Bitcoin, Crypto currency, Blockchain

More than just crypto-currencies: transactions and Smart Contracts (part 2)

89e1667810a88da07d0aa4b142dbca86 - More than just crypto-currencies: transactions and Smart Contracts (part 2)

Since Vitalik Buterin Ethereum has developed, are Smart Contracts without the block Chain Ecosystem. But what is behind the “smart contracts”? In five Parts, Ingo Rammer explored for us the implications of the technology. Today: transactions and Smart Contracts.

Part 1: Smart Contracts: bringer of salvation, or a better database?

Transactions and Smart Contracts

In the example, the number assignment can be identified on the side of the Smart Contracts (in a very simplistic view) of three types of transactions:

  • The Federal network Agency for the first assigned phone number, an initial assignment to a provider.
  • In the course of porting to the new mobile operator by the previous provider requests a Transfer of a number to itself.
  • The previous mobile operator confirmed this Information, and confirmation by the contractor with the porting of a number to the new provider accepts or rejects it.

To solve this process classic with a replicated database, the operator of the database is typically the Read and write logic separate. The former would be run on the replicated Read-Only duplicates of the respective mobile service provider. All the change processes would be handled through a Central location (e.g. via a Web Service), which would then write the appropriate transaction logs and distribute so that each participant can update the Read-Only duplicate.

If you would now try without the block chains to reduce the dependence on this Central point by the fact that several (or even all Parties) should directly write in the database, turned quickly to the question of backup data integrity. How to check the compliance with the agreed rules? Finally, it would be disastrous if the Code that runs when a participant could (intentionally or unintentionally) to assign, without further security checks, for example, the telephone numbers of all participants.

Smart Contracts: The acceptance of rules of a Blockchain

The majority of Blockchain implementations do not allow so easily for the creation and replication of the above-mentioned chain of signed statements. Instead, they establish the execution of which in advance of a transaction to a specific Code that is automatically executed on each Node. This Code is the Smart Contract. He has the most Blockchains three tasks: (1) the examination of a transaction prior to execution, (2) the structure view of the data (or the “World States”) after the transaction, and (3) the eventual triggering of further transactions. Simply put, it implements the Smart Contract that part of the business logic, which participants use together.

In our example, the number porting of Smart Contract could offer four functions, which correspond to the above-defined use cases. Each of these functions would be invoked by the user by means of a corresponding Blockchain transaction.

Depending on which Blockchain-based technology, the Smart Contracts also encapsulate the read logic on the respective World State of the Smart Contracts. To note here is that these methods should only be the convenient read-only access. In no event shall this reading should the authorization check for individual reading logics include the rights of the individual participants. These data are already replicated in all the Blockchain-participants and therefore, in principle, be visible. Such visibility should not be desired to be able to encryption or the partial use of point-to-point transmission methods limit the distribution of the data. Some Blockchains offer basic tools.

Ingo rammerr is Speaker at the Blockchain Technology Conference from November 19-21. November in Berlin. There you can collect practical experiences with international experts. In addition, there are Live Demos and case studies of real implementations, individual interaction with experts and Networking opportunities with people from various industries. It also has a variety of Sessions, Workshops and lectures of international speakers.

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