane, which is how I pronounce it, which is a public Blockchain as with the Bitcoin Blockchain. However, if you do decide to process smart contracts through this Blockchain, you'll be limited to the templates you're given. You can't customise it with your own code, as many large companies actually want to dio on. Dhere is a popular Blockchain on which you can process very complex smart contracts on the ethereum Blockchain, so you can basically do whatever you want him in regards to your code just so you where you do have to pay a small amount of ether to process your transactions. Now, if you have completed by Ethereum Development course, you will actually be aware of this as we show you how much either you have to provide to get your smart contract process on someone. So those are the free slash four main block chains for smart contracts. Now, I've put a little quiz together for you in the next lecture just to test what you've taken away from this section. Hope to see you in another lecture soon. 6. These Are The Blockchains On Which You Can Start Processing Smart Contracts: from how we've been talking about smart contracts in this course self are on in general how it's discussed online, you'd probably think that, therefore proof. So why I mean, is the West mark. Contracts are discussed about solving problems online. You think there's no issues with them at all. But we'd be wrong if we fought that because, as with any early state technology, he has its Stephen problems. So let me go over them for you in this lecture. Hence, by the end, you'll have a much more complete all round understanding off the pros and comes off smart contracts. Now that's cold is no, I'm not one bugs, repair and code. So what happens if a bug appeared in your smart contract code? How would that be? Doubt with how should world governments of you regulate smart contracts are legally binding . I mean, there are so many questions still surrounding smart contracts that need to be answered before this actually goes mainstream on the general consumers or the person down your old start using the I mean the list goes on with these issues in terms of smart contracts. Remember that smart contracts are self executing, so every possible scenario that could interfere with that contract needs to be placed within it. So let's say you purchase a new car, but the day you're due to pick it up, the car dealer hasn't made one correct adjustment that you agreed upon previously. Does that still leave the cash in your account? So because you're not going to be picking up the car because the dealer hasn't made the correct adjustment, is your cash going to stay in your bank account because of that little minor thing that they didn't adhere to? What happens when this little detail isn't entered into the smart contract? So as you can see, it's there's something that we really need to work. But as a technology and people are working upon it right as we speak on, all smart contractor will enter our daily lives. When it's right then, lawyers world transition from traditional contracts to smart contracts on we may even find smart contract templates online sin, as we do with traditional contracts. I mean, you can find plenty of them online, so that's why I want to do in this lecture just to let you know that smart contracts are just there yet. It's still a very new area on T. Even problems are there, but for sure, it's an emerging area, with many companies across the globe hiring Blockchain developers to create smart contracts .