Smart Contract Basics
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.
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When you create a token with CoinBuddy, you are deploying a smart contract to the blockchain. This contract governs all the rules and logic for your token.
How Smart Contracts Work
- Creation: A developer writes the code for the smart contract. For a token, this code would include rules for things like how many tokens exist and how they can be transferred.
- Deployment: The smart contract is deployed to the blockchain. Once deployed, it is immutable, meaning it cannot be changed.
- Execution: The contract will automatically execute its terms when certain conditions are met. For example, a token transfer will only be executed if the sender has enough tokens in their wallet.
Key Features of Smart Contracts
- Autonomy: Smart contracts are self-executing and don't require a third-party intermediary.
- Transparency: The terms of the contract are visible to all parties on the blockchain.
- Security: Because they are on a decentralized network, smart contracts are very difficult to tamper with.
- Efficiency: By automating processes, smart contracts can save time and reduce costs.
Smart Contracts and Your Token
Your token's smart contract is its backbone. It defines:
- The token's name, symbol, and decimal places.
- The total supply of the token.
- The logic for transferring tokens between addresses.
- Any special features, such as transaction fees or supply control mechanisms.
CoinBuddy handles the complexity of writing and deploying this smart contract for you, so you can focus on the vision for your token.