How ordinary people view the value of smart contracts

This article is based on a non-technical person's perspective on the Smart Square project and its distributed programmable smart contract system. The author tries his best to use the most popular words and his understanding of this field to explain to readers his view of the distributed programmable smart contract system, intending to enable everyone to more intuitively understand and grasp this new and popular term.

Before talking about this system, I would like to start with some social phenomena.

Traditional stock exchanges and issuance models will inevitably exit the stage of history

Although it is hard to imagine, it sounds as far away as a super artificial intelligence robot, and you can even say that I am dreaming. But I still have to remind you that after seeing the much-criticized traditional stock issuance mechanism and the various black boxes, shady dealings, and rat trading that come with it... do you want to re-examine and think about it?

The traditional stock issuance mechanism is an access mechanism for power agencies, not a market recognition mechanism. In this way, when the social supervision mechanism is very imperfect, it is tantamount to providing a hotbed for corruption, which will undoubtedly squeeze out the development space of many truly valuable projects. In addition, it is difficult for shareholders to implement truly effective boycotts when they have objections to the company. The centralized servers of stock exchanges can also cause devastating damage to their databases. Although investors purchase the circulating stocks of a company, they cannot or will not participate in the company's business-level exchanges and discussions, which also makes small and medium-sized investors lose the fun and rights of participating in company decision-making that should belong to them.

The future is bound to be the era of digital equity

Digital equity has more operational flexibility and multiple attributes. You can even use your digital stock to buy Starbucks coffee. The registration account of digital equity is also open and transparent. You can check the transfer and distribution of equity at any time. In addition, digital equity cannot be issued at will. If the party issuing equity wants to obtain more funds for project expansion, the only thing they can do is to do a good job in the company's various projects, so as to increase the value of the equity shares in their hands. Of course, they can also beg for donations or rewards from shareholders. At this point, these events that are crucial to a company will no longer be decided by a certain boss, and the previous behavior of diluting the interests of shareholders by issuing additional shares at will will become impossible. Because there is no intervention by the authority, all possibilities of corruption will be eliminated here. The benefits that the company and shareholders can enjoy are not only the company's operating profits and stock appreciation, but also the process of working together with the company and other shareholders. Everyone must do their best to jointly promote the progress of the company's business. Due to the inherent advantages of its distributed autonomous model, shareholders will not have to worry about the company's bankruptcy, running away, or worrying about the data security of the company's servers all day long. Because each user's computer is a server, any programmer can take on the continued operation of the project after obtaining the approval of the shareholders' vote. In other words, there is no need to worry about the server being destroyed or the company's CEO running away and causing the project to be paralyzed.

Disadvantages of existing business companies

Many existing commercial companies are extremely inefficient and costly due to centralized management at the top and bloated organizations. Of course, they are also plagued by corruption and scandals, and the development of the company is more likely to be trapped in a narrow space and unable to extricate itself. The decentralized company based on DAC is a barrier-free, transparent and open operation model that everyone can participate in. There are no technical and institutional barriers in the transaction, use, and storage of equity, which highly reflects the superiority of the advanced distributed company development concept, thus completely eradicating many drawbacks of traditional commercial companies.

The above two points are just a drop in the ocean. I will not elaborate on the many unreasonable things in the real world. I believe that only those who drink the water know whether it is hot or cold.

In light of the above issues, let me introduce my understanding of the concept of Smart Square DACRS.

After the Smart Square project was launched in April 2014, the team has been in a closed development environment without a notice until the project was announced for public testing in February 2015. Only then did people get to see its true colors. The subsequent official version release and the gradual launch of P2P applications were eye-opening, and each step of progress was eye-opening. This is exactly the breakthrough progress that digital currency and its blockchain technology have achieved in the field of smart contracts.

Smart Square can be defined as both digital currency and digital shares (limited to DACRS for the time being). I think it has already gone beyond the scope of a single digital currency. It is between digital currency and advanced share models, and all of this comes from an excellent programmable smart contract software project.

It is a unique programming cube based on Bitcoin technology; an automatically running universal company startup; an inclusive and open emerging technology industry presented to achieve fairness and freedom; perhaps you can simply think of it as Bitcoin 2.0.

From the perspective of IT, it is a distributed, programmable infrastructure, on which all possible distributed applications can theoretically be built.

Of course, I can’t fully and accurately describe everything about it and predict what it might achieve in the future. It still looks small and young now, just like Bitcoin when it first came out, but I hope it will become more mature in the future and worthy of people’s trust.