Review of Smart Contract Technology: What Is It Used For and How to Work With It?

smart contract technology

If not all the representatives of the crypto world heard about smart contracts, then probably most of them did. Therefore, it is so important to know the details of the work of this innovative technology of “smart contracts”, the concept of which was announced a couple of decades ago, but was not fully realized in 2014. What is it, how can it be applied in practice, and what future, thanks to smart contracts, is the industry waiting for?

Contents:
(please, click the topic to scroll down to it)

  1. What is a smart contract?
  2. What is the advantage of smart contracts in practice?
  3. How to work with smart contracts?
  4. What is a smart contract for practice?
  5. How reliable is a smart contract?
  6. Conclusion

1. What is a smart contract?

A familiar look at the financial system changed in 2008 with the appearance of the first cryptocurrency, a coin that has a value that is not confirmed by physical assets. But year 2014 gave the mankind a way to regulate payments without the participation of intermediaries and such guarantors as lawyers, courts and other traditional institutions.

Intelligent contracts were enabled in practice by the blockchain. What is the essence of innovation? Smart-contracts are something like program code containing a complete package of information about an upcoming transaction. Logic is the simplest: it does not require the participation of a third party. If Mr. X wishes to transfer a certain number of coins to Mr. Y for a particular service, the transaction will occur automatically if the parties comply with the prescribed conditions. If they fail to be complied by any of the parties, the transaction will not take place.

Smart contracts do not provide for the presence and even potential participation in the relations of the parties of any arbitrator. Everything is extremely logical and simple – a smart contract, in fact, is no different from the usual contract, in which there are:

  • signatures of the parties that confirmed their agreement with the terms of the contract;
  • the subject of the contract;
  • the conditions under which the contract will be executed.

2. What is the advantage of smart contracts in practice?

The most important thing is the lack of the need to attract guarantors for the fulfillment of obligations. The parties do not need to apply to the notary, exchange and other third parties who by their signature / seal will attest to the intentions and obligations of the contract’s parties. Also, technology implies full transparency and security of information stored in the blockchain. As a result, the parties receive their benefits under the contract and do not pay the commission to intermediaries.

3. How to work with smart contracts?

In this regard, all the issues are fully answered by the Ethereum, known to all the crypto community. In it, the filling of a smart contract is intuitively understandable and accessible to everyone. On the official site Ethereum you need to download the purse, come up with your electronic signature and key. You can not only apply ready-to-use templates, but create code yourself.

4. What is a smart contract for practice?

The security guarantee provided by this technology allows investors not to risk when investing assets in the ICO. The investor had the opportunity not to rely on the success promised by the developers of the new coin, but to “insure” their funds by writing in the contract the condition for an automatic refund.

Technology is attractive in various areas, where contractual relations between the parties arise. Banks, companies involved in insurance, logistics, etc. are interested in it.

5. How reliable is a smart contract?

Since a smart contract is a program code, it is not without possible shortcomings. They can be associated with the complexity of its independent compilation, not always sufficient flexibility of the blockchain and insufficient scalability.

It should be noted that, in the event of an error in the contract, there are no methods for regulating the dispute. Everything is done by the program, and the court has no tools to evaluate the propriety of its incorrect work.

6. Conclusion

The technology of smart contracts has great potential. In fact, they can be used in absolutely any sphere of life. But in order to make smart contracts become commonplace, it’s still necessary to do a huge amount of work. To date, the most reliable and secure platform for entering into smart contracts is Ethereum.

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What is Common Between Ripple Technology and XRP Token?

In this article, we will focus on the project, which has recently taken the second place in the cryptocurrency rating. Today we will talk about how XRP token is connected with the famous Ripple technology, which should make a revolution in banking sector in the future.

