What is Smart Contract Payments & Why Do We Use It?

What is Smart Contract Payments & Why Do We Use It?

There are several ways for decentralized platforms to build trust and carry out transactions seamlessly without anyone’s interference. We use smart contract payments.

Suppose we ask you to complete some tasks in exchange for some UpTokens. Why would you trust us?

Probably because you have already seen such airdrops and participated in them as well, or probably you trust the team and vision of UpSocial.

But what if someone promises you something and then never fulfills the conditions? After all, there is no regulating body to keep a watch.

Smart Contract Payments is the solution for such cases. Since it is based on blockchain technology, it cannot be tweaked or manipulated. The whole blockchain network regulates the transactions.

Why Do We Need Smart Contracts For Payments?

Traditionally, we had government organizations or legal entities to regulate the contracts and deals between two parties.

However, there are high chances of malpractices and manipulation when the processes get centralized.

Since the whole concept of blockchain technology revolves around decentralization and the absence of a single centralized authority, trust issues can be a significant concern.

If not these traditional authorities, then who? That’s where we started using blockchain-based smart contracts.

Smart contracts allow the eradication of a third person to verify agreements. Technology emerges in place of that third person. Blockchain is a robust technology that hackers cannot manipulate.

The best implementation of smart contracts that you experience is when you participate in the airdrops of tokens.

The founder or company backing a token asks you to complete a few tasks in exchange for some tokens.

What are the chances that you will never receive tokens from such claims? There are such possibilities, but intelligent contracts ensure that these fraudulent practices are avoided.

It’s coded so that once you complete your tasks like filling forms, tweeting on Twitter, and sharing on your social handles, some tokens will be automatically allotted to you.

It is not a manual process, but smart contract payments are used for such airdrop campaigns. It not only makes it easy to carry out the process smoother but also helps to build trust.

How are Smart Contracts Executed?

Let’s not get into the technical aspects and straight understand the working in 5 simple steps:

#1: A smart contract is programmed based on terms and conditions that need to be obeyed by both parties

#2: The money or tokens of paying party are held until a specific condition is triggered

#3: The smart contract is submitted to the nodes on the network for evaluation

#4: All nodes on the network must agree and come to the same result

#5: Once the complete process is done, the smart contract is self-executed to credit the amount

In 2018, IBM Researchers published a detailed Research Paper about the safety of smart contracts in technical aspects. If you want to understand the whole process, the paper explains it well.

Advantages of Smart Contracts

  • No third party authority is present, but the whole community reviews audits and validate the transactions
  • Execution is done within minutes
  • Security is high with the help of cryptography
  • There is 100% transparency between all the participants
  • It is cheap to execute, and everything is automated without any human intervention

We are using Binance Smart Chain for UpSocial Network. It will ensure a seamless integration for file storage using IPFS and payments.

Considering the security and compatible implementation, even UpSocial is using smart contracts to process payments.

Upsocial will create a transparent database of right and right owners while automating royalty payments in the form of rewards paid through smart contracts.

Users will receive UpTokens for various activities like referring friends to sign up on the platform or creating great content.

UpSocial will execute a smart contract to ensure that you get paid instantly for every contribution you make.

The reward protocol will hold the highest vesting reserve of 35% or 35 billion USN.

We are reserving these tokens to reward creators and users who add value to the Upsocial platform.

To know more about the distribution of USN coins, the progress of the team, and upcoming features, make sure that you join us.

Be a part of the UpSocial community in its early stages and work closely to develop the platform.

Why UpSocial Uses IPFS For File Storage?

Why UpSocial Uses IPFS For File Storage?

UpSocial is a truly decentralized social network. So, it means that can’t use traditional centralized servers that tech giants use. We use IPFS instead. Why?

How will you scroll through the memes if Facebook decides to shut down its servers? How would you watch cat videos for hours if the Government blocked YouTube servers?

These tech giants have multiple servers and backup of those servers. But in the end, it’s still under the control of these organizations.

It’s feasible for tech giants to buy servers, but how will small businesses manage that? If your business is hosted on an AWS server and it crashes for some reason. Guess what? You can’t do anything.

Here’s where IPFS comes into the picture. The technology is not futuristic, but it is being used presently.

What is (Interplanetary File System) IPFS?

Interplanetary File System is a decentralized version of storing files. The same file is stored in multiple users’ computers present in a P2P (peer-to-peer) network.

Even if the file is deleted from one computer or some computer shuts down, the file will remain available in the network. Some other computer must be having a copy.

That’s the simplest explanation.

Even UpSocial Network uses the same technology!

Any image, video, or file is recognized by its URL or IP address on the traditional web. That’s because it has a fixed location.

