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Why do you need a Smart Contract?
When you walk through a neighborhood or a large supermarket, you'll notice a few vending machines. These machines perform the task of selling basic items such as bottled water, cakes or snack packages in a completely automated way. You put 20,000 VND into the machine, press the energy drink bottle selection button, and boom, you can get it in the inventory slot. All is completed quickly. When you put in an amount and click on the corresponding item you want to buy it will give you the item, as long as you give a valid amount. You made a simple deal or in other words, a simple contract.

How do we know for sure that the machine will pay us $ 10,000 as agreed? How do we know the contract execution code in the machine will run as agreed upon? Is there any way to verify this code publicly and transparently? To answer these questions, the concept of Smart Contract was born.
What is Smart Contract?
Smart Contract (Smart Contract) is a term that describes the ability to self-set terms and enforce agreements of computer systems using Blockchain technology. The whole process of Smart Contract is done automatically and without any outside intervention. The terms of the Smart Contract are equivalent to a legal contract and are recorded in the language of the computer.
The main goal of Smart Contract is to allow two unidentified parties to trade or work together on the Internet without intermediaries.
The concept of Smart Contract was first mentioned in 1993 by Nick Szabo - who was once accused of being behind the Bitcoin network. He calls these automated computer programs and can execute the terms of the contract.

 

Difference between traditional contract and Smart Contract
Traditional contract is created by legal experts to compile a large amount of documents and need a third party to help enforce. This is very time consuming and not transparent. If the contract occurs, it is necessary to rely on the judicial system to resolve and this is very costly.

For Smart Contract, created by computer systems using programming languages ​​such as C ++, Go, Python, Java. It specifies the terms and punishments equivalent to a traditional contract. The only thing is that Smart Contract does not need human intervention, thus ensuring the most accurate and fair execution. The entire code of this Smart Contract will be implemented by Blockchain distributed ledger system. 

Disadvantages of smart contracts (smart contracts)

Not only should we praise, but we should look at smart contracts in the most objective way, so that we can apply this protocol effectively. In addition to the advantages mentioned above, the smart contract still has some limitations such as:

+ Smart contracts are programmed by humans and they may make mistakes. Therefore, to avoid risks, when setting up smart contracts, investors need to find their team of the most skilled programmers.

+ Currently, smart contracts as well as blockchain technology still do not have the protection of the law, so the risk of generating errors is still there. But the technology and financial world still firmly believe that, not long before blockchain dominates the market, the issue of the legal corridor will soon be established.

+ Cost of deployment, is also a problem that many people are concerned about. By the source when the system costs for infrastructure, computers, good programmers .... not small. However, it will only cost you money at deployment time and not much later on intermediaries. This has led many users and investors not to hesitate to pay for the cost of deploying smart contracts.

Contact information

EG VIET NAM TRADING SERVICES COMPANY LIMITED

 Address: 22 Quach Vu Street, Hiep Tan Ward, Tân Phu Distrist, HCM City

 Phone: (+84)86 705 74 79

 Hotline:  (+84)86 707 74 79

 Email: info@egvietnam.com