Getting Started

Why should one prefer smart contract technology over traditional contracts?
  • As contracts are the source of many legal and business conflicts, they are always considered contempt. They often lead to disputes when they are not appropriately drafted or communication breakdown. 
  • Business professionals have been looking for ways to avoid contract conflicts with the technological revolution. 
  • Traditional contracts usually involve one or more parties, multiple lawyers and various rounds of negotiations. The result of negotiations is a lengthy document which has to be signed by different parties. 
  • Before the introduction of smart contracts, people had to store paper copies of agreements in file cabinets. 
  • Smart contracts have been named as “smart” because of the technology-derived solutions. Similar to traditional contracts, smart contracts are agreements that execute specific actions based on the performance without the need of a trusted party. 

Due to its immutability feature, smart contracts are secure and tamper-proof; therefore, they do not require any third party for building trust between obligating parties.

Why is there a need for Standard Security Token Issuance?

Security Tokens will never be adopted in any meaningful way if issuers, investors, KYC providers, wallets, exchanges, regulators and developers cannot work together within the same framework. 

Security Tokens can become the default form for all financial securities. In the same way that the ERC-20 standard helped to create the boom in utility tokens, the security token standard will help drive the boom in security tokens. All participants in the ecosystem will be able to speak the same language and become confident building on this new and exciting technology. 

It will help accelerate the issuance and management of securities on the Ethereum blockchain by specifying standard interfaces through which security tokens can be operated on and interrogated by all relevant parties. Taken together, these security token standards provide document management, error signalling, gatekeeper (operator) access control, off-chain data injection, issuance/redemption semantics and expose partially fungible subsets of a token holders balance.

What type of hashing algorithm does SimplyBlock provide for data security?

SimplyBlock uses SHA-256, the SHA-256 algorithm generates a unique, fixed-size 256-bit (32-byte) hash. Hash is a one-way function – it cannot be decrypted back. This makes it suitable for challenge hash authentication, anti-tamper, digital signatures.

What is the benefit of getting an ERC20 standard token developed for my business?

Compared to other tokens and crypto coins, building a mining token based on the ERC20 standard brings the power of Ethereum blockchain to your token and cryptocurrency. It is one of the foremost secure and advanced blockchain technology platforms.

What is Solidity?

Solidity is a Javascript-like language developed specifically for creating smart contracts. It is typed statically and supports libraries, inheritance, and complex user-defined types.

 

Solidity compiler converts code into EVM bytecode that is sent to the Ethereum network as a deployment transaction. Such transactions have more fees as compared to smart contracts interactions and the owner of the contract must pay it.

What is Smart Contract Development?

A smart contract is a set of computer code that runs on the blockchain network. They have gained attention due to their ability to enforce and execute an agreement automatically between untrusted parties without the involvement of intermediaries.

Smart Contract Development allows you to replace traditional contracts by binding them in executable code. With expertise in smart contract development tools and programming languages like Remix, Solidity, Go, JavaScript, our smart contract developers build secure and bug-free smart contracts. 

What is ERC20 standard token development?

ERC20 stands for “Ethereum Request for Comment”, which is an Ethereum token standard.

This customary is employed to represent smart contracts on the Ethereum blockchain.ERC-20 tokens will represent various types of digital assets. Like different crypto assets, they will have a value and can be sent and received.

The difference between ERC-20 tokens and cryptocurrencies such as Bitcoin, Ethereum, Litecoin is that ERC-20 tokens don’t have their own blockchain but reside on top of the Ethereum blockchain. As of today, more than 200000 ERC-20 tokens coexist on the Ethereum blockchain and because they live on this blockchain, they benefit from its technology.  They are stored on Ethereum addresses and sent using Ethereum transactions.

What is a Smart Contract?

A smart contract is a computer program that manages the exchange of assets or digital currencies between parties when the pre-defined conditions are met. It not only defines the rules of an agreement but also enforces the obligations automatically. 

For example, the property’s ownership can be transferred to the new owner automatically with smart contracts when money is sent to the seller’s account. 

WHAT IS A SECURITY TOKEN?

A Security Token shares many of the characteristics of both fungible (erc20) and non-fungible tokens (erc721). Security tokens are designed to represent complete or fractional ownership interests in assets and/or entities. While utility tokens have no limitations on who can send or receive the token, security tokens are subject to many restrictions based on identity, jurisdiction and asset category.

What does the Storing Data Trails Service Provide?

Storing Data Trails service provided by SimplyBlock makes storing data fingerprint easy on Ethereum and Stellar Blockchain Network through provided Rest APIs, a request can be made for APIs in different languages according to the user’s preference and data can be hashed and stored on Blockchain in 3 easy steps.

On which Blockchain does SimplyBlock store the Data trails?

SimplyBlock store the data trails on the Ethereum and Stellar Blockchain Network.

Is there any limitation to the data storage capacity?

No, since the hashed data has always the fixed size of 256-bit (32-byte) hash there is no issue regarding the limitation on the size.

How widely used is the ERC20 standard?

