Roronoa Zorro
@roronoazorro
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Why are smart contracts important?
The importance of smart contracts is mainly reflected in the following aspects:
Decentralization, disintermediation:
Smart contracts do not rely on any intermediaries (such as banks, lawyers, governments, etc.) to execute the contract content. It is completely controlled by the code, and once the rules are set, the contract is automatically executed. In this way, not only do you save on intermediary fees, but you also avoid human error.
Automated Execution:
Once the conditions are met, the smart contract is executed automatically without any human intervention. This makes execution faster and reduces processing time and costs.
Transparent & Trustworthy:
Smart contracts are blockchain-based, so all execution is public, and anyone can view the content and execution of the contract. This makes the entire contract process more transparent and cannot be tampered with, ensuring the trustworthiness of the data 1 reply
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【Take a chestnut】
Example 1: Rental contract
Let's say you sign a rental contract with your landlord through a smart contract:
The lease period is 3 months, and the rent is 1000 yuan per month.
The rules of the smart contract are: after the tenant pays the rent, the landlord provides the house key, and the contract is valid; If the tenant fails to pay the rent on time, the contract is automatically terminated.
When a tenant deposits $1,000 into the smart contract, the smart contract will automatically confirm the payment. Once the payment is made, the smart contract automatically sends the tenant the key to the house and the lease period begins.
If the tenant does not pay on time, the smart contract automatically notifies the landlord to terminate the contract, and the tenant's payment amount is refunded.
With smart contracts, all of these processes are performed automatically, avoiding human intervention and disputes. 1 reply
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One thing to say, blockchain also has several limitations:
1. Some consensus mechanisms (such as Proof of Work, PoW) require a lot of computing resources and consume a lot of power.
2. Relatively complex. For ordinary users, there may be a certain threshold for understanding and using blockchain technology.
Regulatory & Compliance:
3. Due to the anonymity and globalization of blockchain, regulators face challenges, and how to implement compliance without compromising privacy still needs to be explored.
Blockchain is a technology that subverts the traditional way of data storage and transmission, and it provides new solutions for finance, supply chain, healthcare and other fields through decentralization, immutability and transparency.
While blockchain technology still has limitations, there is no doubt that its potential and impact is changing our future.
The above is the basic concept of Web3 - blockchain. 0 reply
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Community-Driven Models of Web3:
In the world of Web3, projects are no longer controlled by a single company, but are co-managed by a decentralized community.
The members of the community include developers, users, investors, etc., and everyone can contribute to the growth of the project by contributing code, participating in governance, and promoting the project.
The core of this model is co-construction, co-governance and sharing:
Co-construction: Developers and users work together to improve products or services, such as improving features, finding and fixing problems.
Co-governance: Through decentralized governance (such as DAOs), community members work together to shape the direction of the project.
Sharing: Community members can receive direct rewards from the success of the project through tokens or other forms. 1 reply
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Web3 also has a unique and important concept, which is community-driven. I think it's interesting.
It means that the operation and development of the entire ecosystem is driven by the user and developer community, rather than relying on a single company or organization.
Users are not only users of the product, but also governors, contributors, and even benefit sharers. Through collective decision-making and collaboration by the community, Web3 projects can be more inclusive, transparent, and vibrant.
It is easy to understand the relationship between traditional companies and users.
In the Web2 world, for example, if we use WeChat or Taobao, the user is just a consumer of these platforms. The platform is developed and managed by the company, and users can only passively accept the rules formulated by the platform, such as charging standards, function changes, etc.
Users use these products, but they are not able to participate in decision-making and do not receive any direct rewards from the platform's success 0 reply
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