More info: https://blockchainhub.net/ Blockchain for Beginners: blockchains are the basis for auto enforceable smart contracts and dApps (decetralized applicatons).

1. dApps
&
Smart Contracts
BlockchainHub ■ Dr. Shermin Voshmgir ■ November 4, 2015

2. Smart
Contract
When a computer can
verify or auto-enforce
any type of
business transaction
or
legal agreement

3. Smart
contracts
Traditional definition
# automated performance
# automated verification
# auto enforceable
Ethereum definition
# Decentralized Application (dApp)
# long lived process on the
blockchain

4. Smart
contracts
Legal Implications
Soft Law Smart Contracts
Logic
Grounds
analog
subjective minds
bits
boolean logic
Security contempt
imprisonment
replication &
cryptography
Predictability flexible rigid
Maturity highly evolved
many cases
larval
few experiences
Area juristictional
silos
(national laws)
independence from
financial
institutions and
seamless
operations across
borders
Costs lawsuits
expensive
extremely
low

5. dApps
Where is the data stored?
Application data &
Records of operation must be
# cryptographically stored
# in a public
# decentralized blockchain
# in order to avoid any central
points of failure

6. dApps
Decetralized Applications
Completely open-source
application that operates
autonomously, and with no entity
controlling the majority of its
tokens.
The application may adapt its
protocol in response to proposed
improvements and market
feedback but all changes must be
decided by consensus of its users.

7. dApps
Cryptographic Tokens
Application must use a cryptographic
token (bitcoin or a token native to its
system) which is necessary for access
to the application.
Any contribution of value from
(miners/farmers) should be rewarded
in the application’s tokens.
Application must generate tokens
according to a standard
cryptographic algorithm acting as a
proof of the value nodes are
contributing to the application (Bitcoin
uses the Proof of Work Algorithm)

8. dApps
Requirements
Application data &
Records of operation must be
● cryptographically stored
● in a public
● decentralized blockchain
● in order to avoid any
central points of
failure/corruption/censorship

9. Use Cases
of Smart Contract
or dApps
eGoverment: Tamper-proof public
databases: land registries (i.e. Honduras &
Greece are interested)
Notaries & Registers of the ownership:
Documents, luxury goods or works of art can
be notarised
Fintec: blockchains as record of who owns
what instead of having a series of internal
ledgers
Accounting: Compliance on the fly instead of
after the fact
IoT: i.e. Slockit (User Access Control) for
machine to machine smart contracts

10. Types of
dApps
One method to classify dApps is based on
whether they have their own blockchain or
they use the blockchain of another dApp
# Type I: dApps that have their own
blockchain.
# Type II: dApps that use the blockchain of a
type I dApp. Type II dApps are protocols and
have tokens that are necessary for their
function (i.e. Omni Protocol)
# Type III: dApps that use the protocol of a
type II dApp. Type III dApps are protocols and
have tokens that are necessary for their
function (i.e. the SAFE Network uses the
Omni Protocol to issue ‘safecoins’ that can be
used to acquire distributed file storage)