Ethereum

Ethereum in Depth: Clever Contracts – Aspect one: What is a Clever Contract?





Aspect two:

In this video I give an introduction to clever contracts in ethereum.

First I describe what accounts are in a more simple forex only blockchain.

Then I clearly show how ethereum introduces a next type of account: a code managed account (aka clever deal).

This type of account does not have a private vital but in its place is managed by code.

It can retail store ether, just like person accounts, or it can keep a harmony of and be utilized to produce some other functionality in just the context of an software.

I then give illustrations of how you can use clever contracts.

If you want to idea this video right here is an ethereum handle for this video: 0xD6d1F455814211E3A79a03fAa7Bc18C74Ca9163c

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32 comments

  1. I see I'm not the first one to thank you, but thanks! It was really helpful for me and really worth spending the time!

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  2. Yeah this is great, really appreciate the video!

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  3. Ok…im no expert but looking at the insurance payout using the natural disaster smart contract – not everyone in a natural disaster is affected ie suffers the same loss, SO, how does the smart contract allow for this – pay everyone the same? Surely not. Or, am I missing something here – i like the 'concept' of smart contracts and really embrace the decentralised nature of blockchain but I see difficulty in its application….Regarding the payroll example – thats fine but what if someone decided to take unpaid leave? Presumably a human would have to recognise that absence and apply a different SC, hence you still have a centralised administration overseeing payroll which is counter intuitive to the decentralised nature…..someone please enlighten me as im still learning. thx for the video btw.

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  4. Made smart contracts so easy to understand.

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  5. Thanks for the great info! Have you thought about your own ICO???

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  6. Hey Kevin,

    Great insights. Thanks for the good work!
    I took some notes during the video, would appreciate if you take a look at them.

    1. If like you say I do a typo when writing a smart contract, I can't edit, have to create a new one. We are in the blockchain. So -> the old one will continue to exist and cannot be deleted right? This can create an abundance of faulty smart contracts I suppose (?).

    2. CEO, CFO, CDesignO would have special keys to add and to modify the code? So in the end the smart code would be edittable?

    3. The example of Blockchain + IoT is mindblowing. Do you have examples of companies that are doing it or any whitepapers to read?

    Thanks in advance!

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  7. You should add a donation wallet – this video was really helpful

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  8. Is it possible that a smart contracts executes commands which are not connected with the blockchain. Like a blockchain stored smart contract execute a command which says transfer 10 usd from bank account a to account b without human influence?

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  9. What morons could vote this down..?

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  10. Company's are going to use smart contracts to offload the costs of running there servers on the consumer…

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  11. What happens in payroll example if one of employees quits and funds are automated to keep pouring to that smart contract address?
    Does public have insight into code inside smart contract?

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  12. Nice video buddy, wonderfull explanation of what a smart contract is.. im just troubled about something that you said… "Once you make sure that there are no bugs in the code".. i mean, you dont actually launch a code with bugs, this flaws are unexepected.. so just because smart contracts are unmutables, and assuming that an unexpected error could show up… what happend if you actually launch a smart contract with a bug?

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  13. Hi Kevin, I have a question. In the case of the crowdfunding example, how does a smart contract enforce a project actually being carried out? For example, if 10eth is required for a project producing t-shirts to go ahead, and people who put 1 or more eth are said to be entitled to receiving one of these, what will enforce the vendor actually then producing and distributing the project?

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  14. is there a relationship between artificial intelligence and Ethereum? If so, would you make a video about it?

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  15. QUESTION: So, you say that once a smart contract has been deployed it's immutable. So, everyone keeps using this and we are happy that no one can change it. But what if we detect a bug in the smart contract? or what if there are 6 employees now instead of 5? Won't there be a strong necessity to change the smart contract? how can we handle this?

    if you say by deploying new smart contract, we can handle this, then how can we force all the people using the existing smart contract to shift to the new one?

