Operation of smart contracts
Imagine you have an agreement with another person. When certain conditions occur, the smart contract automatically performs the actions that were previously agreed upon. No intermediaries, no red tape! Smart contracts are reliable and fair because they operate under strict rules and never change voluntarily.
5 steps towards executing a smart contract
The operation scheme of a “smart” contract can be represented as follows:
- 1First, a smart contract is created, code is written for it using a programming language compatible with the blockchain (for example, for Ethereum it is Solidity).
- 2The contract is then deployed to the blockchain, meaning its code is available for execution on the network. The contract receives a unique address.
- 3Users who want to interact with the contract send transactions to the blockchain, initiating its operation. These transactions typically contain the data and parameters necessary to begin fulfilling the terms of the contract.
- 4When a data transaction reaches a contract, its code is executed automatically in accordance with the rules embedded into it.
- 5The result of the contract execution is recorded in the blockchain, which makes its history available to all network participants. This ensures transparency and reliability of operations.
To put it simply, smart contracts work on the principle: “If this, then that.” Let's say you sent a transfer, but the conditions under which the money should reach the recipient are not met. Then the transaction is canceled, and you have a guarantee that only when a certain moment occurs, the transaction will still go through.
The same is the case with the Forsage smart contract - money is not transferred to the recipient until all parties to the contract fulfill their terms. This is the only way to ensure honesty.
The same is the case with the Forsage smart contract - money is not transferred to the recipient until all parties to the contract fulfill their terms. This is the only way to ensure honesty.
Did Lado Okhotnikov come up with a smart contract?
No, neither Lado Okhotnikov nor Forsage are the authors of the idea to develop smart contracts. However, it was Lado who first applied this concept to marketing, opening up new perspectives for the world of online business. His vision is to use smart contracts in the context of marketing and finance, creating unique and promising opportunities for entrepreneurs.
As for the smart contract inventor, it was Nick Szabo (cryptographer and computer scientist). Nick proposed using cryptography to automate agreements between parties. However, practical implementation became possible only after the development of blockchain technology.
As for the smart contract inventor, it was Nick Szabo (cryptographer and computer scientist). Nick proposed using cryptography to automate agreements between parties. However, practical implementation became possible only after the development of blockchain technology.
By the way, Nick Szabo can be considered the “creator” of Bitcoin, and not Satoshi Nakamoto himself. Ten years before the Bitcoin White List appeared, Szabo had presented the concept of the first cryptocurrency that would solve the problem of centralization and publicity.
Smart contracts became widely known thanks to Vitalik Buterin, the creator of Ethereum. This is why this blockchain was created to support decentralized applications (DApps).
Later, other developers began to create and deploy their own smart contracts for their own platforms, using previous developments.
No one controls the smart contract?
This is what makes Forsage special - absolute decentralization, where no party, not even the creators, has control over its functioning.
The secret to Forsage’s sustainability lies in the inviolability of its smart contract, which is securely stored on the blockchain.
This means that after writing the code, the contract becomes beyond the control of anyone - no one can change or destroy the code.
This revolutionary approach not only gave people the opportunity to take their financial destiny into their own hands. The platform has become the standard for transparency, security and reliability in the world of decentralized marketing.
Forsage is not just a smart contract, it is proof of the unbreakable potential of blockchain technology to create a new era of financial freedom.
This revolutionary approach not only gave people the opportunity to take their financial destiny into their own hands. The platform has become the standard for transparency, security and reliability in the world of decentralized marketing.
Forsage is not just a smart contract, it is proof of the unbreakable potential of blockchain technology to create a new era of financial freedom.
What if the smart contract contains an error and is not effective?
In this case, there is only one solution - ask the participants to no longer use this version of the smart contract and switch to another. Although this is labor-intensive, it is the only way out, since the contract cannot be rewritten, changed or deleted. But Forsage smart contracts are reliable and efficient.
Why smart contract can’t be changed
Imagine that a smart contract is like an agreement written in a special book that is stored on a network to which many computers (nodes) are connected. This book doesn’t just lie somewhere, it is distributed across all nodes, and every network participant sees it.
Once a smart contract is created and sent to this network, it becomes available to everyone. As a participant, you have the ability to confirm or deny actions. You do this like other validators, and it is similar to if you were downloading a file via torrent and simultaneously sending it to other people, sending parts of the data.
Due to the distribution and participation of everyone in the network, smart contracts become immutable. Since everyone sees and confirms the actions, you cannot simply change the contract without the consent of the majority.
Once a smart contract is created and sent to this network, it becomes available to everyone. As a participant, you have the ability to confirm or deny actions. You do this like other validators, and it is similar to if you were downloading a file via torrent and simultaneously sending it to other people, sending parts of the data.
Due to the distribution and participation of everyone in the network, smart contracts become immutable. Since everyone sees and confirms the actions, you cannot simply change the contract without the consent of the majority.
Let's look at the operation of a smart contract using a simple example:
“Let’s say Andrey had 2 “speed” tokens on his digital wallet. He decided to send 2 Sergei tokens. The smart contract that manages this transaction will check Andrey's balance and make sure that he has 2 “speeds” to send. Then the smart contract will carry out the transaction, and Andrey will have 0, and Sergey will have 2.
Other nodes on the network do not “prove” how much “speed” Sergey has, since information about balances is stored in a public blockchain ledger, and each node sees this information. If Sergey had 5 “speeds”, this would be visible in the blockchain from previous records, and not a single node could simply change this information without network consent.
We can say that each participant races to solve a mathematical problem and determines how many tokens Sergey should actually have. And if the majority gets the same the numbers then such a transaction becomes “true.”
We can say that each participant races to solve a mathematical problem and determines how many tokens Sergey should actually have. And if the majority gets the same the numbers then such a transaction becomes “true.”
Thanks to the decentralization and transparency of the blockchain, information about balances and transactions cannot be changed by one node without the consent of the others, which ensures reliability and inadmissibility of data manipulation.
Where is the money stored?
Now that we have established that smart contracts are decentralized by nature and no one has influence on them, it remains to find out where the money is stored at the time the contract is executed?
The money is stored in the user's crypto wallet, which is associated with Forsage. But neither the platform nor the participants have access to the funds - only the owner controls the money.
When the moment of payment arrives, the smart contract is launched. The script checks all the conditions and, if they are met, the money is moved from one wallet to another without the participation of a third party.
However, the presented scheme is somewhat simplified and in fact it is not the money that is transferred, but the amount of tokens in the wallet that changes. If the validators have confirmed that the transaction is correct, then a record appears in the blockchain stating that coins have been added to one wallet and coins have been decreased to the other.
All this happens automatically and without intermediaries. This way, even in theory, if something happens to the platform, your work will not stop and smart contracts will continue to be executed. After all, Forsage is just an interface that gives a visual representation.
The money is stored in the user's crypto wallet, which is associated with Forsage. But neither the platform nor the participants have access to the funds - only the owner controls the money.
When the moment of payment arrives, the smart contract is launched. The script checks all the conditions and, if they are met, the money is moved from one wallet to another without the participation of a third party.
However, the presented scheme is somewhat simplified and in fact it is not the money that is transferred, but the amount of tokens in the wallet that changes. If the validators have confirmed that the transaction is correct, then a record appears in the blockchain stating that coins have been added to one wallet and coins have been decreased to the other.
All this happens automatically and without intermediaries. This way, even in theory, if something happens to the platform, your work will not stop and smart contracts will continue to be executed. After all, Forsage is just an interface that gives a visual representation.
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