1. Briefly about Ripple cryptocurrency

The Ripple project is in no way just another copy or an improved Bitcoin`s version. The only thing that unites these two coins is the blockchain technology. Let’s clearly define what the Ripple is:

  • There is a system of gateways at the heart of the Ripple network, the performance of which is provided by hundreds of servers. Ripple works through distributed registry technology, but its architecture is completely different from the standard blockchain. The project does not have decentralization, since only those servers that have been approved by the company, are involved in transaction validation.
  • The main task of the project is to ensure a free and fast exchange of assets with minimum fees (0.00001 XRP).
  • The target audience of the project is banking institutions, which can save about $3 for each transaction with the help of Ripple technology. If we consider, that large banks spend millions of transfers per year, this leads to significant savings.

2. What positions does Ripple take now?

In mid-November 2018, the entire cryptocurrency market collapsed sharply. Many coins lost 40-50% of their value in a week. In this situation, XRP token showed relative stability and fell by about 20%. At the same time, Ethereum fell substantially in price. Because of this disbalance, Ripple took the second place in the cryptocurrency rating. For the moment of writing this article, the project`s capitalization is equal to 12.5 billion dollars. The gap from ETH is almost 3 billion dollars.

3. Future forecasts

Let’s talk briefly about prospects for this project, and what XRP hodlers can expect. For a start, it is worth noting that Ripple is a legal entity officially registered in the United States. This is an undeniable advantage for investors. But it should be understood that the Ripple technology used by banks has nothing to do with XRP token. The fact is, that Ripple has three different products (xCurrent, xRapid and xVia). Banking institutions are interested in the first one, and XRP token is directly related to the second one. Therefore, there is no direct correlation between XRP token rate growth and the introduction of Ripple technology into the banking sector.

Some experts say that banks can start using xRapid technology. If this happens, then XRP token will be really useful and needed. But if you go a little deeper into this question, it becomes clear that such a scenario is highly unlikely. In this case, banks will have to buy an intermediate XRP token additionally, which will increase the cost of transactions. Therefore, the vast majority of analysts believe that banks will not take such a step.

But there are still some reasons for token`s price increase:

  • The possibility that banks will shift to xRapid technology. It is unlikely, but still possible.
  • Increasing of customer base.
  • Regular burning of tokens (deflation).
  • Expanded applications (using Ripple technology, you can exchange absolutely any assets).
  • A general trend change on the market, may lead to another sharp rise in the token price.

4. Conclusion

The Ripple Company is a legal entity registered in the United States. It actively cooperates with the leading banks in America, but this does not concern the XRP token.

The coin definitely has a future, so it is better to keep it in cryptocurrency portfolio in a small amount (no more than 5% – 10%). Recently, XRP cryptocurrency firmly entrenched on second place in the global ranking CoinMarketCap.

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Bitcoin’s Price in 2019: Forecasts and Opinion of Experts

Attention of many people around the world is focused on the Bitcoin price. No one can say for sure, where it will go next year, or moreover in a few years. Some people believe, that the cryptocurrency industry has already reached its maximum, and all that we are waiting is a continuous decline of value. But there are experts who are sure that the maximum marks of BTC is only beginning and we are expecting for the new heights in the future. Well, let’s try to look into the matter and analyze the words of leading financial experts of the world.

1. Analysis of the current situation

As we all remember, the capitalization of the cryptocurrency market reached its historic maximum 831 billion dollars in January 2018. After this, a deep and prolonged correction has started, which partially continues until now. At the time of writing, the market capitalization is 107 billion dollars, the Bitcoin price has fallen in 6 times, and many coins have become cheaper in 10-20 times.

Source: CoinMarketCap

At first glance, everything seems to be bad and prospects are rather vague. But what if we tell you that everything is absolutely opposite and now it is the best time to invest in cryptocurrency? We are ready to back up our words with concrete facts about which very few people talk. 

  • Continuous growth of network`s hashrate. Despite the fact that the price of first cryptocurrency shows negative profitability throughout 2018, the total computing power of Bitcoin network is constantly growing. It means that miners are increasing their production capacity. And it is not about small or medium farms, since their share is negligible on the general background.