Suppose you posted an image on Facebook. It has a unique URL so that you can share it anywhere.

However, if you delete that image later, nobody would access that image even if some other Facebook user has a downloaded copy of your image.

IPFS doesn’t work like this. It recognizes the file according to the content and not by its URL or location. In short, it made the file recognition system from location-based addressing to content-based addressing.

Every file is associated with a hash. Since the files are associated with the hash, it becomes impossible to tamper with the original file. Hash adds a layer of security.

How Do Interplanetary File System Store Files?

A file is stored in an IPFS object. The IPFS object consists of 2 parts – links and data. Data is for storing your file, and a link is to connect other IPFS objects.

Every IPFS object can store data up to 256 KB. But what if your data is more than that?

It will simply split the data into multiple objects and link with each other.

How Do IPFS Store Files?
Image Source: happycryptoschool.org

Since the file remains original with unique hash associates with it, IPFS allows versioning to make changes if you want to update a file on the network, versioning it the process.

IPFS provides low latency that is decentralized and secure. It lets us come up with several compelling use cases. IPFS can use it to deliver content to websites, globally store files with automatic versioning & backups, facilitate secure file sharing and encrypted communication.

So many advantages are the whole reason why we are using IPFS technology at UpSocial Network.

To know more about the development and team’s ongoing work, we recommend joining our Telegram group. You are free to ask questions and resolve your doubts there.

What Are NFTs and What Is The Hype About?

What Are NFTs and What Is The Hype About?

Ever since we started hearing about cryptocurrencies, another term started making news. Those are NFTs or non-fungible tokens.

If we observe, the trend of NFT often aligns with the trend of cryptocurrencies.

Check out the Google Trends of the last 5 years.

The first NFT was made much earlier, but it took 2021 to uplift the trend.

Just like you, most people are confused about NFTs. Something is looking flashy due to the millions of dollars some people made out of them.

But What Exactly NFTs Mean?

An NFT is a unit of data stored on the blockchain that certifies the ownership of some digital asset. It cannot be interchanged or replaced because of its uniqueness.

Any form of digital art like image, music, video, code, or any asset can be represented as NFTs.

NFTs help artists to sell their art without intermediaries. Artists can sell their art online without physical presence.

But anyone can screenshot or copy the art. Why are people spending millions of dollars?

Well, yes. Not all NFTs are valuable and many people started selling products already available publicly on social media platforms.

Do you remember how shitcoins exist because of some non-serious people? That’s similar.

However, some unique art pieces become extremely valuable due to their uniqueness and scarcity.

An NFT allows the buyer to own the original item with built-in authentication of the blockchain. Buyers even can flaunt those ownership rights.

But Isn’t This Sounding Similar To Cryptocurrencies?

Sure. It does. But it is not.

Currencies are fungible. Making it straightforward – they can be traded and exchanged for one another. Another bitcoin can exchange one bitcoin, and similarly, you can exchange a one-dollar bill for another dollar bill.

On the other hand, NFTs are non-fungible and cannot be exchanged by some other digital asset. It’s just unique on its own.

Moreover, cryptos can be divided into smaller parts for exchange, but we can’t do that for NFTs.

Which NFTs Made Loads of Money?

1] Everydays: The First 5000 Days –

Record-Breaking: Beeple's First 5000 Days NFT Sold for $69 Million
Image Source: CryptoPotato

An artist named Beeple created a magnificent art that combined nearly 5000 images of his life in a single frame. This art was sold as an NFT for $69.3 million.

2] Crossroads –

The Hidden Fees of Selling Crypto Art or NFTs — Explained
Image Source: Business Insider

This art shows a defeated President Donald Trump lying naked and covered in graffiti on the roadside. The buyer of this NFT was not aware which art he would receive because it depended on the result of the US presidential election.

Artists sold it for $6.6 Million.

3] The first Tweet of Twitter CEO Jack Dorsey –

Twitter CEO recently sold his first tweet as an NFT to Sina Estavi for $2.9 Million on 22nd March 2021. It is another exciting way to showcase how uniqueness can be auctioned and make money to creators.

These NFTs are not in the order of most expensive NFTs but just some examples of interesting cases.

But is it just possible for celebrities to make millions out of it? Can a common person sell artworks using NFTs?

Sure! Why not?

Let’s Talk How You Can Make Money By NFT?

UpSocial is working towards making this idea a reality.

It’s not just a social network. Users will be able to buy and sell NFTs using USN or any currency on the UpSocial platform.

Every piece of content that users will post on this platform is by default a piece of NFT. You are free to buy someone else’s ownership rights or you can simply sell your posts to make money.

Interested in knowing behind the scenes and progress that the team is making? Join us and stay tuned.