What is a smart contract? Do not let the word contract confuse you. Smart contracts have very little to do with legal stuff. Smart contracts are computer programs. However, unlike normal computer programs, smart contracts are executed on the Blockchain. Main purpose of smart contracts is to embody certain logic when executing transactions on the Blockchain. As such, smart contracts are ideal for creating a so called “trustless environment”.
Why smart contracts are powerful?
In this post I will try to explain one of the most confusing aspects of Ethereum — gas. You have probably heard about it but most likely, it did not make much sense to you. The concept of gas is indeed confusing partly because it is a low-level concept used by the Ethereum computing engine (EVM). However, gas is what keeps Ethereum running and it is important to have a clear understanding of this concept.
Asset tokenization on Blockchain is a steady trend of 2018. It seems that everything is being tokenized on Blockchain from paintings, diamonds and company stocks to real estate. In this article, I will describe what it means to tokenize an asset on Blockchain and how it applies to physical assets. This article is a part of Explained in Plain English series. In the previous article, I explained Ethereum gas in plain English.
There is a popular belief out there that you just need an idea and a coin to get rich these days. Unfortunately, things are not that simple. While we have seen dozens of successful ICOs, many have failed miserably. Even those ICOs that managed to fool their investors and ran away with the monies ended badly.
So what does it take to do a successful ICO?
1. Idea Blockchain is overused these days.
If you are reading this post, most likely you already know what an ICO is. Moreover, you are probably planning to do one. Designing a highly efficient one-pager for your ICO might be tricky. On the one hand, ICOs have not been around for long. So, there is no hard evidence on what works and what not. On the other hand, there is not one-size fits all solution.
When people invest as a part of an ICO, in majority of cases they invest in non-existing products and projects.
What is a Token? In the previous post I mentioned that the primary difference between Ethereum and any other cryptocurrency is that Ethereum is not just a currency, it’s a global computing engine. Ethereum allows creation of distributed applications where smart contracts play a central role. Another important concept within the realms of distributed apps is a token. Tokens can be thought of as a currency within an application built on top of Ethereum.
I often get asked by aspiring programmers (and more often by their parents) what programming languages they should learn. You may think that learning programming languages is a matter of taste. However, that’s very far from being true. I will bring just two arguments.
You have probably heard about Proof of Work and Proof of Stake. In this post we will demystify these terms and explain how they compare.