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  16. Kevin, first i'd like to say thank you for a very educational video, however I have some questions to ask. It is true smart contract cannot be altered, using your disaster insurance example, how do you prevent smart contract being feed by inaccurate information? let's say smart contract intake information from weather.com, but what if one day weather.com died, or starting to report inaccurate information? So I guess my question is, how does/can smart contract identify/verify information?

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  17. Great Video.

    Question: Your example of a simple payroll system using a smart contract demonstrates an automated way to ensure 5 particular people get paid when the contract receives ether. Now I could do the same using my bank. I have a business account and the bank system has an API which allows me transfer dollars to bank accounts I choose. As the business owner I could write a script that utilizes the bank API to do exactly what you described using Ether. The app will ask me how much money I want to take from my bank account – and will automatically divide it between the bank accounts stated in the script/database/params.

    The bank should also be able to guarantee that the transfer has been made.

    What does Ethereum offer that my bank in this case cannot offer, apart from anonymity.

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  18. Interesting and thank you for the info. I have one question. If one uses the Smart Contract to distribute money among five different countries (for example), and the contract is designed to a specific currency, is the receiver going to get the country currency or the ETH equivalent? My issue is that the conversion of an alt-currency to Fiat is such a messy process.

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  19. Referring the second example about insurance, I'd say the promise of the technology is a bit hyped. The problem with insurance is not about the mechanism for pay out. Written legal contract instruments read & enforced by human operators exist in insurance companies today. But, in order to get to the point of paying the insurance, insurance companies first send out adjustors and assessors to determine the payout when a disaster happens. They do not want to automatically trigger a payout simply because the weather report confirms a storm or a flood in a given area. One could argue for extending the scope of the contracts to be framed that way though – IoW, when US meteorological agency reports a flood in my area, I get an automatic payout.

    Besides this, today contracts are written and read by lawyers in almost illegible language. From a consumer stand point, contracts are usually explained by salesmen who sugarcoat the contracts to expedite the sale. When smart contracts are written in computer code, this inaccessibility of contract language will go one step further in making it even more unfriendly to ordinary consumers. Imagine a car saleman flinging a car service agreement programmed to work in Ethereum. That apparent infallibility of technology could be applied to con the consumer even more effectively.

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  20. Excellent tutorial. I did not get the part where you have explained about keeping the contract put & enforceable when government owes money to people for social security or treasury bonds. When the government goes to war and overspends, and when there are no funds available to repay the citizen, the contract will be defaulted. The contract will self-discover that it will fail. Beyond that, the citizens wont have an additional benefit.

    I have one question in general that is not brought out in the presentation: how is a contract put into effect in the first place? One would presume that a smart contract, much like digital currency, will have to be signed by all the parties involved. Secondly, which entity in the network is responsible for triggering and executing the contract in a distributed computing environment? Will we have to assume that there will be a escrow services where the parties of a contract load the contract and let is be executed when conditions of the contract are met?

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  21. pesky humans with their free will! lol

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  22. Thank you.

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  23. Clear! Not too fast. I learned a lot. Thank you, Kevin.

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  24. Thank you very much. Great video in detail exactly what i am looking for ! By the way, if anyone interested in developing a smart contract together, plz contact me at email: damon.szh@gmail.com

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  25. Thank you for the video, really clear explanation

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  26. But how do you fix bugs?

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  27. Twitter DOES NOT do the right thing… ever

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  28. That was a truly awesome explanation and now i finally get it! Thank you 🙂

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  29. Thanks Kevin…very helpful.

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  30. Very well explained best do far i watched

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  31. I was curious about crowd funding – So We have to send that 10% funding in ethereum? and If the smart contract has collected 100% of funding let's say 100k , How the project owner will receive the total amount of 100k if they sent in Ethereum as you know the price of Ether can be decreased. Thank you for all answers

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  32. Can you code in changes to be made to the smart contract by certain people?

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