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Smart Contracts explained. How does Blockchain technology and decentralized finance work?

Smart Contracts explained. How does Blockchain technology and decentralized finance work?

Smart contracts are supported by eg Hedera: Smart contracts are digital programs stored on blockchain networks. When predetermined terms and conditions are met, these contracts are automatically executed. The number of smart contract use cases grows daily as more people see the potential of smart contract technology. Self-executing contracts remove the middlemen and create independence. You do not need to trust any other parties, such as brokers or lawyers, to enforce or carry out the transaction. When it comes to recording financial data, smart contracts can radically reduce costs for auditing. Coding languages like Solidity are used to create transactions on the Ethereum Virtual Machine or Hedera.

This video explains you:
Insights into the blockchain technology from genesis block to the mining of new blocks via the proof-of-work consensus mechanism.
Generation of SHA-256 hash values and why it is so hard to mine and add new blocks to the blockchain.
Simple explanation of the smart contract realm with possible use cases outside of the cryptocurrency space.
Existing applications of smart contracts in decentralized finance.

Smart contracts are scripts containing pieces of code that tells the smart contract what to do once certain conditions are met.
These contracts can be thought of as a second layer that is placed on top of the blockchain. They are saved on the blockchain in the same way as the transactions. This means that they are also transparently visible to all participants.
The script defined in the smart contract will be triggered by simple if/else conditions. Normally this will say something like “if Person A sent amount X to Person B, execute this code”.

The videos explain different fintech business models and refer to the book Fintech Business Models by Matthias Fischer published in February 2021. The channel covers fintechs in the area of payments, robo advisory, Personal Finance Management, crowdfunding, artificial intelligence, blockchain, cryptocurrency and innovative digital solutions in banking.

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{date}:2023-09-25 18:34:39

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