Smart Contracts - What makes them so bright?
The term ‘smart’ is becoming a common prefix these days. Constantly attached to more and more everyday items:
- Smart Phone
- Smart Thermostat
- Smart Car
- Smart Home…
So what is it that deems an inanimate object ‘smart’?
The term smart refers to: Self-Monitoring Analysis and Reporting Tech. Basically, a ‘smart’ device is connected to other devices or networks via different wireless protocols. This allows the technology to perform optimally, and provide feedback to the user.
So how does this relate to a smart contract?
A smart contract digitally verifies and enforces the contract’s set out terms. By scouring data from blockchain and relational database sources over the internet, the smart contract can determine whether or not a condition has been met, and thus execute on said condition. It can do this through multiple channels simultaneously, therefore making it seem immediate the user.
If you play professional football, you likely have a scoring bonus written into your contract. If that contract was smart, it would know that when you score your 10th goal of the season the club would be required to pay you a bonus of $500,000.
You score that goal! The sports news coverage captures it on TV, online streams, and web stats. Your team records the statistic into their database, and the league, the fantasy league, and thousands of fans share footage of the goal on Social Media.
Meanwhile your contract is hard at work scouring the internet for these records, verifying that your 10th goal did in fact happen. Once the smart contract has verified the goal, the contract delivers the money from the club to you, the athlete, instantly and seamlessly.
Cool! How do I make it happen?
Smart contracts are an integral part of deploying a blockchain solution, where they can be encoded into an unchanging, hack-proof ecosystem, with all related parties having concurrent access to the data. . Once a contract is implemented, it can then begin to execute a number of complicated tasks that currently cost \ leagues, clubs, and athletes alike a lot of time and money. For example, a smart contract could confirm or deny athlete trades based on league rules and regulations (see infographic).
Smart contracts can eliminate redundancies, Stay tuned for more details as STG deploys blockchain powered smart contracts as a means to future proof sports organization.