Source: https://bitinfocharts.com/

After analyzing this graph, it appears that big miners continue to invest hundreds of millions dollars in equipment. This means that major players continue to believe in further development of the industry, and therefore in future growth of the BTC rate.

  • Infrastructure development. In 2018, investor`s interest in cryptocurrency faded a little, but this did not affect infrastructure development. Every day, the number of places where you can pay with cryptocurrency is growing (paying taxes in the USA, real estate, online shopping, transport tickets, physical points of sale and more). It is a very good trend, because the more places you can pay with BTC, the more people will be involved in the digital economy.
  • The acceptance of cryptocurrency at the government level. In 2018, for the first time in 10 years of Bitcoin’s existence, they started talking about it at the international level. If earlier none of the world leaders paid enough attention to this topic, then this year at the G20 summit this issue was put on the agenda. World leaders agreed that it would be pointless to forbid cryptocurrencies and no one would do that. On the contrary, there was decided to develop an international legislative framework.
  • It’s still possible to become a “pioneer”. If you go to the website bitinfocharts.com and take a look how many Bitcoin wallets are registered currently, it is possible to see the number that does not exceed 23 million. Taking into account that more than 15 million of them are wallets, which balance does not exceed $100. The population of our planet now is about 7.6 billion people. Let’s take 40% of insolvent people (children, pensioners, people who live in a third world, etc.) – it comes out near 4.5 billion people. After comparing these numbers, it appears that there are still very few people who are really involved in the cryptocurrency industry. That means, a global large-scale acceptance of technology does not exist yet. This gives us a chance to become pioneers. After cryptocurrency becomes a commonplace for any person (like, for example, a credit card in our days), we will reap the benefits. Most likely you will hear such expression in future: “Why didn’t I buy Bitcoin in 2018?”.

2. Expert forecasts for 2019-2020

Now let’s see what famous experts say about the near future of Bitcoin, namely about its price.

Mike Novogratz, CEO of Galaxy Digital, believes that the start of Bakkt and Fidelity Digital Assets platforms will affect on entry of new investors into the cryptocurrency market. According to Mike`s opinion, now the most important point of resistance is the mark of $ 3,880. If we overcome it, then the rate may reach $ 9,000 till the new year. The next important mark is $10,000. After overcoming it, the price of BTC 2019 will go up sharply. Novogratz has no doubt that the next year rate of Bitcoin will overcome its historical maximum of 20,000 dollars.

Tom Lee, is one of the leading analysts of Wall Street. Previously, he stated that until the end of 2018, the rate of Bitcoin will overcome the mark of 25 thousand dollars. But after a few months, namely in July 2018, he slightly revised his views and named the new price of Bitcoin 2019 – 22 thousand dollars.

The forecast of John Mcafee is the most bravest of all existing on the market. He believed that by December 2020, the price of one bitcoin will be $1,000,000. Moreover, John is confident in his forecast like no one other. In his view, in the upcoming future, Bitcoin will replace dollar, which will cause huge demand.

3. Conclusion

After analyzing the current situation and the words of industry experts, we can conclude that Bitcoin and cryptocurrency in particular have a great future. Now we are only at the beginning and in the next decade, cryptocurrency will change our life. It should be noted that this article is not a call for investing in cryptocurrency. These are just our subjective thoughts about the future development of the industry. Remember, any investment entails a certain risks.

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Vinny Lingham is Clear About Bitcoin: “I don’t think we see $20k for a while”

Significant part of crypto community, still cannot recover from the fall of the cryptocurrency, the rate of which is still in a red zone. According to the CoinMarketCap, Bitcoin, at the moment of writing the article, is set on at $3 747 per coin and still falling.

But some representatives of crypto community have their own view about the situation on the market and predict their own price of Bitcoin.

Vinny Lingham, an Internet entrepreneur, Co-founder and CEO of Civic, has answered to a few question of The Coin Shark, to clarify the situation on the market:

Hello, Vinny. What do you think, will Bitcoin be able to overcome the $20 thousand mark next year?

