Smart contracts are the backbone of many blockchain networks. Here, we explore the what, how, and why of smart contracts.
A smart contract is a self-executing programme with its terms and conditions written in code. The code automatically executes the terms of the agreement. The code is sent to an address on a blockchain as a transaction, where it is verified by that blockchain’s consensus mechanism. When the transaction has been recorded onto a block, the smart contract is deployed and cannot be modified.
Smart contracts carry many benefits:
Traditional contracts rely on trusting intermediaries, where users have to conduct due diligence. They also take a long time to process and potentially come with a lot of hidden costs and other risks, such as arbitration, enforcement, and fraud. These processes are carried out by humans, who may be inevitably prone to error and add a lot of variability. Smart contracts remove these variabilities and process the code in a deterministic manner.
Multiple smart contracts that interact with each other make up the backbone of decentralised apps, or dApps. Some examples of dApps that leverage smart contracts are DeFi apps that let you swap between digital assets or stake and provide liquidity to current stablecoin pools, NFT marketplaces where users can mint, buy, or sell NFTs without a third-party clearing agent, or blockchain games where players own their items, in-game payment rails are settled with stablecoins, gamers can play-to-earn by completing in-game activities.
Smart contracts can make supply chain management more efficient by automating processes like collecting payments, enforcing contract terms, managing inventory, logistical planning, as well as issuing and verifying purchase orders.
Using smart contracts in healthcare can ensure data privacy, cross-institutional visibility, and auditability.
Within insurance, smart contracts can remove inconsistencies and fraud when assessing claims, filing paperwork, and processing payments. In financial markets, traders can enjoy faster transaction times, lower processing fees, and potentially better FX rates via stablecoins. Smart contracts can potentially increase cash flow in payments by making the payment experience more consistent whilst keeping offline payments capabilities.
StraitsX’s XIDR and XSGD smart contracts on the Zilliqa (ZRC) blockchain are written in the Scilla programming language. It provides enhanced security, scalability and tractability. Transactions on the Zilliqa platform take around 40 seconds.
Yes. XSGD and XIDR smart contracts may be viewed and adapted via the Developer docs on StraitsX or on third-party blockchain ledgers like Etherscan or Viewblock:
StraitsX is committed to communicating the benefits of stablecoins. Get, mint, swap, and redeem with XSGD and XIDR with other stablecoins within the StraitsX Ecosystem and our DeFi partners.
Note: If you are a high net worth individual, or institution, you can take advantage of StraitsX’s OTC Desk feature that offers deep liquidity and OTC block trades.
StraitsX and our DeFi partners are specially catered to our Indonesian and Singaporean users with our native support of XSGD and XIDR. This allows our regional investors to trade in their home currency to minimise transaction fees and slippages, instead of, traditionally, with the US Dollar (USD) that carries conversion fees.