This presentation on smart contract tutorial will help you understand what is a smart contract, why we need a smart contract, solidity for a smart contract, Blockchain implementation of the smart contract, voting process, hospitals and at the end you will see a use case implementation on crowdfunding smart contract. Smart contracts are self-executing contracts which contain the terms and conditions of an agreement between the peers. A smart contract is very similar to a vending machine. It eliminates the need for intermediate and escrow services. The terms and conditions of an agreement are written in code. These agreements facilitate the exchange of money, shares, property etc. All of this process is executed in Blockchain's decentralized platform. So, let us get started and understand what is a smart contract. Below topics are explained in this smart contract presentation: 1. Why smart contract? 2. What is a smart contract? 3. Solidity for smart contract 4. Blockchain implementation of a smart contract 5. Voting process 6. Hospitals 7. Use case - Crowd funding smart contract Simplilearn’s Blockchain Certification Training has been designed for developers who want to decipher the global craze surrounding Blockchain, Bitcoin and cryptocurrencies. You’ll learn the core structure and technical mechanisms of Bitcoin, Ethereum, Hyperledger and Multichain Blockchain platforms, use the latest tools to build Blockchain applications, set up your own private Blockchain, deploy smart contracts on Ethereum and gain practical experience with real-world projects. Why learn Blockchain? Blockchain technology is the brainchild of Satoshi Nakamoto, which enables digital information to be distributed. A network of computing nodes makes up the Blockchain. Durability, robustness, success rate, transparency, incorruptibility are some of the enticing characteristics of Blockchain. By design, Blockchain is a decentralized technology which is used by a global network of the computer to manage Bitcoin transactions easily. Many new business applications will result in the usage of Blockchain such as Crowdfunding, smart contracts, supply chain auditing, etc. The Blockchain Certification Training Course is recommended for: 1. Developers 2. Technologists interested in learning Ethereum, Hyperledger and Blockchain 3. Technology architects wanting to expand their skills to Blockchain technology 4. Professionals curious to learn how Blockchain technology can change the way we do business 5. Entrepreneurs with technology background interested in realizing their business ideas on the Blockchain Learn more at: https://www.simplilearn.com/

1. Smart contractA

2. What’s in it for you?
Why smart contract?
What is a smart contract?
Solidity for smart contract
Advantages of smart contract
Blockchain implementation of smart contract
Voting process
Hospitals
Use case – Crowd funding smart contract

3. Traditional Contract
Why smart contract?
Two Parties ExecutionThird PartyContract
A B

4. Smart Contract
Why smart contract?
Two Parties ExecutionThird PartyContract
A B
x

5. Traditional Contract Smart contractVS
Why smart contract?

6. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

7. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

8. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

9. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

10. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

11. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

12. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

13. Traditional Contract Smart contract
Why smart contract?
Government, lawyers etc.. None
1-3 days Minutes
Manual Process Automatic process
Unavailable Available
Difficult Easy
Limited Cryptographically Secure
Expensive Cheap
Manual process Digital Signature
Third Party
Execution time
Remittance
Transparency
Archiving
Security
Cost
Signature
VS

14. Demo
What is a smart contract?

15. What is a smart contract?
Consider a real life example where you are taking out a chocolate from a vending machine
You deposit a $2 note in a vending machine

16. What is a smart contract?
After that, you hit “A1” button
which is mapped against the
chocolate bar that you want to
buy
Consider a real life example where you are taking out a chocolate from a vending machine
You deposit a $2 note in a vending machine

17. What is a smart contract?
After that, you hit “A1” button
which is mapped against the
chocolate bar that you want to
buy
Consider a real life example where you are taking out a chocolate from a vending machine
You deposit a $2 note in a vending machine As a result, A lever in the vending machine
moves and pushes out the chocolate

18. Consider a real life example where you are taking out a chocolate from a vending machine
What is a smart contract?
After that you hit “A1” which is
mapped against the chocolate
bar that you want to buy
You insert a $20 note in a vending machine As a result, A lever in the vending machine
moves and pushes out the chocolate
Note
A smart contract is very similar to a vending machine
It eliminates the need of intermediaries and escrow services

19. What is a smart contract?
Smart contracts are self-executing contracts which contain the terms and conditions of an agreement
between the peers

20. What is a smart contract?
Smart contracts are self-executing contracts which contain the terms and conditions of an agreement
between the peers
The terms and
conditions of an
agreement is written in
code

21. What is a smart contract?
Smart contracts are self-executing contracts which contain the terms and conditions of an agreement
between the peers
The terms and
conditions of an
agreement is written in
code
It executes in blockchain’s
decentralized platform
These agreements
facilitate the exchange
of money, shares,
property etc.

22. What is a smart contract?
Let’s consider an example where Rachel is at the airport and her flight is delayed
Rachel
But this inconvenience could have been
beneficial to Rachel, as smart contract
insurance would ensure she is given a
compensation for the flight’s delay

23. What is a smart contract?
Let’s consider an example where Rachel is at the airport and her flight is delayed
Rachel
Wondering how smart contract can be
helpful here?

