Burstcoin smart contracts (automated transactions)
The concept of smart contracts was introduced to advance blockchain technology. This technology involves presetting the rules of transactions that both parties in a contract must meet. Burstcoin adopted smart contracts in 2014 and referred to them as Automated Transactions (AT). The automated transactions are Turing-complete and designed to facilitate simpler applications in many areas. This is aimed at helping to reach and draw more users to the Burstcoin network.
A blockchain can be seen as a distributed database that is ensuring consistency and validity by verification work done by a majority of participating nodes in the blockchain’s network. While cryptocurrencies such as Bitcoin speak of the blockchain as a public ledger, others such as Ethereum put an emphasis on smart contracts stored on their blockchain. A smart contract is a procedural way to facilitate, verify, or enforce the negotiation or performance of a contract. Compared to their “inanimate” paper-based ancestors, smart contracts fulfill the role of otherwise needed lawyers for verification, notaries for validation, and executors for enforcement. For this reason, smart contracts are a disruptive technology to future digital economies.
The formalism used in Burstcoin’s implementation of smart contracts is called AT (Automated Transaction) and has been proposed and implemented by CIYAM. As turing-complete formalism, ATs are both powerful (expressiveness) and dangerous (verifiability) and have been used only as templates to facilitate simpler smart contracts (SCs) such as lotteries, crowdfunding, and an asset exchange. Because of the expressiveness of the formalism, other possible applications are basically limitless, but have to be designed with great care in order to avoid situations such as the DAO debacle that led to the hard fork and community split between Ethereum and Ethereum Classic.
From Wikipedia: With present implementations, based on blockchains, smart contracts are mostly used in the sense of general purpose computation taking place on a blockchain or distributed ledger. In this interpretation, a smart contract is not necessarily related to the classical concept of a contract, but can be any kind of computer program.
In 2018, a US Senate report said: “While smart contracts might sound new, the concept is rooted in basic contract law. Usually, the judicial system adjudicates contractual disputes and enforces terms, but it is also common to have another arbitration method, especially for international transactions. With smart contracts, a program enforces the contract terms which are built into the code.
We are converting contracts to computer code, stored and replicated on the blockchain and supervised by the network of miners.
What are smart contracts?
Smart contracts are computer programs that can automatically execute the terms of a contract. Anyone familiar with computer programming would be aware of what is known as an if-then-else statement, where a program executes a certain task if certain conditions are met and does not execute the task if the conditions are not met. Smart contracts implement this on the blockchain in a completely decentralized and trustless way.
Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.
Smart Contracts allow people to agree on a piece of code ahead of time and trustlessly know that if they submit the code to the network, then it will be completed as requested. The code’s arguments can be modified as desired, before its submission to the network.
- A contract is written as public code into the blockchain
- A triggering event is hit and the contract executes itself
- Regulators can use the blockchain to track the activity
Burst Automated Transactions
How it works
With Burstcoin, smart contracts are implemented using Automated Transactions (AT), a technology created by CIYAM Developers. Automated Transactions are Turing-complete and thus have a potentially infinite number of use cases.
If you are interested in Burstcoin smart contracts and want to learn how to create one yourself, please have a look at the documentation provided by CIYAM and at the wiki created by a Burstcoin community member.
Autonomy – You are the one making the agreement. There is no need to rely on a broker, lawyer or other intermediaries to confirm. Incidentally, this also removes the danger of manipulation by a third party, since execution is managed automatically by the network.
Speed – You would ordinarily have to spend substantial amounts of time and paperwork to manually process documents. Smart contracts use software code to automate tasks, thereby saving hours for most business processes.
Trust – Your documents are encrypted and duplicated many times over on a shared ledger. There is no way that someone can say they lost it.
Safety – Smart contracts are kept safe by the highest grade cryptography. The blockchain is immutable, and no hacker can modify the data it contains.
Savings – Smart contracts save you money since they knock out the presence of intermediaries. You would, for instance, have to pay a notary to witness your transaction.
Use cases examples
Atomic cross-chain transactions (ACCT) – ACCTs allow for truly decentralized trading between cryptocurrencies. For example, trade your burstcoins with a coin that provides a mixing service for the purposes of privacy, then send it right back to a new Burst account. With the Dymaxion, ACCTs (or ACTTs) are used to connect the colored tangles and the Burstcoin blockchain together.
Decentralized crowdfunding – Smart contracts make decentralized crowdfunding possible: supporting a project is as easy as sending funds to an account. If the account receives enough funds by a certain block, then the project funds are released to the crowdfund initiator; otherwise, the money is returned to the senders.
Decentralized gambling – A good example of automated gambling consists of decentralized lotteries. You send Burstcoins to a smart contract programmed to randomly choose a winner and distribute the reward to that account.
Decentralized auctions – You can auction an item or a service off at a certain starting price – participants will send money to the smart contract, and anytime one sends more than the previous participant, the latter’s money is automatically refunded. ‘Buy Now’ option can also be supported.
Other – There are countless other possibilities, such as autonomous corporations (entities holding internal capital, autonomously acting on the market through sets of trustless rules), gaming, self-mixing, smart property and much more. The sky is the limit! Did you know? In 2014, Burst was the first ever cryptocurrency to implement working, Turing complete smart contracts in a live environment in the form of Automated Transactions (ATs). In January 2015, the world’s first decentralized Burst lottery became the first ever program to run on top of a blockchain in a trustless decentralized manner.