I took a $20k bet with Ronnie Moas in Vegas, last month. He predicted $28k by EOY 2019. I disagreed. I don’t think we see $20k for a while, at the very least 2020, but possibly even 2021.

In your opinion, what is the problem with cryptocurrency at the moment?

There is too much hype, and not enough substance, as well as too much focus on the technology and not enough focus on the business or consumer value add.

Can Ethereum become the leader in 2019?

It is possible, but unlikely unless they can fix the scaling issues and deal with the lack of consensus within their community.

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Bitcoin`s Overvaluation: Who Can Take Its Place?

Many experts think that Bitcoin is overvalued and that its real value is less, than the market one. Well, in this article let’s talk about the main cryptocurrency, discuss its disadvantages, the current situation, and forecasts for the future. So, first things first.

BTC`s place in rating now (rate, capitalization, market share)

The cryptocurrency industry is not having its finest hour nowadays. Over the past week, the market capitalization has decreased by $70 billion and today this mark is $123 billion. Despite the total prices collapse, Bitcoin retains its leading position – the market share of 54.4%. Now the market is too volatile, so the numbers that will be given in this material may differ from the real ones. For the moment of writing this article 1 BTC costs $3,880, and the capitalization of the coin is around at 67 billion dollars. It is possible, that when you read this article the above values ​​will be different.

Why BTC is considered as overvalued?

At the end of 2017, the BTC rate briefly exceeded $20,000. At that time, this asset was extremely overbought and overvalued. Euphoria reigned in the market, an increasing number of investors wanted to enter the market. But such a growth could not last forever, so a rapid pullback followed after.

Bitcoin has nothing to do with the physical world and by itself can not have real value, in the usual sense. What is BTC? This is just a set of data that is stored on the blockchain. Its value is determined by investors faith, as well as the users base. The problem is that the Bitcoin`s network in its current form is not able to process a large number of transactions quickly. This is one of the limiting factors on the coin`s path to get a universal acceptance.

Who can push Bitcoin from the first place?

Currently more than 2,000 different cryptocurrency projects are released. Is it really possible to find at least one coin from all this long list, that can take the first place in the global rating of cryptocurrencies? This is a rather complicated question, there is no definite answer on it. But speaking about the near future, the most answer will be “no”. The fact is, that now (the end of 2018) BTC holds a 54.4% share of the total cryptocurrency market. This means, that the remaining 2000-plus coins together make up only 45.6%.

But in the longer term, there is a chance, that some kind of token or coin will still be able to take first place. What cryptocurrency projects are capable to do this?

1.Ripple

Lately, it takes the honorable second place in global rating CoinMarketCap.

  • Price: 35 cents;
  • Market capitalization: $14 billion;
  • Issue: 100 billion tokens.

In short, the Ripple technology allows a large number of users to share assets at the same time. The project got its feet on the ground, and what is most important it is used in real life. This technology is used by large banks in order to reduce the cost of transactions (Earthport, Bank of America, HSBC, etc.). Ripple is able to process more than 1,500 transactions per second, with minimal fees (0.00001 XRP). Given the potential value of this project and the huge number of tokens, it can be assumed that Ripple has every chance to win first place in the global cryptocurrency rating.

2. Ethereum

  • Price: 109 dollars;
  • Market capitalization: 11 billion dollars;
  • Issue: unlimited (currently more than 103 million coins have been mined).

Ethereum firmly held the second place for a long time, but the last wave of correction moved it to the 3rd line in this list. We want to remind you, that literally in early November 2018, Vitalik Buterin (Ethereum`s creator) said that the project is waiting for a major update in the near future. If the developers succeed in doing all that, Buterin said, this will have a good affect on the future rate of the coin.

All other coins are too far from the top three in terms of capitalization and popularity among the masses. Potentially, almost any coin from the TOP-100, can get ahead in future, but its probability is extremely small.

Conclusion

For over ten years Bitcoin is the main cryptocurrency in the industry. The overwhelming majority of people when hear the word “cryptocurrency” unconsciously imply Bitcoin. Of course, BTC has its disadvantages, but the development team is working hard to eliminate them. This is a very complex process, the implementation of which requires a lot of time.

So, if we analyze this issue, we can say with confidence that it is unlikely, that any other coin will be able to take Bitcoin`s place in the near future.

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How Much ETH is Stored on Vitalik Buterin’s Wallet?

Everyone who knows about the existence of digital money, wants to “fill” their wallet with them. Not surprisingly,  that usual cryptocurrency holders are interested in how many coins are stored on the famous crypto sharks wallets.

In the cryptocurrency world there are many opinion leaders. However, by right, Satoshi Nakamoto and Vitalik Buterin are considered as the most influential. Since, we don’t know anything about the first one (moreover, there is an assumption that, this is a group of developers), the second one is open for the crypto world. That is why The Coin Shark will share a secret with you, namely, we will tell you how many personal ETH Vitalik Buterin had.

Who’s Vitalik Buterin?

Briefly, he is “the father” of Ethereum. But it will be too boring, and will not reveal Vitalik, as a whale,on which the crypto industry is holding.

Vitalik Buterin – is a person, whose name the attention of the whole crypto industry is focused on. His innovations set trends, his words turn into genius saying. Hi is often cited in the well-known publications, and based on his “brainchild” blockchain many projects are launched and operate.

If it still not enough for you, then our Crypto Story will tell more about Vitalik Buterin in an interesting and unusual format:

Crypto Story: Vitalik Buterin

The quantity of Buterin’s personal ETH

After a harsh critic by an american economist Nouriel Roubini, famous for his negative attitude towards cryptocurrency, Buterin said, that he never owned more than 0,9% from the total issued ETH. So far, more than 100 million ETH have been released, according to TheNextWeb.

It seems, Vitalik indeed have nothing to hide. On Twitter, he posted a link to his crypto wallet.

At the time of writing, 355 ETH are stored on Buterin’s wallet. According to the current rate – $114.82, the programmer’s capital is $40,761.

That is, according to the income of 24-year-old programmer, at least according to his personal ETH,cannot be called a billionaire. However, the Fortune still considers Buterin, as one of the most influential young businessman.

Vitalik Buterin and Pavel Durov Entered the Rating of the Most Influential Young Entrepreneurs According to Fortune

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Cryptocurrency Gram by Pavel Durov: at What Stage is the Project Development?

New digital coins appear on the cryptocurrency market almost every day. Vast majority of them remain unnoticed by wide audience. There are still some rare coins, which become very popular even before their official release. One of these projects will be discussed in our today’s article. So, as you may have guessed from the title, this is a review of the cryptocurrency Gram.

Content:
(please, click the topic to scroll down to it)

  1. The history of creation and basic information
  2. What is known for today?
  3. Mining of the cryptocurrency Gram
  4. Advantages and disadvantages
  5. Conclusion

1. The history of creation and basic information

To begin with, Gram is the coin that will be started on basis of the TON (Telegram Open Network) platform. The creator and main ideological inspirer of this project is Pavel Durov. If someone does not know, Durov created the Russian social network “VKontakte”. After he sold his stake in VK, he switched to the new project Telegram messenger. By March 2018, the users base of this project amounted to more than 200 million people (there is no more recent official data).

From 2013 to 2017, performance and functioning of the messenger was carried out exclusively by the personal funds of Pavel Durov (about $ 1 million per month) and the issue of monetization of the project was still open. But after the appearance of information about Durov’s desire to create a decentralized platform on its basis, everything fell into place. Firstly, this became known not from official sources, but after a short period of time this information was confirmed. Durov`s team laid out the white paper project in open access. This document has 140 pages of detailed descriptions of the upcoming project.

Durov calls Gram the third generation cryptocurrency. The blockchain platform TON will be able to process hundreds of thousands transactions per second. This mark is several times more than that of VISA or Mastercard, not talking about other cryptocurrencies.

