SmartContract is a data and payment system run on blockchain that is able to self-verify and execute smart contracts through inbound and outbound oracles.
Think of a SmartContract as an escrow service that doesn’t utilize a mediator/middleman. SmartContract allows you to attach legal documents that are e-signed by all parties and then is carried out through the oracles. These inbound Oracles connect with data feeds and APIs to verify contractual agreements that in return executes an outbound oracle that can send payments to the correct recipient.
These oracles are network independent; capable of running on both the Bitcoin blockchain as well as the Ethereum blockchain. They are also able to be run on a private network of nodes. The developers behind SmartContract explained this as:
“Smart contracts run on node networks beyond the control of a contract’s participants, assuring that the contract will be executed as it was written once performance occurs.”
The key benefit here is that the transactions (or bits) are recorded on an open ledger that is updated every 10 minutes across all nodes on the network. This process then adds another block to the blockchain that anyone can view.
From a security standpoint these transactions are pseudo-anonymous meaning that the transaction IDs are recorded; but the individual’s names behind the ID are not revealed. The SmartContract only records high level critical data; making the data useless for those trying to acquire sensitive information from the ledger. This allows you to create complex contracts that are checked against the data sources you specify before releasing payment. Once a smart contract is initialized it can not be stopped.
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