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I have just started on blockchain and found that there are two key benefits with Ethereum: smart contract and decentralization. I tried to understand the benefits they provide and why they could have not been achieved by available tools. Could not realy get a convincing answer. Can somebody provide more light on it.

  1. Smart Contract.

I think this is to make the code (logic) public and fixed. But, is it not similar to open sorce code (may be sequence of transactions could have been added to it).

  1. Decentralization

Is it to provide more control with owner and to avoid spof? But how? Though the code and some data may be distributed but in most of the cases there are many other resources which may not be distributed such as private key to sign some data, some licences, apis to other modules. How can an application which uses its private key be decentralized? Even if somehow replicatef to few failover nodes, the private key can always be removed making the control still with vendor! How decentralization can work and be helpful here?

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You have already got the key benefits of Smart Contract:public and fixed.

  1. public means no secret deal
  2. fixed means everyone has to perform the contract

If you have ever done a civil engineering project, you will find that it is very difficult for Party A to perform the contract.

The smart contract is the digital type of the normal paper contract. And the execution of the smart contract is automatic. All parties involved in the smart contract must perform the contract, nobody can breach the contract in Ethereum.

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  • But, this objective could have been achieved by using a specific version of open source software as well. That also makes it public and fixed. – user3488903 May 10 at 2:45
  • Mabey you miss that the Nature of a smart contract is a contract to manage assets. I don't know any bank can open source their system. – smart contract_research_Rookie May 10 at 7:50

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