ERC 20 tokens are widely used, 2017 study showed that 76% of cryptocurrencies in circulation were using the ERC20 standard. As of 2019, a total of 216,172 Token Contracts are found to be ERC20 tokens.

How smart contract platform works?

To understand how a smart contract works, let’s consider one example. 

Suppose that Rachel wants to buy ross’s house. The agreement for buying a home is created on the blockchain platform using a smart contract. 

The smart contract comprises of an agreement between Rachel and Ross. 

The agreement may look like: “When Rachel pays Ross 25 BTC, then Rachel can receive the house possession.”

Once the smart contract agreement is written, it cannot be updated and Rachel feels safe to transfer bitcoins to ross for the house.

Without smart contracts, Rachel and ross would have to pay additional fees to third-party companies, lawyers, house brokers, and banks. You would not have to deal with no more commissions and delays to wait for a broker and legal expert to process your request. 

It becomes possible with the blockchain technology. Smart contracts can be decentralized, so any centralized authority does not handle them.

How is consensus formed with the counterparty in Smart Contracts?

Smart contracts don’t form a consensus. Every network participant in the contract simply executes the contract in an identical approach (like a ‘send’ transaction). The consensus is formed with the blockchain determining which contracts exist and the order they are found in. As every network node has identical smart contract code, as well as the same protocol (“consensus sensitive”) code, that operates on them, the output from the execution of each smart contract decision is identical (as all code that executes is settled in nature).

How does SECURITY TOKEN differ from UTILITY TOKEN?

The concept of utility tokens is fairly well understood in the blockchain space today. Utility tokens represent access to a network, and your token purchase represents the ability to buy goods or services from that network — kind of like purchasing a game token being used to play an arcade machine. Utility tokens give you that same type of access but just to a product or service.

On the other hand, security tokens represent complete or fractional ownership in an asset (such as shares in a company, a real-estate asset, artwork, etc). Having a stake in a company, real estate, or intellectual property can all be represented by security tokens. 

  • Security tokens offer the benefit of bringing significant transparency over traditional paper shares through the use of the blockchain and its associated public ledger. 
  • Security token structure, distribution, or changes that could affect investors are now accessible to all via the blockchain.
  • Security tokens and the digitalised assets they represent ownership will form the backbone of finance 3.0 driving innovation, adoption and accessibility across the financial sector.
How can you use data trail application for your benefit?

SimplyBlock through its service of Storing Data Trails on Blockchain gives security to your data as it is stored on the blockchain network after going through the hashing process if any changes are made in the data the hash also changes this helps the user in verifying whether the data has been tampered with or not.

How can I verify my hashed data if it was not hashed by SimplyBlock ?

SimplyBlock stores your hashed string with the transaction id, so by entering the hashed string irrespective of the hashing algorithm used you can verify it through Simplyblock.

How can I use the token issuance tool for my business?

Using SimplyBlock rest APIs you can easily create an application which will be able to create all three type of tokens, you can also accept token payments in your applications and easily create blockchain dapps.

How can I store my data if I Hash it not using SimplyBlock Hash Generator?

If the data is not hashed through SimplyBlock Hash Generator API you can simply move on to the next step of Broadcasting Hash on the Ethereum Network by requesting APIs provided for it by SimplyBlock.

How can I store Data Trails through SimplyBlock?

SimplyBlock makes storing data trails on Ethereum simple through 3 easy steps

  1. Create a Hash for your data through SHA-256.
  2. Request API for Broadcasting Hash on Ethereum Network.
  3. Request API for Verify Hash on Ethereum Blockchain Network
Does SimplyBlock have a ready-made script to use for token development or develop the token from scratch?

Our programmers have built ready to use protocols using the Ethereum blockchain development platform to form custom-built and distinctive tokens for your business which are ERC20 compliant. We provide ready to use token issuance protocols using which you can easily issue ERC20 tokens without any hassle.

Can the ERC20 token issued through SimplyBlock be transferred?

Tokens Issued through SimplyBlock Token Issuance Tool are of ERC20 standards which means they can be easily transferred to any ether address on the ethereum blockchain.

Can the assets of the counterparty be at any risk with the issuance of a Smart Contract?

No the assets of the counterparty in the Smart Contract won’t be at any risk unless you send the funds to smart contracts, in which on meeting the required parameters the smart contract will work as a transaction and transfer of assets will be done based on the business logic written in the smart contract. In Ethereum, smart contracts are elementary and required for most of the action apart from sending Ether.

Can I verify my hashed data on the blockchain without the help of SimplyBlock?

If you have the transaction id of the transaction that happened during the broadcasting then yes you can directly verify through the blockchain.

Can I verify my Data Trail on Ethereum Network?

Yes, after successfully broadcasting the hash on the Ethereum Blockchain Network you can verify it through requesting API for verifying hash at any given time.

Can I Hash my data from elsewhere and store it through SimplyBlock?

Yes, you can generate Hash of your data from any hash generator and move on to the next step of Broadcasting hash (SHA256) on the Ethereum network.