Smart contracts are digital contracts that validate, verify and apply a negotiation. Smart contracts define the rules as a traditional contract but without any involvement of a third party in between. Smart contracts will regulate any transaction, shares or any unit of value with transparency. When an asset is transferred in a program, it runs code and a condition is validated. The blockchain records the data so it is safe and unchangeable, this is how it works. One of the main features of smart contracts is that it has no involvement of a third party.
The client has full control over the smart contract, in a way the client is not robbed off and is safe from any sort of fraudulent activity. The documents are saved on a libonomy blockchain and blockchain is the most reliable advanced technology to keep any records. It is never lost nor manipulated. The cryptography, mathematical equations, keep the records secure. It is not easy to solve a cryptographic algorithm to steal any data. Smart contracts save time and cost without the involvement of an intermediary. These smart contracts have no errors in recording data. With a great number of advantages comes a good number of issues as well. Ethereum was first developed with the introduction of smart contracts. An advanced public blockchain platform coded and processed smart contracts. The payment was carried along with ETH tokens, but it included various industries like real estate, etc. The smart contract is self-executed in the Ethereum platform. Its first token, ERC20 emerged in 2015 and later ERC721 appeared in 2017. Both have the same functions and follow a certain set of rules already executed by a smart contract.
The only difference is that ERC20 is a fungible asset, which can be swapped and ERC721 is a non-fungible asset, which cannot be swapped and has one ownership at a time. Their strength is immutability and it is their weakness too. If a client enters a wrong code then the smart contract will still perform its task without having involved the client. It is also vulnerable to hacking. There have been cases with ICOs using the Ethereum platform. KICKICO experienced an attack on its smart contract by accessing the token of the program and losing $70 million. Bancor lost $13.5 million when their wallets were compromised in withdrawing ETH from BNT. There were many cases like this, which discouraged the morale and the image of the companies. LiboX’s virtual machine will implement Libox contracts that will verify and validate, but it will also highlight vulnerabilities by running tests and bringing ineffective action. The X1 contracts will have standard functions already set up and transfer functions that will be in sequence. It is up to the client to choose whether they want to use this feature. If they use it then there will be certain restrictions of following the whole procedure.
If they choose not to use it then the virtual machine will run tests and highlight vulnerability to the client, just to make them aware of possibilities. From financial tokenization, ICO, IEO to medical field and public organizations the standard has already been set up for these and many other particular industries. The clients will not have to define the standards but it will be modified according to their business plan without any issue. The nature of the virtual machine secures the whole platform fully and saves from any hacking attempts. The virtual machine has greater scalability; if the speed of transaction per second increases so does the Liboxcontracts. There are certain hindrances in interoperability, but our Libox contracts can interact with other cryptocurrency Libox contracts. The core language is JavaScript so it is more accessible to everyone to follow. The Liboxcontracts are cost-effective, including the developer and the finished product.
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