Smart Contracts is new function that has been added to the already confusing world of crypto, so what exactly is it?
A lot of news has surrounded cryptocurrencies recently. One of the most surprising, the renaming of the Staples Center to crypto.com arena.
Cal State Long Beach Associate Professor of Finance, Laura Gonzales, describes them as a peer to peer network of transactions meant to decentralize the process of banking. Eliminating banks shortens the amount of transaction time.
If I wanted to buy 100 teddy bears from China, it would usually take about 5-6 days for my money to get there. With cryptocurrencies the transaction time is estimated at 5 minutes.
Ethereum took it a step further. Vitalik Buterin said in an interview in 2018 with Vice that his plan was to launch digitally enforceable agreements.
What exactly are digitally enforceable agreements?
They are transactions, where the contract is embedded in the purchase. So if you wanted to buy an Adobe Software, you could prove your purchase for a digital item. This has huge implications for ownership. Especially in other countries, where owning a house isn’t as easy is it in the U.S. There are countries that don’t have a bank that could grant you a title to a house.
This change has caused massive hype surrounding the technology. Of course, people are trying to cash in.
Jane Yoon, a college student, states she knows a surprising amount of crypto owners and mostly owns Ethereum.
“I see myself doing this full time in the future. I’d say in about a year,” said Rudy Youssef, another crypto investor.
Watch the video above for more.
