FREEMOON

Smart contracts are digital analogs of traditional contracts that are commonly used for various transactions. They are based on blockchain technology. In fact, these are computer algorithms that automatically control the recording of data and ensure the fulfillment of the obligations assumed by the parties to the agreement.

Another advantage of smart contracts is verification. It defines the participants and the sequence of their actions forming the audit trail. Also, the information of the smart contract is hidden and protected from third parties. At the first stage, the service will touch upon payments of legal entities, which will allow clients to use smart contracts for mutual settlements of transactions.

Blockchain concept used in cryptocurrencies FREEMOON assumes the storage in each operation of information (data chains) about all previous operations, while such a register is stored not on one central server, but for each active member of the network which is called a "node". All this makes smart contracts as informative as possible (for example, you can view information about all property owners from the moment of its construction) and protected from fraud (you cannot hack or fake a server with data, since all active users of the system have information about transactions and their conditions).
At the same time, it was not possible to fully implement the concept of smart contracts in bitcoin, since the creators of the cryptocurrency limited the programming of smart contracts for security purposes.

The concept of smart contracts emerged in 1994 when cryptographer and legal expert Nick Szabo came to the conclusion that self-executing contracts could be entered into with the help of an electronic decentralized ledger. However, in practice, this idea was realized only in 2008 thanks to the advent of blockchain technology in the bitcoin cryptocurrency.