Along with blockchain technology, smart contracts are of intense interest to businesses.
To provide you with a thorough understanding of what smart contracts are and how exactly they impact the way modern businesses make deals, I’ve prepared this explaination.
The Centralized Business Model is Giving Way to Decentralization
In the traditional centralized model of business relationships, there’s always a third party that stands between the two parties that are making a transaction and affirming the terms and conditions in a contract. This third party may be a banking institution, a law enforcement company, a government establishment, or some other intermediary.
When building relationships within a centralized model, businesses are dependant on intermediaries, which puts customers at risk. Besides, central systems can’t guarantee payments and implementation of contracts.
The development of blockchain technology, which allows businesses to build decentralized models, opens new horizons for businesses to conduct transactions and make agreements. And one of the technologies that’s proposing an alternative to the traditional model is the smart contract.
Smart Contract Concept
Although smart contract hype has grown with the hype around blockchain technology, the term smart contract actually appeared over twenty years ago. Nick Szabo, a computer scientist and cryptographer, wrote an article about smart contracts all the way back in 1995.
The concept that Szabo offered precisely corresponds to what smart contracts offer today, including the idea of implementing and storing smart contracts within a distributed ledger.
So what exactly is a smart contract?
What’s a Smart Contract?
A smart contract is similar to a contract in the physical world, but it’s digital and is represented by a tiny computer program stored inside a blockchain.
More specifically, a smart contract is a piece of software that stores rules for negotiating the terms of an agreement, automatically verifies fulfillment, and then executes the agreed terms.
What’s the main idea of a smart contract? Since a smart contract removes reliance on a third party when establishing business relations, the parties making an agreement can transact directly with each other.
Consider the example of a crowdfunding platform where product teams share their projects and collect money from supporters until a goal is reached.
If such a platform is centralized – like Kickstarter, for instance – then it acts as a third party between product teams and supporters who donate their money. This means both sides need to trust Kickstarter and, in fact, pay an additional fee to Kickstarter to serve as an intermediary.
Blockchain technology is the best tool of this era. Versatile and modular, not so one object but consists of several parts. It offers a huge field exploits and unlimited applications.
The message from blockchain is simple but powerful: it’s all about innovation. Life sustainability
will depend on what we will do with it, and it is not just technically based characteristics.
Whatever the context, blockchain technology is likely to have an impact on any industry.
The question is when. Everyone says it: blockchain will revolutionize the economy. But it will take
much longer than many people think. Like TCP/IP protocols (on the basis of which the Internet
was built), blockchain is a foundational technology that will require a widespread coordination.
The level of complexity – technological, regulatory, social and others – will be unprecedented.
However, the example of the adoption of TCP/IP protocols suggests a fairly predictable development
of the blockchain. While the adventure will take years, it is in the interest of companies
to get ready for it now.
However, it will be some time before blockchain is established in our systems and its adoption will not be sudden, but gradual and regular. In any case, true technological and institutional changes are underway, and a profound mutation will undergo in many uses.
It is from this vision and its strategic implications that SGAT was born, and from the desire, the urge, to participate in this adventure, that of a genuine transformation of the economy and governance initiated by the blockchain which, however, will be gradual. SGAT is above all a dynamic and passionate team that decided to combine their different skills and gather their expertise in order to concretize, in an open and participatory approach, its vision, through the creation of a consulting
and development company of services and applications based on blockchain technology.
SGAT adventure just only begun, the team will do everything they can to make this project successful!
How Blockchain Works ?
Contracts, transactions, and their associated records are engrained in our economic, legal, and political systems. They protect assets and set boundaries for both organisations and people. These records are at the heart of our individual identity and establish trust between agents.
These critical tools that up to now have been centralised and restricted to the boundaries of individual organisations are now about to be transformed. In a digital world, the way we regulate and maintain administrative control has to change. Assets are increasingly dispersed and networked. Speed is also needed as traditional methods are longer in tune with the pace of digital transactions.
