A Blockchain is a distributed ledger that is employed to maintain and update a growing transaction list. This ledger of cryptocurrency transaction list is stored, updated and verified on a network of decentralized nodes (i.e. computers).
The Blockchain technology avails members of the crypto community new, unexplored avenues to build software to ease economic and social systems.
Smart contracts, on the other hand, are programs which are stored in a ledger and executed by the Blockchain network.
Digital currencies are transferable between different users, providing a secure decentralized mechanism for crypto value exchange. A lot of work has been put into the creation of the decentralized mechanism that links different Blockchains together; it is, however, impossible for smart contracts to send other cryptocurrencies to receiving users on a separate Blockchain.
The capacity to create crypto transactions on other Blockchains is of massive value to other smart contracts, enabling them spontaneously pay out in different currencies to the smart contracts users. There are two engaging fields of this technology, i.e. cryptocurrencies' diverse landscape and the availability of smart contracts.
Blockchain InterCrypto Smart Contracts: What are They?
The Blockchain InterCrypto Smart Contracts project was proposed to develop a new on-Blockchain mechanism that allows clients' smart contracts execute the conversion of cryptocurrencies.
At the inception of the Blockchain InterCrypto smart contract project, programmers and developers conducted an investigation of smart contract enabled Blockchain technologies and identified Ethereum as the most suitable Blockchain for the development of InterCrypto smart contracts. The decision to go with the Ethereum Blockchain was on account of the fact that the Ethereum Blockchain:
The InterCrypto smart contract provides a decentralized service on the Ethereum Blockchain. This service converts Ether (ETH) to other cryptocurrencies using the 'Oraclize' service to effect a query to 'ShapeShift' that implement these successful conversions of Ether to a large variety of different cryptocurrencies and Blockchain tokens.
InterCrypto smart contract provides a valuable, commission-free service that other smart contracts can make use of for the conversion of Ethereum to bitcoin and other altcoins.
The development of the InterCrypto produced the following artefacts:
Experts identified failure points of the InterCrypto smart contract as being low probability. These failure points exist because of the dependence on centralized off-Blockchain services which means the InterCrypto service is not wholly decentralized. Ether recovery is, however, possible for all failure states.
The cost of using the IC conversion feature is 0.0086 ETH with an additional 0.65 percent of the conversion. This nontrivial cost is extrapolated from the inadequate underlying Blockchain tech, the Proof of Work consensus protocol, Oracle usage cost as well as commissions taken by both the Oraclize and Shapeshift services.
It is important to note that the InterCrypto mechanism does not support conversions to Ether or other digital currencies from nonEthereum Blockchains.