What’s a Smart Contract?

November 21, 2022

Not too long after his worldwide whirlwind investigating how governments are responding to crypto (blog post link for this previous blog post), TRON Bull ventured out again. This time, the quest was to learn what a “smart contract” is. 

TRON Bull knew what a contract was. He had signed one when he got his first smartphone. Ashamed to admit he never read all the terms and conditions, he signed it nonetheless. He was just so eager to download his favorite crypto mobile app to exchange for some TRX, BTTC, and USDD. 

TRON Bull also knew what “smart” was. Everyone always commented about how hard-working and intelligent Aunt Oxie was. She was one of the first mammals to ever hold and stake TRX. Surely that meant she was smart!

But a “smart contract.” “What is a SMART CONTRACT?” TRON Bull wondered. He had to find out. 

TRON Bull had an idea! H.E. Justin Sun had mentioned he might stop by to sip some hot tea down by the Bay at Equator Coffee. TRON Bull loved to visit the Fort Mason Center for Arts and Culture. Even more, he loved the Habibi Latte at Equator’s. Maybe he could catch Mr. Sun and ask him. 

Yes! H.E. Justin Sun was there enjoying an Autumn afternoon in such an awesome, auspicious atmosphere sipping a Rooibis Chai Latte. 

“H-E!” TRON Bull was excited. “Can I call you ‘H-E?’” 

“Of course. Of course. But Justin is fine, too.” 

“Got it, H-E. I am on a quest!”

“What are you searching for?” asked Justin Sun. 

“I need to know what a ‘smart contract’ is.” TRON Bull plopped down in the opposite chair across the small cafe table. “I know what a ‘contract’ is. And I know what ‘smart’ is. My Aunt Oxie was so smart. But what is a ‘smart contract?’”

“Well, it’s basically a digital agreement that auto-executes when predetermined conditions are met.” 

“Auto-electricutes?” TRON Bull was puzzled. 

Justin Sun chuckled. “No, no, no. Auto-executes. It automatically happens once a set condition is met. In other words, when ‘THIS’ occurs, ‘THAT’ happens automatically, and everyone involved in the agreement smiles, because they don’t have to wait on someone to do it whenever they have time to or get around to it.” 

“I gotcha! It cuts out the middleman! Ensures that all promises are kept. That way someone doesn’t have to come along and force someone to do something. I had a cousin in Pomplona who did that. He was one mean character.” 

Justin Sun continued, “Did you know that smart contracts were popularized in 2014, but they were actually invented in the mid-1990s by a gentleman named Nick Szabo?” 

“In the mid-1990s?!?” TRON Bull was surprised. 

“They are now widely used by all blockchain networks in crypto, NFTs, and DAOs. Including the TRON ecosystem,” Justin Sun saw a look of understanding on TRON Bull’s face. 

“Wow. This could change everything!” TRON Bull’s wheels were turning now.

“You’re right,” Justin Sun affirmed. “There are many other industries besides finance that will likely be disrupted as smart contract technology is adopted. Leases. Legal agreements. Licensing. Credentials. Healthcare. Real Estate. Education. Entertainment. TRON uses smart contracts in our wallets, exchanges, dApps, NFT marketplaces, DAOs, and more.”

“That’s amazing, H-E! I had no idea. But now I do. Don’t call me ‘Bono.’ I have certainly found what I’m looking for. By the way, have you tried this Habibi Latte? It is so tasty!” 

TRON Bull was satisfied. This quest had been a success. 

Until the next one…

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To learn more about crypto, smart contracts, NFTs, DAOs, dApps, and more, go on your own quest to TRONDAO.org.