A smart contract, also known as a cryptocontract, is a computer program that directly controls the transfer of digital currencies or assets between parties under certain conditions. A smart contract not only defines the rules and penalties around an agreement in the same way that a traditional contract does, but it can also automatically enforce those obligations. It does this by taking in information as input, assigning value to that input through the rules set out in the contract, and executing the actions required by those contractual clauses - for AOG, determining that the game has been played and a pre-determined score has been reached to release calculated tokens to the beneficiary charity based upon the choice of the player is all calculated by the Smart Contract.
This contract is stored on the Blockchain, a decentralized ledger that also underpins bitcoin and other cryptocurrencies. Blockchain is ideal for storing smart contracts because of the technology's security and immutability.
Enough to satiate your appetite and a lot more. The Blockchain tech is one of the most underestimated technological advancements of our lifetime, and is truly that piece which has been missing in completing the Internet all along. The following are just some of the benefits of the Blockchain.
Nothing on the Blockchain can be changed save with the consensus of the network. Any confirmed transactions on the Blockchain cannot be changed.
What happens on the Blockchain stays on the Blockchain. A public Blockchain will act as a public ledger meaning that as long as the Blockchain remains operative, the data on it will be accessible
The P2P nature of the Blockchain does away with the need of intermediaries and users interact directly with each other.
With the removal of intermediaries and the distributed ledger being updated in real-time by the miners, any data inputted on the Blockchain is transmitted and stored automatically.
With no central authority acting as a clearing-house for transaction validation, the effort required to reach consensus is shared between the miners.
...resulting in a much faster process than a centrally-controlled ledger.
...along with much lower costs due to the removal of intermediaries.
Since every miner has a full copy of the ledger on their system, it is virtually impossible to lose the data stored on a Blockchain
Public Blockchains can offer full transparency of the transactions carried out on the network while safeguarding the privacy of its users through pseydonymity since only the transacting addresses are shown.
The Blockchain has solved a long-standing problem of virtual decentralised networks: how to ensure that a person cannot re-send the same data twice to different persons, also known as double-spending. Through P2P verification and the public ledger, double-spending is now a thing of the past.
Last but not least, neither the nodes nor anyone else except for the sender and the recipient can access the data sent across the Blockchain.