Smart Contracts are automated, decentralized programs that enable the automated review and execution of contracts. Smart contracts are like an interface of a webseite. The difference is, that in smart contracts commands are being sent to the whole network, and not only to one provider in among many who act as middlemen.
PlatinPower helps founders, startups, and mid-market businesses design cryptocurrency applications, develop smart contracts, check smart contracts (security audit), and publish smart contracts on the blockchain network.
The majority of all smart contracts on the market are published on the Ethereum Network. The network, which was developed in 2015, handles almost all ICOs in the western World and is known as the “creator of smart contracts” in the media.
The blockchain network NEO, created in 2014, handles smart contracts differently than Ethereum does. The development is possible in many programming languages and the network concept saves a lot more power than Ethereum.
The EOS Project, founded in 2017 collected within one year over $ 4 billion dollars, making it the largest ICO in history. The goal of the EOS Blockchain is to provide a blockchain for developing dApps (decentralized applications). As of summer 2018, the technology is still in early stage of development and is not ready for productive use, yet.
It is surprising that Bitcoin is also capable of executing Smart Contracts, even if this is technologically more demanding than in Ethereum. Particl has already published some experiments online.
Every day a startup establishes a new blockchain and deals with the implementation of smart contracts in decentralized networks. This block is dedicated to all new blockchains that we can not list here for completeness.
APPLICATIONS FOR SMART CONTRACTS
Initial Coin Offering (ICO)
As early as mid-2018, more than $12 billion were raised by ICOs. ICOs are often used for simplified crowdfunding. Issued tokens represent a purpose or countervalue, such as company shares, assets or coupons.
Tokenization of assets or securities
Cryptocurrency in form of tokens makes it possible to map real values to tokens. Thus, company shares or goods can be tokenized. This can be an alternative to the classic stock market. Particularly the so-called stable coins growing to a big topic here, such as the digitization of gold, silver or other goods.
The basic idea behind Smart Contracts is the automation of contracts through the reduction of middlemen. Payments or processes should be automated in this way.
The tokenization of fantasy values such as Cryptokitties has gained great popularity. Similar to trading cards in the early nineties, tokens can be unique and valuable to the players who have joined the network.
Smart Contracts for Governance
Smart contracts can also be used to make decisions comprehensible, secure and faster. Estonian citizens can already vote by using cryptographic technics. That way votes can be analyzed and evaluated directly online.
Internet of Things (IOT)
The Internet of Things provides great potential for automated payment processing through smart contracts. Cars could communicate directly with the parking garage gate and handle the payments, without giving the driver unnecessary manual work.
Trivia: Interesting hacks and bugs within the Ethereum network.
The DAO Hack
 Unknown hackers have stolen 3.6 million ethers ($70m) from the DAO. The DAO (Digital Autonomous Organization) was a digital, decentralized and autonomous organization in kind of an investor-led venture capital fund. In mid-June 2016 hackers stole 3.6 million ethers through a vulnerability within the splitting function. The Ethereum Network was forked and split into Ethereum and Ethereum Classic to “undo” the hack.
 Hackers stole 153,000 Ethers ($32m) from various users. A vulnerability in the Ethereum client Parity made the hack possible. Another hacker group called “White Hat Group” noticed the hack of the first group and automated the exploitation of the vulnerability to quickly secure Ether from the not yet stolen but vulnerable multi-sig Wallets to later return the Ether.
 Ether worth $ 300 million has been freezed by an error of the Ethereum-Wallet Parity. The ethers could not be moved anymore. Specifically, this meant for Pokadot, among other things, the freezing of ethers worth $93 million. In spring of 2018, a vote took place over it to “restore” the tokens.
 Hackers stole $12 million worth of Ether, PundiX and Bancor tokens from accounts of the startup Bancor. Bancor reported on the hack on June 10, 2018. The hack got special attention by the community, because Bancor was promoted as decentralized marketplace that has less vulnerabilities by concept.
As a creative mind and IT expert with many years of experience, I assist my clients with complex projects as a consultant. With love for technology, I develop solution-oriented and structured concepts and processes.
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