24. What is a smart contract?
It enables automatic
compensation when there is a
delay of two hours or more
AXA flight delay insurance is
one of the examples of
Ethereum smart contracts
The smart contract is linked
to the databases that record
flights’ status
Note: AXA is an insurance company

25. What is a smart contract?
A smart contract is created
based on the terms and
conditions
Compensation = Flight delay < 2 hours
-
Condition

26. What is a smart contract?
Based on the code, smart
contract holds the
company's money until a
certain condition is satisfied
A smart contract is created
based on the terms and
conditions

27. What is a smart contract?
This smart contract is
submitted to the nodes on
EVM for evaluation
Based on the code, smart
contract holds the
company's money until a
certain condition is satisfied
Note: EVM is a runtime compiler to execute smart contract’s code
A smart contract is created
based on the terms and
conditions

28. What is a smart contract?
This smart contract is
submitted to the nodes on
EVM for evaluation
All nodes on the network
executing the code using the
EVM must come to the same
result
Based on the code, smart
contract holds the
company's money until a
certain condition is satisfied
Note: The result is recorded on the distributed ledger
A smart contract is created
based on the terms and
conditions

29. What is a smart contract?
This smart contract is
submitted to the nodes on
EVM for evaluation
If the flight is delayed for two or
more hours, smart contract will
be self-executed and a
compensation amount will be
given to Rachel
Yes
Note: Smart contracts are immutable, so they won’t let the any person to alter the agreement
All nodes on the network
executing the code using the
EVM must come to the same
result
Based on the code, smart
contract holds the
company's money until a
certain condition is satisfied
A smart contract is created
based on the terms and
conditions

30. Demo
Solidity for smart contract

31. Solidity for smart contract
Here come’s the important question!
Q: What programming language does a smart contract use?

32. Solidity for smart contract
Here come’s the important question!
Q: What programming language does a smart contract use?
SerpentSolidity
They are the two widely used programming languages for writing Ethereum smart contracts

33. Solidity for smart contract
Here come’s the important question!
Q: What programming language does a smart contract use?
SerpentSolidity
However, on blockchain platform, solidity is widely used for implementing smart contracts

34. Solidity for smart contract
Solidity
Solidity is a high level programming language used for implementing smart contracts
Note: It enables to check the program at runtime rather than compile-time
Smart contract

35. Demo
Advantages of smart contract

36. Advantages of smart contract
The process executes
without the need of a third
party
No intermediaries

37. Advantages of smart contract
The process executes
without the need of a third
party
No intermediaries
Automated
They are automated with
the code which eliminates
manual effort for execution

38. Automated
They are automated with
the code which eliminates
manual effort for execution
Advantages of smart contract
The process executes
without the need of a third
party
No intermediaries
High Speed
Since smart contracts run
on programming code, the
speed of its execution is
higher than the traditional
contract

39. Automated
They are automated with
the code which eliminates
manual effort for execution
Advantages of smart contract
The process executes
without the need of a third
party
No intermediaries
High Speed
Since smart contracts run
on programming code, the
speed of its execution is
higher than the traditional
contract
Secure
As data is stored in the
decentralized system, the
chances of modifying data
is difficult

40. Automated
They are automated with
the code which eliminates
manual effort for execution
Advantages of smart contract
The process executes
without the need of a third
party
No intermediaries
High Speed
Since smart contracts run
on programming code, the
speed of its execution is
higher than the traditional
contract
Secure
As data is stored in the
decentralized system, the
chances of modifying data
is difficult
Accuracy
Based on the
requirements, terms and
conditions of a contract is
recorded accurately

41. Demo
Blockchain implementation of smart
contract

42. Blockchain implementation of smart contract
A centralized voting system
faces a lot of problems
when it comes to tracking
votes
Using Blockchain in voting process can eliminate malpractices

43. Blockchain implementations of smart contract
A smart contract is
introduced to eliminate
malpractices

44. Blockchain implementations of smart contract
Terms and conditions are
set in the contract
Note: Terms and condition: Each ID should be attributed to just one vote

45. Blockchain implementations of smart contract
The validation is done by
the users on the blockchain
network

46. Blockchain implementations of smart contract
Result: Every voters’ vote
gets recorded to the ledger
and the information cannot
be modified

47. Demo
Demo

48. Blockchain implementations of smart contract
Consider an example
where an individual who
purchases health
insurance is undergoing
treatment
Using Blockchain in hospitals can ease the payment process

49. Blockchain implementations of smart contract
Set up a smart contract with
an insurance policy and
place it in the blockchain

50. Blockchain implementations of smart contract
When required, smart
contract will be triggered by
itself

51. Blockchain implementations of smart contract
As a result, required amount
of payment from the
insurance company to the
hospital will be made
automatically

52. Demo
Demo

53. Demo
Use case – Crowdfunding smart contract

54. Use case - Crowdfunding smart contract
For such problems, smart
contract plays a major role
but who would lend money to
someone they don’t trust?
Suppose, you want to start a business then a lot of funding is required

55. Use case - Crowdfunding smart contract
but who would lend money to
someone they don’t trust?
With Ethereum, you can build a
smart contract that will hold a
contributor’s funds unless a given
date or goal is met
Note: Based on the result, the funds will be released to the contract
owners or will be sent back to the contributors
Suppose, you want to start a business then a lot of funding is required

56. Use case - Crowdfunding smart contract
Centralized crowdfunding
system has plenty of issues
with management systems
A DAO is utilized for
crowdfunding
Terms and conditions are
set in the contract
DAO
Every individual
participating in the
crowdfunding is given a
token
Every contribution get’s recorded on the
blockchain

57. Key Takeaways