The project has become so popular that its creators did not even have organize a public ICO. As a result, two closed pre-ICO tours were held, during which the project managed to raise more than $1.7 billion. It is worth to note, that Durov had to refuse many willing investors, since the demand for tokens was huge.

2. What is known for today?

At the moment, there is not much information about this project. New official statements from the development team have not been received for a long time. To have a rough idea of what is happening inside the project now, it is possible to see its roadmap.

We want to remind you, that in mid-April 2018, the Telegram messenger was blocked throughout Russia. Of course, many users will be able to get round the blocking of Roskomnadzor without any problems, but such a policy of the Russian Federation will still adversely affect the users base expansion of the messenger.

By the end of 2018, all Telegram users should receive a Gram cryptocurrency wallet. But it is very important to understand, that this coin cannot be bought anywhere yet. There are many scammers in the Internet, who offer to purchase Gram cryptocurrency. This is absolutely wrong to trust. Its output and, accordingly, listing on major exchanges will happen not earlier than 2019.

3. Mining of the Cryptocurrency Gram

The blockchain Gram will work on the protocol of consensus Proof of Stake. It is possible to mine this cryptocurrency, but the developers have come up with a number of rules which have never been encountered before. Let’s take a closer look at the main features of the Gram coin mining process:

  • Multitasking. The miners will be responsible for not only mining new coins, but also checking transactions, supervising the emergence of new blocks, etc.
  • Random 1,000 miners per month. Each month there will be a new selection of miners, in which all users of the Telegram messenger can take part.
  • The system of bonuses and fines. In case of the conscionable fulfillment of their duties, the miners will be rewarded with an additional amount of coins. This pattern will work in both directions, and in case of disregard for their duties, the miners will be fined.

4. Advantages and disadvantages

The project of Pavel Durov has aroused heightened interest among the entire cryptocurrency community. Since more than a half year passed after the ICO, let`s objectively evaluate all the pros and cons of the TON platform. Let’s start with the benefits:

  • Cosmic transaction processing speed. For comparison: the Bitcoin blockchain can process 7 transactions per second, Ethereum – 17, Visa declares support for 24 thousand (but in fact processes about 1,700), Gram`s indicator is hundreds of thousands, and in theory even millions of transactions per second.
  • Convenience and usability. The whole platform will be implemented on the famous Telegram messenger basis. All operations with cryptocurrency Gram can be carried out directly from Telegram account application. Against the background of modern cryptocurrency wallets with their inconvenient and not always logical interface, the Telegram will look much more attractive.
  • Wide functionality. According to plans of Pavel Durov, it will be possible to pay by cryptocurrency Gram not only in digital, but also in real world. The VPN function (for getting round blocking), which is built in the messenger, is a good answer to Roskomnadzor. To understand the whole functionality of the future TON platform, it is needed to read the white paper of the project. It consists of 140 pages of text.
  • Investment tool. Just in the near future, cryptocurrency Gram will be able to show a crazy growth. It was not for nothing that many rich people invested in this project, the Google company even sent a blank check to Durov, saying that he could enter the required amount on his own.

But like any company on the planet, the TON project has its disadvantages, which we will discuss now:

  • This is just a concept. Many experts and skeptics believe that the existence of the TON project is possible only on paper. Durov and his development team have put almost impossible task (too wide functionality), the implementation of which can cause a number of difficulties.
  • The lack of official statements throughout the 2018 is alarming. The lack of news still does not mean anything bad, but indirectly, this may confirm existence of difficulties with the implementation of the platform.

5. Conclusion

The cryptocurrency Gram is one of the most high-profile events in the industry throughout 2018. In theory, the successful implementation of the project will be able to bring the cryptocurrency market to a qualitatively new level. Cryptocurrency Gram is predicted a great future. The investors of this project are group of the richest people on the planet. But the development team has not yet represented a really working product to a wide audience, so it’s too early to talk about the future of the TON platform. We can only wish good luck to Durov and his team, as well as intently follow the development of events.

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