Smart contracts are responsible for the tokenomics of the project. Let's figure out what it is. The usual payment system is built quite simply - people, money, transfers - that's it, there is nothing else. But you can create a payment system that allows you to write programs that would work with wallets, accept money from wallets themselves, decide to whom, how much to send, and so on. With an important condition: for all users, each such program will work according to known principles, predictably, equally, transparently, and so that no one can change it.
Smart contracts perform operations like if-then ("if ..., then"). The same thing can be called an agreement, a contract, conditions - as anyone is more accustomed to. In life, we make deals all the time and not only about money “If I lose weight by the summer, then I will buy myself a ticket to Sochi.”
The main problem of transactions is that no one can guarantee the fulfillment of their conditions. I bought a ticket to Sochi and flew there with extra pounds - breaking deals with myself is generally a pleasure.
In business, this problem is solved by contracts: special people write special words on special pieces of paper with seals, which, if something happens, can be taken to the Arbitration Court. Special intermediaries sit there, for a certain fee they will punish the culprit with another special piece of paper. At the end of the act, everyone happily pays taxes. Thus, we remove all intermediaries, disputes and promises from this chain. And we introduce a smart contract that guarantees the validity of money transfers, conditions and transactions. And even automates the creation of such conditions.
If, for example, a smart contract is used to control a vending machine, then it would look something like this: “If someone puts a ruble in the vending machine, the vending machine will dispense a bottle of drinking water.”
So, smart contracts are programs that control the transfer of digital currencies or assets between parties if certain conditions are met. These are contracts written in software code and stored on the blockchain. They make transactions traceable, transparent and immutable.
The main advantages of contracts are:
Speed. Processing documents manually takes a lot of time and delays the completion of tasks. Smart contracts involve an automated process and in most cases do not require personal participation, which saves valuable time.
Independence. Smart contracts exclude the possibility of third-party interference. A transaction guarantee is the program itself, which, unlike intermediaries, will not give reason to doubt its integrity.
Reliability. The data recorded in the blockchain cannot be changed or destroyed. If one party to the transaction fails to fulfill its obligations, the other party will be protected by the terms of the intellectual contract.
No mistakes. The automatic system for executing transactions and removing the human factor ensures high accuracy in the execution of contracts.
Saving. Smart contracts can provide significant savings by eliminating costs for intermediaries and reducing transaction costs, as well as the ability for parties to work together on better terms.
In the Exorde environment, an EXD utility token (of the ERC20 type) will be introduced for settlements - a token on the Ethereum blockchain. The main purpose of ERC20 is to ensure that Ethereum-based tokens behave in a predictable manner across the entire ecosystem, that decentralized applications and smart contracts interact in the same way across the entire platform, and that all tokens meet a fixed security standard.
The native EXD utility token will have several functions:
- Act as a medium of exchange in the Exorde ecosystem to purchase data
indexing and analyzing data, or to pay for API requests. - Used as a reward (economic incentive) for Exorde Work Systems participants. Each system will reward the work done by its members according to their quality, quantity and reactivity. Reward amounts will be frequently developed and adjusted by Exorde management to encourage the most relevant, up-to-date and consistent work performed by Members.
- Act as voting rights during governance events: The number of tokens a user owns determines the weight of their voting rights during management polling and voting. In addition, reputation will also play a role in determining the user's voting rights in various voting events.
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