A1: Smart contracts in the real world

Research and write a one-page report on a real-world application of smart contracts. Focus on how smart contracts are used and their benefits.

Smart contracts in a changing world

The aspect of blockchain technology that, was always fascinated by, was smart contracts. Most importantly, the trustless nature of it. After the 2008 financial crisis, in which many people were yearning for money that could not be inflated, manipulated or mis-managed in ways that ultimatly hurt the poorest in society. This yearning came from the distrust of the people that had acces or control of large sums of money. In this case 'the bankers', irresponsibly lending the money, causing one of the largest housing bubbles in history to burst, because a large percentage of borrowers could not repay the loans and once it came out the fear and contagion caused worldwide economic pain.

Since first hearing about Bitcoin and blockchain technology back in 2012, I have been deeply intrigued by this space. To me it was simply a more honest form of money. The introduction of Ethereum's EVM and smart contracts, opened the door the a whole range of possibilities, including (but not limited to): decentralised finance, supply chain management, insurance, entertainment and even video games.

There are several reasons that smart contracts are so revolutionary in this regard. firstly the terms of the contract can be written in code and saved publically and perpetually, on the blockchain. This incentivises both sides to come up with a fair contract with an outcome that works for everybody. Secondly, The terms are written in code and are verifiable on chain, programatically. This automation removes the possibility for human error, and dishonesty in the business conducted, hence the term 'trustless'. Furthermore, the decentralised nature of blockchains makes record keeping incredibly fair and open for any parties involved. This case stretches beyond the ethereum evm, as blockchains can be designed for more private use cases where sensitive user data is being used.

In conclusion, despite all the pushback, blockchain looks like it's here to stay! Bringing with it, decentralisation and trustless open-source style. My hope is, that it can re-introduce some of the good human qualities, like trust and integrity into all aspects of life and society.

Feedback

I prompt chatGpt for feedback using the following prompt:

"please mark my assignment 1, provide me with constructive feedback: {paste the full report here}"

Assignment 1: Smart Contracts in a Changing World - Feedback

Content and Understanding: Your essay demonstrates a good understanding of the impact and potential of smart contracts in the context of blockchain technology. You effectively link the historical context of the 2008 financial crisis to the emergence and relevance of blockchain, emphasizing the need for trustless systems. The discussion of Ethereum's introduction and its impact on various sectors like finance, supply chain, and entertainment is insightful and shows a clear grasp of the subject matter.

Strengths:

• Contextual Relevance: You effectively connect historical events to the development and significance of blockchain technology.

• Range of Applications: The essay covers a broad range of potential applications for smart contracts, illustrating their versatility.

• Conceptual Understanding: Your explanation of the 'trustless' nature of smart contracts and their role in automating and securing transactions is well-articulated.

Areas for Improvement:

• Structural Clarity: The essay could benefit from more distinct paragraphing, especially when transitioning from the historical context to the discussion on smart contracts. This would enhance readability and flow.

• Detail on Smart Contracts: While the applications are mentioned, deeper specifics on how smart contracts function in these applications would add more depth to your discussion.

• Proofreading: There are a few typographical and grammatical errors (e.g., "the aspect of blockchain technology that, was always fascinated by," could be revised for clarity). Proofreading can help in making the essay more polished.

• Conclusion: The conclusion is optimistic and broad. A more focused summary of how smart contracts specifically contribute to trust and integrity in various sectors would make a stronger ending.

Overall Impression: The essay is engaging and demonstrates enthusiasm and a clear understanding of blockchain and smart contracts. With some structural refinement and additional specifics, it could be an even more compelling piece. Your perspective on the potential of blockchain to bring positive qualities into various life aspects is particularly noteworthy. Keep exploring these critical insights as they add a unique dimension to the topic.