Smart Agreement

You can use smart contracts for all kinds of situations ranging from financial derivatives to insurance premiums, contract infringements, property rights, credit enforcement, financial services, legal proceedings and crowdfunding agreements. The processes on a blockchain are usually deterministic to ensure tolerance for Byzantine error. [35] Nevertheless, the actual application of smart contracts, such as lotteries and casinos, requires a certain chance. [36] In fact, blockchain technology reduces the costs of running a lottery and is therefore beneficial for participants. Blockchain coincidence can be implemented through the use of hashing or timestamps of blocks, oracles, engagement schemes, special smart contracts such as RANDAO[37][38] and Quanta, as well as mixed-strategy Nash equilibrium sequences. [35] Let`s say you want to start a business that requires financing. But who would lend money to someone they don`t know or trust? Smart contracts play an important role. Smart contracts also bypass the so-called chief agent15 dilemma of organizations and ensure more transparency and accountability, as well as less bureaucracy (read more: Part 2 – Institutional Economics of DAOS). . . .