This presentation covers an overview about blockchain based Smart Contracts. - Quick definition of what a smart contract is along with an analogy. - How smart contract differs from a legal paper contracts written by lawyers. - High level description of how smart contract works using blockchain. - The use cases of smart contracts. - The pitfalls when writing smart contracts.

2. https://www.coingecko.com

3. Paper Contract
Typically created by legal professionals today.
“Rules that are agreed upon”
Legal language, dependent on 3rd party enforcement.
Can be ambiguous and disputed at the public judicial system.

4. Smart Contract
Rules that have been agreed upon
Automation

5. If money_received == $2.00 AND selected_drink == “coke”
Then dispense “coke”
Analogy of a Smart Contract

6. If you put $10 into the machine
You stand a chance to win an iPhone X
Fair? Trusted? Verify?

7. Smart Contract
Smart Contract
(Blockchain Based)
Automation of rules that
have been agreed upon
Automation of rules that
have been agreed upon
that is trustless &
immutable

8. Paper Smart Contract
Written by programmers.
Code defines the rules and consequences (as legal documents do).
Self executes in the distributed ledger system (in blockchain context).
Data stored in the blockchain.

9. How Smart Contracts Work?

10. Account Number Balance
1Ew6znJWou... 5.5
1AMPjUg2ku... 0.8
185HKCyjvh... 12.5
121FUdePko... 7.0
User Accounts

11. Account Number Balance
0xEw6znJWou... 5.5
0xAMPjUg2ku... 0.8
0x85HKCyjvh... 12.5
0x21FUdePko... 7.0
Account Number Balance RentPaid … data
0xZj234nw4el... 5.5 True
0xoPwexj2ku... 0.8 True
0x1ndejkw82... 12.5 False
0x2bfae32pwe... 7.0 True
User Accounts
Contract Accounts

12. ICO Fundraising ContractToken Issuance Contract
Sends 10 ETH to Contract
Triggers another contract
Sends 100 Tokens to Alice
Initial Coin Offering (Token Sales) : 1 ETH = 10 Tokens
1
2
3

13. Payroll Contract
Contract receives
8 ETH
Equally distribute profits among employees
Receives 2 ETH Receives 2 ETH Receives 2 ETH Receives 2 ETH
1
2

14. “Smart Contract” provides the following superpowers
1. Automation
2. Trust
3. Finality

15. 1. Fundraising with Token Issuance
2. Notarization
3. Voting
4. Rental Agreement
5. Supply Chain
6. Decentralized Autonomous Corporation
7. ...

16. Pitfalls

17. Multisignature Wallet “Helper” Contract
ICO wallets using multisignature for additional security
Holding about $100 million to $300 million worth of Ether
Dependency
Smart contract bug (real example)

19. Multisignature Wallet “Helper” Contract
Contracts holding about $100 million to $300 million worth of Ether
“locked” up for good
Dependency

20. Europe’s newest un-manned satellite-launching rocket reused working
software from its predecessor, the Ariane 4. Unfortunately, the Ariane 5’s
faster engines exploited a bug that was not found in previous models. 36
seconds into its maiden launch the rocket’s engineers hit the self destruct
button following multiple computer failures.
In essence, the software had tried to cram a 64-bit number into a 16-bit
space. The resulting overflow conditions crashed both the primary and
backup computers (which were both running the exact same software).
The Ariane 5 had cost nearly $8 billion to develop, and was carrying a $500
million satellite payload when it exploded.
“Writing smart contracts can be like launching a rocket”

21. 1. Smart Contract - Automation for rules that have been
agreed upon
2. Smart Contract is
a. a tool for programmers to write decentralized
software
b. a tool to potentially complement/substitute
traditional legal contracts
3. The industry is still learning and figuring things out
4. If implemented & adopted correctly; can be an
industry disruptor
Key Takeaways from this talk

22. Thank You!