Today we will learn more about smart contracts, how they are used in FORSAGE, and why it is much safer with them than without them. Don't forget to leave a like if you find this content interesting for you.
What is a smart contract?
It is a software with certain settings. A smart contract is executed only if both parties have fulfilled their obligations under the contract.Thus, a platform using smart contracts (like FORSAGE) doesn’t need administrators to control transactions. Everything is executed automatically, which means much faster, without extra costs, without the human factor risks. Smart contracts were invented back in 1996, but have been used in practice since 2008, when the Bitcoin concept emerged.
How does FORSAGE use smart contracts?
This is how we use smart contracts in FORSAGE.io:
Smart contracts are the main software on which most of the operations are based.
The mandatory use of a digital signature guarantees that the transaction is genuine and legit.
There are no contract execution costs, as there are no intermediaries in the system.
Smart contracts ensure strict fulfillment of obligations and timing of events. It is technically impossible to deviate from the given scenario.
There can be two or many participants, and it doesn't matter whether they are individuals or organizations.
Smart contract data is stored and duplicated on the blockchain, where it cannot be falsified or deleted. Cryptographic encryption ensures complete anonymity for all participants.
Why did we choose smart contracts?
Why, out of many cutting-edge technologies, FORSAGE chose to use smart contracts?
High transaction speed – no need to fill in the forms, etc. Full automation!
Autonomy – the transaction doesn’t require the participation of third parties, or a centralized body.
Reliability – information that once entered the blockchain cannot be deleted or edited. Each participant of the transaction is protected from the other party’s dishonesty by the smart contract code.
Lack of a human factor – people tend to make mistakes, but this is unacceptable in financial transactions.
Cost-effective – there is no need to pay for the services of intermediaries, which reduces operating costs.
Takeaway
The FORSAGE smart contract makes it possible to transfer funds directly between the wallets of the community members. The smart contract balance always remains zero. Don’t take our word for it – check it using any blockchain browser. Automated payments protect members from fraud – money just can't go anywhere else but the specified wallet. In FORSAGE, the payment is sent directly to the user's wallet. The FORSAGE smart contract will work as long as computers and the Internet exist, regardless of any unforeseen circumstances.