Self-Executing Contracts on the Blockchain

Self-Executing Contracts on the Blockchain

Glossary

Term Definitions 스마트 계약 (smart contract) A self-executing contract stored on a blockchain that executes automatically when certain conditions are met. 블록체인 (blockchain) A distributed, immutable ledger that records the history of all transactions. 노드 (node) A participant in a blockchain network that can verify and relay transactions. 공동 (co-owner) An individual or entity that participates in a smart contract and shares the associated risks. 차용자 (borrower) An individual or entity that requests a loan from a lender. 대출자 (lender) An individual or entity that provides a loan to a borrower. 월렛 제공자 (wallet provider) An entity that provides a digital wallet to store and manage cryptocurrencies. 신원 공급자 (identity provider) An entity that verifies and confirms a user's identity. 평가 에이전트 (scoring agent) An entity that assesses the credit worthiness of a borrower and assigns a credit score. 가격 공급자 (price provider) An entity that provides the current market price of a cryptocurrency or other asset.

Short Answer Question

Describe the role of smart contracts in a credit network. Smart contracts act as self-executing contracts in a credit network, automatically enforcing loan terms such as repayment and default terms. They are stored on the blockchain, ensuring transparency and tamper-proofing.

Explain the function of co-owners in a smart contract-based credit network. Co-owners participate in smart contracts together and share the risks associated with the loan. They provide an additional layer of security by assessing borrowers and covering losses in the event of default.

What is the purpose of wallet providers in the context of smart contract-based credit networks? Wallet providers provide users with digital wallets that allow them to securely store and manage their cryptocurrencies, which are essential to facilitate transactions within the network.

Differentiate between traditional credit networks and smart contract-based credit networks. Traditional credit networks rely on intermediaries, such as banks, to facilitate transactions and establish trust, while smart contract-based credit networks leverage blockchain technology to automate processes and reduce the need for intermediaries.

What is the significance of identity providers in credit networks? Identity providers verify and confirm the identities of participants, ensuring transparency and reducing the risk of fraud.

Explain how scoring agents operate in credit networks. Scoring agents evaluate borrowers based on their credit worthiness and assign credit scores that help lenders assess the level of risk associated with providing loans to specific borrowers.

What is the role of price providers in the context of smart contract-based credit networks? Price providers provide current market prices for various cryptocurrencies or other assets, facilitating fair and efficient transactions between different currencies.

Describe how blockchain technology enhances the security and transparency of smart contract-based credit networks. Blockchain provides a distributed and immutable ledger that records all transactions, ensuring transparency and making it difficult for any party to tamper with or manipulate data.

Explain the concept of an "order book" in smart contract-based credit networks. An order book is a ledger that contains all outstanding loan requests and quotes from borrowers and lenders, providing a transparent and efficient platform for matching borrowers and lenders.

Outline the advantages of smart contract-based credit networks. Smart contract-based credit networks provide greater transparency, reduced costs, enhanced security, faster transactions, and greater accessibility, especially in areas lacking traditional banking services.