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.

Burst Automated Transactions

Innovation at its finest

Burst was the first ever cryptocurrency implementing working, “turing-complete” smart contracts (called Automated transactions or AT) running on a blockchain in a live environment. An application of these smart contracts was shown in the form of the world’s first decentralized lottery launched in 01-25-2015 that became the first ever program to run on top of a blockchain in a trustless decentralized manner.

Burst paved the way by demontrating that the blockchain can effectively be used for smart contracts. And the possibilities for Burst are now endless.


Use cases

These are examples of smart contracts already working :

  • Atomic Cross Chain Transactions, which allow for true decentralized trading between cryptocurrencies. For example, trade your BURST with a coin that provides a mixing service for the purposes of privacy, then send it right back to a new BURST account.
  • Crowdfunding, where it is possible, similar to Kickstarter, to support a project by sending funds to an account. If the account receives enough funds by a certain block, then the project funds are released; otherwise the money is returned to the senders.
  • Lottery, where you send coins to a Smart Contract programmed to randomly choose a winner and award that account with its winning burstcoins.
  • Auctions, where you can auction an item or a service off at a certain starting price. Participants send money to this Smart Contract, and anytime one sends more than the previous participant, the previous participant’s money is automatically refunded. ‘Buy Now’ option is also supported.

But there are a lot of other possibilities, such as Autonomous Corporations (entities holding internal capital, autonomously acting on the market through sets of trustless rules), GamblingSelf-mixingSmart Property and much more.