If you have passion for blockchain technology, you are certainly aware of “smart contracts”. But for those who doubts, let’s have a quick review. A smart contract, also known as self-executing contracts, is one of the most enticing advancements blockchain technology brings to gain competitive edge from weakness of the conventional written-in-ink analog.
According to its creators, smart contract approach transfers mutual agreement upon any asset or currency into a program. The program runs a certain code and automatically verify whether the terms fulfilled. In case there are any violation of the settled rules, it repeals the transaction performance and immediately refund the asset to the person who send it.
Moreover, blockchain works as decentralized ledger that also stores and replicates the result of delivered transaction available for all permitted parties, which gives it a high-level of security and immutability. Described conflict-free approach gives an end not only to intermediate expenses but also helps avoid fraud risk.
Chain is another blockchain startup designed to develop Bitcoin-based programming language for coding smart contracts. The project has released open-source complier that translates between Chain’s smart contract language Ivy and Bitcoin Script, the low-level programming language created for usage by Bitcoin community members.
On its blogpost, Chain stated that the main goal for launch the new protocol language is developing of Bitcoin environment. It also claims that Ivy helps users to write custom, SegWit-compatible Bitcoin addresses that enforce arbitrary combinations of conditions supported by the Bitcoin protocol, including signature checks, hash commitments, and timelocks. Nevertheless, between the lines Chain warns that Ivy currently is only untested prototype of software and it have to be implemented to nothing but education and research.
Bitcoin Script, unlike its famous fellow Bitcoin, is unpopular within blockchain community and used by relatively few people due to its limited “virtual machine” and complexity of related operations. By now, Ethereum supports almost every smart contract delivered as part of blockchain validation. However, with developing of Ivy, Chain team endears to strengthen Bitcoin back on that field.