Complex smart contracts will soon be supported thanks to a group of researchers hailing from Warsaw. This new white paper called “Foundations of State Channel Networks” will put security on the top of the priority list, which is a must have these days.
A smart contract can be defined as a digital facilitation, verification or negotiation between parties in a contract. They are built for their smart systems, irrevocable nature, secure connections, and transparency.
Ethereum is looking at several scaling solutions, one such is Perun which has covered the safety issue of the second most popular cryptocurrency.
There are several coding bugs in smart contracts which originates from Ethereum, that can expose millions of dollars worth of cryptocurrency, and so safety is a primary issue.
The scaling solution of Perun is unique as it provides formal security with security proof for its protocol.
The best part about Perun is that the parties involved register the current state of the contracts and thus the smart contracts can be rewinded to the last state of the agreed terms.
The white paper states-
“In case when two (possibly malicious) parties send conflicting states to the channel contract, the logic of the contract will select the latest state on which both users have agreed on.”
A co-author of the paper, associate professor Stefan Dziembowski, co-author of the paper told Coindesk about the importance of security in smart contracts.
“We are convinced that in the context of cryptocurrencies, a sound security analysis is of particular importance because security flaws have a direct monetary value and hence, unlike in many other settings, are guaranteed to be exploited,” Dziembowski said.
A confirmation has been given by Ethereum’s creator Vitalik Buterin which will thus keep this scaling solution on top of its competitors such as Raiden.
“I definitely do think that we need some kind of general-purpose machinery for formally verifying properties of layer-two systems in general,” Buterin said.
Perun was run into by accident after trying to solve a solution for a file sharing app on top of Ethereum.
“While working on this project we noticed that a fundamental bottleneck to make our application work was high costs from on-chain transactions and the relatively slow time of processing smart contracts running on the blockchain,” Co-author of the Perun whitepaper, Dziembowski said.
However, there is a considerable difference between practicality and theory which both the Perun team and Buterin understand. Thus this theory needs to be coded into the real smart contract code and will take some time for success.
The Perun team is working towards the simplicity which will eventually be the key to success for Ethereum.
Image Source: “Flickr”