Blockchain Explained - Contracts versus Smart Contracts

Blockchain Explained

Created on: November 23, 2018

Updated on: November 23, 2018

Back in the day well before I was around contracts or negotiations have been used to build things and to organise the structure of a nation. Back in Roman times there were lots of gladiatorial contests where each party attended a colosseum to fight to the end and the emerging winner was able to write his story or history. As we all know there were people who were enslaved all over the Roman empire and they helped to build the remnants of the roman empire that we see today.

Blockchain Infrastructure Tunisian Adventures

If you travel to Tunisia and other parts of North Africa you will see the huge buildings and colosseums all over. As time moved on the two parties involved in battle became the two parties who were to negotiate a stake in projects all over the modern world. These two parties usually began by staking their claims in the negotiations, you can see this in action if you travel to North Africa or Southern Europe and you go to a medina.

Within the medina, you will have lots of hawkers who will come up to you selling their products. Your objective is to negotiate with the hawker and to bring the price down. Back in the day I went to Sousse in Tunisia and I have been to the medina’s over there and I really enjoyed negotiating with the hawkers when I bought touristy items there. I really got a buzz out of getting a good bargain, it was really interesting because the other tourists on our excursion where not used to this way of life.

Blockchain Infrastructure Agreement

Both parties agree on a price and once you have agreed you pay for the item and the deal is sealed. It is this process that is called the contract and we have a similar type of set up if you were looking for a house to buy. We call this type of behaviour haggling and there are some people who are very good at it and others who aren’t so good at all. The thing is though that if you aren’t very good at this process you can always learn from people who are good at it so that you can sharpen your skills.

The nitty gritty aspect of contract management is deciding what you will exchange for your hard-earned money and I can draw a direct parallel with the way you set up your #blockchain infrastructure.

Blockchain Infrastructure Smart Contract A #smart contract contains business logic where your computer will process a series of rules to determine the data that will be mined on the #blockchain itself. And it is really up to you the business owner to determine the exact requirements that are derived from your business as to what and how this data is mined on the #blockchain.

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