Satoshi Nakamoto, the creator of the Bitcoin protocol, and other early Bitcoin developers, contemplated the possibility that if their crypto-currency invention took off maybe, just maybe, it could also be used for more complex transactions rather than just the instant transfer of value from one place of the earth to the other at no cost and with no friction.
What if “conditions” could also be added to each transaction on top of the basic bilateral Bitcoin transfers?
Now that Bitcoin is actually taking off many community members are already planning new integrations within the platform following these original and visionary ideas.
All of this is possible because the basic Bitcoin program has spaces where new code scripts can be added so that more functionality can be created to enable these new formats.
In this video Michael Goldstein of Bitstein Consulting explains what new features can be added and what types of “smart contracts” may be enabled thanks to these new features.
We spoke about:
– How encryption is related to security and thus freedom.
– Bilateral money transfer with no need of banks or government.
– Bitcoin (like gold) as sound money.
– Smart contracts:
> Instructions can be added in Bitcoin individual transactions.
> “If then” conditionals can be used to transfer Bitcoin when certain criteria is met.
> 3rd party signatures may be added for the resolution of conflict in contracts.
> Assurance type transactions can be intiated to complete projects like on Kickstarter.
Please watch the video below:
In our next video with Michael we will talk about “smart property” in the Bitcoin network.
This is recommended reading by Michael regarding smart contracts:
– Smart contracts on the Bitcoin Wiki: https://en.bitcoin.it/wiki/Contracts
– Nick Sabo papers about smart contracts: http://szabo.best.vwh.net/smart_contracts_idea.html
– Mike Hearn video of London talk about the future of Bitcoin smart contracts: