Each passing day provides a new opportunity to find out about innovative applications for blockchain.After successfully forming the crux for cryptocurrency, blockchain technology is bringing evolutions to the fore across industries that include web security, logistics, trade, finance, and so forth. This advancement is very evident in blockchain’s ever-expanding role as an innovative solution for payment. One of the important pillars that drive this quick adoption is the rapid speed at which firms are embracing smart contracts.
Smart contracts are code lines stored on a blockchain network that execute automatically when predetermined conditions and terms are fulfilled. At the most rudimentary level, they are programs that operate as they have been designed to operate by the individuals who developed them.
Smart Contracts in Blockchain
Some new smart contract models are ideal for various applications where it is favorable to use the blockchain properties of a decentralized, distributed, and immutable ledger.
This happens to be particularly true where processing data has to remain confidential, even from that blockchain network’s running participants. Confidentiality, by itself, is not enough to make sure that participants can genuinely trust a smart contract of such nature. It needs cryptographic integrity so that participants are certain that the smart contract is what they agreed to make use of, and that no one has tampered with it.
Execution of Blockchain Smart Contracts: A Current and Future Application
Lately, a great number of projects have been making use of Intel Software Guard Extensions TEE Trusted Execution Environments. (Fabric Private Chaincode is a case in point of such a project). TEE is a main processor’s secure area. It guarantees to safeguard data and code inside with respect to integrity and confidentiality. These include the Hyperledger Avalon project. Hyperledger Avalon will allow the execution of off-blockchain smart contracts, and provide other offerings like the IBM Cloud’s data-in-use Protection.
IBM and Intel are also working together on the Fabric Private Chaincode (FPC) project. This would allow new and more effective trust models for real-world and practical blockchain applications.
Intel and IBM have shown the privacy-enhanced capabilities that the FPC project brings to a very famous blockchain framework for the company. This framework is the new Hyperledger Fabric. Such capabilities enable Fabric chaincode to work on and maintain encrypted data.
Blockchain: A Great Solution
Decentralization is an important property of smart contracts. Instead of focusing on a single central server, Smart contracts distribute by several network points, so they are decentralizing in their scope.
For storing smart contracts, a blockchain is a perfect space. As a decentralized system, it does not need the presence of intermediaries at the time of signing deals. As a one-time written code, these contracts stay in the distributed registry. They perform their work courtesy to a computer network controlling the blockchain. Hence, no one will be able to modify or tamper with the code.
The utilization of smart contracts has just started to become prevalent. Current limitations of the development of such a deal signing type owing to a few technical elements can soon be gone. This is due to platforms like “ Credits.” The system, when writing and transferring smart contracts in blockchain, makes use of a very effective encryption system and has a Turing Completeness.
For the sake of comparison, a Bitcoin protocol with its limited functionality allows only monetary transactions. It does not provide the possibility to transfer assets or store smart contracts. Needless to say, in this aspect, Bitcoin pales in comparison to blockchain technology!
To conclude, there is no denying that blockchain is a very confidential space for storing smart contracts.