S for Smart Contracts
Sixteenth edition of Web3 Alphabet
Hey,
I could not find web3 words from Q and R. So we will instead take two words from the letter S - Smart Contracts and Stablecoin. Let’s go!
Smart contracts are essentially a piece of code (stored on blockchain) that is automatically executed when all the logical conditions are met. Think of how pushing a button x and inserting Rs 100 in a vending machine to execute the dispatch of a packet of chips.
Given its ability to execute automatically, it removes the need for a middleman to verify the execution of a transaction. So it could enable the purchase of land without having to involve a lawyer or real estate broker.
Smart contracts can be used across industries for record-keeping, secure data sharing, quick payment transfers, and creating digital entities among other use cases.
One real-world application of smart contracts is a US-based project Dropp has enabled “pay-per-use” small-value transactions for consumers to make small-value purchases securely without signups. This model appeals to customers that want to use services on-demand basis and only pay for their limited usage. These purchases could range from scooter rentals, parking payments, buying coffee, etc.
Further, in the field of digital identity, UK-based startup MyEarth ID has built an identity management system allowing users to issue and verify digital ids and credentials. Its identity verification solution can access public records to instantly validate a person’s identity, enabling companies to quickly approve or deny applicants’ information, among other features.
That’s all from S for Smart Contracts. If you recall any other Web3 terms starting from the letter S, please leave a comment and I will include them in later editions.
Until next time!