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Blockchain has been quite the hype and novelty that’s been pushing our minds to think differently about how we validate and verify things. A way to appreciate blockchain technology is through smart contracts.
A smart contract is a computer program that runs on the blockchain. Blockchain technology can require powerful computers to run effectively as it uses complex mathematical and cryptographic computations behind the scenes.
Why is it so popular?
The thought of simplifying transactions by abolishing the middle person if person A wants to make a transaction with person B has grown in popularity because of the sense of security.
Blockchain technology allows decentralised, secure, and transparent transactions, with the highest forms of secure encryption at its core.
If anyone wants to tamper with the data in the block, it’s technically impossible because of the computational difficulty.
According to an article from IBM, “each block is connected to all the blocks before and after it. This makes it difficult to tamper with a single record because a hacker would need to change the block containing that record and those linked to it to avoid detection”.
On a practical level, smart contracts can be applied to various things like issuing loans or offering automatic payments, crowdfunding and many more.
Here are some concrete examples of where smart contracts or general blockchain technology is used:
- NFT'S
“Non Fungible Tokens” are unique tokens on the blockchain that can’t be exchanged for one another. It’s unique or irreplaceable in the simplest of terms. NFTs are popular as they take practical forms through art and media. The novelty behind NFTs is to own that exact specific piece of digital art — the only one on the planet; it is scarce, therefore valuable.
Here’s a sample of some digital art one of our designers here at YLD created for the festive season in 2021.
Psst! you may still purchase these for yourself or gift someone their own snowman NFT through this site: https://opensea.io/collection/yld-snowmen
NFT art is so popular nowadays because sellers easily profit from selling digital assets and to a certain extent, NFTs hold a status symbol as it’s seen as a collectable value. In fact, it’s so popular that many celebrities like Madonna, Snoop Dogg, Eminem, Justin Bieber, and Lionel Messi, among others, have joined in on the party by either buying and/or creating their own NFTs!
- Metaverse
Crypto metaverses “are immersive virtual worlds with immense social and financial potential”, according to Gemini, a Trust company regulated by the New York State Department of Financial Services (NYSDFS).
In December 2021, the virtual land purchases spiked because having a space in digital land is limited, making virtual land ownership valuable. Many believe in its potential, given how purchasing and owning digital assets as a form of investment eventually translates into achieving wealth.
- Document authentication/ notarisation
Users can validate a specific document that existed at a time in an independently verifiable manner through web applications like BlockSign, Stampery, and many more. These applications allow users to digitally sign documents and preserve a verifiable record in the bitcoin blockchain. The security relies on two-factor authentication, sending a confirmation email to the user to confirm their identity.
- Tickets
All tickets, as we know them, come with legal implications and regulations, often found in the “terms of service” or “agreement terms” section. Regarding smart contracts as tickets, Ethereum is a blockchain that runs on an interconnected network of computers running special software that executes and validates programs. Since technology is incorporated into ticketing, smart contracts are programmable and sophisticated logic can be applied. Smart contracts elevate the security of purchasing tickets as it eliminates counterfeit tickets or ticket duplication, allowing the tickets to be validated as authentic on the blockchain. Blockchain technology, which is Ethereum, is counterfeit-proof, so once a transaction has taken place, this particular transaction can’t be replicated.
How can YLD help?
We closely collaborate with our clients in adopting new yet sustainable technologies, one of which is blockchain. We’re currently working with a client to build a secondary marketplace (frontend) where users can buy/sell NFTs; transfer Cash Out; see their transaction history, and much more.
Wanna know more?
If you’re looking to get into the latest technology or want to join a collaborative team of great engineers and designers that work on impressive client projects, feel free to contact us at YLD at talent@yld.io or commercial@yld.io
