In our daily lives, we enter into many different kinds of contracts. These contracts are agreements that involve an exchange of value. These agreements can range from simple to complex, from buying a morning coffee to signing a mortgage for a house. Cardano, the first third generation blockchain to evolve from a peer-reviewed philosophy, will launch in the coming future its own smart contract platform, Plutus. The goal of Plutus is to model the widest range of contracts that exist in the world today in the form of digitally secure & programmable smart contracts.
What Is A Smart Contract?
A traditional contract is a legally-binding agreement concerning sales, loans, purchases and more. For smart contracts, that traditional contract will exist in a programmable, digital form on the decentralized Cardano blockchain that is scalable, sustainable, and interoperable. The concept of “agreement” will be eliminated from contracts. Instead of an “agreement” (such as signing a contract, shaking hands or verbally agreeing), Cardano smart contracts will ensure that there is a software-ensured digital guarantee that no one involved is able to undermine the contract through bad actions. Cardano smart contracts will not rely on the actions of individuals, companies or governments to execute a smart contract. Instead, they will rely on the execution of a self-coded smart contract to control the transfer of funds between a contract’s participants. If certain conditions are met by parties, then a certain outcome will be directly self-executed as these conditions will be digitally coded into the contract.
The outcome of these smart contracts will live forever on the distributed Cardano blockchain. Participants will engage in smart contracts exclusively on the distributed Cardano network. This will guarantee all details of a contract are digitally recorded securely and reliably. Cardano will become a global bookkeeping system for individuals and companies globally, especially as it is built to last generations and be the protocol of choice for parties needing to handle large-scale data.
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What Will Make Cardano Smart Contracts Different?
As Cardano is the first third-generation blockchain to evolve out of a scientific philosophy and research-first driven approach, Cardano is built to be scalable, sustainable, and interoperable with other blockchains & legacy systems.
Compared to other blockchain protocol projects, Cardano is very unique and different in a few regards: protocol development based on peer reviewed research, usage of high assurance code found in the highest levels of engineering, and usage of Haskell as a functional language for secure development of the protocol.