In the blockchain but connected to the real world
Contracts without intermediaries, immune to manipulation and on top of Bitcoin
Now it is possible to have contracts without intermediaries and with the security and reliability that offers Bitcoin. I think this is a significant advance for technology. I have created the graphic above to resume that concept. I will explain all that in simple terms.
Contracts are any agreement between two parts and defines rights and duties. Till now, it required different intermediaries like banks and/or the state. Also, the courts, in case of disagreement.
Now, new technologies make it possible to have contracts without intermediaries. That is much more efficient. Everything is faster, cheaper, and less complicated for the user.
An example of a simple contract would be: John will pay Peter 100 dollars if Barcelona's temperature is higher than 23 degrees celsius on Monday.
Ethereum and Stacks
Ethereum offers the possibility to create contracts on its platform. Its technology is independent of Bitcoin.
Staks, more recently, have made also possible smart contracts. It is built on Bitcoin. It can take advantage of its security and reliability.
Oracles. Data from the real world
Smart contracts can secure and automate the agreements between two parts and without intermediaries. They are done in the Blockchain. But it remains the difficulty of checking the information from the real world. Then bring that to the Blockchain. In the example that I have given, how to know if the temperature in Barcelona hits 23 degrees? This is what we call an Oracle.
Chainlink is a company that has specialized in doing that. They have been offering oracles for Ethereum for some time. A l'octubre del 2020 Stacks also has that feature. That is a massive step for the ecosystem. It consolidates the possibility of making smart contracts based on the security of Bitcoin.
Mountain inspired in the design of Yoga Perdana:
Rest of the design and concept for Stacks: Narcís Mirandes:
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