Bitcoin is the world’s most well-known digital currency (cryptocurrency) and in its short lifetime, has been called everything from ‘revolutionary‘ to a ‘get rich quick scheme‘. Those with a more technical mind understand what really makes Bitcoin special, and that is its tech. So, without further ado, does Bitcoin have smart contracts?
No, Bitcoin does not have smart contract capabilities. Bitcoin is intended as a decentralised store of value, not a decentralised processing network. If you are looking for a cryptocurrency with smart contracts, you need to check out Ethereum or Tezos.
What is a smart contract?
A smart contract is essentially a decentralised program. This means that you can decentralise processes that would previously have involved a large amount of trust by both parties. A smart contract is hard-programmed to do something as the result of another function.
What are they used for?
Smart contracts aren’t really in public use as of yet, although there is significant evidence to suggest that there are use cases for them within the world.
Some consider the main use case of smart contracts to be that of businesses that require some sort of financial transaction such as Insurance.
Being able to decentralise insurance policies is an amazing prospect as it allows for a fairer economy in essence.
Will Bitcoin have smart contracts in the future?
It is unlikely that Bitcoin will be used for sma4rt contracts in the future since it is not programmed to do so. Bitcoin was invented with the theory of a decentralised form of money, not to be a machine which processes business transactions.
To conclude, smart contracts may have a big impact on our world, especially when it comes to the Fintech sector, but Bitcoin will not be the technology used, it will be a different cryptocurrency such as Ethereum or Tezos.
William Hurrell is a digital currency entrepreneur based in the United Kingdom who runs a digital marketing company called Black Sands Media LTD. William got his first Bitcoin in 2014 and has been involved in the industry ever since.