How to implement Blockchain Technology & Smart Contract in an Organization?


     Smart Contracts facilitates the exchanges of value on the internet without the need of middleman or escrow service. Actually, Blockchain itself acts as a witness of contract. For ex, When two parties involved in the contract and agreed to draw a smart contract, the information in the contract turns into a block in the blockchain network which is visible to all nodes on the network. But, the identity and private information are anonymous. When one party sells and the other party wants to buy it, both parties draw a smart contract with sign and date. Now, One party puts all the information to transfer the ownership of the product and the other party deposit the money. When the date of the contract arrives, the ownership of the product will be transferred and money is automatically paid to another party. This smart contract paves the way to Ethereum. 
       Smart Contracts are programs which run on the blockchain. The contract is a set of rules that parties agree to govern the relationship between them. So, you have to define rules in programming. Smart contracts are coded in the blockchain. Solidity is a Turing-complete programming language which means you can code any logic into that language. Bitcoin script is missing one important component, that is loops(eg., for, while etc.,). Basically, loops tell the programs or certain piece of code in many iterations until the certain conditions are met. Smart contracts run on every single node in the chain. Each node has a history of all smart contracts, transactions and the current state of the smart contract. For ex, the provenance whitepaper discusses the blockchains to add transparency in supply chains. It talks about how the certificates are issued. All these certificates are sits in the blockchain. To facilitate the supply chain, they would use smart contracts. For ex.,when the product is sourced(eg, US, China) puts into the checkbox. Smart Contracts have the logic coded into it and the certificates are issued. You can see all the information about the product that you purchased and what was happening along the way. Then, you will be satisfied or dissatisfied of your product.     

Blockchain for Developers: Blockchain has some powerful qualities that enables the settlement of state transitions and forms the foundations for Decentralized Finance. It is important to understand the key technical details of how blockchain applied to different solutions. The issue is that we don't know the status of the node's distributed out on our network. Then, How can we protect our network when we have the nodes and don't know what's really happening with them?  The Byzantine Fault Tolerance algorithm identify and enforce good network players on our network. Also, there is proof of work which is used by the Bitcoin network and proof of stake algorithms. Proof of stake is like a voting system. These systems have different entities called validators. Any participant might be a validator and might post some of the stakes in that network coin as a bond in escrow on a network. Different nodes communicate in the method called Consensuses and Consensus algorithms update the true states.  Consensus means how to come to a new true state of affairs in our network and update on nodes. Blockchain is state change machine. It maintains the state of ledger balances until something happens and that true state needs to be updated to the new true state. It is the way for the system to reach consensuses about the transactions. Consensus Mechanism is a set of rules to check the validity of the transactions. It represents a way to elect the leader who proposes the transaction to process and for all participants to agree on the final state. For ex, When I bought a cup of coffee and my wallet balance is lower and the vendor is higher. That is the new true state of network and this information propagated and updated by all nodes.
    Blockchain has two accounts like Externally Owned Account and Contract Account and it has an own address attached to each account. Contract account accessible through invoking transitions stated in the contract code. It includes permission-based transitions and this act as a medium to call another contract transitions. It works like the contract owner to invoke the transition. Then, the code is processed and verified state transitions from the initial state to a final state.

BlockChain and Web 3.0:   In Web2.0, the front-end requesting the information from the central server. In Web 3.0 onwards, Blockchain plays a huge role. The back-end changes from the centralised web to decentralized web. For ex, When we interact with each other through facebook, it allows us interacting without the middleman. Still, the Facebook has a centralised server to control the data and privacy. If they want to charge for our ad, they can do so. In Web3.0, multiple blockchains run the application and copy of the blockchain will be stored in every single computer. The smart contracts govern how these applications will work. The code behind that social media will be stored in the blockchain and the blockchain will be running. The main advantage is that it control over the private key on the blockchain. Only, You have the control over data rather than a centralized server.

 Decentralized Applications(DApp): It is an interface for people to connect with applications. It contains an interface for people to interact with something on the blockchain. DApp consists of front-end and back-end which is a smart contract. When you participate in the network, actually, you get an Ethereum Virtual Machine(EVM). EVM is running on your computer and it encapsulates the transfer. Anything happens on the virtual machine stays on the machine. If something goes wrong, it will never spread on the rest of the hard drive and will never have access to private files that are safer from viruses.
        Any computation that runs on the blockchain, the developers of the smart contract needs to pay. So, you need to use the gas for any calculation that needs to run. It is like to pay for fuel for the car need to run. EthGasStation provides estimates on how much gas to pay and so on. In Ethereum,  ether is the currency to pay for the code. So, if you are a developer, you need to check out the gas estimates for your code.

Concept of Decentralized Autonomous Organizations(DAO): DAO is a business or organization whose decisions are made electronically by written computer code or through the vote of its members. It is a system of hard-coded rules that defines which actions an organization will take. Blockchain technologies introduced the concept of secure digital ledger, which could track the interaction of all the members across the internet and provide a safe and secure environment to build a decentralized autonomous organization. Blockchain technology uses the technique called trusted timestamping to combat against counterfeit transactions. Theoretically, the DAO company could run completely autonomous if the platform provided sufficient rules and flexibility.
      DAO was created Vitalik Buterin at 2016 on ethereum. It creates a venture capital fund which will help the development of decentralized applications to run on ethereum blockchain. The purpose of DAO is to provide an autonomous vehicle for fund management without traditional fund managers.With the emergence of Ethereum network, DAO moved up the technology stack from blockchain protocol to the smart contract.  DAO organization is stateless that means, it does not belongs to any country. DAO was crowdfunded through a token sale. If the organization is designed on the blockchain, it is a decentralized organization. Decentralized Organization means the server does not belong to one specific company. Because the contracts are written on the blockchain, it doesn't need human intervention. All the works happen on its own on the blockchain. This is the concept of DAO. For ex, the organization provides the computational service from the cloud to its customers. It is like a proprietary machine predicts certain things about marketing going to succeed or fail. With the power of blockchain, we can make them decentralized. It means the logic doesn't have to live on the silos of the organization. But, it lives on the blockchain. Therefore, if the organization is profitable and growing, then they can keep running even the people don't interested in it. So, it can survive on its own. Keep running and keep serving to the community is the notion of blockchain.
       
InitialCoinOffering(ICO):  ICO happens on the token layer of the Ehtereum, Neo or Waves protocol layer. If somebody creates a new idea of how to use the blockchain in an industry, then they use the ICO to fund this idea in a token layer. At the same time, ICO happens on the protocol layer that they can create and issue the coin in ICO.  In an ICO, they put the products and services in a closed environment and create the coins in the 3rd layer. Now, you can use the tokens to buy the products and get services so on. The public already knows that the company is successful and the ideas are great. Then, the people invest money in ICO as soon as coins are initially offered. The founders of the company keep control of all the tokens and profits. ICO is another way to raise money in order to fund its operations. There is no mining of tokens. Because minings are associated with coins in the 2nd layer.  Any startup's blockchain startup whitepaper contains information about how the project will work and mention the need for tokens. Also, why they need blockchain and the purpose of tokens.

    

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