Smart contracts refer to computer protocols that digitally facilitate the verification, control, or execution of an
agreement. Smart contracts run on the blockchain platform, which will process all the transactions in a contract;
hence, middle men are not required for executing the transactions.
1. Difficult to change-Changing smart contract processes is almost impossible, any error in the code can be time-
consuming and expensive to correct.
A set of conditions cannot always be true against the test of time. Instead, traditional contracts usually have updates
and modifications for the sake of both parties. It is almost impossible to update the current pre-programmed
conditions. Changes, if any, must be added as a new transaction and can conflict with the existing ones. Even worse,
there are technical errors and flaws, considering that blockchain developers created the code in the first place.
2. Possibility of loopholes- According to the concept of good faith, parties will deal fairly and not get benefits
unethically from a contract. However, using smart contracts makes it difficult to ensure that the terms are met
according to what was agreed upon.
3. Third party- Although smart contracts seek to eliminate third-party involvement, it is not possible to eliminate
them. Third parties assume different roles from the ones they take in traditional contracts. For example, lawyers will
not be needed to prepare individual contracts; however, they will be needed by developers to understand the terms to
create codes for smart contracts.
4. Vague terms- Since contracts include terms that are not always understood, smart contracts are not always able to
handle terms and conditions that are vague.
5.Scale Problems-It is proven that transactions in a blockchain can take time because smart contracts copy every
transaction to all nodes in the network. For example, the Ethereum blockchain only executes fifteen trades in one
second or around nine hundred transactions in one minute.
The number of transactions sounds huge until you know thousands of transactions per minute in a fully operating
network. Any congestion delays the transaction and triggers more costs than you expected. A miner who somehow
gains control of a majority of the network's mining power can defraud other users by sending them payments and then
creating an alternative version of the blockchain in which the payments never happened. This new version is called
a fork.
Has a network administrator who allows permission for the users to access to the sensitive information in the network.
For example, Walmart utilized Hyperledger Fabric private blockchain to increase food supply chain transparency. The
private blockchain only allowed the authorized participants to securely access the shared data in a permissioned
network, thereby ensuring accuracy and traceability.
Task 3- Reflective account
Ability to understand what went well and what didn’t -(debrief)
Expectations >Reality check >apply in practical scenario for employability.
What you learnt >How you are going to take what you learnt and apply to your career> What more
Reflective a/c- 15th dec
essay 12th dec
Essay
Organisations accepting crypto
why do companies like crypto as a medium of exchange, investors (company wise)
How does crypto plays the role in a company?
challenges faced by regulators to disclosure of cryptocurrency.
Creating a group presentation on why blockchain technology may be scaled too early requires a comprehensive
understanding of blockchain, its current state, potential challenges, and the consequences of premature scaling. Here's
a step-by-step guide to help you structure your presentation:
1. Introduction:
Briefly introduce the concept of blockchain technology.
Highlight its key features like decentralization, transparency, and immutability.
Mention the current enthusiasm and widespread adoption of blockchain in various industries.
2. Overview of Blockchain Scaling:
Explain the term "scaling" in the context of blockchain.
Discuss the importance of scaling for widespread adoption and improved performance.
3. Current State of Blockchain Technology:
Provide an overview of the current state of blockchain technology.
Mention successful use cases and projects that have implemented blockchain.
4. Challenges of Premature Scaling:
Discuss the potential challenges and drawbacks of scaling blockchain technology too early.
Explore technical challenges such as scalability, security, and interoperability.
Address non-technical challenges, such as regulatory uncertainties and lack of standardization.
5. Case Studies:
Present case studies of blockchain projects that faced issues due to premature scaling.
Analyze what went wrong and how those issues could have been avoided or mitigated.
6. Technical Challenges:
Dive deeper into technical challenges associated with premature scaling.
Discuss the limitations of current blockchain architectures and consensus algorithms.
Explore potential solutions and advancements in blockchain technology that address scalability concerns.
7. Security Considerations:
Highlight the importance of security in blockchain technology.
Discuss how premature scaling can compromise the security of a blockchain network.
8. Regulatory and Compliance Issues:
Discuss the regulatory landscape surrounding blockchain technology.
Explain how premature scaling can lead to compliance issues and legal challenges.
9. Recommendations for Responsible Scaling:
Provide recommendations on how blockchain technology can be scaled responsibly.
Emphasize the need for thorough testing, collaboration with regulators, and continuous improvement.
10. Conclusion:
Summarize key points.
Reiterate the importance of cautious and responsible scaling in blockchain technology.
11. Q&A Session:
Encourage questions and discussions from the audience.
Be prepared to address concerns and provide additional information.
Additional Tips:
Use visuals such as charts, graphs, and diagrams to enhance understanding.
Consider incorporating real-world examples and analogies to make complex concepts more accessible.
Practice the presentation with your group to ensure a smooth and cohesive delivery.
Remember to tailor the presentation to your audience's level of familiarity with blockchain technology, and be
prepared to adapt based on their questions and feedback.
