SMART CONTRACT & BLOCKCHAIN TERMS

BLOCKCHAIN DECODING
Converting the Secret Code to its

Advanced Digital Ledger or Database

original meaning (used to access

01 that can be Public or Private.

08 Original Data & Info).
Example: Cryptocurrency Balances are

Example: Converting Coded Password

Public
(45564+"{}>?ML$#%$#$5) back to

Original password (1289klmjhal)

DIGITAL LEDGER
HASHING
A database shared by multiple users or

02 nodes (aka Computers or Servers).

09
More Secure than Encryption & never

can be Decoded (used to see if Data or

Example: A Public Budget that

Info has been tampered with).
everyone can see how the money was

spent Example: Hashing is used to secure

password login & Alerts

ONCHAIN DATA
Transactions & Information recorded
SMART CONTRACT
03 on the Blockchain. A Code based Digital Contract based on

Example: Cryptocurrency transactions,

Digital Transactions
10 Actions & Events.

Example: A Blockchain Will can

automatically transfer $$ to a

beneficiary Bank account or Crypto

OFFCHAIN DATA Account, once Policyholder is deceased

Transactions that aren’t on a Blockchain

04 & sometimes not Digital. Code-only Smart contracts

Example: Buy something with Cash or
Smart Contracts that are Code Only

Sign Physical Contract & later it's

(Don't Require Digital Signatures).
recorded on the Blockchain
11 Example: 2 People create a Loan

Agreement. The Borrower uses Crypto

DIGITAL SIGNATURE as collateral. If person does not pay on

the date in Smart Contract. The Lender

A Very Secure Digital Signature that is

automatically receives Crypto.
05 Recorded and Encrypted using

Cryptography or Hashing.
Ancillary Smart contracts
Example: A Fingerprint Signature or an

Online Notary Ancillary Contracts are enforceable in

12 Court or Lawsuits (Some Require Digital &

Physical Contract).
ENCRYPTION Example: Smart Contract & Digital

The Application of Cryptography by

Contract with Physical Contract to

06 Coding information. reinforce

Example: Encrypted Phone Call (a

Deterministic Smart Contracts
Hacker would hear Static & White

Noise, making it very difficult to

eavesdrop
13 These are Digital Contracts that mitigate

risk and almost guarantee an outcome.

Example: Insurance, Collateralized Loans

CRYPTOGRAPHY
Non-Deterministic Smart Contracts
Info & Data is converted into a secret

07
code for later Decoding (Letters are

replaced with symbols and numbers). 14 Digital Contracts where outcome can’t

be clearly determined or enforced.

Example: Your password (1289klmjhal)

Example: Uncollateralized Loans,

is Encrypted to (45564+"{}>?
Gambling (Collateral and Security

ML$#%$#$5) Deposits protect against uncertainty)

Smart Contracts should all be

Deterministic