Smart Contracts and Blockchain Technology

Smart Contracts and Blockchain Technology

Describe the difference between Externally Owned Accounts (EOAs) and Contract Accounts in a blockchain network. Externally Owned Accounts (EOAs) are owned and controlled by users and are managed using public-private key pairs. They have no associated code. Contract Accounts are created by EOAs and are controlled by the associated contract code stored in the account.

Explain the purpose of the Bulletin Board Message Framework (BBMF) described. BBMF facilitates scalable information exchange between smart contracts and with the outside world. It allows smart contracts to interact through global shared variables, allowing for more efficient and flexible system designs.

List three advantages of the peer-to-peer (P2P) lending platform described. Decentralized platform, eliminating the need for intermediaries.

Automatic execution of loan terms using smart contracts.

More reliable loan process based on reputation system.

What are the advantages of the P2P2P lending model described over the traditional P2P lending model? The P2P2P model improves efficiency by pooling funds into lending pools. This simplifies large-scale lending operations, and smart contracts ensure that borrowers and lenders fulfill their obligations as agreed.

Describe the role of the Global Variable Name System (GVNS) in the system outlined in . GVNS allows linked smart contracts to share information by providing access to shared global variables, facilitating more flexible, interoperable system designs.

Explain how BBMF enables users to pay with cryptocurrency at retail stores in . BBMF integrates payment events and triggers with smart contracts that manage user wallets and merchant accounts, enabling seamless processing of cryptocurrency-based transactions.

Description How the loyalty rewards system described works. Users earn loyalty points when they shop at affiliated merchants. These points can be redeemed for discounts or other rewards and are managed by smart contracts to ensure transparency and automatic execution.

Explanation How the system described uses collateral to reduce risk in P2P lending. Borrowers can use cryptocurrency tokens or physical assets as collateral for their loans. If the borrower defaults, the smart contract releases the collateral to the lender, minimizing the lender's risk.

Overview Proposed mechanism for feeding external data into the lending pool contract. External data is fed into the lending pool contract via an oracle. Oracles act as a bridge between the blockchain and the outside world, providing information such as exchange rates or collateral market values ​​to facilitate informed decision making.

Description One potential implementation of the GVNS described. GVNS can be implemented external to the blockchain using a database such as a SQL or NoSQL database. This improves performance and enhances security.

Glossary of Key Terms

Term Definitions Blockchain A decentralized, immutable ledger of transactions maintained by multiple nodes in a network. Smart Contract A self-executing contract that is stored on a blockchain and automatically executes the terms of an agreement. Externally Owned Account (EOA) An account controlled by a user and used to interact with a blockchain network. Contract Account An account controlled by a smart contract and with associated code. Bulletin Board Message Framework (BBMF) A distributed messaging system for exchanging information between smart contracts and with the outside world. Global Variable Name System (GVNS) A system for sharing global variables between smart contracts, enabling data access and interoperability. Oracle An entity that provides external data to a blockchain. Peer-to-Peer (P2P) Lending A decentralized form of lending between borrowers and lenders through an online platform. Peer-to-Pool-to-Peer (P2P2P) Lending A lending model in which lenders' funds are pooled into lending pools and then lent to multiple borrowers. Collateral An asset provided by a borrower to guarantee the lender in the event of a breach of the loan terms. Loyalty Rewards System A marketing strategy that encourages customer loyalty by rewarding repeat purchases.