ay ae EXPLAINED | ‘Smart contracts are computer protocols that facilitate, verify or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary. Smart contracts often mirror the logic of contractual terms. They are like cryptographic safes that contain value and can be unlocked only if specific conditions are met. HOW DO THEY WORK myn), 718 SAS (elo T (any CONTRACTS Jane wants to sell a product Jane wants to sell a product. She identifies Joe wants to buy the product herself with her public key, sets the terms of the contract and signs it with her private key Joe wants to buy the product. He finds Jane's product and signs it with his private key. It pays the amount due from his address to Jane's public key I pee eea A third party is needed to verify the content of the contract and that its terms have been met. Fees usually apply. { / The contract is binding and enforceable. It has to be executed by human input A aU ae Each node on the blockchain network verifies the smart contract. The system checks if Jane is the owner of the product and if Joe has. enough money to purchase it When the network agrees that all conditions are met, Joe automatically gets Jane's product. Jane now has received the payment from Joe e TRACTS TRUSTWORTHY? | Homer ‘the Marauder’ steals Joe's Network Answer: product and claims ownership of it. Nope, Joe owns the product! All transactions are registered on the blockchain so that anyone can inspect it. Using the unique ID of the product, it can be proved that Homer is not the owner and that Joe is——EExx~ = Cg PIN Transparency ora Mr Dero ~ = Bret oro ml Pe esr! ~— iw Meare aed Te Dore Corset rns) Ic Po Ce eae ed >ferent sect ie estas en ed ee DE a Seo rat Insurance Agreements and Claims t ie as a DDD Tre rd oo 2 BLOCKCHAIN CONSULTUS : Ce Ue arse Neer . Po tee CO ue en ue a a e) contact@blockchainconsultus.io | +44 (0)208798 0253 a » Business Meetings in Lugano (CH), Frankfurt (DE), Sewer an OM)WHITE LABEL EXCHANGE Open your own Cryptocurrency Exchange WE CAN HELP www.whitelabel.exchange