We make contracts every day. Smart contracts aren't complicated.

1. Demystifying Smart Contracts
Bernard Peh (Founder - Whale Tech)

2. About Me
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2013 2015 2017

3. Why Whale Tech?
Whale Tech is an Australian Based Blockchain
development and education company aiming to help
the companies adapt to the new Blockchain revolution.

4. What is a Smart Contract?
Smart: Digital automation. Disputes is enforced by
code and immutable.
Contract: an agreement between multiple parties
which could be used as evidence should dispute
between the parties arises.

5. We are living in the world of contracts
We exchange services everyday.
We make agreements - verbal, physical or digital.

6. Formula for a contract to work
A contract requires 4 criteria in order to work:
● Identity verification
● Immutability Evidence
● Commitment by staking something of value to you
● Enforcement of rightful behaviour.

7. Blockchain + SC = Matchmate in Heaven
● Blockchain (aka DLT) - Identity and Immutability
● Smart contracts - Staking of value and Rules
enforcement

8. The Blockchain Revolution
“The technology of tomorrow has expired today.”
•Blockchain 1.0: Store of value (Cryptocurrency). Eg
Bitcoin, Ripple
•Blockchain 2.0: Store of value and Smart Contracts
(Distributed Apps or DAPPS in short). Eg Ethereum,
EOS, Cardano, Neo
•Blockchain 3.0: Store of value, Smart Contracts, IOT,
AI, Scaling solutions and Inter-chain Operability.

9. 3 Types of Smart Contracts
•Value to value: Exchanging one cryptocurrency to
another (ICO, Atomic Swaps)
•Value to Service/Service to Value: Paying a service
with cryptocurrency. Example Smart City parking,
parcel delivery, voting for the next president.
•Service to service: Exchanging a service with another
service. Example creating a website in exchange for
free medical treatment.

10. Value to Value - Blockbid ICO

11. Value to Service - Uber Post

12. Service to Service - Labour exchange

13. Anatomy of a Smart Contract
•What is the Purpose?
•How to get Commitment from Parties Involved?
•What are the Moving Parts?
•What Constitute a Successful Outcome?
•How to Validate Successful Completion of Task?
•What Constitute an Unsuccessful Outcome?

14. Anatomy of a Smart Contract
•What Happens After the Deal?
•Any Punishment for Malicious Behaviour?

15. Upgradable Smart Contracts
Unlike typical Software design, upgrading Smart
Contracts poses many monetary and philosophical
dilemma which puts a lot of stress on Smart Contract
developers to get it right the first time.

16. Upgradable Smart Contracts
•Pros: Save space. Efficient code. Bug fixes.
•Cons: Break immutability law and decentralisation.
What are people going to think if you have the ability
to upgrade the business rules in the middle of an ICO?

17. The Dangers
● immeasurable success criteria
● Unexpected behaviours
● Unaudited code (writing test isn’t enough)
● Assets being hacked
● Assets being frozen

18. The Wins
● Automation: Saves time and money because there
are no middle man.
● Nothing to hid. Contract is open for the public to
scrutinise.
● Forces you to think of all possible outcomes and
things that could go wrong.
● Forces you to define all conditions and play fair.

19. Blockchain + SC + IOT + AI at work
● Your washing machine has a part that needs repair.
● As your machine is also a node and connected to the
internet, it is also connected to the Blockchain of the
company.
● Your machine creates a Smart Contract onchain
describing the problem and asks for repair quotes
from different vendors also connected to the same
Blockchain.

20. Blockchain + SC + IOT + AI at work
● Each vendor submits a quote and your Smart
Contract chooses the best quote based on some
intelligent criteria.
● The vendor comes to your house and repair the
machine.
● If Machine is happy with the repair (working for the
next 3 months), it will release the funds in the
Smart Contract to the vendor.

21. Conclusion
● Plan well ahead before even before starting to code.
Remember its not like building a website where you
can tweak and patch all the time.
● All conditions in the Smart Contracts must be
measurable and codable.

22. Conclusion
● KISS principle applies. Less ambiguity in
successful/failure conditions -> lesser logic -> lesser
code -> lesser chance to be hacked -> more smiling
faces.