Blockchain technology promises to solve this problem. The blockchain technology was originally conceived with the creation of the bitcoin. Even though other virtual currencies have been developed it is the underlying technology, the blockchain that has ignited the imagination of entrepreneurs and investors. The blockchain is a distributed ledger that can record transactions between two parties efficiently and verify them. The ledger itself can also be programmed to trigger transactions automatically, which if you notice is a key aspect of the Internet of Things. But more on that in another article.
How blockchain works infographic describes the basic processes. Many blockchain primers and infographics dive into the cryptography, trying to explain to lay people how “consensus algorithms”, “hash functions” and digital signatures all work.
“The blockchain is a technology that allows people who don’t know each other to trust a shared record of events.”
SGAT has the ambition to be a strong player in this transformation, by developing its own blockchain and its own crypto-currency, as well as a pre-blockchain application overlay. This platform will encompass all services and applications developed by SGAT. These services will focus on smart-contracts to ultimately have concrete applications that will be useful to everyone on a daily basis and in complete confidence.
SGAT blockchain and infrastructures consists of two layers : a new high-performance public blockchain and an innovative and evolutive eco-system focusing on smart-contracts and blockchain applications
The technology that SGAT develops will thus allow the configuration of smart-contracts without modification of the source code of the blockchain. Therefore, the tool will be durable and scalable, able to be improved and adapted in order to offer ever more comprehensive services, and in accordance with behavioral and regulatory changes.
SGAT is the token at the heart of our ecosystem, allowing to access and use every services and applications developed by us. For example, transfer of fiduciary securities, exchange of cryptocurrencies, member subscription and access and use of the smart-contracts tools.
Unlike Ethereum blockchain, the token SGAT is not ERC20 compliant and cannot be stored on any Ethereum wallet which supports Ethereum’s protocol such as MyEtherWallet or Metamask. That is why our blockchain is based on CryptoNote protocol.
It directly questions at least five of these major challenges : value, money, work, the individual
and democracy; while technically being able to be used to address other important issues such as
environmental preservation or energy management. With blockchain, we can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. Intermediaries like lawyers, brokers, and bankers might no longer be necessary. Individuals, organizations, machines, and algorithms would freely transact and interact with one another with little friction.This is the immense potential of blockchain.
What makes this difference different from the others? what’s the advantages?
SGAT has several unique characteristics as follows
Let us take the case of Air France as an example : an IPO would consist in the purchase of Air France shares, whereas an ICO would rather be the pre-buying of Passenger Miles. Their value is therefore supposed to be based on the services ultimately provided by the company behind the ICO. So, the ICO is a meaning, a beginning, not an ending. By proposing to support us, we invite you to take part in this adventure.
First, because ICOs are removing the barrier between professional and private investors. Anyone can rely on promising services: you can thus become a Business Angel for SGAT in a very accessible and transparent way. Indeed, we allow anyone who wishes to offer financial support to have direct access to our future pre-sale services, and thus become the first users. This is why we offer the sale of our tokens which will be the unique way of payment for our services and the use of our blockchain. In fact, we are building, even before the opening of our blockchain, a large and eclectic community which will be at the cutting edge of SGAT, both financially and in terms of SGAT’s values.
• Volume for sales: up to 12,000,000 sgats including bonuses
• Maximum token amount for sale: 65 %, or 7,800,000 sgats splitted as follows :
• 8% for privat pre-sales, including 30% bonus, or 650,000 sgats
• 15% for public pre-sale, including 15% bonus, or 1,150,000 sgats
• 77 % for public sale, or 6,000,000 sgats
• Marketing & community support: 3%, or 360,000 sgats allocated to marketing and the community
• Advisors: 3%, or 360,000 sgats, allocated to ICO advisors
• Ambassadors: 4%, or 480,000 sgats, allocated to SGAT ambassadors
• Legal: 2%, or 240,000 sgats allocated to legal advisors
• Cash reserve: 6.5%, or 780,000 sgats to ensure sufficient liquidity of sgats for future buyers and to control the growth of our token price
• Team: 6%, or 720,000 sgats allocated to SGAT team members
• Founders: 6.5 %, or 780,000 sgats allocated to the initial founders of the SGAT project
• Shareholders: 4%, or 480,000 sgats allocated to SGAT SAS shareholders
The Future Road Map Of SGAT
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