The new economy is here

We are converting contracts to computer code, stored and replicated on the blockchain and supervised by the network of miners.


What are smart contracts ?

Smart contracts are computer programs that can automatically execute the terms of a contract. Anyone familiar with computer programming would be aware of what is known as an if-then-else statement, where a program executes a certain task if certain conditions are met and does not if the conditions are not present. Smart contracts implement this on the blockchain in a completely decentralized and trustless way.

Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

The reason for Smart Contracts’ name is that they allow people to agree on a piece of code ahead of time and trustlessly know that if they submit the code to the network, then it will be completed as requested. The code’s arguments can be modified as desired, before its submission to the network.

Did you know? In 2014, Burst was the first ever cryptocurrency to implement working, turing complete smart contracts in a live environment in the form of Automated Transactions (AT).

In January 2015, the world’s first decentralized Burst lottery became the first ever program to run on top of a blockchain in a trustless decentralized manner.

1

A contract is written as public code into the blockchain

2

A triggering event is hit and the contract executes itself

3

Regulators can use the blockchain to track the activity

Burst Automated Transactions

How it works

With Burst, smart contracts are implemented using Automated Transactions (AT), a technology created by the CIYAM developers. Automated Transactions are turing-complete and thus have a potentially infinite number of use cases.

If you are interested in Burst smart contracts and want to learn how to create one yourself, please have a look at the documentation provided by CIYAM and at the wiki created by a Burst community member.


Unparalleled benefits


Autonomy

You are the one making the agreement. There is no need to rely on a broker, lawyer or other intermediaries to confirm. Incidentally, this also removes the danger of manipulation by a third party, since execution is managed automatically by the network..

Trust

Your documents are encrypted and duplicated many times over on a shared ledger.  There is no way that someone can say they lost it.

Speed

You would ordinarily have to spend substantial amounts of time and paperwork to manually process documents. Smart contracts use software code to automate tasks, thereby saving hours for most business processes.

Safety

Smart contracts are kept safe by the highest grade cryptography. The blockchain is immutable, and no hacker can modify the data it contains.

Savings

Smart contracts save you money since they knock out the presence of intermediaries. You would, for instance, have to pay a notary to witness your transaction.

Use cases examples


ACCTs allow for true decentralized trading between cryptocurrencies. For example, trade your burstcoins with a coin that provides a mixing service for the purposes of privacy, then send it right back to a new Burst account.

With the Dymaxion, ACCTs (or ACTTs) are used to connect the colored tangles and the Burst blockchain together.

Smart contracts make decentralized crowdfunding possible: supporting a project is as easy as sending funds to an account. If the account receives enough funds by a certain block, then the project funds are released to the crowdfund initiator; otherwise the money is returned to the senders.

A good example of automated gambling consists of decentralized lotteries. You send burstcoins to a smart contract programmed to randomly choose a winner and distribute the reward to that account.

You can auction an item or a service off at a certain starting price – participants will send money to the smart contract, and anytime one sends more than the previous participant, the latter’s money is automatically refunded. ‘Buy Now’ option can also be supported.

There are countless other possibilities, such as autonomous corporations (entities holding internal capital, autonomously acting on the market through sets of trustless rules), gaming, self-mixing, smart property and much more. The sky is the limit!