Author: Mike Hearn 2011-08-11 22:02:09
Published on: 2011-08-11T22:02:09+00:00
Contracts, also known as smart contracts, are a way to lower trust in certain types of transactions. Satoshi Nakamoto called them contracts, and the term stuck. The purpose of these contracts is to eliminate the need for trusted middlemen in certain situations. For example, Kickstarter relies on a middleman to collect and aggregate people's pledges for new creations. By using software with contracts, the artist or game programmer could run the program on their website and avoid having to pay fees.The process by which contracts move out of the memory pool and into a chain is through lock time or if every sequence number is UINT_MAX. While there may be complexities associated with contracts, they serve a valuable purpose in reducing the need for intermediaries and increasing trust in certain types of transactions.
Updated on: 2023-05-26T20:16:30.930789+00:00