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.